Astrana Health, Inc. Reports First Quarter 2025 Results

Company to Host Conference Call on Thursday, May 8, 2025, at 2:30 p.m. PT/5:30 p.m. ET , /PRNewswire/ -- Astrana Health, Inc. ("Astrana," and together with its subsidiaries and affiliated entities, the "Company") (NASDAQ: ASTH), a leading provider-centric, technology-powered healthcare company enabling providers to deliver accessible, high-quality, and high-value care to all, today announced its consolidated financial results for the first quarter ended March 31, 2025. "Astrana's strong start to the year reflects the continued momentum behind our mission to build the nation's leading patient-centered healthcare platform. Our differentiated clinical capabilities and technology-enabled delegated model continue to drive strong, profitable growth while delivering better outcomes for both patients and providers. Even in a complex regulatory and economic environment, we continue to prove that value-based care can deliver meaningful impact at scale with long-term sustainability," said Brandon Sim, President and CEO of Astrana Health. Financial Highlights for three months ended March 31, 2025: All comparisons are to the three months ended March 31, 2024 unless otherwise stated. Total revenue of $620.4 million, up 53% from $404.4 million Care Partners revenue of $601.0 million, up 57% from $382.3 million Net income attributable to Astrana of $6.7 million, compared to $14.8 million Earnings per share - diluted ("EPS - diluted") of $0.14, compared to $0.31 Adjusted EBITDA(1) of $36.4 million, compared to $42.2 million (1) See "Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin" and "Use of Non-GAAP Financial Measures" below for additional information. Recent Operating Highlights Astrana announced several additions to its leadership team to support continued growth and execution. The Company welcomes Georgie Sam, Chief Data & Analytics Officer, who will oversee enterprise-wide data and analytics strategy to deliver even faster, more actionable insights to our stakeholders, and Glenn Sobotka, Chief Accounting Officer, who brings deep experience to support Astrana's continued financial discipline and scalability. Rita Pew was promoted to the role of Chief People Officer, helping Astrana further invest in the talent and culture that drive Astrana forward. Astrana successfully completed the integration of Collaborative Health Systems ("CHS") and onboarded the entity to the Company's proprietary technology platform, already resulting in material general and administrative ("G&A") efficiencies. Astrana received Hart-Scott-Rodino ("HSR") approval for its pending acquisition of Prospect Health, which remains on track to close this summer. Segment Results for three months ended March 31, 2025:All comparisons are to the three months ended March 31, 2024 unless otherwise stated. Three Months Ended March 31, 2025 (in thousands) CarePartners CareDelivery CareEnablement IntersegmentElimination CorporateCosts ConsolidatedTotal Total revenues $ 600,951 $ 33,388 $ 39,562 $ (53,511) $ — $ 620,390 % change vs. prior year quarter 57 % 9 % 19 % Cost of services 512,668 27,139 25,818 (16,564) — 549,061 General and administrative(1) 44,068 9,357 10,209 (36,950) 24,062 50,746 Total expenses 556,736 36,496 36,027 (53,514) 24,062 599,807 Income (loss) from operations $ 44,215 $ (3,108) $ 3,535 $ 3 (2) $ (24,062) $ 20,583 % change vs. prior year quarter 2 % * 1 % * Percentage change of over 500% (1) Balance includes general and administrative expenses and depreciation and amortization. (2) Income from operations for the intersegment elimination represents sublease income between segments. Sublease income is presented within other income that is not presented in the table. 2025 Guidance: Astrana is providing the following guidance for total revenue and Adjusted EBITDA for the quarter ended June 30, 2025 and reiterating guidance for the year ended December 31, 2025 based on the Company's existing business, current view of existing market conditions, and assumptions. The following guidance for the year ended December 31, 2025 includes approximately $15 million in expected costs associated with continued strategic investments in automation and AI, as well as ongoing and expected integration costs associated with planned acquisitions, but does not include contributions from any acquisitions which have not yet closed. ($ in millions) Three Months Ended June 30, 2025 Year EndedDecember 31, 2025 Guidance Range Guidance Range Low High Low High Total revenue $ 615 $ 655 $ 2,500 $ 2,700 Adjusted EBITDA $ 45 $ 50 $ 170 $ 190 See "Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA" and "Use of Non-GAAP Financial Measures" below for additional information. There can be no assurance that actual amounts will not be materially higher or lower than these expectations. See "Forward-Looking Statements" below for