Agilon Health, Inc. Q4 FY2025 earnings call

• 2025 was a year of building the foundation of sustainable performance through operational discipline with the mission of empowering physicians. - Tangible progress included advancement of clinical pathways, disciplined payer relations, and data-driven performance. - In 2026, key areas include enhanced financial data pipeline, disciplined contracting prioritizing economic sustainability, advancement of clinical pathways, and maturing quality initiatives with stronger measuring discipline

Medicare Advantage membership at the end of 2025 was 511,000 members. ACO REACH membership for the quarter and fiscal year end 2025 was 114,000 members. Total revenue for the fourth quarter was $1.57 billion and $5.93 billion for full year 2025, respectively. Medical margin for the fourth quarter was negative $74 million and negative $57 million for the full year. Adjusted EBITDA was negative $142 million and negative $296 million for the fourth quarter and full year, respectively. ACO REACH adjusted EBITDA for the fourth quarter was negative $6 million and for the full year of 2025 was $41 million. For 2026, expected year-end membership on the Agilon platform is in a range of 525,000 to 540,000 members, revenues in the range of approximately $5.41 billion to $5.58 billion, medical margin in the range of $300 million to $350 million, adjusted EBITDA in the range of negative $15 million to positive $15 million, and ACO REACH contribution in the range of $20 million to $25 million

• 2026 expected revenue between $5.41 billion and $5.58 billion. - Medical margin expected to be between $300 million and $350 million. - Adjusted EBITDA expected to be between negative $15 million and positive $15 million. - Year-end membership on Agilon platform expected 525,000 to 540,000 members. - Assumes gross cost trend 7.5% and net 7% for 2026. - ACO REACH contribution expected $20 million to $25 million

• Risks and uncertainties associated with the business as detailed in SEC filings. - Elevated cost trends pose a risk. - Potential impact of risk model changes and market/payer dynamics. - Limited claims visibility affects cost trend assumptions

Q: Clarification on cost trend and inpatient stays in Q3 and Q4.

A: In Q3, there were higher inpatient stays with large claims leading to cost trend increase, and Q4 cost trend was adjusted to 7.4% due to limited claims visibility.

Q: Update on 25 fee-for-service trend in ACA REACH and MA rate notice.

A: Fee-for-service cost trend was 8.1%, and there are ongoing considerations regarding the MA rate notice.

Q: Mix of MA and special needs plans.

A: Special needs plans account for roughly 7% of membership, and the impact of mix shift is unclear.

Q: Membership exits and recontracting.

A: Membership exits are broadly payer and market specific, not specific to one payer.

Q: Chart review impact.

A: Minimal for Agilent due to the model aligned with primary care physicians