Evolent Health Q1 revenue misses estimates as margin narrows

Evolent Health

07/05/2026 12:16

Overview

US healthcare solutions provider's Q1 revenue declined and missed analyst expectations

Adjusted EBITDA margin for Q1 fell to 4.4% from 7.6% a year earlier

Company reiterated full-year 2026 revenue and adjusted EBITDA guidance

Outlook

Evolent reiterates 2026 revenue guidance of $2.4 bln to $2.6 bln

Company maintains 2026 Adjusted EBITDA guidance of $110 mln to $140 mln

Evolent expects $25 mln to $30 mln in capitalized software development spending in 2026

Result Drivers

SPECIALTY CARE DEMAND - Co said rising medical costs for health plans continue to drive demand for its complex specialty care solutions

NEW CONTRACTS - Co announced two new revenue agreements, including an advanced imaging solution for an existing client and an expansion of oncology and cardiology solutions with a national payer

Company press release: ID:nPn34nC6qa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$496.25 mln
$534.67 mln (15 Analysts)
Q1 Net Income
-$26.63 mln
Q1 Adjusted EBITDA
$22.07 mln
Q1 Adjusted EBITDA Margin
4.40%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Evolent Health Inc is $5.50, about 43.6% above its May 6 closing price of $3.83

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)