Astrana Health, Inc. Reports Fourth Quarter and Year End 2025 Results
Company to Host Conference Call on Monday, March 2, 2026, at 5:30 a.m. PT/8:30 a.m. ET
ALHAMBRA, Calif., March 2, 2026 /PRNewswire/ -- Astrana Health, Inc. ("Astrana," and together with its subsidiaries and affiliated entities, the "Company") (NASDAQ: ASTH), a leading physician-centric, technology-powered, risk-bearing healthcare management company enabling providers to deliver accessible, high-quality, and high-value care to all, today announced its consolidated financial results for the fourth quarter and year ended December 31, 2025.
"Astrana delivered record revenue, adjusted EBITDA, and free cash flow in 2025, demonstrating the strength and predictability of our fully delegated, payer-agnostic care model and AI-enabled technology platform in a dynamic operating environment," said Brandon Sim, President and Chief Executive Officer of Astrana Health. "Our disciplined approach to risk, strong physician alignment, and technology-enabled clinical infrastructure drove consistent performance while creating measurable value for patients through improved outcomes, greater access, and lower total cost of care. As we move through 2026, with Prospect Health integration ahead of schedule, we are confident in our ability to deliver on guidance that reflects approximately 24% revenue growth and 29% adjusted EBITDA growth at the midpoint."
Financial Highlights for Year Ended December 31, 2025:
All comparisons are to the year ended December 31, 2024 unless otherwise stated.
Financial Highlights for the Fourth Quarter 2025:
All comparisons are to the quarter ended December 31, 2024 unless otherwise stated.
(1)
See reconciliation provided with the condensed consolidated statements of cash flow and "Use of Non-GAAP Financial Measures" below for additional information.
(2)
See "Reconciliation of Net Income (Loss) to Adjusted Net Income Attributable to Astrana and Adjusted EPS - Diluted" and "Use of Non-GAAP Financial Measures" below for additional information.
(3)
See "Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin" and "Use of Non-GAAP Financial Measures" below for additional information.
Update on Annual Report Filing
The Company will be filing a Form 12b-25 with the Securities and Exchange Commission to extend the deadline for its Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K") due to a material weakness in internal control over financial reporting, which is expected to relate to, but may not be limited to, the Company's acquisition and purchase accounting processes. This matter relates to the timing and documentation of certain control procedures and does not reflect any material misstatement of the Company's financial results, nor does it result in any restatements of historical periods. The Company currently expects to file the 2025 Form 10-K within the fifteen-day extension period provided under Rule 12b-25 of the Securities Exchange Act of 1934, as amended, and is making targeted investments in our accounting organization to accelerate remediation.
Stock Repurchase Program
The Board of Directors has increased the maximum aggregate amount of shares of the Company's common stock that may be purchased under the Company's existing share repurchase program from $50 million to $100 million. Repurchases may be made through a variety of methods, which could include open market purchases, accelerated share repurchase transactions, negotiated block transactions, 10b5-1 plans, other transactions that may be structured through investment banking institutions or privately negotiated, or a combination of the foregoing. The amount and timing of future repurchases, if any, may vary depending on management's assessment of the intrinsic value of the Company's common stock, the market price of the Company's common stock, general market and economic conditions, available liquidity, compliance with the Company's debt and other agreements, applicable legal requirements, the level of operating, financing and other investing activities, and other considerations. The repurchase authorization does not have an expiration date.
The Company is not obligated to purchase any shares under the repurchase program, and the program may be suspended, modified, or discontinued at any time without prior notice. During the three months ended December 31, 2025, 633,844 shares were repurchased under the Company's share repurchase plan. As of December 31, 2025, $35.9 million remained available under the repurchase plan. The Company may determine to continue to make repurchases under the program following the filing of the Form 10-K for the year ended December 31, 2025.
Segment Results for Year Ended December 31, 2025:
All comparisons are to the year ended December 31, 2024 unless otherwise stated.
