Q3 FY2026
Filed Nov 4, 2026agilon reports Q3 2026 revenue up 6% to $1.52 billion, net income of $35 million versus a loss a year earlier, and raises full-year 2026 guidance
Revenue grew 6% year over year, operating income and net income turned positive, and Adjusted EBITDA swung from negative to positive. Full-year revenue, MSER and Adjusted EBITDA guidance were raised. Offsetting this, total members fell 8% year over year, other medical expenses rose sharply, and the company states that first-half claims development is included in the MSER.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q3 2026GAAP | $1.52B | – | 6% |
| Medical services revenue, Q3 2026GAAP | $1.52B | – | – |
| Other operating revenue, Q3 2026GAAP | $1.66M | – | – |
| Medical services expense, Q3 2026GAAP | $1.34B | – | – |
| Other medical expenses, Q3 2026GAAP | $77.98M | – | – |
| Medical services expense ratio (MSER), Q3 2026other | 88.5% | – | (15%) |
| General and administrative, Q3 2026GAAP | $67.13M | – | – |
| Depreciation and amortization, Q3 2026GAAP | $6.74M | – | – |
| Total expenses, Q3 2026GAAP | $1.50B | – | – |
| Income (loss) from operations, Q3 2026GAAP | $24.11M | – | – |
| Income (loss) from equity method investments, Q3 2026GAAP | −$979K | – | – |
| Other income (expense), net, Q3 2026GAAP | $17.52M | – | – |
| Interest expense, Q3 2026GAAP | −$1.74M | – | – |
| Income (loss) before income taxes, Q3 2026GAAP | $38.91M | – | – |
| Income tax benefit (expense), Q3 2026GAAP | −$4.00M | – | – |
| Net income (loss), Q3 2026GAAP | $34.91M | – | NM |
| Basic earnings per share, net income (loss), Q3 2026GAAP | $2.08 | – | – |
| Diluted earnings per share, net income (loss), Q3 2026GAAP | $1.97 | – | – |
| Diluted earnings per share, continuing operations, Q3 2026GAAP | $1.97 | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $63.68M | – | NM |
| Adjusted EBITDA contribution from ACO model entities, Q3 2026non-GAAP | $11M | – | – |
| Medicare Advantage members, end of period, Q3 2026other | 454,000 | – | (10%) |
| ACO model members, end of period, Q3 2026other | 112,000 | – | (3%) |
| Total members live on platform, end of period, Q3 2026other | 566,000 | – | (8%) |
| Average Medicare Advantage members, Q3 2026other | 488,000 | – | (4%) |
| Geography entry costs, Q3 2026other | $2M | – | (64%) |
| Total revenues, nine months 2026GAAP | $4.43B | – | – |
| Medical services expense, nine months 2026GAAP | $3.91B | – | – |
| Other medical expenses, nine months 2026GAAP | $255.2M | – | – |
| Income (loss) from operations, nine months 2026GAAP | $39.88M | – | – |
| Net income (loss), nine months 2026GAAP | $101.8M | – | – |
| Diluted earnings per share, net income (loss), nine months 2026GAAP | $5.92 | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | $187.1M | – | – |
| Medical services expense ratio (MSER), nine months 2026, Medicare Advantage consolidatedother | 88.3% | – | – |
| Net cash provided by (used in) operating activities, nine months 2026GAAP | $16.30M | – | – |
| Purchases of property, equipment, and capitalized software, nine months 2026GAAP | −$9.80M | – | – |
| Total assets, September 30, 2026GAAP | $1.57B | – | – |
| Total stockholders' equity (deficit), September 30, 2026GAAP | $280.9M | – | – |
| Cash, cash equivalents and marketable securities, September 30, 2026other | $312M | – | – |
| Total debt, September 30, 2026other | $32M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Medicare Advantage (consolidated), Q3 2026The filing prints medical services revenue, medical services expense ($1,343,519 thousand) and MSER (88.5%) for this segment. The company attributes revenue growth to higher-than-expected burden of illness performance, payor contracting and improved pricing, partially offset by lower year-over-year membership. The prior-year revenue for this segment is $1,432,437 thousand as printed in the consolidated statement, but the filing does not print a segment-level yoy change. | Medical services revenue $1,517,831 thousand | – | – |
| CMS ACO Models (unconsolidated), Q3 2026Shown in supplemental information only. Medical services expense is $392,333 thousand and MSER is 91.4%. The filing states that revenues of these unconsolidated entities are not recorded by agilon and that income from equity method investments is a significant portion of overall earnings. No prior-year figures are printed for this segment. | Medical services revenue $429,125 thousand (not recorded as agilon revenue) | – | – |
FY2026 (updated guidance, year ended December 31, 2026) outlook
- Revenue$5,870 million to $5,890 million
- NoteMSER 90.5% (low) to 90.3% (high), previously 91.9% to 91.4% as of Q2 2026
- NoteAdjusted EBITDA $145 million to $155 million, previously $75 million to $95 million as of Q2 2026 (non-GAAP)
- NoteMedicare Advantage members, end of period 445,000 to 450,000, previously 435,000 to 445,000
- NoteACO model members, end of period 108,000 to 112,000, previously 100,000 to 105,000
- NoteTotal members live on platform, end of period 553,000 to 562,000, previously 535,000 to 550,000
- NoteAverage Medicare Advantage members 451,000 to 453,000, previously 438,000 to 443,000
- NoteTotal revenues previously $5,775 million to $5,860 million as of Q2 2026
- NoteGeography entry costs $15 million (low and high), included in the Adjusted EBITDA outlook
- NoteAdjusted EBITDA contribution from ACO model entities approximately $40 million to $45 million for fiscal year 2026
- NoteThe company has not reconciled Adjusted EBITDA guidance to net income (loss) and has not provided net income (loss) guidance
Capital returns
- The filing reports no share repurchases and no dividends for the period.
