WESTERVILLE, Ohio - agilon health, inc. (NYSE: AGL), the trusted partner empowering physicians to transform health care in our communities, announced results for the first quarter ended March 31, 2026.
In addition, the company increased full-year 2026 guidance for total revenues, medical margin, and Adjusted EBITDA.
'Our strong first-quarter performance and increase in full-year 2026 guidance reflects disciplined execution and progress against our strategic priorities. We are seeing early returns from investments in data and technology, clinical execution, and operating discipline,' said Ronald A. Williams, Executive Chairman. 'We are also strengthening our Total Care Model-expanding clinical pathways, improving quality, and deepening payor alignment-positioning us for more predictable outcomes and sustained margin expansion. We remain confident in our 2026 outlook and long-term growth trajectory.'
Mr. Williams added, 'We are also excited to welcome Tim O'Rourke as CEO, who brings more than 25 years of healthcare leadership. Under Tim's leadership we expect to further sharpen our focus on execution with faster pull through from action to outcome and deliver increased value for all stakeholders.'
First Quarter 2026 Results
Total members on the agilon platform decreased to 536,000 as of March 31, 2026, including 426,000 Medicare Advantage members and 110,000 ACO model beneficiaries. Year-over-year changes to membership primarily reflect previously disclosed market exits, as well as payor exits in certain markets resulting from a disciplined approach to contracting focused on profitability.
Total revenue of $1.42 billion in the first quarter 2026 decreased 7% compared to $1.53 billion in the first quarter 2025. Revenue reflects lower year-over-year membership partially offset by improved pricing, contract economics and burden of illness performance.
Gross profit was $65 million in the first quarter 2026 compared to $51 million in the first quarter 2025. Net income was $49 million in the first quarter 2026 compared to $12 million in the first quarter 2025.
Medical margin was $149 million during the first quarter 2026, compared to $128 million in the first quarter 2025. Medical margin includes cost trend for Medicare Advantage members reserved at 7.4%.
Adjusted EBITDA was $54 million in the first quarter 2026 compared to $21 million in the first quarter 2025. Reflects the aforementioned items and strong ACO REACH performance.
About agilon health
agilon health is the trusted partner empowering physicians to transform health care in our communities. Through our partnerships and purpose-built platform, agilon is accelerating at scale how physician groups and health systems transition to a value-based Total Care Model for their senior patients. agilon provides the technology, people, capital, process, and access to a peer network of approximately 2,300 primary care physicians (PCPs) that allow its physician partners to maintain their independence and focus on the total health of their most vulnerable patients. Together, agilon and its physician partners are creating the healthcare system we need - one built on the value of care, not the volume of fees. The result: healthier communities and empowered doctors. agilon is the trusted partner in approximately 30 diverse communities and is here to help more of our nation's leading physician groups and health systems have a sustained, thriving future.
Forward-Looking Statements
Statements in this release that are not historical factual statements are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among other things, statements regarding our and our officers' intent, belief or expectation as identified by the use of words such as 'believes,' 'expects,' 'may,' 'will,' 'shall,' 'should,' 'would,' 'could,' 'seeks,' 'aims,' 'projects,' 'is optimistic,' 'intends,' 'plans,' 'estimates,' 'anticipates' or the negative versions of these words or other comparable terms. Examples of forward-looking statements include, among other things: statements regarding our expectations related to our strategic plan and its benefits, our growth trajectory, our management transition, expected revenue, medical costs, net income and gross profit, total and average membership, Adjusted EBITDA, Medical Margin, geography entry costs and other financial projections and assumptions, including our first quarter of fiscal year 2026 and full-year 2026 guidance. Forward-looking statements reflect our current expectations and views about future events and are subject to risks and uncertainties that could significantly affect our future financial condition and results of operations. While forward-looking statements reflect our good faith belief and assumptions we believe to be reasonable based upon current information, we can give no assurance that our expectations or forecasts will be attained. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be outside our control. These risks and uncertainties that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, but are not limited to: our history of net losses and the expectation that our expenses will increase in the future; failure to identify and develop successful new geographies, physician partners and payors, or execute upon our growth initiatives; success in executing our operating strategies or achieving results consistent with our historical performance; medical expenses incurred on behalf of our members may exceed revenues we receive; our ability to maintain and secure additional contracts with Medicare Advantage payors on favorable terms, if at all; our ability to grow new physician partner relationships sufficient to recover startup costs; availability of additional capital, on acceptable terms or at all, to support our business in the future; significant reduction in our membership; transition to a Total Care Model may be challenging for physician partners; inaccuracy in estimates of our members' risk adjustment factors, medical services expense, incurred but not reported claims, and earnings pursuant to payor contracts; public health crises, such as pandemics or epidemics, could adversely affect us; the impact of restrictive clauses or exclusivity provisions in some of our contracts with physician partners; our ability to hire and retain qualified personnel; our ability to realize the full value of our intangible assets; security breaches, cybersecurity attacks, loss of data and other disruptions to our information systems; our ability to protect the confidentiality of our know-how and other proprietary and internally developed information; our reliance on our subsidiaries to perform and fund their operations; our use of algorithms, artificial intelligence and machine learning in our business and challenges with properly managing the development and use of these technologies; our reliance on a limited number of key payors; the limited terms of contracts with our payors and our ability to renew them upon expiration; our ability to navigate the changing healthcare payor market; our reliance on our payors, physician partners and other providers to operate our business; our ability to obtain accurate and complete diagnosis data; our reliance on third-party software, data, infrastructure and bandwidth; consolidation and competition in the healthcare industry; the impact of changes to, and dependence on, federal government healthcare programs; uncertain or adverse economic and macroeconomic conditions, including a downturn or decrease in government expenditures; regulation of the healthcare industry and our and our physician partners' ability to comply with such laws and regulations; federal and state investigations, audits and enforcement actions; repayment obligations arising out of payor audits; negative publicity regarding the managed healthcare industry generally; our use, disclosure and processing of personally identifiable information, protected health information, and de-identified data; failure to obtain or maintain an insurance license, a certificate of authority or an equivalent authorization; changes in tax laws and regulations, or changes in related judgments or assumptions; our indebtedness and our potential to incur more debt; our dependence on our subsidiaries for cash to fund all of our operations and expenses; provisions in our governing documents; our ability to achieve a return on investment depends on appreciation in the price of our common stock; lawsuits not covered by insurance and securities class action litigation; sustainability issues; our stock price may be volatile; non-compliance with the New York Stock Exchange could result in a delisting of our securities; risks related to management transitions, including the transition of our new Chief Executive Officer, and our ability to effectively manage leadership changes and risks related to other factors discussed in our filings with the Securities and Exchange Commission (the 'SEC'), including the factors discussed under 'Risk Factors' in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which can be found at the SEC's website at www.sec.gov. Additionally, ongoing implementation of performance initiatives, leadership changes, and dynamic market conditions create additional uncertainty regarding our future operating and financial performance. Except as required by law, we do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, which speak only as of the date on which they are made.
Contact:
Evan Smith
Email: evan.smith@agilonhealth.com
Megan Cagle
Email: investors@agilonhealth.com
Stephanie Law
Email: media@agilonhealth.com
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