0001628908-26-000033
SEC filingEvolent Health has one operating segment; revenue grew 2.6% YoY to $496.2M, with no buybacks or dividends in Q1 2026.
As of March 31, 2026, Evolent Health held $142.0M in cash and cash equivalents (excluding $26.7M restricted). Total assets were $1,879B, with goodwill and intangibles comprising $1,264B. Total debt (net) stood at $973.5M, consisting of convertible notes ($554.5M carrying value) and credit facility term loans ($419M). Shareholders' equity was $396.4M, a decline from $415.2M at year-end 2025 due to the net loss. The current ratio (current assets/current liabilities) is 1.32, indicating adequate liquidity.
The Notes disclose operating lease commitments of $12.7M over the remaining terms (weighted average 2.9 years). Letters of credit totaled $14.9M, secured by $16.0M restricted cash. The Tax Receivables Agreement liability remains at $108.9M. No material supply or capacity purchase commitments were disclosed; the company's main contractual obligations relate to leases and the TRA.
During Q1 2026, Evolent did not repurchase shares or pay dividends. Capital expenditures (internal-use software & property/equipment) were $6.4M (1.3% of revenue). Debt activity was negligible: no new issuances or repayments; the small increase in carrying value reflects amortization of debt discount/issuance costs. The company has not announced any new buyback authorization.
Evolent operates as a single reportable segment. Revenue is disaggregated by line of business (Medicaid $218.1M, Medicare $162.8M, Commercial $115.3M) and by product suite (Performance Suite $323.3M, Specialty Technology $80.8M, Administrative Services $49.6M, Cases $42.6M). Geographical mix is not disclosed. The company has one CODM and no further segment reporting.
Operating cash flow (CFO) was -$0.984M, a significant deterioration from +$4.565M in the prior year, driven primarily by large negative working capital swings: accrued liabilities decreased $20.982M, accrued compensation declined $19.98M, and operating lease liabilities decreased $7.222M. These outflows were partially offset by a $39.766M increase in reserves for claims. Capex (internal-use software and PP&E) was $6.406M, down from $8.595M, indicating lower investment intensity. The company did not engage in share repurchases or pay dividends during the quarter, providing a clean capital returns profile. The negative CFO combined with capex resulted in negative free cash flow of approximately -$7.39M (CFO minus capex). Notable one-time items include a $52.348M loss on option exercise in the prior year and $1.906M loss on lease termination, both non-recurring. Overall, cash flow quality is weak due to heavy working capital consumption, but the business continues to invest in software and equipment.