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Evolent Health (NYSE:EVH – Get Free Report) and CareCloud (NASDAQ:CCLD – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Valuation & Earnings This table compares Evolent Health and CareCloud”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Evolent Health $1.88 billion 0.29 -$534.51 million ($4.57) -1.06 CareCloud $128.64 million 0.64 $10.80 million $0.07 27.57 CareCloud has lower revenue, but higher earnings than Evolent Health. Evolent Health is trading at a lower price-to-earnings ratio than CareCloud, indicating that it is currently the more affordable of the two stocks. Profitability This table compares Evolent Health and CareCloud’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Evolent Health -24.08% -4.27% -1.06% CareCloud 6.21% 27.07% 14.56% Institutional and Insider Ownership 10.2% of CareCloud shares are held by institutional investors. 1.5% of Evolent Health shares are held by insiders. Comparatively, 14.8% of CareCloud shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility Evolent Health has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, CareCloud has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Analyst Recommendations This is a breakdown of recent ratings and target prices for Evolent Health and CareCloud, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Evolent Health 1 4 11 0 2.62 CareCloud 0 1 1 0 2.50 Evolent Health presently has a consensus target price of $5.96, suggesting a potential upside of 22.85%. Given Evolent Health’s stronger consensus rating and higher probable upside, research analysts clearly believe Evolent Health is more favorable than CareCloud.

Summary CareCloud beats Evolent Health on 10 of the 14 factors compared between the two stocks.

About Evolent Health (Get Free Report)

Evolent Health, Inc., through its subsidiary, Evolent Health LLC, offers specialty care management services in oncology, cardiology, and musculoskeletal markets in the United States. The company provides platform for health plan administration and value-based business infrastructure. It offers administrative services, such as health plan services, pharmacy benefits management, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients. In addition, the company provides holistic total cost of care management. Evolent Health, Inc. was founded in 2011 and is headquartered in Arlington, Virginia.

About CareCloud (Get Free Report)

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.

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Evolent Health, Inc (NYSE:EVH – Get Free Report) has received a consensus recommendation of “Moderate Buy” from the sixteen ratings firms that are covering the company, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, four have issued a hold recommendation and eleven have assigned a buy recommendation to the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $5.96.

A number of research firms have issued reports on EVH. Citigroup upgraded shares of Evolent Health from a “neutral” rating to a “buy” rating and reduced their target price for the company from $6.75 to $6.00 in a report on Monday, August 10th. Truist Financial cut their price objective on shares of Evolent Health from $7.00 to $6.00 and set a “hold” rating for the company in a research report on Wednesday, August 12th. Canaccord Genuity Group reduced their price objective on shares of Evolent Health from $7.00 to $6.00 and set a “buy” rating on the stock in a research note on Monday, August 10th. Weiss Ratings upgraded shares of Evolent Health from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday. Finally, TD Cowen raised their target price on shares of Evolent Health from $5.00 to $6.00 and gave the stock a “buy” rating in a research report on Monday, August 17th.

Get Our Latest Stock Report on Evolent Health

Insider Buying and Selling at Evolent Health In other Evolent Health news, President Daniel Mccarthy sold 65,892 shares of the stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $5.00, for a total transaction of $329,460.00. Following the transaction, the president owned 655,133 shares of the company’s stock, valued at $3,275,665. This represents a 9.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.48% of the stock is currently owned by corporate insiders. Hedge Funds Weigh In On Evolent Health Institutional investors have recently added to or reduced their stakes in the business. R Squared Ltd acquired a new stake in Evolent Health in the 1st quarter worth about $26,000. Sequoia Financial Advisors LLC acquired a new position in shares of Evolent Health during the 2nd quarter valued at about $78,000. Royal Bank of Canada increased its stake in shares of Evolent Health by 51.6% during the 1st quarter. Royal Bank of Canada now owns 25,161 shares of the technology company’s stock valued at $57,000 after acquiring an additional 8,563 shares during the last quarter. WINTON GROUP Ltd lifted its holdings in shares of Evolent Health by 29.6% during the 2nd quarter. WINTON GROUP Ltd now owns 26,700 shares of the technology company’s stock worth $145,000 after acquiring an additional 6,100 shares during the period. Finally, Wealthfront Advisers LLC lifted its holdings in shares of Evolent Health by 40.8% during the 1st quarter. Wealthfront Advisers LLC now owns 28,083 shares of the technology company’s stock worth $64,000 after acquiring an additional 8,136 shares during the period.

Evolent Health Stock Performance Evolent Health stock opened at $3.85 on Wednesday. The company has a debt-to-equity ratio of 2.52, a quick ratio of 1.24 and a current ratio of 1.24. The stock has a fifty day moving average of $3.99 and a two-hundred day moving average of $4.01. The company has a market capitalization of $435.51 million, a price-to-earnings ratio of -0.84 and a beta of 1.02. Evolent Health has a fifty-two week low of $2.10 and a fifty-two week high of $8.46.

Evolent Health (NYSE:EVH – Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The technology company reported $0.02 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.01) by $0.03. The company had revenue of $484.50 million during the quarter, compared to analysts’ expectations of $597.70 million. Evolent Health had a negative return on equity of 4.27% and a negative net margin of 24.08%.The business’s revenue for the quarter was up 46.9% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.10) earnings per share. On average, analysts anticipate that Evolent Health will post -0.25 EPS for the current fiscal year.

About Evolent Health (Get Free Report)

Evolent Health, Inc is a healthcare services and technology company that helps health plans and providers manage specialty care and transition to value-based models. Its offerings are designed to coordinate care, improve clinical outcomes and support more predictable healthcare costs across complex medical conditions.

The company provides technology-enabled administrative, clinical and analytical services for areas such as oncology, cardiology, musculoskeletal care and other specialty-care categories.

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Evolent Health, Inc. is awarded a contrarian Buy rating despite extreme indebtedness and recent net losses. EVH trades at a deeply distressed valuation (~0.2x forward sales) due to ~$967m long-term debt and persistent GAAP losses. Management projects >25% revenue growth and adjusted EBITDA ≥$150m in 2027, aiming to improve leverage and capital structure.

Evolent Health NYSE: EVH reported second-quarter revenue of $653 million, up 31% from the first quarter, and adjusted EBITDA of $28 million, up 27% sequentially, as the company benefited from the May launch of its Highmark partnership and continued growth in its Performance Suite business.

Chief Executive Officer Seth Blackley said the results reflected the company’s ability to execute in a changing healthcare environment. Evolent raised its full-year revenue guidance to a range of $2.6 billion to $2.7 billion, from a prior range of $2.4 billion to $2.6 billion. It also narrowed adjusted EBITDA guidance to $120 million to $135 million, compared with its previous outlook of $110 million to $140 million.

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The company maintained its expectation for a full-year medical expense ratio, or MER, of approximately 93%.

Highmark Launch Drives Performance Suite Growth Performance Suite revenue totaled $485 million in the second quarter, rising 50% from the first quarter. Chief Financial Officer Mario Ramos said the increase was driven primarily by higher membership following the Highmark launch on May 1.

Evolent’s MER was 95% during the second quarter, compared with 93% in the first quarter. Ramos said the increase was expected and largely reflected the Highmark launch and its associated higher reserves. The company also continued to see higher acuity among exchange populations, though it said its contracts include protections against changes in prevalence.

Blackley said early results from the Highmark program were encouraging, with clinical engagement rates above targets and provider engagement exceeding initial go-live expectations. The company expects greater visibility into claims performance over the next several months.

Evolent also said its Aetna partnership, which began earlier in 2026, continued to produce clinical engagement above targets, while initial claims-based performance was in line with expectations.

For the second half, Ramos said revenue in both the third and fourth quarters is expected to be meaningfully above the second-quarter level, primarily due to Performance Suite revenue. The third quarter is expected to include a full quarter of Highmark revenue and launches in several markets tied to a previously announced Performance Suite expansion.

New Oncology and Cross-Sell Agreements The company announced an oncology Performance Suite agreement with an existing advanced-imaging client. The arrangement is expected to cover roughly 1.5 million Medicare and Medicaid lives across 11 states and is anticipated to launch by December 2026, subject to regulatory approvals.

Evolent expects the oncology contract to generate approximately $300 million in annualized revenue. Blackley said the agreement includes the company’s enhanced contractual protections used in other recent Performance Suite arrangements.

The company also expanded its relationship with a regional Blue Cross plan and former NIA customer. The customer will add products and extend existing products to additional populations using Evolent’s specialty technology and services platform. Implementations are expected during the third and fourth quarters.

While annualized revenue from that extension is expected to be less than $5 million, Blackley said Evolent expects the agreement to generate strong adjusted EBITDA and demonstrate the company’s cross-selling opportunity within its existing customer base.

Specialty technology and services revenue was $78 million, down 3% sequentially. Ramos attributed the decline to code-review scope changes related to AHIP commitments, rather than client attrition or pricing pressure. Administrative Services revenue also declined 3% to $48 million, primarily because the first quarter included a prior-year reserve true-up.

AI Automation and Cost Focus Blackley highlighted the company’s Auth Intelligence platform, which was built on Evolent’s 2024 acquisition of Machinify. Evolent is pursuing a long-term goal of automatically approving 80% of authorization volume, while maintaining a requirement that clinicians make recommendations involving treatment changes.

