Evolent Health — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the three months ended September 30, 2026, was $725.4 million, compared to $479.5 million in the same period in 2025.
• Net loss attributable to common shareholders was $23.6 million for the quarter, improving from a net loss of $26.9 million in the prior year period.
• Net loss margin was (3.2)% for the quarter, compared to (5.6)% in the prior year period.
• Adjusted EBITDA was $34.3 million for the quarter, down from $39.0 million in the prior year period.
• Adjusted EBITDA margin was 4.7% for the quarter, compared to 8.1% in the prior year period.
• Adjusted income attributable to common shareholders was $7.3 million for the quarter, compared to $5.6 million in the prior year period.
• Adjusted income per share (basic and diluted) was $0.06 for the quarter, compared to $0.05 in the prior year period.
• Total cash and cash equivalents were $148.3 million as of September 30, 2026.
• Medical expense ratio was 93.0% for the quarter, compared to 85.0% in the prior year period.
• For the nine months ended September 30, 2026, revenue was $1.87 billion compared to $1.41 billion in the prior year period.
• For the nine months ended September 30, 2026, net loss attributable to common shareholders was $78.6 million compared to $150.3 million in the prior year period.
• For the nine months ended September 30, 2026, Adjusted EBITDA was $84.4 million compared to $113.4 million in the prior year period.

Guidance and Future Outlook:

• The Company is reiterating its full-year 2026 revenue guidance range to $2.6 billion to $2.7 billion.
• The Company is raising its full-year 2026 Adjusted EBITDA range to $130.0 million to $135.0 million.
• The Company expects to deploy $26 million to $28 million in cash for capitalized expenditures during 2026.
• Management indicated that innovative AI platforms and oncology solutions are expected to drive growth and margin expansion in future quarters.
• The Company does not provide guidance for net income attributable to common shareholders due to the inability to reconcile non-GAAP Adjusted EBITDA to net income without unreasonable effort.

Business Segments and Product Lines:

• The Company announced one renewal and two new revenue agreements, bringing the year-to-date total to seven agreements.
• The Company renewed its largest Surgical Management customer contract for an additional four years.
• The Company expanded its relationship with an existing client to provide oncology services across several additional states, representing approximately 1 million Commercial lives with a January 1, 2027 go-live.
• The Company expanded its relationship with a national payer in Specialty Technology & Services for oncology across 11 additional states.
• Performance Suite average PMPM fees increased to $26.14 in the quarter, compared to $14.77 in the prior year period.
• Specialty Technology and Services Suite average PMPM fees were $0.32 in the quarter, compared to $0.40 in the prior year period.
• Administrative Services average PMPM fees were $13.84 in the quarter, compared to $15.77 in the prior year period.
• Revenue per case was $3,605 in the quarter, compared to $3,236 in the prior year period.
• Average lives on platform for the Performance Suite were 7,195 in the quarter, compared to 6,474 in the prior year period.
• Average lives on platform for the Specialty Technology and Services Suite were 74,733 in the quarter, compared to 78,050 in the prior year period.
• Average lives on platform for Administrative Services were 1,163 in the quarter, compared to 1,222 in the prior year period.
• Average unique members were 39,804 in the quarter, compared to 40,781 in the prior year period.

Market and Competitive Landscape:

• Rising medical costs impacting health plans continue to drive robust demand for Evolent's complex specialty care solutions.
• Health plan customers are seeking to balance affordability with patient and doctor experience, leading to renewals and expanded work with Evolent.
• Strong execution in 2026 oncology launches is driving performance.

Risks and Challenges:

• Significant portion of revenue is derived from largest partners, with risks related to loss, termination, or renegotiation of relationships.
• Increasing number of risk-sharing arrangements entered into with partners.
• Difficulty in predicting growth and success of partners and revenues from engagements due to factors outside control, including governmental funding reductions and policy changes.
• Risks related to accurately predicting exposure under performance-based contracts.
• Risks associated with the use of artificial intelligence and machine learning models.
• Risks related to data security, privacy laws, and potential data loss or corruption.
• Risks related to indebtedness, ability to service debt, and restrictive covenants under credit agreements.
• Risks related to goodwill and intangible asset impairments.
• Risks related to tax receivable agreement liabilities and payments to pre-IPO investors.

Management Commentary and Tone:

• Seth Blackley, Co-Founder and CEO, stated that growth and demand from existing clients, along with strong execution in oncology launches, are driving strong performance.
• Management expressed confidence that innovative AI platforms and oncology solutions will drive future growth and margin expansion.
• Management highlighted the value of multi-year commitments from long-standing partners as reinforcing the strength of client relationships.

Other Key Points:

• The Company announced the renewal of its largest Surgical Management customer contract for four years.
• The Company expanded oncology services for an existing client across additional states, adding Member Navigation services.
• The Company expanded oncology services for a national payer across 11 additional states.
• The Company expects to deploy $26 million to $28 million in cash for capitalized expenditures during 2026.
• The Company intends to deploy up to $50 million toward reducing outstanding indebtedness by the end of the year.
• The Company does not intend to pay cash dividends on its Class A common stock.
• The Company held a conference call on November 5, 2026, to discuss financial performance.