Agilon Health Q2 2025 Earnings: Revenue Decline and Leadership Shift Amid Market Challenges

Agilon Health reported its financial results for the second quarter ending June 30, 2025, with total revenues reaching $1.4 billion. The company's Medicare Advantage membership totaled 498,000, and total members on the agilon platform were 614,000. However, the company experienced a decline in membership by 3% year-over-year and a 6% decrease in total revenue compared to the second quarter of 2024. Agilon faces operational and market challenges, leading to the suspension of its full-year 2025 earnings guidance. The company also announced a leadership transition, with Steven Sell stepping down as CEO and Ronald A. Williams appointed as Executive Chairman during the CEO search. Agilon is advancing strategic initiatives focused on enhancing financial and clinical data visibility, operational discipline, and partnership performance to drive long-term value in value-based care. The company's gross profit for Q2 2025 was a loss of $52 million compared to a profit of $32 million in the same quarter last year, and it reported a net loss of $104 million. Operating challenges include lower-than-expected risk adjustment impacts and prevalent industry headwinds. As of June 30, 2025, agilon had cash and cash equivalents of $327 million and total debt of $35 million, maintaining a solid balance sheet to navigate market uncertainties. The company highlighted its value-based Total Care Model, partnering with over 2,200 primary care physicians across 30 communities to support physician independence and improved healthcare outcomes. Financial metrics including Medical Margin and Adjusted EBITDA worsened in Q2 2025 compared to the previous year. Agilon is focusing on reducing market risks and optimizing contract economics, anticipating improved financial performance in 2026 with the implementation of an updated Medicare reimbursement model. The company also noted that membership trends impact per member margins, with new membership additions often dilutive in the short term. Agilon’s strategic and operational adjustments reflect efforts to align with evolving Medicare Advantage market dynamics and regulatory environments. The company maintains a rigorous approach to operational execution and data-driven performance management to support sustainable growth and healthcare delivery transformation.