Year Ended
December 31,
2025
(in thousands)
Care
Partners
Care
Delivery
Care
Enablement
Intersegment
Elimination
Corporate
Costs
Consolidated
Total
Total revenues
$
3,022,602
$
250,742
$
246,660
$
(338,235)
$
—
$
3,181,769
% change vs. prior year
55
%
83
%
59
%
Cost of services
2,615,578
203,895
148,629
(127,863)
—
2,840,239
General and administrative
217,656
45,004
52,130
(210,400)
112,866
217,256
Depreciation and amortization
34,401
3,858
6,185
—
1,305
45,749
Total expenses
2,867,635
252,757
206,944
(338,263)
114,171
3,103,244
Income (loss) from operations
$
154,967
$
(2,015)
$
39,716
$
28
(1)
$
(114,171)
$
78,525
% change vs. prior year
10
%
*
117
%
(1)
Income from operations for the intersegment elimination represents rental income from segments renting from other segments. Rental income is presented within other income which is not presented in the table.
*
Percentage change of over 500%
2026 Guidance:
Astrana is providing the following guidance for total revenue and Adjusted EBITDA for the three months ending March 31, 2026 and the year ending December 31, 2026 based on the Company's existing business, current view of existing market conditions, and assumptions.
($ in millions)
Three Months Ending
March 31, 2026
Year Ending
December 31, 2026
Guidance Range
Guidance Range
Low
High
Low
High
Total revenue
$
900
$
1,000
$
3,800
$
4,100
Adjusted EBITDA
$
60
$
70
$
250
$
280
See "Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA" and "Use of Non-GAAP Financial Measures" below for additional information. There can be no assurance that actual amounts will not be materially higher or lower than these expectations. See "Forward-Looking Statements" below for additional information.
Conference Call and Webcast Information:
Astrana will host a conference call at 5:30 a.m. PT/8:30 a.m. ET today (Monday, March 2, 2026), during which management will discuss the results of the fourth quarter and year end December 31, 2025. To participate in the conference call, please use the following dial-in numbers about 5 minutes prior to the scheduled conference call time:
U.S. & Canada (Toll-Free):
+1 (877) 858-9810
International (Toll):
+1 (201) 689-8517
The conference call can also be accessed via webcast at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=CAALhYDU
An accompanying slide presentation will be available in PDF format on the "IR Calendar" page of the Company's website ( https://ir.astranahealth.com/news-events/ir-calendar) after issuance of the earnings release and will be furnished as an exhibit to Astrana's current report on Form 8-K to be filed with the SEC, accessible at www.sec.gov.
Those who are unable to attend the live conference call may access the recording at the above webcast link, which will be made available shortly after the conclusion of the call.
Note About Consolidated Entities
The Company consolidates entities in which it has a controlling financial interest. The Company consolidates subsidiaries in which it holds, directly or indirectly, more than 50% of the voting rights, and variable interest entities ("VIEs") in which the Company is the primary beneficiary. Noncontrolling interests represent third party equity ownership interests in the Company's consolidated entities (including certain VIEs). The amount of net income attributable to noncontrolling interests is disclosed in the Company's consolidated statements of income.
About Astrana Health, Inc.
Astrana Health is a physician-centric, AI-powered healthcare company committed to delivering high-quality, patient-centered care. Built from the physician's perspective, Astrana combines its scalable care delivery infrastructure, proprietary technology platform, and aligned provider networks to enable proactive, preventive care at scale - improving patient outcomes, enhancing patient experiences, supporting provider well-being, and driving greater value across the healthcare system.
