The stock may react positively to the strong 2026 revenue growth guidance, but traders should be cautious of the projected decline in Adjusted EBITDA and near-term margin pressure. Monitor the execution of the operating cost reduction plan and the integration of new $900 million in revenue.
Price Chart
Executive Summary
Evolent Health reported a significant year-over-year decline in revenue and net loss for 2025, driven by goodwill and other impairments. However, the company guided for approximately 30% revenue growth in 2026, citing strong customer retention and a robust pipeline. Adjusted EBITDA remained stable at $151 million, but 2026 guidance projects a decline to $110-$140 million due to near-term investments and membership changes.
Key Financial Metrics
Key Facts
- 2025 revenue declined 26.5% YoY to $1.876 billion, primarily due to a $398 million goodwill impairment.
- Adjusted EBITDA was $151.2 million in 2025, flat year-over-year, with a stable 8.1% margin.
- The company guided for 2026 revenue of $2.4-$2.6 billion (approx. 30% growth) and Adjusted EBITDA of $110-$140 million.
- Management cited $900 million in new Performance Suite revenue for 2026 but expects near-term margin pressure.
- Net loss attributable to common shareholders was $579.4 million in 2025, compared to a loss of $93.5 million in 2024.
Financial Impact
Revenue down 26.5% YoY to $1.876B; Adjusted EBITDA flat at $151.2M; 2026 revenue guidance of $2.4B-$2.6B implies ~30% growth.
Segment Breakdown
| Segment | Revenue |
|---|---|
| Performance Suite | $1.1B |
| Specialty Technology and Services Suite | $353.2M |
| Administrative Services | $226.7M |
| Cases | $169.0M |
Risk Factors
- The significant decline in GAAP revenue and net loss raises concerns about underlying business health.
- The 2026 Adjusted EBITDA guidance is below 2025 levels, indicating near-term profitability challenges.
- The company's forecast is dependent on successfully managing the impact of new contract reserving and customer membership decreases.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628908-26-000014 |
| Document: evh-20260224.htm | 0001628908-26-000014 |
| Document: 0001628908-26-000014-index-headers.html | 0001628908-26-000014 |
| Document: 0001628908-26-000014-index.html | 0001628908-26-000014 |
| Document: 0001628908-26-000014.txt | 0001628908-26-000014 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 6, 2026 8w ago | 8-K | $3.59 $4.26 | ▲ +18.66% | ▲ +18.06% | $3.46 (−3.62%) |
Jul 8, 2026 12w ago | Press Release | $5.63 $3.59 | ▼ −36.23% | ▼ −38.48% | $3.46 (−38.54%) |
Apr 24, 2026 23w ago | DEFA14A | $3.47 $3.83 | ▲ +10.37% | ▲ +5.42% | $3.46 (−0.29%) |
Feb 24, 2026 31w ago | 8-K | $3.14 $2.27 | ▼ −27.71% | ▼ −22.47% | $3.46 (+10.19%) |
US Market Status
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