additional information. Conference Call and Webcast Information: Astrana will host a conference call at 2:30 p.m. PT/5:30 p.m. ET today (Thursday, May 8, 2025), during which management will discuss the results of the first quarter ended March 31, 2025. To participate in the conference call, please use the following dial-in numbers about 5 minutes prior to the scheduled conference call time: U.S. & Canada (Toll-Free): +1 (877) 858-9810International (Toll): +1 (201) 689-8517 The conference call can also be accessed via webcast at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=HE6dr7eJ An accompanying slide presentation will be available in PDF format on the "IR Calendar" page of the Company's website (https://ir.astranahealth.com/news-events/ir-calendar) after issuance of the earnings release and will be furnished as an exhibit to Astrana's current report on Form 8-K to be filed with the SEC, accessible at www.sec.gov. Those who are unable to attend the live conference call may access the recording at the above webcast link, which will be made available shortly after the conclusion of the call. Note About Consolidated Entities The Company consolidates entities in which it has a controlling financial interest. The Company consolidates subsidiaries in which it holds, directly or indirectly, more than 50% of the voting rights, and variable interest entities ("VIEs") in which the Company is the primary beneficiary. Noncontrolling interests represent third party equity ownership interests in the Company's consolidated entities (including certain VIEs). The amount of net income attributable to noncontrolling interests is disclosed in the Company's consolidated statements of income. About Astrana Health, Inc. Astrana Health is a physician-centric, technology-enabled healthcare company committed to delivering access to high-quality, patient-centered care. Through its proprietary end-to-end technology platform, Astrana empowers providers to deliver more proactive, preventive care - improving patient outcomes, elevating patient experiences, improving the well-being of providers, and driving greater value. Today, Astrana supports more than 12,000 providers and over one million Americans in value-based arrangements through its affiliated provider networks, management services organization, and primary, specialty, and ancillary care delivery clinics. Together, Astrana is building what our healthcare system should be - one that delivers better care, better experiences, and better outcomes for all. For more information, visit www.astranahealth.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company's guidance for the quarter ending June 30, 2025 and the year ending December 31, 2025, ability to meet operational goals, ability to meet expectations in deployment of care coordination and management capabilities, ability to decrease cost of care while improving quality and outcomes, ability to deliver sustainable revenue and EBITDA growth as well as long-term value, ability to respond to the changing environment, statements about the Company's liquidity, and successful completion and implementation of strategic growth plans, acquisition strategy, and merger integration efforts. Forward-looking statements reflect current views with respect to future events and financial performance and therefore cannot be guaranteed. Such statements are based on the current expectations and certain assumptions of the Company's management, and some or all of such expectations and assumptions may not materialize or may vary significantly from actual results. Actual results may also vary materially from forward-looking statements due to risks, uncertainties and other factors, known and unknown, including the risk factors described from time to time in the Company's reports to the SEC, including, without limitation the risk factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and any subsequent quarterly reports on Form 10-Q. Any forward-looking statement made by the Company in this release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws. FOR MORE INFORMATION, PLEASE CONTACT: Investor Relations(626) 943-6491[email protected] ASTRANA HEALTH, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) March 31,2025 December 31,2024 (Unaudited) Assets Current assets Cash and cash equivalents $ 258,517 $ 288,455 Investment in marketable securities 2,397 2,378 Receivables, net 241,078 225,733 Receivables, net – related parties 56,846 50,257 Income taxes receivable 15,802 19,316 Other receivables 14,919 29,496 Prepaid expenses and other current assets 23,711 22,861 Total current assets 613,270 638,496 Non-current assets Property and equipment, net 16,849 14,274 Intangible assets, net 111,916 118,179 Goodwill 416,386 419,253 Income taxes receivable 15,943 15,943 Loans receivable, non-current 48,134 51,266 Investments in other entities – equity method 38,005 