Today, Astrana supports more than 20,000 providers and over 1.6 million patients in value-based care arrangements through its affiliated provider networks, management services organization, and integrated care delivery clinics spanning primary, specialty, and ancillary care. Together, Astrana is building the healthcare system we all deserve - one that delivers better care, better experiences, and better outcomes for all. For more information, visit www.astranahealth.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company's guidance for the year ending December 31, 2026, ability to meet operational goals, ability to meet expectations in deployment of care coordination and management capabilities, ability to decrease cost of care while improving quality and outcomes, ability to deliver sustainable revenue and EBITDA growth as well as long-term value, ability to respond to the changing environment, statements about the Company's liquidity, and successful completion and implementation of strategic growth plans, acquisition strategy, and merger integration efforts, as well as statements regarding the Company's expectations regarding the timing of filing its 2025 Form 10-K, the expected material weakness in internal control over financial reporting and the Company's ability to remediate any such material weakness in a timely manner, the consistency of the financial statements in the 2025 Form 10-K with the financial information in this earnings release and the completion of matters necessary to permit filing by the extension deadline. Forward-looking statements reflect current views with respect to future events and financial performance and therefore cannot be guaranteed. Such statements are based on the current expectations and certain assumptions of the Company's management, and some or all of such expectations and assumptions may not materialize or may vary significantly from actual results. Actual results may also vary materially from forward-looking statements due to risks, uncertainties and other factors, known and unknown, including the risk factors described from time to time in the Company's reports to the SEC, including, without limitation the risk factors discussed in the Company's last Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q filed with the SEC. Any forward-looking statements made by the Company in this release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations
Carolyne Sohn
[email protected]
ASTRANA HEALTH, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
December 31,
2025
December 31,
2024
Assets
Current assets
Cash and cash equivalents
$
429,474
$
288,455
Receivables, net (including amounts with related parties)
374,465
275,990
Income taxes receivable
1,799
19,316
Other receivables
26,385
29,496
Prepaid expenses and other current assets
26,264
25,239
Loans receivable
4,926
—
Total current assets
863,313
638,496
Non-current assets
Property and equipment, net
58,693
14,274
Intangible assets, net
270,968
118,179
Goodwill
863,944
419,253
Income taxes receivable, non-current
26,220
15,943
Loans receivable, non-current
48,724
51,266
Investments in other entities – equity method
25,637
39,319
Investments in privately held entities
2,896
8,896
Operating lease right-of-use assets
35,738
32,601
Other assets
22,528
16,667
Total non-current assets
1,355,348
716,398
Total assets (1)
$
2,218,661
$
1,354,894
Liabilities, Mezzanine Deficit, and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses
$
195,912
$
106,142
Fiduciary accounts payable
3,524
8,223
Medical liabilities
335,705
209,039
Operating lease liabilities
7,809
5,350
Current portion of long-term debt
47,865
9,375
Other liabilities
24,458
27,479
Total current liabilities
615,273
365,608
Non-current liabilities
Deferred tax liability
5,491
4,555
Operating lease liabilities, net of current portion
31,552
30,654
Long-term debt, net of current portion and deferred financing costs
990,904
425,299
Other long-term liabilities
17,107
14,610
Total non-current liabilities
1,045,054
475,118
Total liabilities (1)
$
1,660,327
$
840,726
Mezzanine deficit
Non-controlling interest in Allied Physicians of California, a Professional
Medical Corporation ("APC")
(234,962)
(202,558)
Stockholders' equity
Preferred stock, $0.001 par value per share; 5,000,000 shares authorized, and zero shares issued and outstanding as of December 31, 2025 and December 31, 2024
—
—
Common stock, $0.001 par value per share; 100,000,000 shares authorized, 48,885,358 and 47,929,872 shares issued and outstanding, excluding 10,571,011 and 10,603,849 treasury shares, as of December 31, 2025 and December 31, 2024, respectively
49
48
Additional paid-in capital
470,863
426,389
Retained earnings
308,379
286,283
Total stockholders' equity
779,291
712,720
Non-controlling interest
14,005
4,006
Total equity
793,296
716,726
Total liabilities, mezzanine deficit, and stockholders' equity
$
2,218,661
$
1,354,894
(1)
The Company's consolidated balance sheets include the assets and liabilities of its consolidated VIEs. The consolidated balance sheets include total assets that can be used only to settle obligations of the Company's consolidated VIEs totaling $1,276.5 million and $712.3 million as of December 31, 2025 and December 31, 2024, respectively, and total liabilities of the Company's consolidated VIEs for which creditors do not have recourse to the general credit of the primary beneficiary of $376.0 million and $207.9 million as of December 31, 2025 and December 31, 2024, respectively. These VIE balances do not include $152.2 million of investment in affiliates and $58.3 million of amounts due from affiliates as of December 31, 2025, and $224.9 million of investment in affiliates and $48.1 million of amounts due to affiliates as of December 31, 2024, as these are eliminated upon consolidation and not presented within the consolidated balance sheets.
