Evolent Health Reports $1.876 Billion Revenue Decline and $579.4 Million Net Loss for 2025

Evolent Health, Inc. reported total revenue of $1.876 billion for the year ended December 31, 2025, a decrease of 26.6% compared to $2.555 billion in 2024. The decline was primarily attributed to contractual updates with certain Performance Suite customers, including a $447.3 million impact from transitioning a customer to the Specialty Technology and Services Suite and a $267.4 million reduction related to narrowed contract scopes. These decreases were partially offset by $62.9 million in growth from other Performance Suite and Specialty Technology and Services contracts, net of membership reductions at certain health plan clients. The company experienced a net loss attributable to common shareholders of $579.4 million, compared to a net loss of $93.5 million in the previous year.

The company's cost of revenue decreased by 32.5% to $1.476 billion, primarily due to the revenue decline. Selling, general, and administrative expenses increased by 15.5% to $303.9 million, driven by higher personnel costs, professional fees, and technology costs. Depreciation and amortization expenses decreased slightly by 2.1% to $115.9 million. A significant non-cash goodwill impairment charge of $398.0 million was recorded due to a decline in the company's stock price, contributing to the substantial increase in net loss. The medical expense ratio (MER) excluding Evolent Care Partners increased from 96.0% to 89.0%.

Strategic developments during the year included the sale of Evolent Care Partners for $100 million, resulting in a gain on disposal of $14.9 million. The company also issued $166.8 million in 4.50% Convertible Senior Notes due 2031 and used the proceeds, along with available liquidity, to repurchase $167.4 million of its 1.50% Convertible Senior Notes due 2025. Additionally, the company repurchased $40.0 million of its Class A common stock. Mario Ramos was appointed as Chief Financial Officer, effective January 1, 2026.

Key operational metrics included Performance Suite lives on platform of 6.482 million, Specialty Technology and Services Suite lives on platform of 77.983 million, and Administrative Services lives on platform of 1.221 million. The average Performance Suite PMPM fee was $14.48, while the Specialty Technology and Services Suite PMPM fee was $0.38, and the Administrative Services PMPM fee was $15.47. The company reported 53,000 cases and a revenue per case of $3,168. As of February 16, 2026, Evolent Health had approximately 4,200 global employees. The company's outlook emphasizes growth opportunities through its existing partner base, delivering clinical results, expanding offerings, and selectively pursuing strategic acquisitions and divestitures.