EX-99.1 2 tm2521330d1_ex99-1.htm EXHIBIT 99.1

  

Exhibit 99.1

 

 

Astrana Health, Inc. Reports Second Quarter 2025 Results

Company to Host Conference Call on Thursday, August 7, 2025, at 2:30 p.m. PT/5:30 p.m. ET

 

·Reports total revenue of $654.8 million and adjusted EBITDA of $48.1 million, both at the higher end of guidance
·Continues to manage medical cost trends effectively, with trend within expectations across all lines of business
·Reiterates full-year 2025 guidance which is inclusive of the now-closed Prospect Health acquisition

 

ALHAMBRA, Calif., August 7, 2025 /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 second quarter ended June 30, 2025.

 

"Astrana Health's strong second quarter results underscore the power of our physician-focused, technology-enabled model to drive profitable growth and deliver better outcomes at scale," said Brandon Sim, President and CEO of Astrana Health. "Our unique ability to build longitudinal relationships with our patients, paired with leading clinical capabilities and a purpose-built technology platform affording us real-time visibility of our patients' health, allows us to operate from a position of strength in a complex and evolving healthcare landscape. As we look ahead, we remain focused on disciplined execution and expanding access to high-quality, coordinated care for the patients and communities we serve."

 

Financial Highlights for Second Quarter Ended June 30, 2025:

 

All comparisons are to the three months ended June 30, 2024 unless otherwise stated.

 

•Total revenue of $654.8 million, up 35% from $486.3 million

 

•Care Partners revenue of $631.4 million, up 36% from $463.3 million

 

•Net income attributable to Astrana of $9.4 million

 

•Earnings per share - diluted (“EPS - diluted”) of $0.19

 

•Adjusted EBITDA(1) of $48.1 million

 

Financial Highlights for Six Months Ended June 30, 2025:

 

All comparisons are to the six months ended June 30, 2024 unless otherwise stated.

 

•Total revenue of $1,275.2 million, up 43% from $890.6 million

 

•Care Partners revenue of $1,232.4 million, up 46% from $845.6 million

 

•Net income attributable to Astrana of $16.1 million

 

•Earnings per share - diluted (“EPS - diluted”) of $0.33

 

•Adjusted EBITDA(1) of $84.5 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

 

·On July 1, 2025, the Company completed its previously announced acquisition of Prospect Health consisting of businesses and assets relating to Prospect Health System, including its California licensed health care service plan (Prospect Health Plan), medical groups in California, Texas, Arizona and Rhode Island (Prospect Medical Groups), management service organization (Prospect Medical Systems), pharmacy (RightRx), and Foothill Regional Medical Center. Concurrently with the close, the Company entered into a side letter agreement that, among other things, reduced the aggregate purchase price from $745.0 million to $707.9 million and removed certain working capital adjustments and related escrow. The acquisition was financed using $707.3 million of proceeds from a five-year delayed draw term loan credit facility.

 

 

 

 

·Astrana announced Sherry McBride has joined as Chief Operating Officer of Astrana Health - Management Services Organization, effective Monday, June 2, 2025. Ms. McBride is leading operational integration and execution and working alongside Astrana's Executive Leadership Team as the Company accelerates the scale of its leading care delivery platform. Ms. McBride's appointment complements several other strategic additions to the leadership team, including Georgie Sam as Chief Data and Analytics Officer, Glenn Sobotka as Chief Accounting Officer, and the promotion of Rita Pew to Chief People Officer.

  

Segment Results for three months ended June 30, 2025:

 

All comparisons are to the three months ended June 30, 2024 unless otherwise stated.

   Three Months Ended June 30, 2025 
(in thousands)  Care
Partners		   Care
Delivery		   Care
Enablement		   Intersegment
Elimination		   Corporate
Costs		   Consolidated
Total		 
Total revenues  $631,442   $38,394   $40,901   $(55,929)  $—   $654,808 
% change vs. prior year quarter   36%   10%   13%               
                               
Cost of services   536,266    27,873    31,130    (18,430)   —    576,839 
General and administrative(1)   45,491    8,374    7,930    (37,511)   33,345    57,629 
Total expenses   581,757    36,247    39,060    (55,941)   33,345    634,468 
                               
Income (loss) from operations  $49,685   $2,147   $1,841   $12(2)  $(33,345)  $20,340 
% change vs. prior year quarter   23%   18%   (73)%               

 

(1) Balance includes general and administrative expenses and depreciation and amortization.