ASTRANA HEALTH, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
Three Months Ended
December 31,
Years Ended
December 31,
2025
2024
2025
2024
Revenue
Capitation, net
$
862,814
$
616,900
$
2,924,265
$
1,856,785
Risk pool settlements and incentives
25,508
28,660
86,199
86,224
Management fee income
10,290
5,550
30,394
13,979
Fee-for-service, net
39,787
7,743
112,635
62,331
Other revenue
12,127
6,356
28,276
15,221
Total revenue
950,526
665,209
3,181,769
2,034,540
Operating expenses
Cost of services, excluding depreciation and amortization
855,483
614,730
2,840,239
1,763,152
General and administrative expenses
60,247
41,633
217,256
154,111
Depreciation and amortization
16,401
8,126
45,749
27,927
Total expenses
932,131
664,489
3,103,244
1,945,190
Income from operations
18,395
720
78,525
89,350
Other expense
Income from equity method investments
1,176
1,564
1,708
4,451
Interest expense
(17,520)
(8,069)
(49,928)
(33,097)
Interest income
3,987
3,221
12,157
14,508
Unrealized gain (loss) on investments
769
316
(68)
731
Other income (loss)
699
353
(2,788)
4,875
Total other expense, net
(10,889)
(2,615)
(38,919)
(8,532)
Income (loss) before provision for income taxes
7,506
(1,895)
39,606
80,818
Provision for income taxes
944
5,882
15,530
30,886
Net income (loss)
6,562
(7,777)
24,076
49,932
Net income (loss) attributable to noncontrolling interests
563
(826)
1,589
6,783
Net income (loss) attributable to Astrana Health, Inc.
$
5,999
$
(6,951)
$
22,487
$
43,149
Earnings (loss) per share – basic
$
0.12
$
(0.15)
$
0.46
$
0.91
Earnings (loss) per share – diluted
$
0.12
$
(0.15)
$
0.46
$
0.90
Weighted average shares of common stock outstanding – basic
49,230,904
47,823,360
49,075,727
47,597,295
Weighted average shares of common stock outstanding – diluted
49,527,521
47,823,360
49,369,685
47,974,334
ASTRANA HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Years ended December 31,
2025
2024
Cash flows from operating activities
Net income
$
24,076
$
49,932
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
45,749
27,927
Amortization of debt issuance cost
4,050
1,828
Share-based compensation
38,601
34,536
Non-cash lease expense
6,647
5,278
Deferred tax
(4,287)
(4,249)
Change in fair value of contingent consideration liabilities
5,166
3,526
Other
(2,307)
(2,967)
Changes in operating assets and liabilities, net of business combinations
(3,098)
(63,613)
Net cash provided by operating activities
114,597
52,198
Cash flows from investing activities
Payments for business and asset acquisition, net of cash acquired
(548,604)
(146,260)
Purchases of investments – equity method
—
(5,968)
Purchase of call option issued in conjunction with equity method investment
—
(3,907)
Issuance of loans receivable
(1,708)
(26,000)
Purchases of property and equipment
(10,106)
(8,031)
Proceeds from sale of equity method investment
15,100
—
Other
6,319
(2,229)
Net cash used in investing activities
(538,999)
(192,395)
Cash flows from financing activities
Dividends paid
(7,885)
(4,036)
Repayments on debt
(495,289)
(18,500)
Borrowings on debt
1,119,300
171,875
Taxes paid from net share settlement of restricted stock
(6,169)
(4,662)
Repurchase of treasury shares
(15,429)
(937)
Deferred financing cost
(19,205)
—
Payment of financing obligation
—
(8,542)
Payment of contingent consideration liabilities
(8,284)
(518)
Other
2,307
466
Net cash provided by financing activities
569,346
135,146
Net increase (decrease) in cash, cash equivalents, and restricted cash