39,319 Investments in privately held entities 8,896 8,896 Restricted cash 647 646 Operating lease right-of-use assets 30,698 32,601 Other assets 30,512 16,021 Total non-current assets 717,986 716,398 Total assets(1) $ 1,331,256 $ 1,354,894 Liabilities, Mezzanine Deficit, and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $ 105,559 $ 106,142 Fiduciary accounts payable 4,840 8,223 Medical liabilities 204,101 209,039 Dividend payable 638 638 Finance lease liabilities 471 554 Operating lease liabilities 4,979 5,350 Current portion of long-term debt 12,500 9,375 Other liabilities 28,180 26,287 Total current liabilities 361,268 365,608 Non-current liabilities Deferred tax liability 4,197 4,555 Finance lease liabilities, net of current portion 543 607 Operating lease liabilities, net of current portion 28,963 30,654 Long-term debt, net of current portion and deferred financing costs 403,894 425,299 Other long-term liabilities 14,685 14,003 Total non-current liabilities 452,282 475,118 Total liabilities(1) 813,550 840,726 Mezzanine deficit Noncontrolling interest in Allied Physicians of California, a Professional Medical Corporation ("APC") (232,733) (202,558) Stockholders' equity Preferred stock, $0.001 par value per share; 5,000,000 shares authorized as of March 31, 2025 and December 31, 2024 Series A Preferred stock, zero authorized and issued and zero outstanding as of March 31, 2025 and zero authorized and issued and zero outstanding as of December 31, 2024 — — Series B Preferred stock, zero authorized and issued and zero outstanding as of March 31, 2025 and zero authorized and issued and zero outstanding as of December 31, 2024 — — Common stock, $0.001 par value per share; 100,000,000 shares authorized, 49,028,624(2) and 47,929,872 shares issued and outstanding, excluding 9,903,953 and 10,603,849 treasury shares, as of March 31, 2025 and December 31, 2024, respectively 49 48 Additional paid-in capital 452,439 426,389 Retained earnings 292,880 286,283 Total stockholders' equity 745,368 712,720 Non-controlling interest 5,071 4,006 Total equity 750,439 716,726 Total liabilities, mezzanine deficit, and stockholders' equity $ 1,331,256 $ 1,354,894 (1) The Company's condensed consolidated balance sheets include the assets and liabilities of its consolidated VIEs. The condensed consolidated balance sheets include total assets that can be used only to settle obligations of the Company's consolidated VIEs totaling $678.1 million and $712.3 million as of March 31, 2025 and December 31, 2024, respectively, and total liabilities of the Company's consolidated VIEs for which creditors do not have recourse to the general credit of the primary beneficiary of $212.1 million and $207.9 million as of March 31, 2025 and December 31, 2024, respectively. These VIE balances do not include $190.2 million of investment in affiliates and $4.5 million of amounts due to affiliates as of March 31, 2025, and $224.9 million of investment in affiliates and $48.1 million of amounts due to affiliates as of December 31, 2024, as these are eliminated upon consolidation and not presented within the condensed consolidated balance sheets. (2) As of May 5, 2025, there were 56,061,712 shares of common stock of the registrant issued and outstanding, which includes 6,132,802 treasury shares that are owned by Allied Physicians of California, a Professional Medical Corporation d.b.a. Allied Pacific of California IPA ("APC"). The shares owned by APC are legally issued and outstanding but excluded from shares of common stock outstanding in the Company's consolidated financial statements. The shares are treated as treasury shares for accounting purposes and not included in the number of shares of common stock outstanding used to calculate the Company's earnings per share. Included in the Company's common stock as outstanding in the consolidated financial statements are 41,048 holdback shares that have not been issued to certain former shareholders of the Company's subsidiary, Astrana Health Management, Inc. ("AHM"). The former AHM shareholders, who were AHM shareholders at the time of closing of the merger, have yet to submit properly completed letters of transmittal to Astrana in order to receive their pro rata portion of Astrana's common stock as contemplated under that certain Agreement and Plan of Merger, dated December 21, 2016, among Astrana, AHM, Apollo Acquisition Corp. ("Merger Subsidiary") and Kenneth Sim, M.D., as amended, pursuant to which Merger Subsidiary merged with and into AHM, with AHM as the surviving corporation. Pending such receipt, such former AHM shareholders have the right to receive, without interest, their pro rata share of dividends or distributions with a record date after the effectiveness of the merger. The Company's consolidated financial statements have treated such shares of common stock as outstanding, given the receipt of the