- Nine-month proceeds from equity issuances, net, were $4,472 thousand (nine months 2025: $(2,977) thousand payments).
- Shares issued and outstanding were 16,795 thousand at September 30, 2026, compared with 16,589 thousand at December 31, 2025, as printed on the balance sheet.
What drove it
- The company attributes Q3 revenue growth to higher-than-expected burden of illness performance, payor contracting and improved pricing, partially offset by lower year-over-year membership.
- The company states that MSER includes favorable claims development in the first half of 2026.
- The company states that year-over-year membership changes primarily reflect a disciplined approach to contracting focused on profitability, previously disclosed market exits, and a measured approach to growth.
- The company states that its results exceeded its expectations and that the full-year 2026 guidance was increased to reflect positive third quarter results.
- Q3 geography entry costs fell to $2 million from $7 million, a change of (64%) as printed.
Concerns
- Total members live on the platform fell 8% year over year to 566,000, and Medicare Advantage members fell 10% to 454,000. Average Medicare Advantage members fell 4%.
- Other medical expenses rose to $77,984 thousand from $13,488 thousand in the quarter. The filing does not explain this change.
- MSER includes favorable claims development in the first half of 2026, as stated by the company.
- Receivables, net rose to $1,017,120 thousand from $673,793 thousand at December 31, 2025, and accounts payable and accrued expenses rose to $325,956 thousand from $127,477 thousand over the same period. The filing does not explain these balance sheet movements.
- Nine-month net cash from operations was $16,303 thousand, including changes in operating assets and liabilities of $(134,400) thousand.
- Diluted weighted average shares rose to 17,688 thousand in Q3 2026 from 16,578 thousand in Q3 2025. The company reported a net loss in Q3 2025, so diluted and basic shares were the same that quarter.
- Adjusted EBITDA contribution from ACO model entities fell to $11 million from $18 million.
- Income from equity method investments was $(979) thousand in Q3 2026, against $13,133 thousand in Q3 2025.
What to watch
- Whether membership stabilizes, given the printed year-end guidance of 553,000 to 562,000 total members against 566,000 at September 30, 2026.
- The trajectory of other medical expenses, which rose from $13,488 thousand to $77,984 thousand in the quarter.
- The size of first-half claims development within MSER, which the company identifies as a contributor to the Q3 ratio.
- Full-year Adjusted EBITDA of $145 million to $155 million against nine-month Adjusted EBITDA of $187,094 thousand, which is already above the top end of the range, as printed in the release.
- The movement of receivables and payables relative to the $(134,400) thousand change in operating assets and liabilities for the nine months.
- The contribution of ACO model entities to Adjusted EBITDA, guided at approximately $40 million to $45 million for fiscal 2026.
- Transition of the new Chief Executive Officer, which the forward-looking statements list as a risk factor.
Balance sheet and cash flow
- Cash and cash equivalents $174,399 thousand at September 30, 2026, compared with $173,713 thousand at December 31, 2025.
- Restricted cash and equivalents $71,980 thousand at September 30, 2026, compared with nil at December 31, 2025.
- Marketable securities $65,361 thousand at September 30, 2026, compared with $111,429 thousand at December 31, 2025.
- Receivables, net $1,017,120 thousand at September 30, 2026, compared with $673,793 thousand at December 31, 2025.
- Accounts payable and accrued expenses $325,956 thousand at September 30, 2026, compared with $127,477 thousand at December 31, 2025.
- Medical claims and related payables $892,342 thousand at September 30, 2026, compared with $929,770 thousand at December 31, 2025.
- Total debt of $32 million at September 30, 2026 (current debt $15,021 thousand and long-term debt $15,512 thousand as printed on the balance sheet).