144,944
(5,051)
Cash, cash equivalents, and restricted cash, beginning of year
289,101
294,152
Cash, cash equivalents, and restricted cash, end of year
$
434,045
$
289,101
Supplemental disclosures of cash flow information
Cash paid for income taxes
(1)
$
43,936
Cash paid for interest
$
45,767
$
30,419
Supplemental disclosures of non-cash investing and financing
activities
Right-of-use assets obtained in exchange for operating lease liabilities
$
11,875
$
14,117
Common stock issued in business combination
$
—
$
21,952
Common stock issued for contingent consideration payment
$
2,600
$
4,023
Acquisition of business through loan conversion
$
—
$
5,175
Draw on letter of credit through Revolver Loan
$
—
$
4,732
Elimination of note payable upon consolidation
$
9,488
$
—
Reclass of investment – Third Way Health
$
6,000
$
—
Repurchase of treasury shares outstanding payable
$
922
$
—
Dividend paid in form of stock
$
21,935
$
—
(1)
Following the adoption of ASC 2023-09 "Income Taxes (Topics 740): Improvements to Income Tax Disclosures", cash paid for income taxes is presented net of tax refunds, for the year ended December 31, 2025 and prospectively, under Item 8 of the Company's Annual Report on Form 10-K.
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total amounts of cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows (in thousands):
December 31,
2025
2024
Cash and cash equivalents
$
429,474
$
288,455
Restricted cash (1)
4,571
646
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
$
434,045
$
289,101
(1)
Restricted cash is included in other assets on the consolidated balance sheets.
The following table provides a reconciliation of net cash provided by operating activities to free cash flow for the years ended December 31, 2025 and 2024 (in thousands):
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
December 31,
2025
2024
Net cash provided by operating activities
$
114,597
$
52,198
Cash used in purchases of property and equipment
(10,106)
(8,031)
Free cash flow
$
104,491
$
44,167
Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
Set forth below are reconciliations of net income (loss) to EBITDA and Adjusted EBITDA as well as the reconciliation to Adjusted EBITDA margin for the three months and years ended December 31, 2025 and 2024. The Company defines Adjusted EBITDA margin as Adjusted EBITDA over total revenue.
Three Months Ended
December 31,
Years Ended
December 31,
(in thousands)
2025
2024
2025
2024
Net income (loss)
$
6,562
$
(7,777)
$
24,076
$
49,932
Interest expense
17,520
8,069
49,928
33,097
Interest income
(3,987)
(3,221)
(12,157)
(14,508)
Provision for income taxes
944
5,882
15,530
30,886
Depreciation and amortization
16,401
8,126
45,749
27,927
EBITDA
37,440
11,079
123,126
127,334
Income from equity method investments
(1,176)
(1,564)
(1,708)
(4,451)
Other, net
4,808
(1)
10,288
(2)
45,405
(3)
12,951
(4)
Stock-based compensation
11,382
15,235
38,601
34,536
Adjusted EBITDA
$
52,454
$
35,038
$
205,424
$
170,370
Total revenue
$
950,526
$
665,209
$
3,181,769
$
2,034,540
Adjusted EBITDA margin
6
%
5
%
6
%
8
%
(1)
Other, net, for the three months ended December 31, 2025 relates to $2.3 million for transaction and integration costs primarily for the acquisition of Prospect, certain costs and final settlement for some of our acquisitions, and severance fees incurred, partially offset by employer retention tax credits related to COVID-19 relief.
