Form: 8-K

Current report

August 7, 2025

  

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.