- Nine-month net cash provided by operating activities $16,303 thousand, which includes changes in operating assets and liabilities of $(134,400) thousand, compared with $(85,226) thousand in the prior-year nine months.
- Nine-month net cash provided by investing activities $57,003 thousand, including proceeds from maturities of marketable securities and other of $67,693 thousand.
- Cash, cash equivalents and restricted cash and equivalents at September 30, 2026 were $246,379 thousand, compared with $171,684 thousand at the same date in 2025.
- Unconsolidated ACO model entities had $74 million of cash at the end of the quarter, as stated in the release.
Analysis
agilon reported third-quarter 2026 revenue of $1,519,486 thousand, up from $1,435,321 thousand, an increase the release rounds to 6%. Medical services revenue was $1,517,831 thousand against $1,432,437 thousand. The company attributes the increase to higher-than-expected burden of illness performance, payor contracting and improved pricing, partly offset by lower membership. Total members on the platform fell 8% year over year to 566,000, with Medicare Advantage members down 10% to 454,000. Management links this to disciplined contracting focused on profitability, previously disclosed market exits and a measured growth approach, so the revenue gain came with a smaller membership base.
Profitability moved sharply. MSER was 88.5% against 104.0% a year earlier, and the release states that this figure includes favorable claims development in the first half of 2026. Medical services expense fell to $1,343,519 thousand from $1,489,479 thousand. Other medical expenses rose to $77,984 thousand from $13,488 thousand, and the filing gives no explanation for that line. Operating income was $24,109 thousand against a loss of $(131,274) thousand. Net income was $34,912 thousand, or $1.97 per diluted share, against a net loss of $(110,207) thousand, or $(6.65) per share. Adjusted EBITDA, a non-GAAP measure, was $63,684 thousand against $(91,492) thousand. The company reports income from equity method investments of $(979) thousand, against $13,133 thousand a year earlier, and it states that ACO model entities contributed $11 million to Adjusted EBITDA, down from $18 million.
On a nine-month basis, revenue was $4,434,689 thousand against $4,363,085 thousand, operating income was $39,876 thousand against a loss of $(269,411) thousand, and net income was $101,784 thousand against a loss of $(202,465) thousand. Nine-month net income includes $19,000 thousand of discontinued operations adjustments on sale of assets. Operating cash flow was $16,303 thousand against $(85,226) thousand, but changes in operating assets and liabilities absorbed $(134,400) thousand. Receivables rose to $1,017,120 thousand from $673,793 thousand at December 31, 2025, and accounts payable and accrued expenses rose to $325,956 thousand from $127,477 thousand. The filing does not explain these movements.
Balance sheet liquidity is reported as $312 million of cash, cash equivalents and marketable securities against total debt of $32 million, with total assets of $1,565,521 thousand and stockholders' equity of $280,877 thousand at September 30, 2026. No share repurchases or dividends are reported. Equity issuances contributed $4,472 thousand in the nine months.
The company raised full-year 2026 guidance. Revenue is now $5,870 million to $5,890 million, against the previous $5,775 million to $5,860 million. MSER is now 90.5% to 90.3%, against the previous 91.9% to 91.4%. Adjusted EBITDA is now $145 million to $155 million, against $75 million to $95 million. Membership guidance was also raised, with year-end Medicare Advantage members of 445,000 to 450,000. The company has not guided net income. Because the guidance covers the full year, the filing does not yet offer results to test it against. The principal items for the reader are the membership decline, the unexplained rise in other medical expenses, the first-half claims development inside MSER, and the working capital build.
Management, verbatim
agilon's third quarter results exceeded our expectations, reflecting the disciplined execution and operational progress our team has delivered this year.
Tim O'Rourke, Chief Executive Officer of agilon health
Not in the filing
stated, not guessed- Prior-quarter (Q2 2026) figures are not printed in this filing, so all qoq_change and prior_quarter fields are null.
- Year-over-year percentage changes for most line items are not printed and are left null.
- Gross margin, free cash flow, and total operating expenses as a single subtotal are not printed.
- Share repurchases and dividends are not reported in the filing.
- No prior-period EPS change percentage is printed; the change is shown as NM only for net income and Adjusted EBITDA.
- The previous outlook was printed in this filing as guidance as of Q2 2026, but the full-year figures are not yet reported, so no guidance comparison verdict can be assigned and vs_prior_guidance is empty.
- Full-year 2026 guidance for net income, gross margin, operating expenses and tax rate is not provided.
- Balance sheet comparisons are against December 31, 2025, not a prior-year quarter, and no prior-year balance sheet figures are printed for the same date.
- Share price reaction and analyst consensus are not in the documents.
- Segment-level prior-year figures and yoy changes are not printed for the consolidated Medicare Advantage or unconsolidated ACO model segments.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. A figure in this read could not be matched to the filing. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.