Evolent Health Q2 Earnings Call Highlights

Evolent Health NYSE: EVH reported second-quarter revenue of $653 million, up 31% from the first quarter, and adjusted EBITDA of $28 million, up 27% sequentially, as the company benefited from the May launch of its Highmark partnership and continued growth in its Performance Suite business.

Chief Executive Officer Seth Blackley said the results reflected the company’s ability to execute in a changing healthcare environment.

Evolent raised its full-year revenue guidance to a range of $2.6 billion to $2.7 billion, from a prior range of $2.4 billion to $2.6 billion. It also narrowed adjusted EBITDA guidance to $120 million to $135 million, compared with its previous outlook of $110 million to $140 million.

The company maintained its expectation for a full-year medical expense ratio, or MER, of approximately 93%.

Performance Suite revenue totaled $485 million in the second quarter, rising 50% from the first quarter. Chief Financial Officer Mario Ramos said the increase was driven primarily by higher membership following the Highmark launch on May 1.

Evolent’s MER was 95% during the second quarter, compared with 93% in the first quarter. Ramos said the increase was expected and largely reflected the Highmark launch and its associated higher reserves. The company also continued to see higher acuity among exchange populations, though it said its contracts include protections against changes in prevalence.

Blackley said early results from the Highmark program were encouraging, with clinical engagement rates above targets and provider engagement exceeding initial go-live expectations. The company expects greater visibility into claims performance over the next several months.

Evolent also said its Aetna partnership, which began earlier in 2026, continued to produce clinical engagement above targets, while initial claims-based performance was in line with expectations.

For the second half, Ramos said revenue in both the third and fourth quarters is expected to be meaningfully above the second-quarter level, primarily due to Performance Suite revenue. The third quarter is expected to include a full quarter of Highmark revenue and launches in several markets tied to a previously announced Performance Suite expansion.

The company announced an oncology Performance Suite agreement with an existing advanced-imaging client. The arrangement is expected to cover roughly 1.5 million Medicare and Medicaid lives across 11 states and is anticipated to launch by December 2026, subject to regulatory approvals. Evolent expects the oncology contract to generate approximately $300 million in annualized revenue.

Blackley said the agreement includes the company’s enhanced contractual protections used in other recent Performance Suite arrangements. The company also ...