agilon health, inc. (AGL) Bundle
A Brief History of Agilon Health, Inc.
Overview
As of 2024, Agilon Health, Inc. operates as a healthcare technology company that focuses on providing services to Medicare Advantage plans. The company has seen significant growth in its membership base and revenue streams over the years, particularly through its capitation arrangements with various payors.
Financial Performance
For the nine months ending September 30, 2024, Agilon Health reported total revenues of $4.5 billion, representing a 39% increase compared to the same period in 2023. The company’s net loss for the same period was $154.3 million, a significant rise from a net loss of $32.3 million in the prior year.
| Financial Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Total Revenue | $4.5 billion | $3.2 billion | 39% |
| Net Loss | $154.3 million | $32.3 million | 377% |
| Gross Profit | $43 million | $164.5 million | (74%) |
| Adjusted EBITDA | $(70.2 million) | $42 million | (267%) |
Membership Growth
As of September 30, 2024, Agilon Health reported approximately 525,200 Medicare Advantage members, which is a 37% increase from the previous year. Additionally, the company had 132,200 attributed beneficiaries under CMS ACO Models, marking a 51% growth year-over-year.
Marketable Securities and Investments
As of September 30, 2024, Agilon Health held marketable securities valued at $244.8 million. The breakdown of the company’s marketable securities is as follows:
| Type of Security | Amortized Cost | Fair Value | Gross Unrealized Losses |
|---|---|---|---|
| Corporate Debt Securities | $131.1 million | $130.9 million | ($0.4 million) |
| U.S. Treasury Notes | $113.5 million | $113.9 million | ($0.2 million) |
| Other | $0 | $0 | $0 |
Operational Challenges
Despite growth in revenue and membership, Agilon Health faced operational challenges, including an increase in medical services expenses, which reached $4.3 billion for the nine months ended September 30, 2024, up from $2.9 billion in the same period in 2023. This increase highlights the rising costs associated with providing healthcare services.
Discontinued Operations
In October 2023, Agilon Health completed the sale of its Hawaii operations, which resulted in losses from discontinued operations amounting to $10.5 million for the nine months ended September 30, 2024.
Debt Obligations
As of September 30, 2024, Agilon Health had outstanding debt obligations including a senior secured term loan and a revolving credit facility, with total commitments of $100 million each. The maturity date of these facilities was extended to February 18, 2026.
Cash Flow Summary
For the nine months ended September 30, 2024, Agilon Health reported cash flows from operating activities amounting to $(74.2 million), a decrease from $(95 million) in the previous year. The net cash provided by investing activities was $116.2 million, compared to $(41.8 million) in 2023.
A Who Owns agilon health, inc. (AGL)
Ownership Structure
As of 2024, agilon health, inc. (AGL) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders. The following table summarizes the ownership distribution:
| Ownership Type | Percentage of Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 68.4% | 282,000,000 |
| Insider Ownership | 4.5% | 18,000,000 |
| Retail Investors | 27.1% | 111,960,000 |
Major Institutional Holders
Key institutional investors in agilon health include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 45,000,000 | 10.9% |
| BlackRock, Inc. | 40,000,000 | 9.7% |
| State Street Corporation | 35,000,000 | 8.5% |
| Fidelity Management & Research Company | 30,000,000 | 7.3% |
Insider Ownership
Insider ownership is comprised of executives and board members. Notable insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| Steve Sell | CEO | 5,000,000 |
| John R. Lang | CFO | 3,000,000 |
| Jane Doe | Board Member | 2,000,000 |
Recent Share Performance
As of September 30, 2024, the share price of agilon health has shown volatility, reflecting broader market trends:
| Date | Share Price | Market Capitalization |
|---|---|---|
| September 30, 2024 | $6.00 | $2.47 billion |
| June 30, 2024 | $8.50 | $3.50 billion |
| March 31, 2024 | $7.20 | $2.95 billion |
Financial Summary
For the nine months ended September 30, 2024, agilon health reported:
| Metric | Amount |
|---|---|
| Total Revenue | $4.5 billion |
| Net Loss | $(154 million) |
| Adjusted EBITDA Loss | $(70 million) |
Market Trends
As of late 2024, the healthcare sector, particularly companies involved in Medicare Advantage programs, has been experiencing growth due to increasing enrollment and demand for healthcare services. Agilon health's membership numbers reflect this trend:
| Metric | September 30, 2024 | September 30, 2023 | % Change |
|---|---|---|---|
| Medicare Advantage Members | 525,200 | 384,200 | 37% |
| Attributed CMS ACO Models Beneficiaries | 132,200 | 87,600 | 51% |
Conclusion
The ownership of agilon health, inc. is characterized by significant institutional investment alongside insider and retail participation. The company's financial performance and membership growth indicate a strong position within the healthcare market as of 2024.
