John Kao: Q4 Revenue Reaches $1.01B for FY2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy ALHC?
Reports Q4 revenue $1.01B, consensus $1B. "Our fourth quarter and full-year 2025 results show what Medicare Advantage done right looks like," said John Kao, founder and CEO. "We once again exceeded industry expectations and delivered continued momentum on revenue growth while taking a positive step forward in profitability and margin expansion, including producing free cash flow on a full-year basis. By leading with our care model, we are putting our seniors first and lowering costs by delivering more care, not less. Being named to the 2026 Fortune World's Most Admired Companies(TM) list affirms the reputation we've built since going public. As we move through 2026, we remain focused on disciplined growth, the scalability of our operations and creating long-term value for the members we serve."
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Analyst Views on ALHC
Wall Street analysts forecast ALHC stock price to rise
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 19.220
Low
18.00
Averages
21.81
High
30.00
Current: 19.220
Low
18.00
Averages
21.81
High
30.00
About ALHC
Alignment Healthcare, Inc. is a consumer-centric platform designed to improve the healthcare experience for seniors. The Company’s operations primarily consist of Medicare Advantage Plans in the states of California, North Carolina, Nevada, Arizona, Florida and Texas. It partners with local providers to deliver coordinated care, powered by its customized care model, 24/7 concierge care team and purpose-built technology (AVA). AVA’s capabilities include consumer experience, internal care delivery, external providers, health plan operations and growth operations. AVA offers a digital ecosystem that enables its members and their support system to get the information and care they need, when and how they need it. With their AVA-powered member portal and mobile app, seniors have many self-service capabilities and can get 24/7 care, send secure messages to their concierge and care teams, check their rewards and ACCESS On-Demand Concierge Card balance, and view their health history.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Alignment Healthcare Reports Q4 Loss with Revenue Growth
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- Revenue Growth: The company's revenue surged to $1.012 billion in the fourth quarter, marking a 44.3% increase from $701.24 million last year, reflecting significant progress in market demand and customer base expansion, thereby enhancing future growth potential.
- Improved Profitability: Although still in a loss position, the reduction in earnings per share from $0.16 to $0.05 demonstrates positive changes in operational efficiency and financial management, which may attract more investor interest.
- Market Outlook: With substantial revenue growth and reduced losses, Alignment Healthcare's competitiveness in the healthcare market is strengthened, and it is poised to achieve profitability through ongoing business expansion and service optimization.
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Alignment (ALHC) Q4 2025 Earnings Call Transcript
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Alignment Healthcare Q4 Earnings Beat Expectations with Strong Revenue Growth
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- Revenue Growth: The company achieved $1.02 billion in revenue for Q4, representing a 45.5% year-over-year increase, surpassing market expectations by $20 million, reflecting strong performance in the healthcare insurance market.
- Adjusted Gross Profit: Adjusted gross profit stood at $124.9 million with an operating loss of $10.3 million, while the medical benefits ratio based on adjusted gross profit was 87.7%, highlighting challenges in cost control.
- Future Guidance: Despite a slowdown in Medicare Advantage growth, Alignment Healthcare guides for membership growth of up to 27% by 2026, demonstrating confidence in future market opportunities.
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- Strong Membership Growth: By the end of Q4 2025, health plan membership reached approximately 236,300, a 25.0% increase year-over-year, which not only enhances the company's market share but also lays a solid foundation for future revenue growth.
- Improved Profitability: The adjusted gross profit for 2025 was $494.8 million, with an operating income of $14.8 million; although there was still a net loss, the company made positive strides in profitability and margin expansion, indicating the sustainability of its business model.
- Optimistic Outlook: The company anticipates revenue for 2026 to reach between $5.14 billion and $5.19 billion, reflecting a year-over-year growth of 30%-31%, with adjusted EBITDA guidance set at $133 million to $163 million, showcasing management's confidence in future growth.
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- High Revenue Dependency: Analysts noted that Medicare accounts for about 61% of Astrana Health's revenue, and despite the sharp decline, the stock's drop was more severe than peers like Agilon Health and Alignment Healthcare, which fell around 10% and 12%, respectively, reflecting greater market concerns about Astrana.
- Differentiated Risk Adjustment Practices: Analyst William Blair highlighted that Astrana Health's risk adjustment practices differ from larger payers, relying on direct patient care rather than audio-only visits or standalone chart reviews, resulting in lower exposure to the risk score impacts proposed by CMS.
- Long-Term Value Potential: Despite short-term pressures, analysts believe that CMS's proposals could enhance the company's long-term value, as payers will need to rely on fully delegated care delivery partners to manage patients and costs, potentially leading to more delegated contract agreements in 2027 and beyond.
