-- Delivers $1.24 billion in total revenue, representing 33.3% growth
year-over-year
-- Grows Medicare Advantage membership 30.9% year-over-year to approximately
284,800 members
-- Raises the midpoint of all guidance metrics: membership, revenue,
adjusted gross profit and adjusted EBITDA
ORANGE, Calif., April 30, 2026 (GLOBE NEWSWIRE) -- Alignment Healthcare, Inc. (NASDAQ: ALHC), today reported financial results for its first quarter ended March 31, 2026.
"Our first-quarter performance demonstrates that Alignment continues to grow with discipline," said John Kao, founder and CEO. "We expanded our profitability by executing across sales, clinical operations and cost management, even as the Medicare Advantage environment continues to change. We delivered strength within our results even while we are investing in our people, processes and technologies. The improvements we are making across each of these areas will position us to scale the business and achieve our embedded earnings potential."
First Quarter 2026 Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended March 31, 2025.
-- Health plan membership at the end of the quarter was approximately
284,800, up 30.9% year-over-year
-- Total revenue was $1,235.2 million, up 33.3% year-over-year
-- Adjusted gross profit* was $145.9 million, up 36.1% year-over-year, and
income from operations was $15.5 million
-- Adjusted gross profit excludes depreciation and amortization of
$7.8 million and selling, general, and administrative expenses of
$121.1 million (which includes $12.6 million of equity-based
compensation). Adjusted gross profit also excludes $0.02 million
of depreciation expense and an additional $1.4 million of
equity-based compensation recorded within medical expenses
-- Medical benefits ratio based on adjusted gross profit was 88.2%,
an improvement of 25 basis points year-over-year
-- Adjusted EBITDA* of $37.9 million represented an adjusted EBITDA margin
of 3.1% and grew 87.6% year-over-year, while net income was $11.4 million,
compared to $9.4 million net loss the year prior
(* Please see "First Quarter 2026 Non-GAAP Reconciliation Tables" below for more information on the non-GAAP financial measures reported here as supplemental information.)
Outlook for Second Quarter and Fiscal Year 2026
Three Months Ending June 30, Twelve Months Ending December
2026 31, 2026
$ Millions Low High Low High
--------------
Health Plan
Membership 288,000 290,000 294,000 299,000
Revenue $1,295 $1,315 $5,160 $5,205
Adjusted Gross
Profit(1) $167 $177 $620 $650
Adjusted
EBITDA(1) $50 $60 $138 $163
_______________________
(1) (Adjusted gross profit and adjusted EBITDA are non-GAAP
financial measures presented as supplemental disclosure.
We cannot provide estimated ranges for the most directly
comparable GAAP measures without unreasonable efforts
because of the uncertainty around certain items that
may impact such GAAP measures, including equity-based
compensation expense and depreciation and amortization,
that are not within our control or cannot be reasonably
predicted. See "First Quarter 2026 Non-GAAP Reconciliation
Tables" for additional information.)
First Quarter 2026 Non-GAAP Reconciliation Tables
Adjusted Gross Profit(1) is reconciled as follows:
Three Months Ended March 31,
------------------------------------
2026 2025
---------------- ------------------
(dollars in thousands)
Income (loss) from operations $ 15,503 $ (5,393)
Add back:
Equity-based compensation
(medical expenses) 1,411 1,152
Depreciation (medical
expenses) 23 33
Depreciation and amortization
(2) 7,839 7,594
Selling, general, and
administrative expenses 121,138 103,831
------------ -----------
Total add back 130,411 112,610
------------ -----------
Adjusted gross profit $ 145,914 $ 107,217
============ ===========
(1) Adjusted gross profit is a non-GAAP financial measure
that is presented as supplemental disclosure, that
we define as income (loss) from operations before
depreciation and amortization, medical equity-based
compensation expense, and selling, general, and administrative
expenses.
(2) (Amortization expense for the year ended March 31,
2025, includes $0.6 million in impairment expense
related to the remeasurement of goodwill associated
with one of our subsidiaries.)
Adjusted EBITDA(1) is reconciled as follows:
Three Months Ended March 31,
------------------------------------
2026 2025
---------------- ------------------
(dollars in thousands)
Net income (loss) $ 11,416 $ (9,354)
Less: Net loss attributable to
noncontrolling interest -- 240
Adjustments:
Interest expense 4,062 3,950
Depreciation and
amortization(2) 7,862 7,627
Income tax expense 25 21
Equity-based compensation(3) 14,019 17,187
Litigation costs (4) 467 507
Adjusted EBITDA $ 37,851 $ 20,178
============ ===========
(1) Adjusted EBITDA is a non-GAAP financial measure that
is presented as supplemental disclosure, that we define
as net income (loss) before interest expense, income
taxes, depreciation and amortization expense, certain
litigation costs, and equity-based compensation expense.