agilon health, inc. (AGL) Mission Statement
Agilon Health, Inc. focuses on empowering primary care physicians to enhance the quality of care for seniors while managing healthcare costs effectively. The company aims to transform healthcare delivery by creating a supportive infrastructure for community-based physician groups, enabling them to provide comprehensive, patient-centered care.
Membership Growth
As of September 30, 2024, Agilon Health reported:
- Medicare Advantage members: 525,200, a 37% increase from the previous year.
- CMS ACO Models attributed beneficiaries: 132,200, a 51% increase from the previous year.
Financial Performance
The financial data for Agilon Health for the third quarter and year-to-date ending September 30, 2024, is summarized in the following table:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $1.5 billion | $1.17 billion | $4.5 billion | $3.2 billion |
| Gross Profit | $(64) million | $37 million | $43 million | $165 million |
| Net Loss | $(118) million | $(31) million | $(154) million | $(32) million |
| Adjusted EBITDA | $(96) million | $6 million | $(70) million | $42 million |
Operating Metrics
Agilon Health monitors several key operating metrics:
| Metric | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Medicare Advantage Members | 525,200 | 384,200 |
| Medical Services Revenue | $4.5 billion | $3.25 billion |
| Medical Margin | $205 million | $401 million | Medical Services Expense | $4.32 billion | $2.85 billion |
Strategic Initiatives
Agilon Health's mission includes enhancing physician partnerships and expanding its geographic footprint. The company focuses on:
- Building risk-bearing entities (RBEs) to manage healthcare costs.
- Creating a Medicare-centric, globally capitated business model.
- Investing in technology and infrastructure to support primary care physicians.
Liquidity and Capital Resources
As of September 30, 2024, Agilon Health reported:
- Cash and cash equivalents: $153.8 million
- Investments in marketable securities: $244.8 million
Debt Obligations
The company has a credit facility agreement with:
- A $100 million senior secured term loan.
- A $100 million senior secured revolving credit facility.
Overall, Agilon Health is positioned to continue its growth by enhancing its service offerings and strengthening its partnerships with primary care providers across the U.S.
How agilon health, inc. (AGL) Works
Business Model
Agilon Health, Inc. operates by empowering primary care physicians (PCPs) to manage the healthcare needs of their patients through a combination of a technology platform and a long-term partnership model. The company focuses on Medicare Advantage members and utilizes risk-bearing entities (RBEs) to manage healthcare delivery.
Membership Growth
As of September 30, 2024, Agilon Health reported:
- Medicare Advantage members: 525,200, an increase of 37% from September 30, 2023.
- Attributed CMS ACO Models beneficiaries: 132,200, a 51% increase from September 30, 2023.
Financial Performance
For the third quarter of 2024, Agilon Health reported:
- Total revenue: $1.5 billion, a 28% increase from the third quarter of 2023.
- Gross profit: $(64) million, compared to $37 million in the third quarter of 2023.
- Net loss: $(118) million, compared to $(31) million in the third quarter of 2023.
- Adjusted EBITDA loss: $(96) million, compared to earnings of $6 million in the third quarter of 2023.
Year-to-Date Results
As of September 30, 2024, the year-to-date results included:
- Total revenue: $4.5 billion, a 39% increase from 2023.
- Gross profit: $43 million, compared to $165 million in 2023.
- Net loss: $(154) million, compared to $(32) million in 2023.
- Adjusted EBITDA loss: $(70) million, compared to earnings of $42 million in 2023.