More than one-third of authorization volume that previously required manual clinical review is now being evaluated through the platform, according to Blackley. Among customers where the models have been deployed, Evolent has seen auto-approval rates improve by as much as 20 percentage points. He said certain cases previously requiring days to complete can now be approved in minutes.

Auth Intelligence is scheduled for an aggressive deployment in the first quarter of 2027 as part of a major customer renewal. Management said the platform, along with expense discipline and other productivity measures, is expected to support long-term margin goals.

2027 Outlook and Capital Structure Based on contracted revenue and completed customer renewals, Evolent expects revenue growth of more than 25% in 2027. Ramos said the outlook includes anticipated membership pressure from Medicaid work requirements, exchange attrition and client-specific market exits.

The company expects the midpoint of its 2027 adjusted EBITDA outlook to be at or above $150 million. Ramos said the outlook assumes improving Performance Suite care margins, operating-expense reductions and ongoing AI and technology investment. While growth in the capitated Performance Suite business can reduce the company’s consolidated margin percentage, he said margins within the Performance Suite business are expected to expand as contracts mature.

Evolent ended the quarter with $115.7 million in unrestricted cash and $808.3 million in net debt. The company reduced its asset-based lending revolver by $10 million to its minimum draw of $62.5 million.

Ramos said Evolent has identified several possible ways to address its 2029 debt maturities, including EBITDA growth, improved cash-flow conversion, disciplined capital allocation and potential capital-markets or strategic actions. The company expects to improve leverage ratios and its maturity profile over the next 12 to 24 months, though management said it was too early to determine the ultimate path.

About Evolent Health (NYSE:EVH)Evolent Health, Inc is a U.S.-based healthcare technology and services company that partners with health systems, physician organizations and health plans to design, build and operate value-based care programs. Headquartered in Arlington, Virginia, the company was founded in 2011 as a joint venture between TPG and the University of Pittsburgh Medical Center (UPMC). Evolent Health aims to help its clients transition from fee-for-service payment models to value-based care arrangements by leveraging its proprietary technology platforms and clinical expertise.

The company's core offerings include care management solutions, population health analytics and clinical advisory services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Evolent Health, Inc. (EVH) Q2 2026 Earnings Call Transcript

, /PRNewswire/ -- Evolent Health, Inc. (NYSE: EVH) ("Evolent" or the "Company"), a company that specializes in better health outcomes for people with complex conditions through proven solutions that make health care simpler and more affordable, today announced financial results for the three months ended June 30, 2026.

Seth Blackley, Co-Founder and Chief Executive Officer of Evolent stated, "We believe our results for the second quarter of 2026, our updated 2026 guidance and our 2027 outlook all demonstrate that Evolent is delivering strong growth, profitability and cash flow. We are confident in our emerging AI-led operational model that we believe allows us to deliver excellent client and clinical outcomes, while being highly disciplined with our cost structure."

Mario Ramos, Chief Financial Officer of Evolent stated, "Looking ahead to 2027, based on contracts in place today, upcoming launches scheduled and the strong continuing demand for our oncology solution, we expect to see revenue growth of over 25% compared to 2026. We expect the midpoint of our 2027 Adjusted EBITDA outlook will be at or above $150 million driven by expected improved Performance Suite care margins and a strong focus on expense reductions, despite significant continued industry headwinds from Medicaid and other client specific membership attrition. We also expect improved cash flow conversion, which, together with targeted debt reduction initiatives we are currently evaluating, we believe provides a clear path to addressing our capital structure and enhancing financial flexibility."

Highlights include (dollars in thousands, except for average PMPM fees and revenue per case):

For the Three Months
Ended June 30,

2026

2025

Financial Results:

Revenue

$     652,520

$      444,328

Net loss attributable to common shareholders of Evolent Health, Inc.

$      (28,364)

$       (51,090)

Net loss margin

(4.3) %

(11.5) %

Adjusted EBITDA

$       28,050

$        37,547

Adjusted EBITDA Margin

4.3 %

8.5 %

Average Lives on Platform/Cases by Product Type

Performance Suite

6,715

6,490

Specialty Technology and Services Suite

75,641

77,019

Administrative Services

1,189

1,231

Cases

12

13

Average Unique Members

39,956

40,201

Average PMPM Fees/ Revenue per Case by Product Type

Performance Suite

$         24.05

$        13.76

Specialty Technology and Services Suite

0.34

0.35

Administrative Services

13.46

15.13

Cases

3,608

2,969

Medical Expense Ratio

95.3 %

80.0 %

Medical Expense Ratio excluding Evolent Care Partners

95.3 %

84.9 %

The rising medical costs impacting health plans continue to drive robust demand for Evolent's complex specialty care solutions.

Evolent has two partnership announcements, bringing the year-to-date total to four:

First, we are preparing for the go live of an Oncology Performance Suite partnership with an existing advanced imaging client. The partnership will cover approximately 1.5 million lives across Medicaid and Medicare populations spread through 11 states. We currently expect this business to launch by December 2026, subject to certain regulatory approvals, and generate approximately $300 million in annualized revenue. As with other recent Performance Suite arrangements, this relationship includes Evolent's full enhanced contractual protections.
   Second, an existing Specialty Technology & Services Suite client, a regional Blues plan customer, has signed an agreement to broaden its use of our Specialty Technology & Services Suite by adding new products and extending existing solutions to additional populations. We expect these implementations to occur during the third and fourth quarters of this year and annualized revenue from this contract to be less than $5 million. Financial Results of Evolent Health, Inc.

In our earnings releases, prepared remarks, conference calls, slide presentations and webcasts, we may use or discuss financial measures not prepared in accordance with generally accepted accounting principles ("GAAP"). Definitions of the non-GAAP financial measures as well as reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are presented herein. See "Non-GAAP Financial Measures" for more information.

Reported Results

Evolent Health, Inc. reported the following results in accordance with GAAP (dollars in thousands, except for per share data):

For the Three Months
Ended June 30,

2026

2025

Revenue

$     652,520

$  444,328

Cost of revenue

$     571,684

$  343,943

Selling, general and administrative expenses

$       68,831

$    75,209

Net loss attributable to common shareholders of Evolent Health, Inc.

$      (28,364)

$   (51,090)

Net loss margin

(4.3) %

(11.5) %

Loss per share attributable to common shareholders of Evolent Health, Inc.

Basic and diluted

$         (0.25)

$       (0.44)

Total cash and cash equivalents was $115.7 million as of June 30, 2026.

Adjusted Results

Evolent Health, Inc. reported the following adjusted results (dollars in thousands, except for per share data):

For the Three Months
Ended June 30,

2026

2025

Adjusted cost of revenue

$  570,989

$   342,893

Adjusted selling, general and administrative expenses

$    53,481

$     63,888

Adjusted EBITDA

$    28,050

$     37,547

Adjusted EBITDA margin

4.3 %

8.5 %

Adjusted income (loss) attributable to common shareholders

$      2,226

$    (11,013)

Adjusted income (loss) per share attributable to common shareholders:

Basic and diluted

$       0.02

$        (0.10)

Business Outlook

The Company does not believe it can meaningfully reconcile guidance for non-GAAP Adjusted EBITDA to net income (loss) attributable to common shareholders of Evolent Health, Inc. because the Company cannot provide guidance for the more significant reconciling items between net income (loss) attributable to common shareholders of Evolent Health, Inc. and Adjusted EBITDA without unreasonable effort. This is due to the fact that future period non-GAAP guidance includes adjustments for items not indicative of our core operations, and as a result from changes to our business due to transactions and other events. Such items may, from time to time, include change in tax receivable agreement liability, other refinancing fees, gain (loss) from equity method investees, gain (loss) on repayment/extinguishment of debt, other income (expense), gain (loss) on disposal of non-strategic assets, goodwill impairments, right-of-use asset impairments, gain (loss) on lease terminations, stock-based compensation expense, severance costs and transaction-related costs. Such adjustments may be affected by changes in ongoing assumptions, judgments, as well as nonrecurring, unusual or unanticipated charges, expenses or gains (losses) or other items that may not directly correlate to the underlying performance of our business operations. The exact amount of these adjustments is not currently determinable but may be significant.

Full Year 2026 Guidance

Incorporating its year-to-date performance, the Company is raising its 2026 revenue guidance range to $2.6 to $2.7 billion. The Company is also tightening its Adjusted EBITDA guidance range to $120 to $135 million.

Additional Outlook Information

The Company expects to deploy $25 million to $30 million in cash for capitalized software development during 2026.

This "Business Outlook" section contains forward-looking statements, and actual results may differ materially. Factors that may cause actual results to differ materially from our current expectations in addition to those set forth above are set forth below in "Forward Looking Statements - Cautionary Language" and Evolent Health, Inc.'s filings with the Securities and Exchange Commission ("SEC").

Web and Conference Call Information

Evolent Health, Inc. will hold a conference call to discuss its financial performance and related matters this morning, August 6, 2026, at 8:00 a.m., Eastern Time. To listen to a live broadcast via the internet and view the accompanying materials, please visit the Company's Investor Relations website at http://ir.evolent.com. To participate by telephone, dial (855) 940-9467, or (412) 317-6034 for international callers, and ask to join the "Evolent Health call." Participants are advised to dial in at least fifteen minutes prior to the call to register. The call will be archived on the Company's website for one week and will be available beginning later this evening. Evolent invites all interested parties to attend the conference call.