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- Earnings Overview: Alignment Healthcare reported a fourth-quarter loss of $11.01 million, or $0.05 per share, which is an improvement from last year's loss of $31.09 million and $0.16 per share, indicating better cost control measures.
- Revenue Growth: The company's revenue surged to $1.012 billion in the fourth quarter, marking a 44.3% increase from $701.24 million last year, reflecting significant progress in market demand and customer base expansion, thereby enhancing future growth potential.
- Improved Profitability: Although still in a loss position, the reduction in earnings per share from $0.16 to $0.05 demonstrates positive changes in operational efficiency and financial management, which may attract more investor interest.
- Market Outlook: With substantial revenue growth and reduced losses, Alignment Healthcare's competitiveness in the healthcare market is strengthened, and it is poised to achieve profitability through ongoing business expansion and service optimization.
See More
Alignment (ALHC) Q4 2025 Earnings Call Transcript
See More
Alignment Healthcare Q4 Earnings Beat Expectations with Strong Revenue Growth
- Earnings Highlights: Alignment Healthcare reported a Q4 GAAP EPS of -$0.05, beating expectations by $0.10, indicating an improvement in profitability despite still being in a loss position.
- Revenue Growth: The company achieved $1.02 billion in revenue for Q4, representing a 45.5% year-over-year increase, surpassing market expectations by $20 million, reflecting strong performance in the healthcare insurance market.
- Adjusted Gross Profit: Adjusted gross profit stood at $124.9 million with an operating loss of $10.3 million, while the medical benefits ratio based on adjusted gross profit was 87.7%, highlighting challenges in cost control.
- Future Guidance: Despite a slowdown in Medicare Advantage growth, Alignment Healthcare guides for membership growth of up to 27% by 2026, demonstrating confidence in future market opportunities.
See More
Alignment Healthcare Reports Strong 2025 Financial Results
- Significant Revenue Growth: Alignment Healthcare reported full-year revenue of $3.95 billion for 2025, representing a 46.1% year-over-year increase, exceeding expectations and demonstrating strong performance in the Medicare Advantage market, thereby solidifying its market position.
- Strong Membership Growth: By the end of Q4 2025, health plan membership reached approximately 236,300, a 25.0% increase year-over-year, which not only enhances the company's market share but also lays a solid foundation for future revenue growth.
- Improved Profitability: The adjusted gross profit for 2025 was $494.8 million, with an operating income of $14.8 million; although there was still a net loss, the company made positive strides in profitability and margin expansion, indicating the sustainability of its business model.
- Optimistic Outlook: The company anticipates revenue for 2026 to reach between $5.14 billion and $5.19 billion, reflecting a year-over-year growth of 30%-31%, with adjusted EBITDA guidance set at $133 million to $163 million, showcasing management's confidence in future growth.
See More
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- Significant Stock Drop: Astrana Health Inc. shares fell approximately 22% to close at $21.48 on Tuesday, primarily due to CMS's proposed 0.09% payment growth for Medicare Advantage in 2027, indicating weak payment growth that could impact future revenues.
- High Revenue Dependency: Analysts noted that Medicare accounts for about 61% of Astrana Health's revenue, and despite the sharp decline, the stock's drop was more severe than peers like Agilon Health and Alignment Healthcare, which fell around 10% and 12%, respectively, reflecting greater market concerns about Astrana.
- Differentiated Risk Adjustment Practices: Analyst William Blair highlighted that Astrana Health's risk adjustment practices differ from larger payers, relying on direct patient care rather than audio-only visits or standalone chart reviews, resulting in lower exposure to the risk score impacts proposed by CMS.
- Long-Term Value Potential: Despite short-term pressures, analysts believe that CMS's proposals could enhance the company's long-term value, as payers will need to rely on fully delegated care delivery partners to manage patients and costs, potentially leading to more delegated contract agreements in 2027 and beyond.
See More
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- Fulgent Genetics Rise: Fulgent Genetics, Inc. (FLGT) rose 5.98% to $28.90 in after-hours trading, gaining $1.63, reflecting market optimism regarding its business outlook.
- Fractyl Health Growth: Fractyl Health, Inc. (GUTS) climbed 5.19% to $2.23 after hours, up $0.11, suggesting that its potential in the biotech sector is being recognized by the market.
- Coeptis Therapeutics Increase: Coeptis Therapeutics Holdings, Inc. (COEP) added 4.14% to finish at $13.85, gaining $0.55 in after-hours trading, demonstrating investor support for its strategic direction.
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