Key Highlights

  • The medical services expense ratio at agilon health (NYSE:AGL) dropped to 88.5% in the third quarter from 104.0% a year earlier, as medical services expense slid to USD 1.34 billion from USD 1.49 billion.
  • Net income reached USD 34.9 million, or USD 1.97 per diluted share, against a net loss of USD 110.2 million, or USD 6.65 a share, with earlier figures adjusted for a 1-for-25 reverse split.
  • Adjusted EBITDA swung to USD 63.7 million from negative USD 91.5 million, while total Revenue increased 6% to USD 1.52 billion from USD 1.44 billion.
  • Medicare Advantage membership fell 10% to 453,600, and attributed CMS ACO Models beneficiaries dropped 3% to about 112,300 as market exits and payor changes played out.

A 15.5 Point Improvement in the Cost Ratio

agilon health (NYSE:AGL) lodged its Quarterly Report on November 4, 2026. The Business works with independent primary care physicians who absorb the full cost of care for Medicare Advantage enrollees in exchange for fixed monthly capitated payments. Its medical services expense ratio, which divides medical services expense by medical services revenue, moved to 88.5% from 104.0%, a 15.5 point improvement (calculated). Medical services revenue grew 6% to USD 1.52 billion even as the member base contracted, and medical services expense shrank by roughly USD 146 million (calculated). Operating Income reached USD 24.1 million versus a USD 131.3 million loss. Over nine months, the ratio came in at 88.3% against 99.6%, and Net Income totaled USD 101.8 million.

Fewer Members, Bigger Physician Incentives and Other Income

Medicare Advantage enrollment decreased 10% to 453,600, which the company connects to earlier-disclosed market exits and a disciplined contracting approach that caused some payors to leave certain markets. Average membership for the quarter was 488,000. Other medical expenses, which include incentive payments to partner physicians tied to surplus in each geography, climbed to USD 78.0 million from USD 13.5 million, suggesting better results are being shared with physician partners. General and administrative expenses rose to USD 67.1 million from USD 56.2 million. Other income, net, reached USD 17.5 million, and Equity method investments flipped to a USD 1.0 million loss from a USD 13.1 million gain, reflecting ACO participation.

Positive Operating Cash, a Reverse Split and Credit Terms

Operating cash flow for nine months turned positive at USD 16.3 million from an outflow of USD 85.2 million. Cash, restricted cash and marketable securities totaled USD 311.7 million, versus USD 285.1 million at year-end. A 1-for-25 reverse split took effect on March 30, 2026, leaving 16.8 million shares outstanding, and per-share data was restated throughout. The credit Facility now runs to February 18, 2028 under an amendment and bears interest at 3.50% above SOFR on most borrowings. Management says Liquidity suffices for at least 12 months. Risks include medical cost trends, payor exits, shrinking membership and settlement timing. No guidance is included.

Where Things Stand

Yes, mainly through cost control rather than growth. agilon health (NYSE:AGL) pushed its expense ratio to 88.5% from 104.0%, which turned a USD 110.2 million loss into USD 34.9 million of net income even as membership fell 10%. Margins now rest on keeping medical costs below capitated revenue, so a Reversal in utilization could quickly erase the gain. Watch membership, physician incentive payments, platform costs and payor negotiations. The filing provides no outlook.