About Evolent

Evolent specializes in better health outcomes for people with complex conditions through proven solutions that make health care simpler and more affordable. Evolent serves a national base of leading payers and providers and is consistently recognized as a top place to work in health care nationally. Learn more about how Evolent is changing the way health care is delivered by visiting evolent.com.

Contacts:

[email protected] 

Definitions

Revenue Agreements

Evolent reports the number of new revenue agreements signed for Performance Suite, Specialty Technology and Services Suite, Administrative Services and Case-based products. A new revenue agreement includes incremental revenue to the Company reflecting contracts for services to both new partner entities, corporations or health plans as well as additional sales to existing partners. New revenue agreements may include incremental services, geographic, or line of business expansions or a combination thereof. The conversion of Specialty Technology and Services Suite contracts to Performance Suite are also included in this definition. The Company does not count renewals for existing scope, growth of membership within an existing contract scope or transaction-related purchase agreements, if applicable, in this metric.

Lives on Platform and Per Member Per Month ("PMPM") Fee

Performance Suite Lives on Platform are calculated by summing monthly members covered for specialty care services for contracts not under ASO arrangements divided by the number of months in the period. Specialty Technology and Services Suite Lives on Platform are calculated by summing monthly members covered for oncology, cardiology, musculoskeletal, advanced imaging and other diagnostic specialty care services for contracts under ASO arrangements divided by the number of months in the period. Administrative Services Lives on Platform are calculated by summing monthly members covered for administrative services implementation and core performance services divided by the number of months in the period. Cases are calculated by summing the number of individuals receiving services through our surgery management and advanced care planning programs in a given period. Members covered for more than one category are counted in each category.

Performance Suite Average PMPM fee is defined as revenue pertaining to our Performance Suite during the period reported divided by Performance Suite Lives on Platform for the period divided by the number of months in the period. Specialty Technology and Services Suite Average PMPM fee is defined as revenue pertaining to the Specialty Technology and Services Suite during the period reported divided by Specialty Technology and Services Suite Lives on Platform for the period divided by the number of months in the period. Administrative Services Average PMPM fee is defined as revenue pertaining to the Administrative Services during the period reported divided by the Administrative Services Lives on Platform for the period divided by the number of months in the period. Revenue per Case is calculated by the revenue pertaining to surgery management and advanced care planning programs divided by the number of cases for a given period.

Average Unique Members are calculated by summing members covered by our Performance Suite, Specialty Technology and Services Suite and Administrative Services. In cases where partners cross between multiple solutions, we only capture members from the solution with the maximum number of members.

Management uses Lives on Platform, PMPM fees, Cases, Revenue per Case and Average Unique Members because we believe that they provide insight into the unit economics of our services. We believe that these measures are also useful to investors because they allow further insight into the period over period operational performance.

Medical Expense Ratio

Medical Expense Ratio ("MER") is a key performance indicator used by management for purposes of monitoring operating performance and is calculated as GAAP total claims incurred related to our specialty care management services solution divided by GAAP revenue related to our Performance Suite. Management believes MER is useful to investors because it provides insight into the efficiency with which medical costs are managed relative to revenue and helps identify trends in the underlying performance. For periods prior to the consummation of the sale of Evolent Care Partners ("ECP") in December 2025, we present non-GAAP MER excluding revenues from ECP because is not indicative of ongoing operations.

EVOLENT HEALTH, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited, in thousands, except per share data)

For the Three Months
Ended June 30,

For the Six Months
Ended June 30,

2026

2025

2026

2025

Revenue

$    652,520

$  444,328

$ 1,148,766

$   927,977

Expenses

Cost of revenue

571,684

343,943

984,156

725,121

Selling, general and administrative expenses

68,831

75,209

141,649

153,618

Depreciation and amortization expenses

21,566

23,141

43,121

47,199

Loss on lease termination

—

—

—

1,906

Change in fair value of contingent consideration

—

3,206

—

2,926

Operating expenses

662,081

445,499

1,168,926

930,770

Operating loss

(9,561)

(1,171)

(20,160)

(2,793)

Interest income

703

1,084

1,717

2,358

Interest expense

(16,859)

(11,601)

(33,727)

(21,986)

Gain (loss) from equity method investees

(41)

197

(52)

178

Loss on option exercise

—

(196)

—

(52,544)

Extinguishment of Series A Preferred Stock and other
refinancing fees

—

(9,000)

—

(9,000)

Other income (expense), net

109

(35)

851

(83)

Loss before income taxes

(25,649)

(20,722)

(51,371)

(83,870)

Provision for (benefit from) income taxes

2,715

(825)

3,625

645

Loss before preferred dividends and accretion of Series
A Preferred Stock including excise tax

(28,364)

(19,897)

(54,996)

(84,515)

Dividends and accretion of Series A Preferred Stock

—

(31,193)

—

(38,825)

Net loss attributable to common shareholders of Evolent
Health, Inc.

$     (28,364)

$  (51,090)

$   (54,996)

$  (123,340)

Loss per common share

Basic and diluted

$        (0.25)

$      (0.44)

$      (0.49)

$      (1.07)

Weighted-average common shares outstanding

Basic and diluted

112,542

115,882

112,225

115,600

Comprehensive loss

Net loss attributable to common shareholders of Evolent
Health, Inc.

$     (28,364)

$  (51,090)

$   (54,996)

$  (123,340)

Other comprehensive loss, net of taxes, related to:

Foreign currency translation adjustment

—

22

(1,002)

46

Total comprehensive loss attributable to common
shareholders of Evolent Health, Inc.

$     (28,364)

$  (51,068)

$   (55,998)

$  (123,294)

EVOLENT HEALTH, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

June 30, 2026

December 31,
2025

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$      115,703

$           151,856

Restricted cash

22,990

26,134

Accounts receivable, net

449,118

309,861

Prepaid expenses and other current assets

22,699

18,521

Total current assets

610,510

506,372

Restricted cash

2,773

2,706

Investments and equity method investees

8,764

8,966

Property and equipment, net

81,921

80,785

Right-of-use assets - operating

2,710

4,373

Prepaid expenses and other noncurrent assets

2,308

3,078

Contract cost assets

14,047

13,537

Intangible assets, net

554,427

584,937

Goodwill

694,434

694,482

Total assets

$    1,971,894

$        1,899,236

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

Current liabilities:

Accounts payable

$        38,823

$            59,776

Accrued liabilities

43,897

65,755

Operating lease liability - current

1,541

15,343

Accrued compensation and employee benefits

28,966

50,987

Deferred revenue

1,208

1,203

Reserve for claims and performance - based arrangements

378,398

192,196

Total current liabilities

492,833

385,260

Long-term debt, net

966,467

970,537

Other long-term liabilities

8,092

8,012

Tax receivables agreement liability

108,909

108,909

Operating lease liabilities - noncurrent

2,426

3,818

Deferred tax liabilities, net

9,944

7,506

Total liabilities

1,588,671

1,484,042

Shareholders' Equity

Class A common stock - $0.01 par value; 750,000,000 shares authorized;
118,656,443 and 117,603,806 shares issued, respectively

1,187

1,176

Additional paid-in-capital

1,817,414

1,793,398

Accumulated other comprehensive loss

(3,626)

(2,624)

Retained earnings (accumulated deficit)

(1,370,323)

(1,315,327)

Treasury stock, at cost; 5,971,712 and 5,971,712 shares issued, respectively

(61,429)

(61,429)

Total shareholders' equity

383,223

415,194

Total liabilities and shareholders' equity

$    1,971,894

$        1,899,236

EVOLENT HEALTH, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 (unaudited, in thousands)

For the Six Months
Ended June 30,

2026

2025

Cash Flows Used In Operating Activities

Loss before preferred dividends and accretion of Series A Preferred Stock

$  (54,996)

$  (84,515)

Adjustments to reconcile net loss to net cash and restricted cash used in operating activities:

Change in fair value of contingent consideration

—

2,926

Loss (gain) from equity method investees

52

(178)

Extinguishment of Series A Preferred Stock and other refinancing fees

—

9,000

Loss on option exercise

—

52,544

Depreciation and amortization expenses

43,121

47,199

Stock-based compensation expense

25,850

22,661

Deferred tax benefit

2,970

(570)

Amortization of contract cost assets

2,023

2,523

Amortization of deferred financing costs

5,930

2,403

Loss on lease termination

—

1,906

Right-of-use operating assets

1,663

792

Changes in assets and liabilities, net of acquisitions:

Accounts receivable, net and contract assets

(139,257)

55,925

Prepaid expenses and other current and non-current assets

(4,031)

(1,803)

Contract cost assets

(2,533)

(1,649)

Accounts payable

(17,810)

18,189

Accrued liabilities

(22,350)

(5,867)

Operating lease liabilities

(15,194)

(20,973)

Accrued compensation and employee benefits

(22,021)

4,543

Deferred revenue

5

(174)

Reserve for claims and performance-based arrangements

186,202

(131,454)

Other long-term liabilities

80

803

Net cash and restricted cash used in operating activities

(10,296)

(25,769)

Cash Flows Used In Investing Activities

Cash paid for asset acquisitions and business combinations

—

(56,047)

Return of equity method investments

150

788

Purchases of investments and contributions to equity method investees

—

(1,000)

Investments in internal-use software and purchases of property and equipment

(13,255)

(17,365)

Net cash and restricted cash used in investing activities

(13,105)

(73,624)

Cash Flows (Used In) Provided by Financing Activities

Changes in working capital balances related to claims processing

(3,143)

