Evolent Health misses Q4 estimates, shares drop on weak guidance

Published 20/02/2025, 22:48
Evolent Health misses Q4 estimates, shares drop on weak guidance

NEW YORK - Evolent Health, Inc. (NYSE:EVH) reported fourth-quarter results that fell short of analyst expectations and provided lower-than-anticipated guidance for 2025, sending shares down 2% in after-hours trading.

The healthcare technology company posted adjusted earnings per share of -$0.02 for Q4, missing the consensus estimate of $0.07. Revenue came in at $646.5 million, below analyst projections of $652.2 million but up 16.3% YoY.

For the full year 2024, Evolent reported revenue of $2.55 billion, representing 30.1% growth over 2023. However, the company’s outlook for 2025 disappointed investors. Evolent forecasts full-year 2025 revenue between $2.06 billion and $2.11 billion, well below the $2.42 billion analysts were expecting.

"Evolent delivered fourth quarter and 2024 full-year results within the outlook range we provided in November, despite continued elevated oncology costs during the quarter," said Seth Blackley, Co-Founder and CEO of Evolent.

The company noted it had signed contract amendments in all three Performance Suite negotiations, which are expected to yield a $115 million annual improvement for 2025 compared to Q4 2024 in both net income and adjusted EBITDA.

Evolent maintained 100% partner contract retention across its top customers, which together represent over 90% of 2024 revenue. The company also announced two new revenue agreements in the quarter.

For Q1 2025, Evolent expects revenue between $440 million and $470 million and adjusted EBITDA of $31 million to $37 million.

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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