Astrana Health Reports 35% Revenue Growth in Q2 2025, Net Income Declines by 51%

Astrana Health, Inc. reported significant financial performance for the second quarter of 2025, with total revenue reaching $654.8 million, a 35% increase from $486.3 million in the same period last year. The growth was primarily driven by a substantial rise in capitation revenue, which increased by 39% to $614.1 million, attributed to recent acquisitions and an increase in enrolled patients transitioning to full-risk models. However, net income attributable to Astrana decreased by 51% to $9.4 million compared to $19.2 million in the prior year, reflecting higher operational costs and a decrease in other income.

For the first half of 2025, Astrana's total revenue was $1.3 billion, up 43% from $890.6 million in the same period of 2024. The company reported a net income of $16.1 million, down from $34.0 million a year earlier. The decline in profitability was influenced by increased operating expenses, which rose by 49% to $1.2 billion, driven by higher costs associated with patient care and administrative support related to the company's expanding operations.

Strategically, Astrana completed the acquisition of Prospect Medical Holdings on July 1, 2025, for $707.9 million, financed through a delayed draw term loan. This acquisition is expected to enhance Astrana's integrated care delivery network, expanding its reach to over 1.6 million patients and more than 20,000 providers across multiple states. The company also reported an increase in its employee headcount, reflecting its growth strategy and operational expansion.

Operationally, Astrana managed over 1 million patients as of June 30, 2025, with a focus on value-based care arrangements. The company operates through three segments: Care Partners, Care Delivery, and Care Enablement, with Care Partners generating the highest revenue growth. The company’s engagement metrics indicate a robust increase in patient visits and care coordination efforts, although the Care Enablement segment experienced a decline in operating income due to rising administrative costs.

Looking ahead, Astrana remains optimistic about its growth trajectory, particularly in light of the recent acquisition and ongoing investments in technology and infrastructure. The company anticipates that its diversified operations and strong performance in Medicaid will help navigate potential regulatory changes, including new Medicaid work-requirement pilots set to begin in 2026. Astrana's management believes that these strategic initiatives will position the company favorably for continued growth and improved financial performance in the coming quarters.