(44,754)

Payment of contingent consideration

—

(1,000)

Proceeds from issuance of long-term debt, net of offering costs

—

221,000

Repayment of debt

(10,000)

(62,500)

Payment of preferred dividends

—

(9,198)

Taxes withheld and paid for vesting of equity awards

(1,823)

(4,621)

Net cash and restricted cash (used in) provided by financing activities

(14,966)

98,927

Effect of exchange rate on cash and cash equivalents and restricted cash

(863)

(60)

Net decrease in cash and cash equivalents and restricted cash

(39,230)

(526)

Cash and cash equivalents and restricted cash as of beginning-of-period

180,696

178,496

Cash and cash equivalents and restricted cash as of end-of-period

$ 141,466

$ 177,970

Non-GAAP Financial Measures

The Company views the following activities as integral to understanding its non-GAAP financial measures:

Transaction-related costs include but are not limited to integration consultants, investor outreach services, external valuation and accounting advisory services, legal fees, transaction bonuses paid to certain employees and other transaction related costs. We adjust these costs because transaction-related costs are expensed when incurred and are not indicative of Evolent's normal operating costs.
   Purchase accounting adjustments include amortization expense on intangible assets such as corporate trade names, customer, relationships, provider network contracts and existing technology related to acquisitions and business combinations. We believe it is important for the reader to understand that revenue generated from acquisitions is included within revenue in calculating adjusted income to common shareholders however amortization expense from acquired intangible assets is excluded in determining adjusted income to common shareholders because it does not directly relate to the services performed for the Company's customers. In addition to disclosing financial results that are determined in accordance with GAAP, we present Adjusted Cost of Revenue, Adjusted Selling, General and Administrative Expenses, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Income (Loss) Attributable to Common Shareholders, which are all non-GAAP financial measures, as supplemental measures to help investors evaluate our fundamental operational performance.

Adjusted Cost of Revenue and Adjusted Selling, General and Administrative Expenses are defined as cost of revenue and selling, general and administrative expenses calculated in accordance with GAAP, respectively, adjusted to exclude the impact of stock-based compensation expenses, severance costs and transaction-related costs. Management believes Adjusted Cost of Revenue and Adjusted Selling, General and Administrative Expenses are useful to investors, because they facilitate an understanding of our long-term operational costs while removing the effect of costs that are not a representative component of the day-to-day operating performance of our business, and are useful to management as supplemental performance measures.

Adjusted EBITDA is defined as net loss attributable to common shareholders of Evolent Health, Inc. before interest income, interest expense, benefit from (provision for) income taxes, depreciation and amortization expenses, extinguishment of Series A Preferred Stock and other refinancing fees, gain (loss) from equity method investees, loss on option exercise, change in fair value of contingent consideration, other income (expense), net, loss on lease termination, stock-based compensation expense, severance costs, dividends and accretion of Series A Preferred Stock and transaction-related costs.

Management believes that Adjusted EBITDA is useful to investors because it allows investors to evaluate the Company's performance using tools that management uses to evaluate past performance and prospects for future performance. Management also uses Adjusted EBITDA as a supplemental performance measure because the removal of adjustments to net loss attributable to common shareholders of Evolent Health, Inc. allows us to focus on operational performance.

Adjusted EBITDA Margin is defined Adjusted EBITDA divided by Revenue. Management believes that this measure is useful to investors because it allows further insight into the period over period operational performance. Management also uses Adjusted EBITDA Margin as a supplemental performance measure because it allows the investor to understand operational performance compared to revenues over time.

Adjusted Income (Loss) Attributable to Common Shareholders is defined as net loss attributable to common shareholders of Evolent Health, Inc. adjusted to gain (loss) from equity method investees, other income (expense), net, benefit from (provision for) income taxes, change in fair value of contingent consideration, extinguishment of Series A Preferred Stock and other refinancing fees, loss on option exercise, purchase accounting adjustments, loss on lease termination, stock-based compensation expense, severance costs, transaction-related costs and the tax impact of non-GAAP adjustments.

Adjusted Income (Loss) per Share Attributable to Common Shareholders is defined as Adjusted Income (Loss) Attributable to Common Shareholders divided by Weighted-Average Common Shares, and reflects the adjustments made in those non-GAAP measures.

Management believes that Adjusted Income (Loss) Attributable to Common Shareholders and Adjusted Income (Loss) per Share Attributable to Common Shareholders are useful to investors because they provide a measure of the Company's net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance.

These adjusted measures do not represent and should not be considered as alternatives to GAAP measurements, and our calculations thereof may not be comparable to similarly entitled measures reported by other companies. A reconciliation of these adjusted measures to their most comparable GAAP financial measures is presented in the tables below. We believe these measures are useful across time in evaluating our fundamental core operating performance.

Evolent Health, Inc.

Reconciliation of Adjusted Results of Operations

(unaudited, in thousands)

Reconciliation of Adjusted Cost of Revenue to

Cost of Revenue

For the Three Months
Ended June 30,

For the Six Months
Ended June 30,

2026

2025

2026

2025

Cost of revenue

$   571,684

$   343,943

$   984,156

$   725,121

Less:

Stock-based compensation

695

1,050

1,214

1,707

Adjusted cost of revenue

$   570,989

$   342,893

$   982,942

$   723,414

Reconciliation of Adjusted Selling, General and Administrative Expenses to

Selling, General and Administrative Expenses

For the Three Months
Ended June 30,

For the Six Months
Ended June 30,

2026

2025

2026

2025

Selling, general and administrative expenses

$    68,831

$    75,209

$   141,649

$   153,618

Less:

Stock-based compensation

14,506

10,530

24,636

20,954

Severance costs

275

791

275

1,805

Transaction-related costs

569

—

1,031

703

Adjusted selling, general and administrative
expenses

$    53,481

$    63,888

$   115,707

$   130,156

Evolent Health, Inc.

Reconciliation of Medical Expense Ratio

(unaudited, in thousands except MER percentages)

For the Three Months
Ended June 30,

For the Six Months
Ended June 30,

2026

2025

2026

2025

Revenue

Performance Suite

$ 484,503

$ 267,917

$ 807,806

$ 570,938

Specialty Technology and Services Suite

78,161

81,401

158,960

164,222

Administrative Services

47,989

55,880

97,576

113,071

Cases

41,867

39,130

84,424

79,746

Total revenue

652,520

444,328

1,148,766

927,977

Less:

Revenue from Evolent Care Partners

—

15,469

—

73,268

Performance Suite revenue less revenue from Evolent Care
Partners

484,503

252,448

807,806

497,670

Total claims incurred related to our specialty care
management services solution

461,520

214,247

763,297

420,239

Medical expense ratio

95.3 %

80.0 %

94.5 %

73.6 %

Medical expense ratio excluding Evolent Care Partners

95.3 %

84.9 %

94.5 %

84.4 %

Evolent Health, Inc.

Reconciliation of Adjusted EBITDA to Net Income (Loss)

Attributable to Common Shareholders of Evolent Health, Inc.

(unaudited, in thousands)

For the Three Months
Ended June 30,

For the Six Months
Ended June 30,

2026

2025

2026

2025

Net loss attributable to common shareholders of Evolent
Health, Inc.

$ (28,364)

$   (51,090)

$(54,996)

$(123,340)

Net loss margin

(4.3) %

(11.5) %

(4.8) %

(13.3) %

Less:

Interest income

703

1,084

1,717

2,358

Interest expense

(16,859)

(11,601)

(33,727)

(21,986)

Benefit from (provision for) income taxes

(2,715)

825

(3,625)

(645)

Depreciation and amortization expenses

(21,566)

(23,141)

(43,121)

(47,199)

Extinguishment of Series A Preferred Stock and other
refinancing fees

—

(9,000)

—

(9,000)

Gain (loss) from equity method investees

(41)

197

(52)

178

Loss on option exercise

—

(196)

—

(52,544)

Change in fair value of contingent consideration

—

(3,206)

—

(2,926)

Other income (expense), net

109

(35)

851

(83)

Loss on lease termination

—

—

—

(1,906)

Stock-based compensation expense

(15,201)

(11,580)

(25,850)

(22,661)

Severance costs

(275)

(791)

(275)

(1,805)

Dividends and accretion of Series A Preferred Stock

—

(31,193)

—

(38,825)

Transaction-related costs

(569)

—

(1,031)

(703)

Adjusted EBITDA

$  28,050

$    37,547

$  50,117

$  74,407

Adjusted EBITDA margin

4.3 %

8.5 %

4.4 %

8.0 %

Evolent Health, Inc.

Reconciliation of Adjusted Income (Loss) Attributable to Common Shareholders to

Net Loss Attributable to Common Shareholders

(unaudited, in thousands, except per share data)

For the Three Months
Ended June 30,

For the Six Months
Ended June 30,

2026

2025

2026

2025

Net loss attributable to common shareholders of Evolent
Health, Inc.