(2)
Other, net for the three months ended December 31, 2024 relates to transaction costs incurred for our investments, to anticipated recoveries from one time losses relating to third party payer payments associated with the Collaborative Health Systems, LLC ("CHS") transaction, and non-cash change in the fair value of our call option.
(3)
Other, net, for the year ended December 31, 2025, relates to $13.0 million for a legal matter with a provider associated with CFC HP, $25.9 million for transaction and integration costs primarily for the acquisition of Prospect, debt issuance costs incurred in connection with our Second Amended and Restated Credit Facility, certain costs and final settlement for some of our acquisitions, and severance fees incurred, partially offset by employer retention tax credits related to COVID-19 relief.
(4)
Other, net for the year ended December 31, 2024 relates to transaction costs incurred for our investments and tax restructuring fees, anticipated recoveries from one-time losses relating to third party payor payments associated with the CHS transaction, a financial guarantee via a letter of credit that we provided in support of two local provider-led ACOs, non-cash gain on debt extinguishment related to one of our promissory note payables, non-cash realized loss from the sale of one of our marketable equity securities, non-cash changes related to change in the fair value of our call option, non-cash change in the fair value of our financing obligation to purchase the remaining equity interests in one our investments, non-cash changes in the fair value of our contingent liabilities, non-cash changes in the fair value of the Company's Collar Agreement, and reimbursement from a related party of the Company for taxes associated with the Excluded Assets spin-off
Reconciliation of Net Income (Loss) to Adjusted Net Income Attributable to Astrana and Adjusted EPS - Diluted
Set forth below are reconciliations of net income (loss) to adjusted net income attributable to Astrana as well as the reconciliation to adjusted EPS - diluted for the three months and years ended December 31, 2025 and 2024.
Three Months Ended
December 31,
Years Ended
December 31,
(in thousands, except for share and per share data)
2025
2024
2025
2024
Net income (loss)
$
6,562
$
(7,777)
$
24,076
$
49,932
Income from equity method investments
(1,176)
(1,564)
(1,708)
(4,451)
Other, net (1)
4,808
10,288
45,405
12,951
Stock-based compensation
11,382
15,235
38,601
34,536
Amortization of intangibles
14,128
7,567
40,747
25,608
Tax adjustments
(5,485)
(2)
(5,411)
(3)
(25,337)
(2)
(13,902)
(3)
Adjusted non-controlling interest
(3,300)
(4)
(2,186)
(5)
(13,203)
(4)
(11,629)
(5)
Adjusted net income attributable to Astrana Health, Inc.
$
26,919
$
16,152
$
108,581
$
93,045
Weighted average shares of common stock outstanding – diluted
49,527,521
47,823,360
49,369,685
47,974,334
Adjusted earnings per share - diluted
$
0.54
$
0.34
$
2.20
$
1.94
(1)
The components of other, net, as set forth in the table above, are described in the footnotes to the table under "Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin". Please see the footnotes for additional information.
(2)
Tax adjustments for the three months and year ended December 31, 2025, includes the tax effect for, at a 27.1% statutory blended tax rate, the adjustments made to net income of $7.9 million and $33.3 million, respectively, partially offset by 162(m) impact of $2.4 million and $7.5 million, respectively.
(3)
Tax adjustments for the three months and year ended December 31, 2024, includes the tax effect for, at a 28.0% statutory blended tax rate, the adjustments made to net (loss) income of $8.8 million and $19.2 million, respectively, partially offset by 162(m) impact of $3.4 million and $5.3 million, respectively.
(4)
Includes net income attributable to non-controlling interests ("NCI") of $0.6 million and $1.6 million, respectively, and adjustments attributable to NCI of $2.7 million and $11.6 million, respectively, for the three months and year ended December 31, 2025.