(2) (Amortization expense for the year ended March 31,
2025, includes $0.6 million in impairment expense
related to the remeasurement of goodwill associated
with one of our subsidiaries.)
(3) (Represents equity-based compensation related to grants
made in the applicable year)
(4) Represents litigation costs considered outside of
the ordinary course of business based on the following
considerations which we assess regularly: (i) the
frequency of similar cases that have been brought
to date, or are expected to be brought within two
years, (ii) complexity of the case, (iii) nature of
the remedies sought, (iv) litigation posture of the
Company, (v) counterparty involved, and (vi) the Company's
overall litigation strategy
Conference Call Details
The company will host a conference call at 5 p.m. EDT today to discuss these results and management's outlook for future financial and operational performance. A live audio webcast will be available online at https://ir.alignmenthealth.com/. At the start of the conference call, participants may access the webcast at the following link: https://edge.media-server.com/mmc/p/53zw9jkh. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web links, and will remain available for approximately 12 months.
About Alignment Health
Alignment Health is championing a new path in senior care that empowers members to age well and live their most vibrant lives. A consumer brand name of Alignment Healthcare (NASDAQ: ALHC), Alignment Health's mission-focused team makes high-quality, low-cost care a reality for its Medicare Advantage members every day. Based in California, the company partners with nationally recognized and trusted local providers to deliver coordinated care, powered by its customized care model, 24/7 concierge care team and purpose-built technology, AVA$(R)$ . As it expands its offerings and grows its national footprint, Alignment upholds its core values of leading with a serving heart and putting the senior first. For more information, visit www.alignmenthealth.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook for the quarter ending June 30, 2026, and year ending Dec. 31, 2026. Forward-looking statements are subject to risks and uncertainties and are based on assumptions that may prove to be inaccurate, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to attract new members and enter new markets, including the need for certain governmental approvals; our ability to maintain a high rating for our plans on the Five Star Quality Rating System; our ability to develop and maintain satisfactory relationships with care providers that service our members; risks associated with being a government contractor, including potential federal reductions in MA funding; changes in laws and regulations applicable to our business model; risks related to our indebtedness; changes in market or industry conditions and receptivity to our technology and services; results of litigation or a security incident; and the impact of shortages of qualified personnel and related increases in our labor costs. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our Annual Report on Form 10-K for the year ended Dec. 31, 2025, and the other periodic reports we file with the SEC. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.
Condensed Consolidated Balance Sheets
(in thousands, except par value and share amounts)
(Unaudited)
March 31, December 31,
2026 2025
----------- --------------
Assets
Current Assets:
Cash and cash equivalents $ 705,584 $ 575,817
Accounts receivable (less allowance for
credit losses of $0 at March 31, 2026
and $833 at December 31, 2025) 277,678 253,207
Investments - current 20,707 28,413
Prepaid expenses and other current
assets 141,396 94,140
--------- ----------
Total current assets 1,145,365 951,577
Property and equipment, net 63,867 64,251
Right of use asset, net 7,073 7,019
Goodwill 32,060 32,060
Intangible assets, net 4,550 4,550
Other assets 8,693 6,329
--------- ----------
Total assets $1,261,608 $ 1,065,786
========= ==========
Liabilities and Stockholders' Equity
Current Liabilities:
Medical expenses payable $ 655,967 $ 474,569
Accounts payable and accrued expenses 34,502 33,284
Accrued compensation 34,288 49,013
--------- ----------
Total current liabilities 724,757 556,866
Long-term debt, net of debt issuance
costs 323,616 323,176
Long-term portion of lease liabilities 6,350 6,467
--------- ----------
Total liabilities 1,054,723 886,509
Stockholders' Equity:
Preferred stock, $.001 par value;
100,000,000 shares authorized as of
March 31, 2026 and December 31, 2025,
respectively; no shares issued and
outstanding as of March 31, 2026 and
December 31, 2025 -- --
Common stock, $.001 par value;
1,000,000,000 shares authorized as of
March 31, 2026 and December 31, 2025;
206,671,068 and 204,153,619 shares
issued and outstanding as of March 31,
2026 and December 31, 2025,
respectively 207 205
Additional paid-in capital 1,204,279 1,188,089
Accumulated deficit (997,601) (1,009,017)
--------- ----------
Total stockholders' equity 206,885 179,277
--------- ----------
Total liabilities and stockholders'
equity $1,261,608 $ 1,065,786
========= ==========
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended March 31,
----------------------------------
2026 2025
----------------
Revenues:
Earned premiums $ 1,226,566 $ 918,043
Other 8,631 8,889
------------ ------------
Total revenues 1,235,197 926,932
------------ ------------
Expenses:
Medical expenses 1,090,717 820,900
Selling, general, and
administrative expenses 121,138 103,831
Depreciation and amortization 7,839 7,594