$     (28,364)

$     (51,090)

$   (54,996)

$  (123,340)

Less:

Loss from equity method investees

(41)

197

(52)

178

Other income (expense), net

109

(35)

851

(83)

Benefit from (provision for) income taxes

(2,715)

825

(3,625)

(645)

Change in fair value of contingent consideration

—

(3,206)

—

(2,926)

Extinguishment of Series A Preferred Stock and other
refinancing fees

—

(9,000)

—

(9,000)

Loss on option exercise

—

(196)

—

(52,544)

Purchase accounting adjustments

(12,490)

(13,364)

(24,980)

(26,729)

Loss on lease termination

—

—

—

(1,906)

Stock-based compensation expense

(15,201)

(11,580)

(25,850)

(22,661)

Severance costs

(275)

(791)

(275)

(1,805)

Transaction-related costs

(569)

—

(1,031)

(703)

Tax impact (1)

592

(2,927)

(7)

(948)

Adjusted income (loss) attributable to common
shareholders

$       2,226

$     (11,013)

$         (27)

$     (3,568)

Loss per share attributable to common shareholders

Basic and diluted

$        (0.25)

$        (0.44)

$       (0.49)

$       (1.07)

Adjusted income (loss) per share attributable to common
shareholders

Basic and diluted

$         0.02

$        (0.10)

$          —

$       (0.03)

Weighted-average common shares

Basic and diluted

112,542

115,882

112,225

115,600

____________________

(1)

Non-GAAP financial information for the periods shown are adjusted for an assumed provision for income taxes based on our statutory federal tax rate of 21%. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate.

FORWARD-LOOKING STATEMENTS - CAUTIONARY LANGUAGE

Certain statements made in this report and in other written or oral statements made by us or on our behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: "believe," "anticipate," "expect," "estimate," "aim," "predict," "potential," "continue," "plan," "project," "will," "should," "shall," "may," "might" and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to our ability to weather current dynamics, continue to expand our footprint, future actions, trends in our businesses, prospective services, new partner additions/expansions, our guidance and business outlook and future performance or financial results, and the closing of pending transactions and the outcome of contingencies, such as legal proceedings. We claim the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

These statements are only predictions based on our current expectations and projections about future events. Forward-looking statements involve risks and uncertainties that may cause actual results, level of activity, performance or achievements to differ materially from the results contained in the forward-looking statements. Risks and uncertainties that may cause actual results to vary materially, some of which are described within the forward-looking statements, include, among others:

the significant portion of revenue we derive from our largest partners, and the potential loss, termination or renegotiation of our relationship or contract with any significant partner, or multiple partners in the aggregate; the increasing number of risk-sharing arrangements we enter into with our partners; the growth and success of our partners and certain revenues from our engagements, which are difficult to predict and are subject to factors outside of our control, including governmental funding reductions and other policy changes; our ability to accurately predict our exposure under performance-based contracts; failure by our customers to provide us with accurate and timely information; our ability to recover the upfront costs in our partner relationships and develop our partner relationships over time; our ability to attract new partners and successfully capture new opportunities; our ability to offer new and innovative products and services and our ability to keep pace with industry standards, technology and our partners' needs; our ability to maintain and enhance our reputation and brand recognition; our dependency on our key personnel, and our ability to attract, hire, integrate and retain key personnel; risks related to completed and future acquisitions, investments, alliances and joint ventures, which could divert management resources, result in unanticipated costs or dilute our stockholders; our ability to effectively manage our growth and maintain an efficient cost structure; risks related to managing our offshore operations and cost reduction goals; our ability to estimate the size of our target markets for our services; consolidation in the health care industry; competition which could limit our ability to maintain or expand market share within our industry; risks related to audits by CMS and other governmental payers and actions, including whistleblower claims under the False Claims Act; evolution of the healthcare regulatory and political framework; restrictions on the manner in which we access personal data and penalties as a result of privacy and data protection laws; data loss or corruption due to failures or errors in our systems and service disruptions at our data centers; liabilities and reputational risks related to our ability to safeguard the security and privacy of confidential data; our ability to obtain, maintain and enforce intellectual property rights and protect our trademarks and trade names, including from third parties alleging that we are infringing or violating their intellectual property rights; our ability to protect the confidentiality of our trade secrets; risks associated with our use of artificial intelligence and machine learning models; our use of "open-source" software; our reliance on third parties and licensed technologies; restrictions on our ability to use, disclose, de-identify or license data and to integrate third-party technologies; our reliance on Internet infrastructure, bandwidth providers, data center providers, other third parties and our own systems for providing services to our partners and operating our business; our ability to achieve profitability in the future; the impact of additional goodwill and intangible asset impairments on our results of operations; our obligations to make material payments to certain of our pre-IPO investors for certain tax benefits we may claim in the future; our obligations to make payments under the tax receivables agreement that may be accelerated or may exceed the tax benefits we realize; our ability to utilize benefits under the tax receivables agreement described herein; the terms of agreements between us and certain of our pre-IPO investors may contain different terms than comparable agreement we may enter into with unaffiliated third parties; our inability to obtain financing may result in a reduction in the ownership of our stockholders; the conditional conversion features, and changes in accounting treatment of the 2029 Notes and the 2031 Notes, which, if triggered, may adversely affect our financial condition and operating results; our ability to raise funds necessary to settle conversions of our notes in cash, to repurchase our notes for cash upon a fundamental change or to pay the redemption price for any notes we redeem; interest rate risk and other restrictive covenants under our First Lien Credit Agreement and the second lien credit agreement, by and among the Company, Evolent Health LLC, as borrower, certain subsidiaries of the Company, as guarantors, the lenders from time to time party thereto, and Ares Capital Corporation, as administrative agent and collateral agent; our indebtedness, our ability to service our indebtedness, and our ability to obtain additional financing on favorable terms or at all; interference with our ability to access the first and second lien credit facilities under our Credit Agreements; the potential volatility of our Class A common stock price; provisions in our certificate of incorporation and by-laws and provisions of Delaware law that discourage or prevent strategic transactions, including a takeover of us; provisions in our certificate of incorporation which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees; our intention not to pay cash dividends on our Class A common stock; the impact of litigation proceedings, government inquiries, reviews, audits or investigations; public health emergencies, epidemics, pandemics or contagious diseases; the cost of compliance with sustainability or other environmental, social responsibility or governance law and regulations; the impact of increasing inflationary pressures and rising consumer costs on our business; and our ability to utilize our net operating loss carry forwards and certain other tax attributes may be limited. The risks included here are not exhaustive. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Our periodic reports and other documents filed with the SEC include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.

Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we undertake no obligation to publicly update any forward-looking statements to reflect events or circumstances that occur after the date of this release.

SOURCE Evolent Health, Inc.

Evolent Health, Inc (EVH - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, EVH's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."

Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.

A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

EVH has rallied 30.4% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates EVH could be poised for a breakout.

Looking at EVH's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 2 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Investors should think about putting EVHon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.

8 Knots Management LLC trimmed its holdings in shares of Evolent Health, Inc (NYSE: EVH) by 39.3% in the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,768,113 shares of the technology company's stock after selling 1,145,022 shares during the

Evolent Health, Inc (NYSE: EVH - Get Free Report) has earned an average rating of "Moderate Buy" from the seventeen analysts that are covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, three have given a hold rating and thirteen have given a buy rating to the company.

, /PRNewswire/ -- Evolent Health, Inc. (NYSE: EVH) ("Evolent" or the "Company"), a company that specializes in better health outcomes for people with complex conditions through proven solutions that make health care simpler and more affordable, today announced financial results for the three months ended March 31, 2026.

Seth Blackley, Co-Founder and Chief Executive Officer of Evolent stated, "I am happy with the strong start to the year. We are on track with our plan and have had successful, on-time oncology launches at both Highmark and Aetna. As we look into 2027 and beyond, we remain focused on both extending our market leadership in oncology and addressing the big opportunity we have with AI, all while fulfilling our commitments to shareholders, employees and customers."

Highlights for the three months ended March 31, 2026 include (dollars in thousands, except for average PMPM fees and revenue per case):

For the Three Months
Ended March 31,

2026

2025

Financial Results:

Revenue

$  496,246

$  483,649

Net loss attributable to common shareholders of Evolent Health, Inc.

$   (26,632)

$   (72,250)

Net loss margin

(5.4) %

(14.9) %

Adjusted EBITDA

$    22,067

$    36,860

Adjusted EBITDA Margin

4.4 %

7.6 %

Average Lives on Platform/Cases

Performance Suite

6,078

6,486

Specialty Technology and Services Suite

76,101

77,079

Administrative Services

1,118

1,213

Cases

11

14

Average Unique Members

38,903

40,628

Average PMPM Fees/ Revenue per Case

Performance Suite

$      17.73

$      15.57

Specialty Technology and Services Suite

0.35

0.36

Administrative Services

14.78

15.72

Cases

3,772

2,947

Medical Expense Ratio

93.3 %

68.0 %

Medical Expense Ratio excluding Evolent Care Partners

93.3 %

84.0 %

The rising medical costs impacting health plans continue to drive robust demand for Evolent's complex specialty care solutions.

Evolent announced two new revenue agreements:

An existing Performance Suite client has signed a contract for our advanced imaging solution, which is expected to go live in the third quarter, subject to state regulatory approvals in certain states, with approximately 4.5 million lives across the Commercial, Medicaid and Medicare lines of business. In the Performance Suite, one of our national payer clients is expanding their line‑of‑business reach of our existing Oncology and Cardiology solution into several new markets across the Commercial and Medicare lines of business. This expansion is expected to generate over $200 million of annual revenue and is scheduled to go live in the third quarter subject to regulatory approvals in certain states. Financial Results of Evolent Health, Inc.