letter of transmittal is considered perfunctory and Astrana is legally obligated to issue these shares in connection with the merger. ASTRANA HEALTH, INC. CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) Three Months EndedMarch 31, 2025 2024 Revenue Capitation, net $ 583,963 $ 365,910 Risk pool settlements and incentives 14,491 17,377 Management fee income 2,310 4,078 Fee-for-service, net 14,890 15,937 Other revenue 4,736 1,054 Total revenue 620,390 404,356 Operating expenses Cost of services, excluding depreciation and amortization 549,061 330,399 General and administrative expenses 43,897 38,722 Depreciation and amortization 6,849 5,096 Total expenses 599,807 374,217 Income from operations 20,583 30,139 Other expense (Loss) income from equity method investments (867) 632 Interest expense (7,308) (7,585) Interest income 2,312 3,996 Unrealized (loss) gain on investments (44) 1,099 Other loss (5,072) (4,277) Total other expense, net (10,979) (6,135) Income before provision for income taxes 9,604 24,004 Provision for income taxes 3,383 7,142 Net income 6,221 16,862 Net (loss) income attributable to non-controlling interest (471) 2,027 Net income attributable to Astrana Health, Inc. $ 6,692 $ 14,835 Earnings per share – basic $ 0.14 $ 0.31 Earnings per share – diluted $ 0.14 $ 0.31 ASTRANA HEALTH, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED) Three Months EndedMarch 31, 2025 2024 Cash flows from operating activities Net income $ 6,221 $ 16,862 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,849 5,096 Amortization of debt issuance cost 691 458 Share-based compensation 7,811 5,748 Non-cash lease expense 1,287 3,155 Change in fair value of contingent consideration liabilities 1,407 — Loss on debt extinguishment 375 — Unrealized loss (gain) on investments 44 (1,099) Loss (income) from equity method investments 867 (632) Deferred tax (358) (7,248) Other (557) 6,795 Changes in operating assets and liabilities, net of business combinations: Receivables, net (10,368) (26,128) Receivables, net – related parties (6,589) (3,374) Other receivables 3,688 (1,403) Prepaid expenses and other current assets 2,674 (4,255) Other assets (314) 92 Accounts payable and accrued expenses 8 905 Fiduciary accounts payable (3,383) 56 Medical liabilities 3,319 (808) Income taxes receivable 3,514 14,542 Operating lease liabilities (1,090) (3,083) Other long-term liabilities 531 298 Net cash provided by operating activities 16,627 5,977 Cash flows from investing activities Payments for business acquisition, net of cash acquired — (50,649) Proceeds from repayment of promissory notes, including those with related parties 600 6 Purchase of marketable securities (24) (27) Issuance of loan receivable — (20,000) Purchases of property and equipment (3,070) (369) Distribution from investment - equity method 100 — Net cash used in investing activities (2,394) (71,039) Cash flows from financing activities Dividends paid (5,455) (95) Borrowings on long-term debt 412,000 110,000 Repayment of long-term debt (428,232) (3,500) Payment of finance lease obligations (147) (179) Deferred financing cost (17,241) — Proceeds from ESPP purchases 301 — Taxes paid from net share settlement of restricted stock (4,052) — Repurchase of treasury shares (1,316) — Proceeds from sale of non-controlling interest — 150 Purchase of non-controlling interest (28) (25) Net cash (used in) provided by financing activities (44,170) 106,351 Net (decrease) increase in cash, cash equivalents, and restricted cash (29,937) 41,289 Cash, cash equivalents, and restricted cash, beginning of period 289,101 294,152 Cash, cash equivalents, and restricted cash, end of period $ 259,164 $ 335,441 Supplemental disclosures of cash flow information Cash paid for income taxes $ 4,338 $ 194 Cash paid for interest $ 7,360 $ 6,430 Supplemental disclosures of non-cash investing and financing activities Business acquisition in accounts payable and accrued liabilities — 63,935 Right-of-use assets obtained in exchange for operating lease liabilities 5,729 4,910 Common stock issued in business combination — 21,952 Purchase of investments - equity method in accounts payable and accrued liabilities and other liabilities — 9,487 Draw on letter of credit through Revolver Loan — 4,759 Dividend paid in the form of common stock 21,935 — The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total amounts of cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows (in thousands): March 31, 2025 2024 Cash and cash equivalents $ 258,517 $ 334,796 Restricted cash 647 645 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 259,164 $ 335,441 Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin Set forth below are reconciliations of Net Income to EBITDA and Adjusted EBITDA as well as the reconciliation to Adjusted EBITDA margin for the three months ended March 31, 2025 and 2024. The Company defines Adjusted