AGL · Agilon Health, Inc.

Agilon Health reported first quarter 2026 results that significantly exceeded prior year performance, driven by disciplined execution and improved contract economics. Total revenue declined 7% year-over-year to $1.42 billion, primarily due to a 13% reduction in Medicare Advantage members and 4% decline in ACO model members, reflecting previously disclosed market exits and a disciplined contracting approach. However, gross profit improved 28% to $65 million, and medical margin increased 16% to $149 million, with Medicare Advantage cost trend reserved at 7.4%. Net income surged to $49 million from $12 million in the prior year, while Adjusted EBITDA more than doubled to $54 million, including a $27 million contribution from ACO model entities. Management highlighted early returns from investments in data, technology, and clinical execution, and raised full-year 2026 guidance across all key metrics: total revenue now expected between $5.68 billion and $5.805 billion (up from $5.41-$5.58 billion), medical margin between $350 million and $400 million (up from $300-$350 million), and Adjusted EBITDA between $10 million and $40 million (up from a loss of $15 million to a gain of $15 million). The guidance reflects an expected 1.5% increase in member risk scores net of v28, a new full-risk contract signed in Q1, and higher ACO REACH contribution. The company also announced the appointment of Tim O'Rourke as CEO, effective immediately, bringing over 25 years of healthcare leadership. The strong quarterly performance and upward guidance revision signal improving operational momentum and margin expansion trajectory.