agilon health (AGL) Q1 2026 earnings summary

Executive summary

• First quarter 2026 results exceeded expectations, with strong operational execution, improved margins, and enhanced data and AI integration supporting clinical and financial performance.

• Revenue for Q1 2026 was $1.42 billion, down 7% year-over-year due to lower Medicare Advantage membership and market exits, but profitability improved significantly.

• Net income rose to $49 million from $12 million in Q1 2025, aided by improved margins and a $19 million gain from discontinued operations.

• Adjusted EBITDA increased to $54 million, up from $21 million in the prior year.

• Tim O'Rourke was appointed CEO and President, effective May 7, 2026, to advance the mission and strategy.

Financial highlights

• Q1 2026 revenue was $1.42 billion, down from $1.53 billion year-over-year, with medical margin up to $149 million and gross profit rising to $65 million.

• Adjusted EBITDA for Q1 was $54 million, a 162% increase year-over-year.

• Medical services expense decreased 9% to $1.27 billion, and general and administrative expenses fell 18% to $54.2 million.

• Ended quarter with $303 million in cash and marketable securities; total assets reached $1.50 billion.

• Total debt stood at $32 million at quarter-end.

Outlook and guidance

• Full-year 2026 guidance raised: revenue expected at $5.68–$5.81 billion, medical margin at $350–$400 million, Adjusted EBITDA at $10–$40 million.

• Q2 2026 guidance: revenue $1.44–$1.48 billion, medical margin $115–$130 million, Adjusted EBITDA $15–$25 million.

• Maintains net cost trend outlook of 7% for 2026, reflecting prudent reserving.

• Existing liquidity and borrowing capacity expected to cover working capital and capital expenditures for at least the next 12 months.

• Optimistic about continued improvement beyond 2026, supported by final 2027 rate notice and ongoing initiatives.