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WESTERVILLE, Ohio - On Tuesday, Agilon Health Inc. (NYSE:AGL) reported second-quarter results that fell short of analyst expectations and suspended its full-year guidance amid leadership changes and market challenges.
The healthcare company’s shares plunged over 25% in pre-market trading after the announcement.
The company posted a second-quarter loss of $0.25 per share, significantly wider than the analyst estimate of $0.11 per share. Revenue came in at $1.4 billion, below the consensus forecast of $1.47 billion and down 6% YoY from $1.48 billion in the same period last year.
The disappointing results coincided with a major leadership shakeup as Steven Sell stepped down as President, CEO and Director, with co-founder and Board Chairman Ronald A. Williams appointed as Executive Chairman while the company searches for a permanent CEO.
"It’s become clear that the industry headwinds are more acute than previously expected, and our enhanced data platform is providing visibility that indicates our 2024 and 2025 risk adjustment is also lower than previously expected, which is impacting near-term results," said Williams in a statement.
The quarter was negatively impacted by $66 million in prior period development, including $20 million associated with exited markets and $13 million related to Part D costs. Additionally, the company recorded a $37 million reduction in risk adjustment revenue for 2024 and a $48 million reduction for 2025.
Medical margin swung to a negative $53 million during the quarter compared to positive $106 million in the second quarter of 2024, while adjusted EBITDA loss widened to $83 million from $3 million a year earlier.
The company ended the quarter with $327 million in cash and cash equivalents and marketable securities, with total debt of $35 million.
Agilon suspended its previously issued full-year 2025 financial guidance due to the leadership change, ongoing implementation of performance visibility initiatives, and dynamic market conditions.
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