Trump announces trade deal with EU following months of negotiations
WESTERVILLE, Ohio - Agilon Health, Inc. (NYSE:AGL) shares plunged 15% after the healthcare company reported fourth-quarter earnings that fell short of expectations and provided disappointing guidance for 2025.
The company, which partners with primary care physicians to provide value-based care for Medicare Advantage patients, posted an adjusted loss of $0.26 per share for the fourth quarter, missing analyst estimates of a $0.22 per share loss. Revenue came in at $1.52 billion, slightly above the consensus of $1.51 billion and up 44% YoY.
For the first quarter of 2025, Agilon expects revenue between $1.48 billion and $1.52 billion, below analyst projections of $1.69 billion. The company’s full-year 2025 revenue guidance of $5.82 billion to $6.02 billion also fell short of the $6.61 billion consensus estimate.
Despite the disappointing results, Agilon reported strong membership growth. Medicare Advantage membership increased 36% YoY to 527,000, while total members on the Agilon platform grew to 659,000 as of December 31, 2024.
CEO Steve Sell acknowledged the challenging Medicare Advantage environment but emphasized the company’s efforts to improve its position. "As a result of the strategic actions we have taken to reduce our underwriting risks, improve our platform capabilities, and maintain cost discipline we have established a stronger foundation for success," Sell stated.
Agilon expects elevated medical cost trends to continue in 2025, projecting a gross cost trend of 6.3% and a net trend of 5.3% for year 2+ markets. The company also plans to reduce its Part D exposure to less than 30% of membership to partially offset the impact of the Inflation Reduction Act.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.