In our earnings releases, prepared remarks, conference calls, slide presentations and webcasts, we may use or discuss financial measures not prepared in accordance with generally accepted accounting principles ("GAAP"). Definitions of the non-GAAP financial measures as well as reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are presented herein. See "Non-GAAP Financial Measures" for more information.

Reported Results

Evolent Health, Inc. reported the following results in accordance with GAAP (dollars in thousands, except for per share data):

For the Three Months
Ended March 31,

2026

2025

Revenue

$  496,246

$  483,649

Cost of revenue

$  412,472

$  381,178

Selling, general and administrative expenses

$    72,818

$    78,409

Net loss attributable to common shareholders of Evolent Health, Inc.

$   (26,632)

$   (72,250)

Net loss margin

(5.4) %

(14.9) %

Loss per share attributable to common shareholders of Evolent Health, Inc.

Basic and diluted

$       (0.24)

$       (0.63)

Total cash and cash equivalents was $142.0 million as of March 31, 2026.

Adjusted Results

Evolent Health, Inc. reported the following adjusted results (dollars in thousands, except for per share data):

For the Three Months
Ended March 31,

2026

2025

Adjusted cost of revenue

$  411,953

$  380,521

Adjusted selling, general and administrative expenses

$    62,226

$    66,268

Adjusted EBITDA

$    22,067

$    36,860

Adjusted EBITDA margin

4.4 %

7.6 %

Adjusted income (loss) attributable to common shareholders

$     (2,253)

$      7,445

Adjusted income (loss) per share attributable to common shareholders:

Basic

$       (0.02)

$        0.06

Business Outlook       

The Company does not believe it can meaningfully reconcile guidance for non-GAAP Adjusted EBITDA to net income (loss) attributable to common shareholders of Evolent Health, Inc. because the Company cannot provide guidance for the more significant reconciling items between net income (loss) attributable to common shareholders of Evolent Health, Inc. and Adjusted EBITDA without unreasonable effort. This is due to the fact that future period non-GAAP guidance includes adjustments for items not indicative of our core operations, and as a result from changes to our business due to transactions and other events. Such items may, from time to time, include change in tax receivable agreement liability, other refinancing fees, gain (loss) from equity method investees, gain (loss) on repayment/extinguishment of debt, other income (expense), gain (loss) on disposal of non-strategic assets, goodwill impairments, right-of-use asset impairments, gain (loss) on lease terminations, stock-based compensation expense, severance costs and transaction-related costs. Such adjustments may be affected by changes in ongoing assumptions, judgments, as well as nonrecurring, unusual or unanticipated charges, expenses or gains (losses) or other items that may not directly correlate to the underlying performance of our business operations. The exact amount of these adjustments is not currently determinable but may be significant.

Full Year 2026 Guidance

Incorporating its year-to-date performance, the Company is reiterating its 2026 revenue guidance range of $2.4 billion to $2.6 billion and Adjusted EBITDA range of approximately $110 million to $140 million, respectively.

Additional Outlook Information

The Company expects to deploy approximately $25 million to $30 million in cash for capitalized software development during 2026.

This "Business Outlook" section contains forward-looking statements, and actual results may differ materially. Factors that may cause actual results to differ materially from our current expectations in addition to those set forth above are set forth below in "Forward Looking Statements - Cautionary Language" and Evolent Health, Inc.'s filings with the Securities and Exchange Commission ("SEC").

Web and Conference Call Information

Evolent Health, Inc. will hold a conference call to discuss its financial performance and related matters this morning, May 7, 2026, at 8:00 a.m., Eastern Time. To listen to a live broadcast via the internet and view the accompanying materials, please visit the Company's Investor Relations website at http://ir.evolent.com. To participate by telephone, dial (855) 940-9467, or (412) 317-6034 for international callers, and ask to join the "Evolent Health call." Participants are advised to dial in at least fifteen minutes prior to the call to register. The call will be archived on the Company's website for one week and will be available beginning later this evening. Evolent invites all interested parties to attend the conference call.

About Evolent 

Evolent specializes in better health outcomes for people with complex conditions through proven solutions that make health care simpler and more affordable. Evolent serves a national base of leading payers and providers and is consistently recognized as a top place to work in health care nationally. Learn more about how Evolent is changing the way health care is delivered by visiting evolent.com.

Contacts:

[email protected]

Definitions

Revenue Agreements

Evolent reports the number of new revenue agreements signed for Performance Suite, Specialty Technology and Services Suite, Administrative Services and Case-based products. A new revenue agreement includes incremental revenue to the Company reflecting contracts for services to both new partner entities, corporations or health plans as well as additional sales to existing partners. New revenue agreements may include incremental services, geographic, or line of business expansions or a combination thereof. The conversion of Specialty Technology and Services Suite contracts to Performance Suite are also included in this definition. The Company does not count renewals for existing scope, growth of membership within an existing contract scope or transaction-related purchase agreements, if applicable, in this metric.

Lives on Platform and Per Member Per Month ("PMPM") Fee

Performance Suite Lives on Platform are calculated by summing monthly members covered for specialty care services for contracts not under ASO arrangements, plus members managed by Complex Care in capitation arrangements and divided by the number of months in the period. Specialty Technology and Services Suite Lives on Platform are calculated by summing monthly members covered for oncology, cardiology, musculoskeletal, advanced imaging and other diagnostic specialty care services for contracts under ASO arrangements divided by the number of months in the period. Administrative Services Lives on Platform are calculated by summing monthly members covered for administrative services implementation and core performance services divided by the number of months in the period. Cases are calculated by summing the number of individuals receiving services through our surgery management and advanced care planning programs in a given period. Members covered for more than one category are counted in each category.

Performance Suite Average PMPM fee is defined as revenue pertaining to our Performance Suite during the period reported divided by Performance Suite Lives on Platform for the period divided by the number of months in the period. Specialty Technology and Services Suite Average PMPM fee is defined as revenue pertaining to the Specialty Technology and Services Suite during the period reported divided by Specialty Technology and Services Suite Lives on Platform for the period divided by the number of months in the period. Administrative Services Average PMPM fee is defined as revenue pertaining to the Administrative Services during the period reported divided by the Administrative Services Lives on Platform for the period divided by the number of months in the period. Revenue per Case is calculated by the revenue pertaining to surgery management and advanced care planning programs divided by the number of cases for a given period.

Average Unique Members are calculated by summing members covered by our Performance Suite, Specialty Technology and Services Suite and Administrative Services. In cases where partners cross between multiple solutions, we only capture members from the solution with the maximum number of members.

Management uses Lives on Platform, PMPM fees, Cases, Revenue per Case and Average Unique Members because we believe that they provide insight into the unit economics of our services. We believe that these measures are also useful to investors because they allow further insight into the period over period operational performance.

Medical Expense Ratio

Medical Expense Ratio ("MER") is a key performance indicator used by management for purposes of monitoring operating performance and is calculated as GAAP total claims incurred related to our specialty care management services solution divided by GAAP revenue related to our Performance Suite. Management believes MER is useful to investors because it provides insight into the efficiency with which medical costs are managed relative to revenue and helps identify trends in the underlying performance. For periods prior to the consummation of the sale of Evolent Care Partners ("ECP") in December 2025, we present non-GAAP MER excluding revenues from ECP because is not indicative of ongoing operations.

EVOLENT HEALTH, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(unaudited, in thousands, except per share data)

For the Three Months
Ended March 31,

2026

2025

Revenue

$   496,246

$   483,649

Expenses

Cost of revenue

412,472

381,178

Selling, general and administrative expenses

72,818

78,409

Depreciation and amortization expenses

21,555

24,058

Loss on lease termination

—

1,906

Change in fair value of contingent consideration

—

(280)

Operating expenses

506,845

485,271

Operating loss

(10,599)

(1,622)

Interest income

1,014

1,274

Interest expense

(16,868)

(10,385)

Loss from equity method investees

(11)

(19)

Loss on option exercise

—

(52,348)

Other income (expense), net

742

(48)

Loss before income taxes

(25,722)

(63,148)

Provision for income taxes

910

1,470

Loss before preferred dividends and accretion of Series A Preferred Stock including
excise tax

(26,632)

(64,618)

Dividends and accretion of Series A Preferred Stock including excise tax

—

(7,632)

Net loss attributable to common shareholders of Evolent Health, Inc.

$   (26,632)

$   (72,250)

Loss per common share

Basic and diluted

$       (0.24)

$       (0.63)

Weighted-average common shares outstanding

Basic and diluted

111,905

115,315

Comprehensive loss

Net loss attributable to common shareholders of Evolent Health, Inc.

$   (26,632)

$   (72,250)

Other comprehensive loss, net of taxes, related to:

Foreign currency translation adjustment

(1,002)

24

Total comprehensive loss attributable to common shareholders of Evolent Health, Inc.

