Agilon Flips Revenue Decline and Raises 2026 Outlook

The Tip Desk · August 5, 2026 · 3 min read

Second-quarter revenue reached $1.49 billion, up 7% from a year earlier, after a 7% year-over-year drop in the first quarter.

agilon health, inc. (AGL), the physician-partner platform for Medicare Advantage and ACO care, reported second-quarter 2026 revenue of $1.49 billion, up 7% from $1.39 billion a year earlier, reversing a 7% year-over-year decline in the first quarter.

The increase reflected higher-than-expected burden of illness, payor contracting and improved pricing, partly offset by lower membership. Gross profit was $107 million, compared with a $52 million gross loss a year earlier. Net income was $18 million, or $1.04 a share on a diluted basis, versus a $104 million loss, or $6.31 a share, a year earlier.

Medical margin was $197 million, versus negative $53 million a year earlier. Medical margin included favorable first-quarter 2026 and prior-year claims development. Adjusted EBITDA was $70 million, compared with negative $83 million a year earlier.

Membership continued to shrink. Total members on the platform were 549,000 as of June 30, 2026, including 437,000 Medicare Advantage members and 112,000 ACO model beneficiaries, down from 536,000 at March 31. Year-over-year membership changes primarily reflected a disciplined approach to contracting focused on profitability, previously disclosed market exits and a measured approach to growth. Average Medicare Advantage members were 447,000.

Unconsolidated ACO model entities contributed $7 million to Adjusted EBITDA in the second quarter, versus $10 million a year earlier. Geography entry costs were $4 million.

The company raised full-year 2026 guidance for a second consecutive quarter. It now expects total revenues of $5,775 million to $5,860 million, medical margin of $465 million to $505 million, and Adjusted EBITDA of $75 million to $95 million. Those ranges sit above the $5,680 million to $5,805 million revenue band, $350 million to $400 million medical-margin band and $10 million to $40 million Adjusted EBITDA band issued after the first quarter.

Chief Executive Officer Tim O’Rourke said second-quarter results exceeded expectations and that the higher outlook reflects stronger burden of illness execution, favorable medical cost trends and continued operating discipline. The revised full-year guidance reflects second-quarter performance, an expected 3% year-over-year increase in member risk scores net of v28, and estimated cost trends in the low 7% range for the remainder of the year.

For the third quarter ended September 30, 2026, agilon health guides to total revenues of $1,445 million to $1,475 million, medical margin of $105 million to $115 million, and Adjusted EBITDA of negative $5 million to $5 million. It expects Medicare Advantage members of 433,000 to 443,000, ACO REACH members of 106,000 to 109,000, and total platform members of 539,000 to 552,000. Geography entry costs in the Adjusted EBITDA outlook are $6 million.

Cash, cash equivalents and marketable securities were $257 million as of June 30, 2026, with total debt of $32 million. Unconsolidated ACO entities held $83 million of cash.

Medical services revenue was $1.49 billion. Medical services expense was $1.30 billion. Other medical expenses were $91 million. General and administrative costs were $89 million, including $7.6 million of severance and related costs and $23.8 million of stock-based compensation.

The company is a partner in approximately 30 communities with a peer network of about 2,300 primary care physicians.