Alignment Healthcare stock surges 9% on strong Q4 results, upbeat guidance

Published 27/02/2025, 23:14
Alignment Healthcare stock surges 9% on strong Q4 results, upbeat guidance

ORANGE, Calif. - Alignment Healthcare, Inc. (NASDAQ:ALHC) saw its shares jump 9.3% after the Medicare Advantage company reported better-than-expected fourth quarter results and provided an optimistic outlook for 2025.

The company posted a loss of $0.16 per share for Q4, beating analyst estimates of an $0.18 per share loss. Revenue surged 50.7% YoY to $701.2 million, surpassing the consensus forecast of $674.97 million.

Alignment’s health plan membership grew 58.6% YoY to 189,100 as of December 31, 2024, exceeding the company’s year-end expectations. The strong membership growth drove the revenue increase.

For the first quarter of 2025, Alignment expects revenue between $880 million and $895 million, well above analyst projections of $854.7 million. The company also introduced full-year 2025 revenue guidance of $3.72 billion to $3.78 billion, representing 37.6% to 39.6% growth YoY.

"2024 was a milestone year that proved health plans can win by providing more care, not less," said John Kao, founder and CEO. "With strong momentum from the annual enrollment period and industry-leading stars performance, we enter 2025 positioned for success."

Alignment achieved its first full year of positive adjusted EBITDA as a public company in 2024, driven by operating leverage and strong medical benefits ratio performance. The company raised its midpoint guidance for 2025 health plan membership by 2,000 members to reflect momentum from the open enrollment period.

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

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