$   (27,634)

$   (72,226)

EVOLENT HEALTH, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

March 31, 2026

December 31,
2025

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$            142,028

$           151,856

Restricted cash

23,977

26,134

Accounts receivable, net

314,158

309,861

Prepaid expenses and other current assets

21,847

18,521

  Total current assets

502,010

506,372

Restricted cash

2,739

2,706

Investments and equity method investees

8,955

8,966

Property and equipment, net

81,181

80,785

Right-of-use assets - operating

3,866

4,373

Prepaid expenses and other noncurrent assets

2,250

3,078

Contract cost assets

13,731

13,537

Intangible assets, net

569,682

584,937

Goodwill

694,433

694,482

Total assets

$         1,878,847

$        1,899,236

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

Current liabilities:

Accounts payable

$              63,007

$             59,776

Accrued liabilities

45,063

65,755

Operating lease liability - current

8,779

15,343

Accrued compensation and employee benefits

31,007

50,987

Deferred revenue

1,417

1,203

Reserve for claims and performance - based arrangements

231,962

192,196

  Total current liabilities

381,235

385,260

Long-term debt, net

973,486

970,537

Other long-term liabilities

8,091

8,012

Tax receivables agreement liability

108,909

108,909

Operating lease liabilities - noncurrent

3,160

3,818

Deferred tax liabilities, net

7,573

7,506

Total liabilities

1,482,454

1,484,042

Shareholders' Equity

Class A common stock - $0.01 par value; 750,000,000 shares authorized;
118,449,473 and 117,603,806 shares issued, respectively

1,185

1,176

Additional paid-in-capital

1,802,222

1,793,398

Accumulated other comprehensive loss

(3,626)

(2,624)

Retained earnings (accumulated deficit)

(1,341,959)

(1,315,327)

Treasury stock, at cost; 5,971,712 and 5,971,712 shares issued, respectively

(61,429)

(61,429)

Total shareholders' equity

396,393

415,194

Total liabilities and shareholders' equity

$         1,878,847

$        1,899,236

EVOLENT HEALTH, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

For the Three Months
Ended March 31,

2026

2025

Cash Flows (Used In) Provided by Operating Activities

Loss before preferred dividends and accretion of Series A Preferred Stock

$  (26,632)

$  (64,618)

Adjustments to reconcile net loss to net cash and restricted cash provided by operating
activities:

Change in fair value of contingent consideration

—

(280)

Loss (gain) from equity method investees

11

19

Loss on option exercise

—

52,348

Depreciation and amortization expenses

21,555

24,058

Stock-based compensation expense

10,649

11,081

Deferred tax benefit

577

295

Amortization of contract cost assets

931

1,237

Amortization of deferred financing costs

2,949

1,154

Loss on lease termination

—

1,906

Right-of-use operating assets

507

408

Other current operating cash inflows (outflows), net

—

2

Changes in assets and liabilities, net of acquisitions:

  Accounts receivable, net and contract assets

(4,297)

(15,815)

  Prepaid expenses and other current and non-current assets

(3,372)

(7,729)

  Contract cost assets

(1,125)

(1,193)

  Accounts payable

5,388

3,264

  Accrued liabilities

(20,982)

(18,879)

  Operating lease liabilities

(7,222)

(2,820)

  Accrued compensation and employee benefits

(19,980)

2,195

  Deferred revenue

214

2,510

  Reserve for claims and performance-based arrangements

39,766

15,137

  Other long-term liabilities

79

285

  Net cash and restricted cash (used in) provided by operating activities

(984)

4,565

Cash Flows Used In Investing Activities

Cash paid for asset acquisitions and business combinations

—

(4,498)

Investments in internal-use software and purchases of property and equipment

(6,406)

(8,595)

Net cash and restricted cash used in investing activities

(6,406)

(13,093)

Cash Flows (Used In) Provided by Financing Activities

Changes in working capital balances related to claims processing

(2,157)

(41,476)

Proceeds from issuance of long-term debt, net of offering costs

—

221,000

Repayment of debt

—

(62,500)

Payment of preferred dividends

—

(4,577)

Taxes withheld and paid for vesting of equity awards

(1,816)

(4,593)

Net cash and restricted cash (used in) provided by financing activities

(3,973)

107,854

Effect of exchange rate on cash and cash equivalents and restricted cash

(589)

23

Net increase (decrease) in cash and cash equivalents and restricted cash

(11,952)

99,349

Cash and cash equivalents and restricted cash as of beginning-of-period

180,696

178,496

Cash and cash equivalents and restricted cash as of end-of-period

$ 168,744

$ 277,845

Non-GAAP Financial Measures

The Company views the following activities as integral to understanding its non-GAAP financial measures:

Transaction-related costs include but are not limited to integration consultants, investor outreach services, external valuation and accounting advisory services, legal fees, transaction bonuses paid to certain employees and other transaction related costs. We adjust these costs because transaction-related costs are expensed when incurred and are not indicative of Evolent's normal operating costs. Purchase accounting adjustments include amortization expense on intangible assets such as corporate trade names, customer, relationships, provider network contracts and existing technology related to acquisitions and business combinations. We believe it is important for the reader to understand that revenue generated from acquisitions is included within revenue in calculating adjusted income to common shareholders however amortization expense from acquired intangible assets is excluded in determining adjusted income to common shareholders because it does not directly relate to the services performed for the Company's customers. In addition to disclosing financial results that are determined in accordance with GAAP, we present Adjusted Cost of Revenue, Adjusted Selling, General and Administrative Expenses, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Income (Loss) Attributable to Common Shareholders, which are all non-GAAP financial measures, as supplemental measures to help investors evaluate our fundamental operational performance.

Adjusted Cost of Revenue and Adjusted Selling, General and Administrative Expenses are defined as cost of revenue and selling, general and administrative expenses calculated in accordance with GAAP, respectively, adjusted to exclude the impact of stock-based compensation expenses, severance costs and transaction-related costs. Management believes Adjusted Cost of Revenue and Adjusted Selling, General and Administrative Expenses are useful to investors, because they facilitate an understanding of our long-term operational costs while removing the effect of costs that are not a representative component of the day-to-day operating performance of our business, and are useful to management as supplemental performance measures.

Adjusted EBITDA is defined as net loss attributable to common shareholders of Evolent Health, Inc. before interest income, interest expense, provision for income taxes, depreciation and amortization expenses, loss from equity method investees, loss on option exercise, change in fair value of contingent consideration, other income (expense), net, loss on lease termination, stock-based compensation expense, severance costs, dividends and accretion of Series A Preferred Stock and transaction-related costs.

Management believes that Adjusted EBITDA is useful to investors because it allows investors to evaluate the Company's performance using tools that management uses to evaluate past performance and prospects for future performance. Management also uses Adjusted EBITDA as a supplemental performance measure because the removal of adjustments to net loss attributable to common shareholders of Evolent Health, Inc. allows us to focus on operational performance.

Adjusted EBITDA Margin is defined Adjusted EBITDA divided by Revenue. Management believes that this measure is useful to investors because it allows further insight into the period over period operational performance. Management also uses Adjusted EBITDA Margin as a supplemental performance measure because it allows the investor to understand operational performance compared to revenues over time.

Adjusted Income (Loss) Attributable to Common Shareholders is defined as net loss attributable to common shareholders of Evolent Health, Inc. adjusted to loss from equity method investees, other income (expense), net, provision for income taxes, change in fair value of contingent consideration, loss on option exercise, purchase accounting adjustments, loss on lease termination, stock-based compensation expense, severance costs, transaction-related costs and the tax impact of non-GAAP adjustments.

Adjusted Income (Loss) per Share Attributable to Common Shareholders is defined as Adjusted Income (Loss) Attributable to Common Shareholders divided by Weighted-Average Common Shares, and reflects the adjustments made in those non-GAAP measures.

Management believes that Adjusted Income (Loss) Attributable to Common Shareholders and Adjusted Income (Loss) per Share Attributable to Common Shareholders are useful to investors because they provide a measure of the Company's net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance.

These adjusted measures do not represent and should not be considered as alternatives to GAAP measurements, and our calculations thereof may not be comparable to similarly entitled measures reported by other companies. A reconciliation of these adjusted measures to their most comparable GAAP financial measures is presented in the tables below. We believe these measures are useful across time in evaluating our fundamental core operating performance.

Evolent Health, Inc.

Reconciliation of Adjusted Results of Operations

(unaudited, in thousands)

Reconciliation of Adjusted Cost of Revenue to

Cost of Revenue

For the Three Months
Ended March 31,

2026

2025

Cost of revenue

$   412,472

$   381,178

Less:

Stock-based compensation

519

657

  Adjusted cost of revenue

$   411,953

$   380,521

Reconciliation of Adjusted Selling, General and Administrative Expenses to

Selling, General and Administrative Expenses

For the Three Months
Ended March 31,

2026

2025

Selling, general and administrative expenses

$     72,818

$     78,409

Less:

Stock-based compensation

10,130

10,424

Severance costs

—

1,014

Transaction-related costs

462

703

  Adjusted selling, general and administrative expenses

$     62,226

$     66,268

Evolent Health, Inc.

Reconciliation of Medical Expense Ratio

(unaudited, in thousands except MER percentages)

For the Three Months
Ended March 31,

2026

2025

Revenue

Performance Suite

$ 323,303

$ 303,021

Specialty Technology and Services Suite

80,799

82,821

Administrative Services

49,587

57,191

Cases

42,557

40,616

  Total revenue

496,246

483,649

Less:

Revenue from Evolent Care Partners

—

57,799

Performance Suite revenue less revenue from Evolent Care Partners

323,303

245,222

Total claims incurred related to our specialty care management services solution

301,777

205,992

Medical expense ratio

93.3 %

68.0 %

Medical expense ratio excluding Evolent Care Partners

93.3 %

84.0 %

Evolent Health, Inc.

Reconciliation of Adjusted EBITDA to Net Income (Loss)

Attributable to Common Shareholders of Evolent Health, Inc.

(unaudited, in thousands)

For the Three Months
Ended March 31,

2026

2025

Net loss attributable to common shareholders of Evolent Health, Inc.