------------ ------------
Total expenses 1,219,694 932,325
------------ ------------
Income (loss) from operations 15,503 (5,393)
------------ ------------
Other expenses:
Interest expense 4,062 3,950
Other expenses (income), net -- (10)
------------ ------------
Total other expense 4,062 3,940
------------ ------------
Income (loss) before income taxes 11,441 (9,333)
Provision for income taxes 25 21
------------ ------------
Net income (loss) $ 11,416 $ (9,354)
Less: Net loss attributable to
noncontrolling interest -- 240
------------ ------------
Net income (loss) attributable to
Alignment Healthcare, Inc. $ 11,416 $ (9,114)
Net income (loss) per share
attributable to Alignment
Healthcare, Inc.:
Basic 0.06 (0.05)
Diluted 0.05 (0.05)
Weighted-average common shares
outstanding:
Basic 205,356,397 193,606,438
Diluted 213,128,231 193,606,438
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended March 31,
--------------------------------------
2026 2025
------------------- -----------------
Operating Activities:
Net income (loss) $ 11,416 $ (9,354)
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities:
Depreciation and amortization 7,862 7,627
Amortization-investment
discount (245) (370)
Amortization-debt issuance
costs 507 440
Equity-based compensation 14,019 17,187
Non-cash lease expense 450 395
Changes in operating assets and
liabilities:
Accounts receivable (24,471) (60,155)
Prepaid expenses and other
current assets (47,256) (43,800)
Other assets (16) (23)
Medical expenses payable 181,398 106,946
Accounts payable and accrued
expenses 287 5,365
Accrued compensation (14,725) (7,577)
Lease liabilities (544) (65)
----------- ----------
Net cash provided by
operating activities 128,682 16,616
----------- ----------
Investing Activities:
Purchase of investments (10,598) (17,905)
Maturities of investments 18,540 22,695
Acquisition of property and
equipment (7,364) (8,252)
----------- ----------
Net cash provided by (used
in) investing activities 578 (3,462)
----------- ----------
Financing Activities:
Debt issuance costs (1,658) (26)
Proceeds from stock option
exercises 2,173 207
Net cash provided by
financing activities 515 181
----------- ----------
Net increase in cash 129,775 13,335
Cash, cash equivalents and
restricted cash at beginning of
period 577,937 434,942
----------- ----------
Cash, cash equivalents and
restricted cash at end of
period $ 707,712 $ 448,277
=========== ==========
Supplemental disclosure of cash
flow information:
Cash paid for interest $ -- $ --
Supplemental non-cash investing
and financing activities:
Acquisition of property in
accounts payable $ 94 $ 85
Debt issuance costs in accounts
payable $ 719 $ --
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the total above:
March 31, 2026 March 31, 2025
---------------- ------------------
Cash and cash equivalents $ 705,584 $ 446,184
Restricted cash in other assets 2,128 2,093
------------ ------------
Total $ 707,712 $ 448,277
============ ============
Non-GAAP Financial Measures
Certain of these financial measures are considered "non-GAAP" financial measures within the meaning of Item 10 of Regulation S-K promulgated by the SEC. We believe that non-GAAP financial measures provide an additional way of viewing aspects of our operations that, when viewed with the GAAP results, provide a more complete understanding of our results of operations and the factors and trends affecting our business. These non-GAAP financial measures are also used by our management to evaluate financial results and to plan and forecast future periods. However, non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Non-GAAP financial measures used by us may differ from the non-GAAP measures used by other companies, including our competitors. To supplement our consolidated financial statements presented on a GAAP basis, we disclose the following non-GAAP measures: Medical Benefits Ratio, Adjusted EBITDA and Adjusted Gross Profit as these are performance measures that our management uses to assess our operating performance. Because these measures facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes and in evaluating acquisition opportunities.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) before interest expense, income taxes, depreciation and amortization expense, certain litigation costs, and equity-based compensation expense.
Adjusted EBITDA should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA in lieu of net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP.
Our use of the term Adjusted EBITDA may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies.
Medical Benefits Ratio (MBR)
We calculate our MBR by dividing total medical expenses, excluding depreciation, and medical equity-based compensation, by total revenues in a given period.
Adjusted Gross Profit
Adjusted gross profit is a non-GAAP financial measure that we define as income (loss) from operations before depreciation and amortization, medical equity-based compensation expense, and selling, general, and administrative expenses.
Adjusted gross profit should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of adjusted gross profit in lieu of income (loss) from operations, which is the most directly comparable financial measure calculated in accordance with GAAP.
Our use of the term adjusted gross profit may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies.
Investor Contact Harrison Zhuo hzhuo@ahcusa.com Media Contact Jerry Slowey publicrelations@ahcusa.com
(END) Dow Jones Newswires
April 30, 2026 16:01 ET (20:01 GMT)
Comments