Evolent Health, Inc. announced its financial results for the third quarter ended September 30, 2024, reporting revenue of $621.4 million, an increase of 22% compared to the third quarter of 2023. Despite the revenue growth, the company experienced a net loss attributable to common shareholders of $31.2 million.
Adjusted EBITDA for the quarter was $31.8 million, a decrease from $48.7 million in the prior year period, with the Adjusted EBITDA Margin falling to 5.1% from 9.5%. This decline was primarily attributed to a $42 million increase in medical costs relative to expectations, driven by new data on prior claims and an acceleration in oncology costs during August and September.
In response to these challenges, Evolent announced six new revenue agreements, marking the largest number of new agreements in a quarter in the company's history. For the fourth quarter of 2024, revenue is expected to be between $642.0 million and $667.0 million, with Adjusted EBITDA projected between $22.0 million and $37.0 million. The full-year 2024 guidance was updated to revenue of $2.55 billion to $2.575 billion and Adjusted EBITDA of $160.0 million to $175.0 million, with the company no longer expecting to exit 2024 at a $300 million Adjusted EBITDA run rate.
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