agilon health Reports Strong Q1 Results, Significantly Raises Full-Year 2026 Revenue and Profit Guidance
Summary
agilon health reported strong first-quarter 2026 results with significant increases in net income and Adjusted EBITDA, and substantially raised its full-year 2026 guidance for revenue and profitability, including moving Adjusted EBITDA guidance from a potential loss to a positive range.
Key Events
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Strong Q1 2026 Financial Performance
For the first quarter ended March 31, 2026, agilon health reported net income of $49 million (up from $12 million year-over-year), gross profit of $65 million (up 28%), medical margin of $149 million (up 16%), and Adjusted EBITDA of $54 million (up 162%).
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Significantly Raised Full-Year 2026 Guidance
The company increased its full-year 2026 guidance for total revenues to $5.68 billion - $5.805 billion (from $5.41 billion - $5.58 billion), medical margin to $350 million - $400 million (from $300 million - $350 million), and Adjusted EBITDA to $10 million - $40 million (from a previous range of ($15 million) - $15 million).
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Strategic Membership Adjustments
Total members on the platform decreased by 11% year-over-year to 536,000, primarily reflecting previously disclosed market exits and payor exits in certain markets, which the company states is a disciplined approach focused on profitability.
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New CEO Transition Noted
The company welcomed Tim O'Rourke as CEO, effective May 7, 2026, expressing expectations for sharpened execution and increased value for stakeholders under his leadership, following his appointment announced on April 27, 2026.
Analysis
agilon health has reported a strong first quarter, demonstrating a significant turnaround from its previous financial performance and the NYSE delisting threat disclosed in its recent DEF 14A filing. Despite a 7% decrease in total revenue and an 11% decline in total members (attributed to strategic market and payor exits focused on profitability), the company achieved substantial improvements in key profitability metrics. Net income surged from $12 million to $49 million, gross profit increased by 28% to $65 million, and Adjusted EBITDA soared by 162% to $54 million. Crucially, the company has significantly raised its full-year 2026 guidance for total revenues, medical margin, and Adjusted EBITDA, moving the Adjusted EBITDA outlook from a potential loss to a positive range of $10 million to $40 million. This positive financial momentum coincides with the upcoming tenure of new CEO Tim O'Rourke, suggesting a potential for continued operational improvements and a more stable financial trajectory.
At the time of this filing, AGL was trading at $34.56 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $464M. The 52-week trading range was $7.48 to $119.50. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.