Astrana Health Stock Earnings Reports

Astrana Health reported a strong start to 2026 with Q1 revenue of $965.1M (up 56% YoY), adjusted EBITDA of $66.3M (up 82% YoY), adjusted EPS of $0.74 (up 76% YoY), and free cash flow of ~$64M. Deleveraging progressed faster than expected: pro forma net leverage down to ~2.3x (management expects to finish the year at or below 2.0x). Management reinforced its strategy built around a proprietary, payer-agnostic, AI-enabled operating platform and longitudinal patient data, highlighting measurable operational benefits (e.g., 24% higher gap-closure rate, 30% higher annual wellness visit completion for active users, ~500k automated member interactions/month). Medical cost trend in Q1 was at or slightly better than the company’s blended 2026 trend assumption (~5.2%), with both legacy Astrana and Prospect performing in line or better than plan. Membership totaled ~1.55M in value-based arrangements; ~80% of Care Partners revenue and ~40% of owned membership are now in full-risk contracts. Prospect integration is on track, gross provider retention >99%, and synergies trending toward the high end of the $12M–$15M annual target; Prospect is tracking slightly ahead of the ~$80M annualized EBITDA target. Management reaffirmed 2026 guidance: revenue $3.8B–$4.1B, adjusted EBITDA $250M–$280M, free cash flow $105M–$132.5M, while conservatively assuming some downside (e.g., Medicaid/exchange enrollment headwinds and 0 HQAF contribution). Management sees regulatory developments (MA rate notice / risk-adjustment changes) as structural tailwinds for Astrana’s model. Capital allocation priorities remain deleveraging, organic investment (tech/AI/clinical/market expansion), disciplined M&A, and opportunistic buybacks.