 

(2) Income from operations for the intersegment elimination represents rental income from segments renting from other segments. Rental income is presented within other income which is not presented in the table.

 

2025 Guidance:

 

Astrana is providing the following guidance for total revenue and Adjusted EBITDA for the quarter ending September 30, 2025 and reiterating guidance for the year ending December 31, 2025 based on the Company’s existing business, current view of existing market conditions, and assumptions.

 

($ in millions)  Three Months Ending
September 30, 2025		   Year Ending
December 31, 2025		 
   Guidance Range   Guidance Range 
   Low   High   Low   High 
Total revenue  $925   $965   $3,100   $3,300 
Adjusted EBITDA  $65   $70   $215   $225 

 

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, August 7, 2025), during which management will discuss the results of the second quarter ended June 30, 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) 858-9810
International (Toll):                    +1 (201) 689-8517

 

The conference call can also be accessed via webcast at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=4qZoCOiq

 

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, AI-powered healthcare company committed to delivering high-quality, patient-centered care. Built from the physician's perspective, Astrana combines its scalable care delivery infrastructure, proprietary technology platform, and aligned provider networks to enable proactive, preventive care at scale - improving patient outcomes, enhancing patient experiences, supporting provider well-being, and driving greater value across the healthcare system.

 

Today, Astrana supports more than 20,000 providers and over 1.6 million patients in value-based care arrangements through its affiliated provider networks, management services organization, and integrated care delivery clinics spanning primary, specialty, and ancillary care. Together, Astrana is building the healthcare system we all deserve - 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 September 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 subsequent quarterly reports on Form 10-Q. Any forward-looking statements 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:

 

Grant Hesser, Investor Relations
grant.hesser@astranahealth.com

 

 

 

 

ASTRANA HEALTH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

 

   June 30,
2025		   December 31,
2024		 
   (Unaudited)     
Assets          
           
Current assets          
Cash and cash equivalents  $339,703   $288,455 
Investment in marketable securities   2,417    2,378 
Receivables, net (including amounts with related parties)   348,730    275,990 
Income taxes receivable   7,893    19,316 
Other receivables   8,655    29,496 
Prepaid expenses and other current assets   21,754    22,861 
           
Total current assets   729,152    638,496 
           
Non-current assets          
Property and equipment, net   17,800    14,274 
Intangible assets, net   105,737    118,179 
Goodwill   416,917    419,253 
Income taxes receivable, non-current   15,943    15,943 
Loans receivable, non-current   48,370    51,266 
Investments in other entities – equity method   38,454    39,319 
Investments in privately held entities   8,896    8,896 
Operating lease right-of-use assets   30,631    32,601 
Other assets   30,450    16,667 
           
Total non-current assets   713,198    716,398 
           
Total assets(1)  $1,442,350   $1,354,894 
           
Liabilities, Mezzanine Deficit, and Stockholders’ Equity          
           
Current liabilities          
Accounts payable and accrued expenses  $119,661   $106,142 
Fiduciary accounts payable   4,734    8,223 
Medical liabilities   287,691    209,039 
Operating lease liabilities   5,319    5,350 
Current portion of long-term debt   12,500    9,375 
Other liabilities   29,841    27,479 
           
Total current liabilities   459,746    365,608 
           
Non-current liabilities          
Deferred tax liability   2,593    4,555 
Operating lease liabilities, net of current portion   28,714    30,654 
Long-term debt, net of current portion and deferred financing costs   401,057    425,299 
Other long-term liabilities   12,294    14,610 
           
Total non-current liabilities   444,658    475,118 
           
Total liabilities(1)   904,404    840,726 
           
Mezzanine deficit          
Noncontrolling interest in Allied Physicians of California, a Professional Medical Corporation (“APC”)   (233,582)   (202,558)
           