$  (26,632)

$  (72,250)

Net loss margin

(5.4) %

(14.9) %

Less:

Interest income

1,014

1,274

Interest expense

(16,868)

(10,385)

Provision for income taxes

(910)

(1,470)

Depreciation and amortization expenses

(21,555)

(24,058)

Loss from equity method investees

(11)

(19)

Loss on option exercise

—

(52,348)

Change in fair value of contingent consideration

—

280

Other income (expense), net

742

(48)

Loss on lease termination

—

(1,906)

Stock-based compensation expense

(10,649)

(11,081)

Severance costs

—

(1,014)

Dividends and accretion of Series A Preferred Stock

—

(7,632)

Transaction-related costs

(462)

(703)

Adjusted EBITDA

$   22,067

$   36,860

Adjusted EBITDA margin

4.4 %

7.6 %

Evolent Health, Inc.

Reconciliation of Adjusted Income (Loss) Attributable to Common Shareholders to

Net Loss Attributable to Common Shareholders

(unaudited, in thousands, except per share data)

For the Three Months
Ended March 31,

2026

2025

Net loss attributable to common shareholders of Evolent Health, Inc.

$   (26,632)

$   (72,250)

Less:

Loss from equity method investees

(11)

(19)

Other income (expense), net

742

(48)

Provision for income taxes

(910)

(1,470)

Change in fair value of contingent consideration

—

280

Loss on option exercise

—

(52,348)

Purchase accounting adjustments

(12,490)

(13,365)

Loss on lease termination

—

(1,906)

Stock-based compensation expense

(10,649)

(11,081)

Severance costs

—

(1,014)

Transaction-related costs

(462)

(703)

Tax impact (1)

(599)

1,979

Adjusted income (loss) attributable to common shareholders

$     (2,253)

$      7,445

Loss per share attributable to common shareholders

Basic

$       (0.24)

$       (0.63)

Adjusted income (loss) per share attributable to common shareholders

Basic

$       (0.02)

$        0.06

Weighted-average common shares

Basic

111,905

115,315

(1)

Non-GAAP financial information for the periods shown are adjusted for an assumed provision for income taxes based on our statutory federal tax rate of 21%. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate.

FORWARD-LOOKING STATEMENTS - CAUTIONARY LANGUAGE

Certain statements made in this report and in other written or oral statements made by us or on our behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: "believe," "anticipate," "expect," "estimate," "aim," "predict," "potential," "continue," "plan," "project," "will," "should," "shall," "may," "might" and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to our ability to weather current dynamics, continue to expand our footprint, future actions, trends in our businesses, prospective services, new partner additions/expansions, our guidance and business outlook and future performance or financial results, and the closing of pending transactions and the outcome of contingencies, such as legal proceedings. We claim the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

These statements are only predictions based on our current expectations and projections about future events. Forward-looking statements involve risks and uncertainties that may cause actual results, level of activity, performance or achievements to differ materially from the results contained in the forward-looking statements. Risks and uncertainties that may cause actual results to vary materially, some of which are described within the forward-looking statements, include, among others:

the significant portion of revenue we derive from our largest partners, and the potential loss, termination or renegotiation of our relationship or contract with any significant partner, or multiple partners in the aggregate; the increasing number of risk-sharing arrangements we enter into with our partners; the growth and success of our partners and certain revenues from our engagements, which are difficult to predict and are subject to factors outside of our control, including governmental funding reductions and other policy changes; our ability to accurately predict our exposure under performance-based contracts; failure by our customers to provide us with accurate and timely information; our ability to recover the upfront costs in our partner relationships and develop our partner relationships over time; our ability to attract new partners and successfully capture new opportunities; our ability to offer new and innovative products and services and our ability to keep pace with industry standards, technology and our partners' needs; our ability to maintain and enhance our reputation and brand recognition; our dependency on our key personnel, and our ability to attract, hire, integrate and retain key personnel; risks related to completed and future acquisitions, investments, alliances and joint ventures, which could divert management resources, result in unanticipated costs or dilute our stockholders; our ability to effectively manage our growth and maintain an efficient cost structure; risks related to managing our offshore operations and cost reduction goals; our ability to estimate the size of our target markets for our services; consolidation in the health care industry; competition which could limit our ability to maintain or expand market share within our industry; risks related to audits by CMS and other governmental payers and actions, including whistleblower claims under the False Claims Act; evolution of the healthcare regulatory and political framework; restrictions on the manner in which we access personal data and penalties as a result of privacy and data protection laws; data loss or corruption due to failures or errors in our systems and service disruptions at our data centers; liabilities and reputational risks related to our ability to safeguard the security and privacy of confidential data; our ability to obtain, maintain and enforce intellectual property rights and protect our trademarks and trade names, including from third parties alleging that we are infringing or violating their intellectual property rights; our ability to protect the confidentiality of our trade secrets; risks associated with our use of artificial intelligence and machine learning models; our use of "open-source" software; our reliance on third parties and licensed technologies; restrictions on our ability to use, disclose, de-identify or license data and to integrate third-party technologies; our reliance on Internet infrastructure, bandwidth providers, data center providers, other third parties and our own systems for providing services to our partners and operating our business; our ability to achieve profitability in the future; the impact of additional goodwill and intangible asset impairments on our results of operations; our obligations to make material payments to certain of our pre-IPO investors for certain tax benefits we may claim in the future; our obligations to make payments under the tax receivables agreement that may be accelerated or may exceed the tax benefits we realize; our ability to utilize benefits under the tax receivables agreement described herein; the terms of agreements between us and certain of our pre-IPO investors may contain different terms than comparable agreement we may enter into with unaffiliated third parties; our inability to obtain financing may result in a reduction in the ownership of our stockholders; the conditional conversion features, and changes in accounting treatment of the 2029 Notes and the 2031 Notes, which, if triggered, may adversely affect our financial condition and operating results; our ability to raise funds necessary to settle conversions of our notes in cash, to repurchase our notes for cash upon a fundamental change or to pay the redemption price for any notes we redeem; interest rate risk and other restrictive covenants under our First Lien Credit Agreement and the second lien credit agreement, by and among the Company, Evolent Health LLC, as borrower, certain subsidiaries of the Company, as guarantors, the lenders from time to time party thereto, and Ares Capital Corporation, as administrative agent and collateral agent; our indebtedness, our ability to service our indebtedness, and our ability to obtain additional financing on favorable terms or at all; interference with our ability to access the first and second lien credit facilities under our Credit Agreements; the potential volatility of our Class A common stock price; provisions in our certificate of incorporation and by-laws and provisions of Delaware law that discourage or prevent strategic transactions, including a takeover of us; provisions in our certificate of incorporation which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees; our intention not to pay cash dividends on our Class A common stock; the impact of litigation proceedings, government inquiries, reviews, audits or investigations; public health emergencies, epidemics, pandemics or contagious diseases; the cost of compliance with sustainability or other environmental, social responsibility or governance law and regulations; the impact of increasing inflationary pressures and rising consumer costs on our business; and our ability to utilize our net operating loss carry forwards and certain other tax attributes may be limited. The risks included here are not exhaustive. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Our periodic reports and other documents filed with the SEC include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.

Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we undertake no obligation to publicly update any forward-looking statements to reflect events or circumstances that occur after the date of this release.

SOURCE Evolent Health, Inc.

For the quarter ended March 2026, Evolent Health (EVH - Free Report) reported revenue of $496.25 million, up 2.6% over the same period last year. EPS came in at -$0.02, compared to $0.06 in the year-ago quarter.

The reported revenue represents a surprise of -6.68% over the Zacks Consensus Estimate of $531.77 million. With the consensus EPS estimate being -$0.05, the EPS surprise was +57.17%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Evolent Health performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Average PMPM Fees / Revenue per Case - Performance Suite: $17.73 compared to the $16.38 average estimate based on three analysts.Average PMPM Fees / Revenue per Case - Specialty Technology and Services Suite: $0.35 versus the three-analyst average estimate of $0.39.Average PMPM Fees / Revenue per Case - Administrative Services: $14.78 versus $15.65 estimated by three analysts on average.Average Lives on Platform / Cases - Cases: 11 thousand compared to the 13.31 thousand average estimate based on three analysts.Average Lives on Platform / Cases - Performance Suite: 6.08 million compared to the 7.11 million average estimate based on three analysts.Average Lives on Platform / Cases - Specialty Technology and Services Suite: 76.1 million versus the three-analyst average estimate of 68.69 million.Average Lives on Platform / Cases - Administrative Services: 1.12 million compared to the 989.17 thousand average estimate based on three analysts.Average PMPM Fees / Revenue per Case - Cases: $3,772.00 versus the three-analyst average estimate of $3,210.45.Total Revenue by product type- Performance Suite: $323.3 million compared to the $349.79 million average estimate based on three analysts. The reported number represents a change of +6.7% year over year.Total Revenue by product type- Cases: $42.56 million compared to the $42.97 million average estimate based on three analysts. The reported number represents a change of +4.8% year over year.Total Revenue by product type- Administrative Services: $49.59 million compared to the $46.45 million average estimate based on three analysts. The reported number represents a change of -13.3% year over year.Total Revenue by product type- Specialty Technology and Services Suite: $80.8 million versus $80.16 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -2.4% change.View all Key Company Metrics for Evolent Health here>>>

Shares of Evolent Health have returned +49.6% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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