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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.
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