Key Highlights

  • Third quarter total revenues climbed 36.7% to $1,358.3 million from $993.7 million.
  • Earned premiums grew 37.1% to $1,348.3 million.
  • The company recorded a net loss of $8.1 million, compared with Net Income of $3.7 million a year earlier.
  • Medical expenses reached 89.6% of revenue, up from 87.3%.
  • Nine-month net income totaled $39.9 million, versus $10.0 million.

Revenue jumps 36.7% as earned premiums pass $1.3 billion

Alignment Healthcare (NASDAQ:ALHC) operates Medicare Advantage plans for seniors and combines a consumer-oriented approach with its own clinical platform. Its third quarter 2026 quarterly filing showed total revenues of $1,358.3 million, a 36.7% increase from $993.7 million in the same quarter of 2025.

Earned premiums drove the gain, climbing $364.6 million, or 37.1%, to $1,348.3 million. Other Revenue held roughly flat at $10.0 million. Across the nine months ended September 30, 2026, total revenues were $3,929.1 million compared with $2,935.9 million, and earned premiums reached $3,901.4 million.

The premium increase illustrates how much the plan base expanded over the year. The income statement, though, reveals that costs in the quarter outran the top line.

Medical costs outpace premiums and tip the quarter into a loss

Medical expenses totaled $1,217.6 million in the third quarter, up from $868.0 million. As a share of total revenues they reached 89.6%, compared with 87.3% a year earlier. That 2.3 percentage point rise canceled out the benefit of lower overhead relative to revenue.

Selling, general and administrative expenses came to $136.4 million, up from $110.0 million, yet declined to 10.0% of revenue from 11.1%. Depreciation and amortization was $8.1 million, versus $8.0 million.

Total expenses of $1,362.1 million surpassed revenues, leaving a loss from operations of $3.8 million, compared with Operating Income of $7.7 million in the prior year quarter. After $4.3 million of interest expense, the pre-tax loss reached $8.1 million, and the net loss was also $8.1 million, against net income of $3.7 million a year ago.

Nine-month profit remains ahead of last year

Year-to-date results stayed well above the prior year despite the third quarter loss. Income from operations for the nine months was $53.8 million, more than double the $25.0 million recorded for the same period of 2025. Medical expenses represented 88.1% of revenue versus 87.6%, while SG&A dropped to 9.9% of revenue from 10.8%.

Pre-tax income reached $41.2 million compared with $13.3 million. Income tax expense fell to $1.3 million from $3.2 million, which lifted net income attributable to the company to $39.9 million from $10.3 million.

Interest expense for the nine months totaled $12.6 million, against $11.9 million. A modest tax charge in both periods helped more operating income reach the bottom line.

Net takeaway: growth is strong, cost control is the swing factor

Alignment Healthcare produced more than 36% revenue growth in the third quarter, yet the rise in medical expenses as a share of revenue was enough to push the quarter into a small loss. The nine-month results remain profitable, with margins above last year's level.

The filing identifies dependence on CMS reimbursement, the ability to estimate medical costs and geographic concentration among the risks it tracks. Investors following the stock will probably watch how the medical expense ratio moves in coming quarters, since a one point shift on a revenue base above $1.3 billion is worth more than $13 million per quarter on a calculated basis.