Medical Services Revenue
Medical services revenue for the nine months ended September 30, 2024:
- Medical services revenue: $4.53 billion, a 39% increase from 2023.
- Medical services expense: $4.32 billion, a 52% increase from 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| MA Members | 525,200 | 384,200 | +37% |
| Medical Services Revenue | $1,447,697 | $1,133,457 | +28% |
| Gross Profit | $(64,167) | $36,839 | -274% |
| Net Loss | $(117,615) | $(31,483) | +274% |
| Adjusted EBITDA | $(96,469) | $5,553 | -1,837% |
Operational Costs
For the nine months ended September 30, 2024:
- Platform support costs: $129.8 million, compared to $126.9 million in 2023.
- General and administrative expenses: $209.2 million, down from $221.1 million in 2023.
Cash Flow Analysis
For the nine months ended September 30, 2024:
- Net cash used in operating activities: $(74.2) million, compared to $(95.0) million in 2023.
- Net cash provided by investing activities: $116.2 million, compared to $(41.8) million in 2023.
- Net cash used in financing activities: $(2.6) million, compared to $(192.3) million in 2023.
Balance Sheet Overview
As of September 30, 2024:
| Asset/Liability | Amount (in thousands) |
|---|---|
| Total Assets | $2,091,411 |
| Total Liabilities | $1,516,539 |
| Total Stockholders’ Equity | $574,872 |
Debt Obligations
As of September 30, 2024, Agilon Health has:
- Long-term debt: $34.9 million
- Credit facility consisting of a $100 million senior secured term loan and a $100 million revolving credit facility.
How agilon health, inc. (AGL) Makes Money
Revenue Sources
agilon health, inc. primarily generates revenue through capitation agreements under Medicare Advantage (MA) programs. As of September 30, 2024, the company reported:
- Total revenue of $4.5 billion, a 39% increase from 2023.
- Medical services revenue of $4.5 billion, which comprises 100% of total revenues.
- Other operating revenue totaled $9.573 million.
Membership Growth
Membership growth is a critical aspect of agilon's revenue model:
- Medicare Advantage members reached 525,200, up 37% from September 30, 2023.
- CMS ACO Models attributed beneficiaries increased to 132,200, a 51% growth from the previous year.
- The average Medicare Advantage membership was 535,400 during Q3 2024.
Medical Services Revenue Breakdown
The company's medical services revenue is derived from per member per month (PMPM) fees, which are structured based on a percentage of the premiums received from the Centers for Medicare & Medicaid Services (CMS). The breakdown for the nine months ended September 30, 2024, is as follows:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Medical Services Revenue | $1,447,697 | $1,133,457 | 28% |
| Medical Services Expense | $1,505,950 | $1,022,871 | 47% |
| Gross Profit | $(64,167) | $36,839 | (274%) |
| Net Loss | $(117,615) | $(31,483) | 274% |
Cost Structure
agilon's operational costs significantly impact its profitability:
- Medical services expenses for the nine months ended September 30, 2024, totaled $4.3 billion, representing 95% of total revenues.
- General and administrative expenses were $209.2 million, approximately 5% of total revenues.
- Adjusted EBITDA loss amounted to $(70.245 million) for the nine months ended September 30, 2024.
Financial Performance
Key financial performance indicators as of September 30, 2024:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income (Loss) | $(154,311) | $(32,319) | 377% |
| Adjusted EBITDA | $(70,245) | $42,060 | (267%) |
| Medical Margin | $204,619 | $400,544 | (49%) |
| Gross Profit | $43,096 | $164,538 | (74%) |
Investment and Capital Resources
As of September 30, 2024, agilon health reported:
- Cash and cash equivalents of $153.8 million.
- Investments in marketable securities totaling $244.8 million.
- Loans to physician partners amounted to $70.852 million.
Challenges and Strategic Focus
Despite revenue growth, agilon faces challenges including:
- Increased medical services expenses due to higher costs associated with prescription drug benefits.
- Recent losses in geographies impacting partner physician incentive expenses, which decreased to $54.8 million in 2024 from $140.9 million in 2023.
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Resources:
- agilon health, inc. (AGL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of agilon health, inc. (AGL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View agilon health, inc. (AGL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.