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Investing.com -- agilon health Inc (NYSE:AGL) stock tumbled 31.1% after the company announced CEO Steven Sell has stepped down and the firm reported disappointing second quarter results that fell short of expectations.
The healthcare company, which partners with primary care physicians to provide value-based care, has appointed co-founder and Board Chairman Ronald A. Williams as Executive Chairman to lead an interim Office of the Chairman while the board searches for a permanent CEO replacement.
The leadership change coincided with concerning financial results for the second quarter of 2025. Total (EPA:TTEF) revenue decreased 6% to $1.39 billion compared to $1.48 billion in the same period last year. The company reported a gross loss of $52 million, a significant deterioration from the $32 million profit in Q2 2024.
Medical (TASE:BLWV) margin swung to a negative $53 million from a positive $106 million YoY, while adjusted EBITDA loss widened to $83 million compared to a $3 million loss in the prior-year period.
The company cited several factors for the disappointing performance, including $66 million in prior period development costs and a $48 million reduction in risk adjustment revenue for 2025. Total membership on the agilon platform decreased to 614,000 as of June 30, 2025, representing a 5% decline from the same period last year.
In light of the leadership transition and ongoing market challenges, agilon has withdrawn its previously issued full-year 2025 financial guidance as it evaluates additional actions to improve operating performance.
The company ended the quarter with $327 million in cash and cash equivalents and marketable securities, with $35 million in total debt.
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