Stockholders’ equity          
Preferred stock, $0.001 par value per share; 5,000,000 shares authorized, and zero shares issued and outstanding as of June 30, 2025 and December 31, 2024   —    — 
Common stock, $0.001 par value per share; 100,000,000 shares authorized, 49,138,631 and 47,929,872 shares issued and outstanding, excluding 9,903,953 and 10,603,849 treasury shares, as of June 30, 2025 and December 31, 2024, respectively   49    48 
Additional paid-in capital   463,203    426,389 
Retained earnings   302,209    286,283 
Total stockholders’ equity   765,461    712,720 
           
Non-controlling interest   6,067    4,006 
           
Total equity   771,528    716,726 
           
Total liabilities, mezzanine deficit, and stockholders’ equity  $1,442,350   $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 $691.0 million and $712.3 million as of June 30, 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 $230.3 million and $207.9 million as of June 30, 2025 and December 31, 2024, respectively. These VIE balances do not include $152.6 million of investment in affiliates and $35.1 million of amounts due from affiliates as of June 30, 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.

 

 

 

 

ASTRANA HEALTH, INC.

CONSOLIDATED STATEMENTS OF INCOME

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(UNAUDITED)

 

   Three Months Ended
June 30,		   Six Months Ended
June 30,		 
   2025   2024   2025   2024 
Revenue                
Capitation, net  $614,108   $442,574   $1,198,071   $808,484 
Risk pool settlements and incentives   15,402    18,408    29,893    35,785 
Management fee income   2,577    1,604    4,887    5,682 
Fee-for-service, net   17,878    19,959    32,769    35,896 
Other revenue   4,843    3,720    9,576    4,774 
                     
Total revenue   654,808    486,265    1,275,196    890,621 
                     
Operating expenses                    
Cost of services, excluding depreciation and amortization   576,839    412,805    1,125,900    743,204 
General and administrative expenses   50,725    35,953    94,623    74,675 
Depreciation and amortization   6,904    7,441    13,752    12,537 
                     
Total expenses   634,468    456,199    1,234,275    830,416 
                     
Income from operations   20,340    30,066    40,921    60,205 
                     
Other income (expense)                    
Income (loss) from equity method investments   381    902    (486)   1,534 
Interest expense   (7,382)   (8,587)   (14,690)   (16,172)
Interest income   2,336    3,513    4,647    7,509 
Unrealized gain (loss) on investments   14    (123)   (30)   976 
Other income (loss)   1,136    6,126    (3,934)   1,849 
                     
Total other (expense) income, net   (3,515)   1,831    (14,493)   (4,304)
                     
Income before provision for income taxes   16,825    31,897    26,428    55,901 
                     
Provision for income taxes   6,609    10,031    9,991    17,173 
                     
Net income   10,216    21,866    16,437    38,728 
                     
Net income attributable to non-controlling interest   793    2,695    322    4,722 
                     
Net income attributable to Astrana Health, Inc.  $9,423   $19,171   $16,115   $34,006 
                     
Earnings per share – basic  $0.19   $0.40   $0.33   $0.72 
                     
Earnings per share – diluted  $0.19   $0.40   $0.33   $0.71 

 

 

 

 

ASTRANA HEALTH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

(UNAUDITED)

 

   Six Months Ended
June 30,		 
   2025   2024 
Cash flows from operating activities          
Net income  $16,437   $38,728 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization   13,752    12,537 
Amortization of debt issuance cost   1,740    917 
Share-based compensation   19,519    13,138 
Non-cash lease expense   2,559    2,632 
Deferred tax   (1,961)   (7,259)
Other   3,910    4,581 
Changes in operating assets and liabilities, net of business combinations   51,571    (36,109)
Net cash provided by operating activities   107,527    29,165 
           
Cash flows from investing activities          
Payments for business acquisition, net of cash acquired   —    (114,585)
Purchase of investment – equity method   —    (5,968)
Purchase of call option issued in conjunction with equity method investment   —    (3,907)
Issuance of loan receivable   (1,050)   (21,000)
Purchases of property and equipment   (4,490)   (3,205)
Other   2,069    (2,299)
Net cash used in investing activities   (3,471)   (150,964)
           
