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WASHINGTON - Healthcare company Evolent Health, Inc. (NYSE: EVH), currently valued at $1 billion in market capitalization, announced Friday it is maintaining its second-quarter and full-year 2025 Adjusted EBITDA guidance, citing oncology cost trends that remain below initial expectations. According to InvestingPro data, the company’s shares have declined over 60% in the past year, though analysts maintain a strong buy consensus with potential upside.
The company reiterated its Q2 2025 Adjusted EBITDA guidance of $33 million to $40 million and full-year guidance of $135 million to $165 million, according to a press release statement. While the company trades at a high EBITDA multiple of 21.5x, InvestingPro analysis suggests the stock is currently undervalued based on its proprietary Fair Value model.
"We are pleased to see oncology trend remaining below forecast now for the first two thirds of the quarter," said John Johnson, Evolent’s Chief Financial Officer. He added that if current trends continue through June, the company anticipates being in the top half of its Q2 Adjusted EBITDA range.
Evolent also secured a Commitment Letter with Ares Management Credit funds, providing the option to borrow additional non-dilutive capital if needed to address its 2025 Convertible Notes while maintaining working capital for growth initiatives.
CEO Seth Blackley noted that recent acceleration in business development has led the company to "significantly increase" its forecast for new revenue bookings entering 2026, though specific figures were not disclosed.
Evolent Health specializes in healthcare solutions for people with complex conditions, serving payers and providers across the United States.
The company did not provide a reconciliation of the non-GAAP Adjusted EBITDA guidance to net income attributable to common shareholders, stating it could not do so without unreasonable effort due to the unpredictable nature of various adjustments that affect the calculation.
In other recent news, Evolent Health Inc. reported its first-quarter 2025 earnings, revealing a mixed performance. The company exceeded revenue expectations with $483.6 million, surpassing the forecast of $460.58 million. However, earnings per share (EPS) fell short, coming in at $0.06 compared to the anticipated $0.08. Despite this, Evolent Health maintains an optimistic outlook for 2025, projecting revenue between $2.06 billion and $2.11 billion. The company also announced the launch of new oncology solutions, expanding its market reach. Additionally, Evolent Health is purchasing the oncology navigation assets of one of its joint ventures to bolster its oncology strategy. The company addressed potential macroeconomic challenges, such as supply chain disruptions and regulatory changes, but remains confident in its strategic direction. Analysts from firms like UBS and KeyBanc have shown interest in the company’s cost trends and strategic initiatives, reflecting continued investor engagement.
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