Alignment Healthcare (ALHC) Announces Fourth Quarter And Full-Year 2024 Earnings Results; Provides Full-Year 2025 Financial Guidance

Alignment Healthcare, Inc. (ALHC) today announced its financial results for the recent quarter, showcasing a strong performance that exceeded market expectations. The company reported a quarterly revenue of $701.2 million, surpassing the estimated $676.8 million and marking a significant beat. Additionally, Alignment Healthcare posted a quarterly earnings per share (EPS) of -$0.16, which was better than the anticipated EPS of -$0.19. This positive earnings surprise highlights the company’s robust operational execution and strategic growth initiatives.

Key Highlights:

• Alignment Healthcare reported a 58.6% increase in health plan membership, reaching 189,100 members by the end of 2024.
• The company achieved its first full year of positive adjusted EBITDA as a public company.
• Revenue for 2024 was $2.7 billion, marking a 48.3% increase year-over-year.
• The company provided 2025 revenue guidance of $3.72 billion to $3.78 billion, representing a 37.6%-39.6% growth.
• Adjusted EBITDA for 2025 is projected to be between $35 million and $60 million.
• CEO John Kao emphasized the company’s success in growing by providing more care and managing medical expenses effectively.

Summary:

Alignment Healthcare experienced significant growth in 2024, with health plan membership increasing by 58.6% to 189,100 members, surpassing year-end expectations. The company also achieved its first full year of positive adjusted EBITDA as a public company, driven by strong operating leverage and medical benefits ratio performance. Total revenue for the year was $2.7 billion, a 48.3% increase from the previous year. CEO John Kao highlighted the company’s strategy of using clinical resources and technology to improve outcomes and manage medical expenses, which allowed them to grow while others in the industry pulled back. He stated, “2024 was a milestone year that proved health plans can win by providing more care, not less.”

Looking ahead, Alignment Healthcare has set ambitious financial goals for 2025, with revenue guidance between $3.72 billion and $3.78 billion, representing a 37.6%-39.6% growth year-over-year. The company also projects adjusted EBITDA to be in the range of $35 million to $60 million. The increase in the midpoint of 2025 health plan membership guidance by 2,000 reflects strong momentum from the open enrollment period. With a focus on expanding its offerings and growing its national footprint, Alignment Healthcare is poised for continued success in the Medicare Advantage market, maintaining its commitment to high-quality, low-cost care for its members.

Alignment Healthcare, Inc. (ALHC) has experienced a rollercoaster ride in its stock price over the past year, with a remarkable 111.92% increase, despite a recent one-month dip of 12.09%. This volatility is underscored by a six-month surge of 39.70%, suggesting a strong recovery phase after previous declines. However, the company’s fundamental metrics paint a challenging picture, with a negative price-to-earnings ratio of -17.09, indicating that the company is currently unprofitable. The net profit margin stands at -6.22%, further highlighting the financial struggles. Despite these hurdles, the company has demonstrated impressive revenue growth, with a two-year compound annual growth rate of 34.18%, suggesting robust top-line expansion. However, the return on invested capital is -2.82%, indicating inefficiencies in generating returns from its investments. Overall, while the stock’s recent performance is promising, the underlying financial metrics suggest that Alignment Healthcare still faces significant challenges in achieving profitability.

Alignment Healthcare, Inc., a tech-enabled Medicare advantage company, operates consumer-centric health care platform. It provides customized health care in the United States to seniors and those who need it through its Medicare advantage plans. The company owns Medicare advantage plans in the states of California, North Carolina, and Nevada. It also coordinates and provides covered health care services, including professional, institutional, and ancillary services to members enrolled in certain benefit plans of unaffiliated Medicare Advantage Health Maintenance Organizations. The company was founded in 2013 and is based in Orange, California.