EBITDA margin as Adjusted EBITDA over total revenue. Three Months EndedMarch 31, (in thousands) 2025 2024 Net income $ 6,221 $ 16,862 Interest expense 7,308 7,585 Interest income (2,312) (3,996) Provision for income taxes 3,383 7,142 Depreciation and amortization 6,849 5,096 EBITDA 21,449 32,689 (Income) loss from equity method investments 867 (632) Other, net 6,259 (1) 4,440 (2) Stock-based compensation 7,811 5,748 Adjusted EBITDA $ 36,386 $ 42,245 Total revenue $ 620,390 $ 404,356 Adjusted EBITDA margin 6 % 10 % (1) Other, net for the three months ended March 31, 2025, relates to debt issuance costs expensed in connection with our Second Amended and Restated Credit Facility, transaction costs for our acquisition of Prospect, data transition costs for our recent acquisitions, certain costs associated with the CHS transaction, non-cash changes related to change in the fair value of our call option and Collar Agreement, and severance fees incurred. (2) Other, net for the three months ended March 31, 2024, relates to financial guarantee via a letter of credit that we provided almost three years ago in support of two local provider-led ACOs, non-cash changes related to change in the fair value of our financing obligation to purchase the remaining equity interests in one of our investments, non-cash changes related to change in the fair value of the Company's Collar Agreement, and transaction costs incurred for our investments and tax restructuring fees. Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA 2025 Guidance Range (in thousands) Low High Net income $ 62,500 $ 73,500 Interest expense 16,000 19,000 Provision for income taxes 34,000 40,000 Depreciation and amortization 32,500 32,500 EBITDA 145,000 165,000 Income from equity method investments (5,500) (5,500) Other, net 9,500 9,500 Stock-based compensation 21,000 21,000 Adjusted EBITDA $ 170,000 $ 190,000 The Company has not provided a quantitative reconciliation of EBITDA and Adjusted EBITDA for the quarter ending June 30, 2025 to the most comparable GAAP measure on a forward-looking basis within this press release because the Company is unable, without unreasonable efforts, to provide reconciling information with respect to certain line items that cannot be calculated for the three month period. These items, which could materially affect the computation of forward-looking GAAP net income, are inherently uncertain and depend on various factors, some of which are outside of the Company's control. Use of Non-GAAP Financial Measures This press release contains the non-GAAP financial measures EBITDA and Adjusted EBITDA, of which the most directly comparable financial measure presented in accordance with U.S. generally accepted accounting principles ("GAAP") is net income. These measures are not in accordance with, or alternatives to GAAP, and may be calculated differently from similar non-GAAP financial measures used by other companies. The Company uses Adjusted EBITDA as a supplemental performance measure of our operations, for financial and operational decision-making, and as a supplemental means of evaluating period-to-period comparisons on a consistent basis. Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation, and amortization, excluding income or loss from equity method investments, non-recurring and non-cash transactions, and stock-based compensation. The Company defines Adjusted EBITDA margin as Adjusted EBITDA over total revenue. The Company believes the presentation of these non-GAAP financial measures provides investors with relevant and useful information, as it allows investors to evaluate the operating performance of the business activities without having to account for differences recognized because of non-core or non-recurring financial information. When GAAP financial measures are viewed in conjunction with non-GAAP financial measures, investors are provided with a more meaningful understanding of the Company's ongoing operating performance. In addition, these non-GAAP financial measures are among those indicators the Company uses as a basis for evaluating operational performance, allocating resources, and planning and forecasting future periods. Non-GAAP financial measures are not intended to be considered in isolation, or as a substitute for, GAAP financial measures. Other companies may calculate both EBITDA and Adjusted EBITDA differently, limiting the usefulness of these measures for comparative purposes. To the extent this release contains historical or future non-GAAP financial measures, the Company has provided corresponding GAAP financial measures for comparative purposes. The reconciliation between certain GAAP and non-GAAP measures is provided above. SOURCE Astrana Health, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Astrana Health, Inc. Reports First Quarter 2025 Results

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