Alignment Healthcare soars 18.5% as Q2 profit beats expectations

Published 30/07/2025, 22:28
Alignment Healthcare soars 18.5% as Q2 profit beats expectations

Investing.com -- Alignment Healthcare, Inc. (NASDAQ:ALHC) shares surged 18.5% after the Medicare Advantage provider reported a surprise profit in its second quarter, easily beating analyst expectations while delivering strong membership growth.

The company reported second quarter earnings of $0.07 per share, significantly outperforming the analyst consensus estimate of -$0.07. Revenue reached $1.02 billion, exceeding the $960.51 million analyst estimate and jumping 49.0% YoY. The strong financial performance was accompanied by membership growth of 27.8% YoY to approximately 223,700 members.

"In today’s Medicare Advantage environment, Alignment Healthcare’s second quarter performance proves that strong financial results and high-quality care can go hand in hand – with the right model," said John Kao, founder and CEO.

The company reported net income of $15.7 million and adjusted EBITDA of $45.9 million for the quarter. Alignment’s medical benefits ratio based on adjusted gross profit was 86.7%, indicating efficient management of healthcare costs.

For the third quarter, Alignment Healthcare forecasts revenue between $970 million and $985 million, with adjusted EBITDA expected to range from $5 million to $13 million. The company also provided full-year 2025 guidance, projecting revenue between $3.89 billion and $3.91 billion, with membership expected to grow to between 229,000 and 234,000 by year-end.

The strong results reflect Alignment’s success in balancing growth with profitability in the competitive Medicare Advantage market, as the company continues to expand its footprint while maintaining cost discipline.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.