Cash flows from financing activities          
Dividends paid   (6,233)   (1,896)
Borrowings on long-term debt   412,000    170,320 
Repayment of long-term debt   (431,357)   (11,000)
Deferred financing cost   (17,241)   — 
Taxes paid from net share settlement of restricted stock   (5,053)   (3,584)
Other   (4,924)   (237)
Net cash (used in) provided by financing activities   (52,808)   153,603 
           
Net increase in cash, cash equivalents, and restricted cash   51,248    31,804 
           
Cash, cash equivalents, and restricted cash, beginning of period   289,102    294,152 
           
Cash, cash equivalents, and restricted cash, end of period  $340,350   $325,956 
           
Supplemental disclosures of cash flow information          
Cash paid for income taxes  $4,728   $35,742 
Cash paid for interest  $13,535   $14,613 
           
Supplemental disclosures of non-cash investing and financing activities          
Right-of-use assets obtained in exchange for operating lease liabilities  $7,110   $7,661 
Common stock issued in business combination  $—   $21,952 
Draw on letter of credit through Revolver Loan  $—   $4,732 
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):

 

   June 30, 
   2025   2024 
Cash and cash equivalents  $339,703   $325,310 
Restricted cash (1)   647    646 
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows  $340,350   $325,956 

 

(1) Restricted cash is included in other assets on the condensed consolidated balance sheets.

 

 

 

 

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 and six months ended June 30, 2025 and 2024. The Company defines Adjusted EBITDA margin as Adjusted EBITDA over total revenue.

 

   Three Months Ended
June 30,		   Six Months Ended
June 30,		 
(in thousands)  2025   2024   2025   2024 
Net income  $10,216   $21,866   $16,437   $38,728 
Interest expense   7,382    8,587    14,690    16,172 
Interest income   (2,336)   (3,513)   (4,647)   (7,509)
Provision for income taxes   6,609    10,031    9,991    17,173 
Depreciation and amortization   6,904    7,441    13,752    12,537 
EBITDA   28,775    44,412    50,223    77,101 
                     
(Income) loss from equity method investments   (381)   (902)   486    (1,534)
Other, net   7,998(1)   (2,983)(2)   14,257(3)   1,457(4)
Stock-based compensation   11,709    7,390    19,519    13,138 
Adjusted EBITDA  $48,101   $47,917   $84,485   $90,162 
                     
Total revenue  $654,808   $486,265   $1,275,196   $890,621 
                     
Adjusted EBITDA margin   7%   10%   7%   10%

  

(1)Other, net for the three months ended June 30, 2025 relates to transaction costs for our acquisition of Prospect Health, certain costs associated with the CHS transaction, non-cash changes related to the change in the fair value of our call option and Collar Agreement, and severance fees incurred.

 

(2)Other, net for the three months ended June 30, 2024, relates to non-cash changes related to change in the fair value of the Company's Collar Agreement, transaction costs incurred for our investments and tax restructuring fees, and reimbursement from a related party of the Company for taxes associated with the Excluded Assets spin-off.

 

(3)Other, net for the six months ended June 30, 2025, relates to debt issuance costs expensed in connection with our Second Amended and Restated Credit Facility, transaction costs for our acquisition of Prospect Health, 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.

 

(4)Other, net for the six months ended June 30, 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, and reimbursement from a related party of the Company for taxes associated with the Excluded Assets spin-off.

 

 

 

 

Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA

 

   Year Ending
December 31, 2025		 
   Guidance Range 
(in thousands)  Low   High 
Net income  $57,500   $63,500 
Interest expense   41,500    42,500 
Provision for income taxes   31,000    34,000 
Depreciation and amortization   32,000    32,000 
EBITDA   162,000    172,000 
           
Income from equity method investments   (2,000)   (2,000)
Other, net   20,000    20,000 
Stock-based compensation   35,000    35,000 
Adjusted EBITDA  $215,000   $225,000 

 

The Company has not provided a quantitative reconciliation of EBITDA and Adjusted EBITDA for the quarter ending September 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.