-- Delivers full-year revenue of $3.95 billion, representing 46.1% growth
year-over-year
-- Exceeds high-end of fourth quarter and full-year guidance across all key
metrics: membership, revenue, adjusted gross profit and adjusted EBITDA
-- Raises health plan membership guidance by 2,000 at the midpoint and
introduces 2026 revenue guidance of $5.14 billion to $5.19 billion,
representing 30%-31% growth year-over-year, and adjusted EBITDA of $133
million to $163 million
-- Earns recognition on the 2026 Fortune World's Most Admired Companies$(TM)$
list, underscoring the company's innovative approach to senior health
care
ORANGE, Calif., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Alignment Healthcare, Inc. (NASDAQ: ALHC), today reported financial results for its fourth quarter and full year ended Dec. 31, 2025.
"Our fourth quarter and full-year 2025 results show what Medicare Advantage done right looks like," said John Kao, founder and CEO. "We once again exceeded industry expectations and delivered continued momentum on revenue growth while taking a positive step forward in profitability and margin expansion, including producing free cash flow on a full-year basis. By leading with our care model, we are putting our seniors first and lowering costs by delivering more care, not less. Being named to the 2026 Fortune World's Most Admired Companies(TM) list affirms the reputation we've built since going public. As we move through 2026, we remain focused on disciplined growth, the scalability of our operations and creating long-term value for the members we serve."
Fourth Quarter 2025 Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended Dec. 31, 2024.
-- Health plan membership at the end of the quarter was approximately
236,300, up 25.0% year-over-year
-- Total revenue was $1,012.8 million, up 44.4% year-over-year
-- Adjusted gross profit* was $124.9 million and loss from operations was
$10.3 million
-- Adjusted gross profit excludes depreciation and amortization of
$7.8 million and selling, general, and administrative expenses of
$125.8 million (which includes $11.5 million of equity-based
compensation). Adjusted gross profit also excludes an additional
$1.6 million of equity-based compensation recorded within medical
expenses
-- Medical benefits ratio based on adjusted gross profit was 87.7%
-- Adjusted EBITDA* was $11.4 million and net loss was $11.0 million
Full Year 2025 Financial Highlights
All comparisons, unless otherwise noted, are to the twelve months ended Dec. 31, 2024.
-- Total revenue was $3,948.7 million, up 46.1% year over year.
-- Adjusted gross profit was $494.8 million and income from operations was
$14.8 million
-- Adjusted gross profit excludes depreciation and amortization of
$30.4 million and selling, general, and administrative expenses of
$443.4 million (which includes $55.9 million of equity-based
compensation). Adjusted gross profit also excludes $0.1 of
depreciation expense and an additional $6.1 million of
equity-based compensation recorded within medical expenses
-- Medical benefits ratio based on adjusted gross profit was 87.5%
-- Adjusted EBITDA was $109.9 million and net loss was $1.0 million
(* Please see "Fourth Quarter 2025 Non-GAAP Reconciliation Tables" below for more information on the non-GAAP financial measures reported here as supplemental information.)
Outlook for First Quarter and Fiscal Year 2026
Three Months Ending March 31, Twelve Months Ending December
2026 31, 2026
$ Millions Low High Low High
--------------
Health Plan
Membership 281,000 285,000 292,000 298,000
Revenue $1,205 $1,225 $5,135 $5,190
Adjusted Gross
Profit(1) $138 $148 $615 $650
Adjusted
EBITDA(1) $26 $36 $133 $163
_______________________
(1) (Adjusted gross profit and adjusted EBITDA are non-GAAP
financial measures presented as supplemental disclosure.
We cannot provide estimated ranges for the most directly
comparable GAAP measures without unreasonable efforts
because of the uncertainty around certain items that
may impact such GAAP measures, including equity-based
compensation expense and depreciation and amortization,
that are not within our control or cannot be reasonably
predicted. See "Fourth Quarter 2025 Non-GAAP Reconciliation
Tables" for additional information.)
Fourth Quarter 2025 Non-GAAP Reconciliation Tables
Adjusted Gross Profit(1) is reconciled as follows:
Three Months Ended Year Ended December
December 31, 31,
-------------------- ----------------------
2025 2024 2025 2024
------- ------- -------- --------
(dollars in thousands)
Income (loss) from
operations $(10,284) $(22,545) $ 14,752 $(101,555)
Add back:
Equity-based
compensation
(medical
expenses) $ 1,613 $ 1,546 6,134 4,930
Depreciation
(medical
expenses) $ 4 $ 46 78 190
Restructuring costs
(medical expenses)
(2) $ -- $ -- -- 796
Depreciation and
amortization (3) $ 7,830 $ 6,762 30,404 26,872
Selling, general,
and administrative
expenses $125,764 $102,128 443,407 371,374
------- ------- ------- --------
Total add back 135,211 110,482 480,023 404,162
------- ------- ------- --------
Adjusted gross profit $124,927 $ 87,937 $494,775 $ 302,607
======= ======= ======= ========
(1) Adjusted gross profit is a non-GAAP financial measure
that is presented as supplemental disclosure, that
we define as income (loss) from operations before
depreciation and amortization, medical equity-based
compensation expense, clinical restructuring costs
and selling, general, and administrative expenses.
(2) (Represents severance and related costs incurred as
part of a corporate restructuring designed to streamline
our organizational structure and drive operational
efficiencies.)
(3) (Amortization expense for the year ended Dec. 31,
2025 includes $0.6 million in impairment expense related
to the remeasurement of goodwill associated with one
of our subsidiaries. Amortization expense for the
year ended Dec. 31, 2024 includes $0.6 million in
impairment expense related to intangible assets that
were written off during the year.)
Adjusted EBITDA(1) is reconciled as follows:
Three Months Ended
December 31, Year Ended December 31,
-------------------- -----------------------
2025 2024 2025 2024
------- --------
(dollars in thousands)
Net loss $(11,006) $(31,064) $ (978) $(128,071)
Less: Net income (loss)
attributable to
noncontrolling
interest -- (27) (254) (36)
Adjustments:
Interest expense 3,949 5,492 15,799 23,547
Depreciation and
amortization(2) 7,834 6,808 30,482 27,062
Income tax
expense (3,227) 7 20 21
Equity-based
compensation(3) 13,115 16,236 62,082 71,132
Acquisition
expenses(4) -- -- -- 26
Litigation costs
(5) 749 892 2,357 2,069
Loss on ROU
assets(6) -- -- -- 143
Gain on sale of
property and
equipment -- (1) (72) (9)
Restructuring
costs(7) -- -- -- 2,363
Loss on
extinguishment
of debt -- 3,020 -- 3,020
------- ------- ------- --------
Adjusted EBITDA $ 11,414 $ 1,363 $109,944 $ 1,339
======= ======= ======= ========
(1) Adjusted EBITDA is a non-GAAP financial measure that
is presented as supplemental disclosure, that we define
as net income (loss) before interest expense, income
taxes, depreciation and amortization expense, acquisition
expenses, certain litigation costs, gains or losses
on right of use ("ROU") assets, gains or losses on
sale of property and equipment, restructuring costs,
equity-based compensation expense, and loss on extinguishment
of debt.
(2) (Amortization expense for the year ended Dec. 31,
2025 includes $0.6 million in impairment expense related
to the remeasurement of goodwill associated with one
of our subsidiaries. Amortization expense for the
year ended Dec. 31, 2024 includes $0.6 million in
impairment expense related to intangible assets that
were written off during the year.)
(3) (Represents equity-based compensation related to grants
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