0001628280-25-048839
SEC filingRevenue declined 1% to $1.44B, net loss improved 6% to $110M, driven by lower expenses and higher equity method income.
In Q3 2025, agilon health reported total revenue of $1.44B, a 1% decrease from $1.45B in Q3 2024. The decline was driven by a 4% drop in Medicare Advantage membership (to 502,800) due to partnership exits during 2024, partially offset by growth from new geographies and existing markets. Medical services revenue, which constitutes substantially all revenue, fell 1% to $1.43B. Gross loss widened to $(67.6)M from $(64.2)M, as medical services expense declined only 1% (to $1.49B) while other medical expenses jumped 47% to $13.5M, primarily from higher partner physician incentive losses. Operating loss improved slightly to $(131.3)M from $(133.5)M, benefiting from a 11% reduction in general and administrative expenses (to $56.2M). Net loss narrowed 6% to $(110.2)M, aided by a 542% surge in income from equity method investments to $13.1M, driven by higher medical margin from CMS ACO Models and lower operating expenses.
agilon operates as a single reportable segment, but membership trends reveal key dynamics. Medicare Advantage members decreased 4% YoY to 502,800, while average MA membership in Q3 was 510,400. CMS ACO attributed beneficiaries fell 13% to 115,300. The payor data pipeline introduced in Q1 2025 is being rolled out to improve risk adjustment visibility. Medical margin, a non-GAAP measure of medical services revenue after medical services expense, improved to $(57.0)M from $(58.3)M, reflecting a 1% decline in medical services expense outpacing revenue. Platform support costs decreased 9% to $38.7M, indicating cost discipline.
Management expects continued operating losses and negative cash flows for the foreseeable future due to investments in expansion and public company costs. Existing cash ($171.7M), marketable securities ($139.2M), and borrowing capacity under the $100M revolver (due Feb 2026) are expected to cover working capital for at least 12 months. No specific quantitative guidance was provided. Strategic focus remains on onboarding payors to the new data pipeline and improving medical margin through cost management and risk adjustment accuracy.
As of September 30, 2025, the company held $171.7 million in cash and cash equivalents (down from $188.2 million at December 31, 2024). Marketable securities totaled $139.2 million (down from $211.7 million). Total assets were $1.60 billion, while total liabilities stood at $1.29 billion. Stockholders' equity decreased to $306.1 million from $470.9 million, driven largely by the $202.5 million net loss for the nine-month period. Receivables, net were $947.2 million, slightly lower than $1.02 billion at year-end 2024. Medical claims and related payables increased to $1.06 billion from $931.7 million, reflecting higher incurred but not reported liabilities.
The company disclosed no material purchase commitments or contractual obligations in the notes. Off-balance sheet commitments include $83.2 million of outstanding letters of credit and $9.5 million of surety bonds related to health plan payor risk-bearing capital. The company has a $100.0 million secured revolving credit facility with $16.8 million available after letters of credit. There are no material operating lease commitments beyond the $3.9 million right-of-use asset recognized.
No share repurchases or dividends were reported during the nine months ended September 30, 2025. The company reduced debt by $34.9 million (classified as current debt of $35.0 million vs. $34.9 million long-term debt at year-end), though no repayments were disclosed in financing activities. Capital expenditures were $10.3 million (0.2% of sales). The company issued approximately 2.4 million shares primarily for stock-based compensation vesting, raising no cash.
The company operates as a single operating and reportable segment. The Chief Operating Decision Maker (CODM) uses consolidated net income (loss) to assess performance. Key expense categories provided to the CODM are medical services expense, other medical expense, and platform support costs (which were $120.3 million for the nine months). No geographic or product-line segment disclosure is provided.
CFO of -$85.2M was worse than the net loss of $202.5M, primarily due to large non-cash charges (depreciation/amortization $21.6M, stock-based compensation $39.6M) and a $106.8M working capital outflow. The negative CFO indicates weak cash generation from operations. Capex of $10.3M was modest relative to the loss, but free cash flow (CFO minus capex) was -$95.5M, showing no coverage for capital returns. No share repurchases or dividends were paid. The investing cash flow was positive ($66.0M) due to net proceeds from marketable securities, masking the underlying cash burn. The year-over-year CFO decline from -$74.2M to -$85.2M reflects worsening operational cash efficiency.