(5)
Includes net loss and income, respectively, attributable to NCI of $0.8 million and $6.8 million, respectively, and adjustments attributable to NCI of $3.0 million and $4.8 million, respectively, for the three months and year ended December 31, 2024.
Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Year Ending
December 31, 2026
Guidance Range
(in thousands)
Low
High
Net income
$
54,000
$
74,000
Interest expense
51,000
55,000
Provision for income taxes
38,000
44,000
Depreciation and amortization
65,000
65,000
EBITDA
208,000
238,000
Income from equity method investments
(4,000)
(4,000)
Other, net
7,000
7,000
Stock-based compensation
39,000
39,000
Adjusted EBITDA
$
250,000
$
280,000
The Company has not provided a quantitative reconciliation of EBITDA and Adjusted EBITDA for the three months ending March 31, 2026 to the most comparable GAAP measure on a forward-looking basis within this press release because the Company is unable, without unreasonable efforts, to provide reconciling information with respect to certain line items that cannot be calculated for the three month period. These items, which could materially affect the computation of forward-looking GAAP net income, are inherently uncertain and depend on various factors, some of which are outside of the Company's control.
Use of Non-GAAP Financial Measures
This press release contains the non-GAAP financial measures EBITDA, Adjusted EBITDA, adjusted net income attributable to Astrana, and adjusted EPS - diluted, of which the most directly comparable financial measure presented in accordance with U.S. generally accepted accounting principles ("GAAP") is net income (loss). This press release also contains the non-GAAP financial measure free cash flow, of which the most directly comparable financial measure presented in accordance with U.S. generally accepted accounting principles ("GAAP") is net cash provided by operating activities. These measures are not in accordance with, or alternatives to GAAP, and may be calculated differently from similar non-GAAP financial measures used by other companies. The Company uses Adjusted EBITDA, Adjusted EPS – diluted, and free cash flow as supplemental performance measures of our operations, for financial and operational decision-making, and as supplemental means of evaluating period-to-period comparisons on a consistent basis. Adjusted EBITDA is calculated as earnings before interest expense, interest income, income taxes, depreciation, and amortization, excluding income or loss from equity method investments, non-recurring and non-cash transactions, and stock-based compensation. The Company defines Adjusted EBITDA margin as Adjusted EBITDA over total revenue. Adjusted net income attributable to Astrana is calculated as net income (loss), excluding income or loss from equity method investments, non-recurring and non-cash transactions, stock-based compensation, amortization of intangibles, certain tax adjustments, and amounts related to non-controlling interest. The Company defines adjusted EPS - diluted as adjusted net income attributable to Astrana over weighted average shares of common stock outstanding - diluted. The Company defines free cash flow as net cash provided by operating activities and cash used in purchases of property and equipment.
The Company believes the presentation of these non-GAAP financial measures provides investors with relevant and useful information, as it allows investors to evaluate the operating performance of the business activities without having to account for differences recognized because of non-core or non-recurring financial information. When GAAP financial measures are viewed in conjunction with non-GAAP financial measures, investors are provided with a more meaningful understanding of the Company's ongoing operating performance. In addition, these non-GAAP financial measures are among those indicators the Company uses as a basis for evaluating operational performance, allocating resources, and planning and forecasting future periods. Non-GAAP financial measures are not intended to be considered in isolation, or as a substitute for, GAAP financial measures. Other companies may calculate EBITDA, Adjusted EBITDA, adjusted net income attributable to Astrana, adjusted EPS – diluted, and free cash flow differently, limiting the usefulness of these measures for comparative purposes. To the extent this release contains historical or future non-GAAP financial measures, the Company has provided corresponding GAAP financial measures for comparative purposes. The reconciliation between certain GAAP and non-GAAP measures is provided above.
SOURCE Astrana Health, Inc.