Overview

• US healthcare solutions provider's Q1 revenue declined and missed analyst expectations

• Adjusted EBITDA margin for Q1 fell to 4.4% from 7.6% a year earlier

• Company reiterated full-year 2026 revenue and adjusted EBITDA guidance

Outlook

• Evolent reiterates 2026 revenue guidance of $2.4 bln to $2.6 bln

• Company maintains 2026 Adjusted EBITDA guidance of $110 mln to $140 mln

• Evolent expects $25 mln to $30 mln in capitalized software development spending in 2026

Result Drivers

• SPECIALTY CARE DEMAND - Co said rising medical costs for health plans continue to drive demand for its complex specialty care solutions

• NEW CONTRACTS - Co announced two new revenue agreements, including an advanced imaging solution for an existing client and an expansion of oncology and cardiology solutions with a national payer

Company press release: ID:nPn34nC6qa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$496.25 mln	$534.67 mln (15 Analysts)
Q1 Net Income		-$26.63 mln
Q1 Adjusted EBITDA		$22.07 mln
Q1 Adjusted EBITDA Margin		4.40%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Evolent Health Inc is $5.50, about 43.6% above its May 6 closing price of $3.83

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 9 three months ago

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