Astrana Health reported second quarter results that beat adjusted EPS and EBITDA estimates but missed on revenue, while management addressed analyst questions on cost trends, Medicare Advantage, Medi-Cal transitions, EBITDA guidance, and AI automation. Revenue came in at $972.5 million versus analyst estimates of $985.4 million, a 48.5% year-on-year increase but a 1.3% miss, while adjusted EPS of $0.80 beat estimates of $0.73 and adjusted EBITDA of $68.89 million beat estimates of $67.93 million. The company reconfirmed full-year revenue guidance of $3.95 billion at the midpoint and EBITDA guidance of $267.5 million at the midpoint, in line with analyst expectations. CEO Brandon Sim attributed operating leverage improvements to the company's proprietary AI-native healthcare operating system and noted that the Prospect Health acquisition contributed to overall performance with gross provider retention above 99%. Analysts from William Blair, Jefferies, Baird, Truist, and KeyBanc Capital Markets asked about commercial cost pressures, Medicare Advantage bid alignment, transitioning Medi-Cal members to full risk, fourth quarter EBITDA seasonality, and the benefits of automated member encounters.
Astrana Health IncBeat adjusted EPS and EBITDA estimates, reaffirmed guidance, and highlighted AI-driven operating leverage.
