The guidance cut on adjusted gross profit and EBITDA is the key negative signal, indicating medical cost trends are running well above expectations. Watch Q4 2026 results for whether the elevated MBR persists; the company's revised guidance does not assume benefit from corrective actions, so any improvement would be incremental. The raised revenue guidance on strong membership growth provides a partial offset but does not compensate for the margin compression.
Price Chart
Executive Summary
Alignment Healthcare reported Q3 2026 revenue of $1.36B (+36.7% YoY) and a GAAP net loss of $8.1M vs net income of $3.7M a year ago, as the medical benefits ratio (MBR) worsened 240 bps to 89.5%. The company lowered full-year 2026 adjusted gross profit guidance to $575M (from $630-650M) and adjusted EBITDA guidance to $100M (from $145-163M), citing higher medical costs from elevated appeals, catastrophic cases and skilled nursing.
Key Financial Metrics
Key Facts
- Q3 2026 total revenue $1,358.3M, up 36.7% YoY from $993.7M
- GAAP net loss of $8.1M vs net income of $3.7M in Q3 2025
- Adjusted EBITDA $21.8M, down 32.8% YoY from $32.4M
- Medical benefits ratio (MBR) 89.5%, up ~240 bps YoY
- Full-year 2026 adjusted gross profit guidance lowered to $575M (from $630-650M midpoint)
- Full-year 2026 adjusted EBITDA guidance lowered to $100M (from $145-163M midpoint)
- Full-year 2026 revenue guidance raised to $5,245M (from $5,195-5,225M midpoint)
- Health plan membership 301,200, up 31.2% YoY
- Q4 2026 guidance: revenue at least $1,316M, adjusted gross profit at least $104M, adjusted EBITDA at least -$28M
Financial Impact
Full-year adjusted EBITDA guidance cut by ~$54M from prior midpoint; Q3 adjusted EBITDA declined $10.6M YoY; GAAP net income swung to a loss of $8.1M from a profit of $3.7M
Risk Factors
- Medical cost inflation from elevated appeals, disputes, catastrophic cases and skilled nursing may persist into 2027
- Q4 2026 adjusted EBITDA guidance of at least -$28M implies a potential loss in the seasonally weakest quarter
- Full-year 2026 adjusted EBITDA of $100M at the midpoint is below the prior range of $145-163M, a ~35% reduction
- Revenue growth is driven by membership expansion, but margin deterioration suggests unit economics are weakening
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001171843-26-006971 |
| Document: f8k_102926.htm | 0001171843-26-006971 |
| Document: 0001171843-26-006971-index-headers.html | 0001171843-26-006971 |
| Document: 0001171843-26-006971-index.html | 0001171843-26-006971 |
| Document: 0001171843-26-006971.txt | 0001171843-26-006971 |
| 8-K Data (Synthetic) | 0001171843-26-006971 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | No price | awaiting T+1 | awaiting T+1 | No price |
Oct 29, 2026 3d ago | Press Release | $7.20 | awaiting T+1 | awaiting T+1 | $7.27 (−0.90%) |
Oct 20, 2026 12d ago | Institutional Cluster | $8.44 $8.43 | ▼ −0.12% | ▲ +1.06% | $7.27 (−13.86%) |
Oct 19, 2026 13d ago | Press Release | $8.40 $8.51 | ▲ +1.31% | ▲ +0.97% | $7.27 (−13.45%) |
Oct 8, 2026 24d ago | 8-K | $7.55 $8.09 | ▼ −7.22% | ▼ −7.28% | $7.27 (+3.64%) |
Oct 5, 2026 27d ago | SC 13G/A | $8.50 $8.37 | ▼ −1.53% | ▼ −2.08% | $7.27 (−14.47%) |
Sep 18, 2026 6w ago | Insider Cluster | $8.33 $7.99 | ▲ +4.08% | ▲ +4.07% | $7.27 (+12.73%) |
Sep 16, 2026 6w ago | Insider Cluster | $8.70 $8.35 | ▲ +4.02% | ▲ +3.90% | $7.27 (+16.44%) |
Sep 16, 2026 6w ago | 144 | $8.70 $8.35 | ▼ −4.02% | ▼ −3.90% | $7.27 (−16.44%) |
Sep 11, 2026 7w ago | Insider Cluster | $12.94 $10.37 | ▲ +19.86% | ▲ +19.40% | $7.27 (+43.82%) |
US Market Status
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