Evolent Health (EVH) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $652.5–$653 million, up 31–47% year-over-year and sequentially, driven by Performance Suite launches, new oncology partnerships, and strong client renewals.

• Adjusted EBITDA for Q2 2026 was $28–$28.1 million, with margin at 4.3%, and net loss attributable to common shareholders narrowed to $28.4 million.

• Full-year 2026 revenue guidance was raised to $2.6–$2.7 billion, with adjusted EBITDA guidance tightened to $120–$135 million.

• Announced a major oncology Performance Suite partnership expected to generate $300 million in annualized revenue and expanded contracts with regional Blues plans.

• AI-driven AuthIntelligence platform is scaling, improving auto-approval rates and operational efficiency.

Financial highlights

• Q2 2026 revenue: $652.5–$653 million, up 31–47% YoY; adjusted EBITDA: $28–$28.1 million (4.3% margin); net loss: $28.4 million.

• Performance Suite revenue: $484.5–$485 million, up 50% sequentially and YoY; Specialty Tech and Services: $78–$78.2 million, slightly down sequentially.

• Administrative Services revenue: $48 million, down slightly; Cases revenue: $41.9 million, up YoY.

• Q2 2026 Medical Expense Ratio (MER): 95–95.3%, up from 80% YoY, reflecting higher claims costs from new contracts.

• Cash and cash equivalents at quarter-end: $115.7 million; net debt: $808.3 million.

Outlook and guidance

• 2026 revenue guidance raised to $2.6–$2.7 billion; adjusted EBITDA guidance narrowed to $120–$135 million.

• 2027 revenue growth expected to exceed 25%, with adjusted EBITDA midpoint at or above $150 million.

• Full-year MER expected at approximately 93%; Q3 and Q4 revenue expected to be higher than Q2.

• Ongoing investments in AI, operational efficiency, and capitalized software development ($25–$30 million planned for 2026).

• Focus on expense reductions, improved cash flow, and targeted debt reduction initiatives.