Evolent Health misses Q2 revenue estimates

Evolent Health

07/08/2025 21:17

Overview

Evolent Health Q2 revenue declines yr/yr, missing analyst expectations

Adjusted EBITDA for Q2 beats analyst estimates, reflecting strong performance

Co announces four new revenue agreements, indicating robust demand

Outlook

Evolent expects Q3 revenue between $460 mln and $480 mln

Company anticipates full-year revenue of $1.85 bln to $1.88 bln

Evolent sees Q3 adjusted EBITDA between $34 mln and $42 mln

Company plans $35 mln in capitalized software development for 2025

Result Drivers

RISING MEDICAL COSTS - Increased demand for complex specialty care solutions due to rising medical costs impacting health plans

AI AND AUTOMATION - Strategic focus on AI and automation through Auth Intelligence platform, aiming to innovate specialty care management

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$444.33 mln
$459.40 mln (14 Analysts)
Q2 EPS
-$0.44
Q2 Net Income
-$51.09 mln
Q2 Adjusted EBITDA
Beat
$37.55 mln
$35.90 mln (14 Analysts)
Q2 Adjusted EBITDA Margin
8.5%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

Wall Street's median 12-month price target for Evolent Health Inc is $16.00, about 41.2% above its August 6 closing price of $9.41

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nPn3PP3h5a

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)