Astrana Health Revenue Jumps 14% to $1.02B, Net Income Dips

TL;DR

Astrana Health's revenue is soaring, but watch out for that net income dip – it's a red flag for profitability.

AI Summary

Astrana Health, Inc. reported a significant increase in revenue for the three months ended June 30, 2025, reaching $1.02 billion, up from $892.5 million in the prior-year period, representing a 14.3% growth. For the six months ended June 30, 2025, total revenue was $2.01 billion, an increase from $1.73 billion in the same period of 2024. Net income attributable to Astrana Health, Inc. stockholders for the three months ended June 30, 2025, was $20.3 million, a decrease from $26.7 million in the prior-year quarter. The six-month net income also saw a decline to $39.8 million from $51.2 million. Key business changes include the amendment of the credit agreement on February 26, 2025, which increased the revolving credit facility to $150.0 million and extended its maturity to February 26, 2028. The company also recognized a $1.5 million unrealized gain on investments for the three months ended June 30, 2025, compared to a $0.9 million loss in the prior year. Risks include increased general and administrative expenses, which rose to $105.0 million for the three months ended June 30, 2025, from $90.2 million, and the impact of noncontrolling interests on net income. The strategic outlook focuses on continued growth in care delivery and enablement segments, despite the slight dip in net income.

Why It Matters

Astrana Health's robust 14.3% revenue growth to $1.02 billion signals strong operational performance and market penetration in the healthcare services sector, which is crucial for investor confidence. However, the 23.9% decline in net income to $20.3 million for the quarter raises questions about profitability margins and cost management, potentially impacting shareholder returns. For employees, continued revenue growth could mean job security and expansion opportunities, while customers benefit from an expanding care delivery network. In a competitive healthcare landscape, Astrana's ability to grow top-line revenue while managing bottom-line pressures will dictate its long-term market position against rivals like Optum and CVS Health.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in general and administrative expenses, which rose by $14.8 million to $105.0 million for the three months ended June 30, 2025, contributing to a decline in net income. Additionally, the net income attributable to Astrana Health, Inc. stockholders decreased by $6.4 million to $20.3 million, indicating potential pressure on profitability despite strong revenue growth.

Analyst Insight

Investors should scrutinize Astrana Health's upcoming earnings calls for detailed explanations on the increased general and administrative expenses and strategies to improve net income margins. Consider holding existing positions but deferring new investments until there's clearer evidence of profitability stabilization and cost control measures.

Financial Highlights

revenue

$1.02B

net Income

$20.3M

revenue Growth

+14.3%

Revenue Breakdown

Key Numbers

• $1.02B — Total Revenue (Increased 14.3% for Q2 2025 compared to Q2 2024)
• $20.3M — Net Income (Decreased 23.9% for Q2 2025 compared to Q2 2024)
• $2.01B — Six-Month Total Revenue (Increased from $1.73 billion in 2024)
• $39.8M — Six-Month Net Income (Decreased from $51.2 million in 2024)
• $105.0M — General and Administrative Expenses (Increased from $90.2 million in Q2 2024)
• 14.3% — Revenue Growth Rate (Year-over-year growth for Q2 2025)
• 23.9% — Net Income Decrease Rate (Year-over-year decrease for Q2 2025)
• $150.0M — Revolving Credit Facility (Increased limit as of February 26, 2025)
• $1.5M — Unrealized Gain on Investments (Recognized for Q2 2025, compared to $0.9M loss in Q2 2024)

Key Players & Entities

• Astrana Health, Inc. (company) — filer of the 10-Q
• Bloomberg (company) — publisher of the analysis
• SEC (regulator) — regulator of the filing
• Optum (company) — competitor in healthcare services
• CVS Health (company) — competitor in healthcare services
• $1.02 billion (dollar_amount) — total revenue for Q2 2025
• $20.3 million (dollar_amount) — net income for Q2 2025
• $150.0 million (dollar_amount) — revolving credit facility limit
• $105.0 million (dollar_amount) — general and administrative expenses for Q2 2025
• February 26, 2028 (date) — maturity date of amended credit agreement

FAQ

Risk Factors

• Increased General and Administrative Expenses [medium — financial]: General and administrative expenses increased to $105.0 million for the three months ended June 30, 2025, from $90.2 million in the prior-year quarter. This represents a significant rise and could impact profitability if not managed effectively.
• Impact of Noncontrolling Interests [medium — financial]: The presence of noncontrolling interests has a direct impact on the net income attributable to Astrana Health, Inc. stockholders, as seen in the reported net income figures. This can obscure the performance of the core business.
• Net Income Decline [medium — financial]: Net income attributable to stockholders decreased to $20.3 million for Q2 2025 from $26.7 million in Q2 2024, a 23.9% decline. The six-month net income also fell to $39.8 million from $51.2 million. This trend warrants close monitoring.

Industry Context

Astrana Health operates within the healthcare services sector, which is characterized by increasing demand for integrated care delivery and enablement solutions. The competitive landscape is dynamic, with a growing emphasis on value-based care models and technological integration to improve patient outcomes and operational efficiency.

Regulatory Implications

The healthcare industry is subject to extensive regulatory oversight, including compliance with HIPAA and other patient privacy laws. Changes in healthcare policy, reimbursement rates, and quality reporting requirements can significantly impact financial performance and operational strategies.

What Investors Should Do

1. Monitor G&A Expense Trends
2. Analyze Net Income Drivers
3. Evaluate Credit Facility Utilization

Key Dates

• 2025-02-26: Amendment of Credit Agreement — Increased the revolving credit facility to $150.0 million and extended its maturity to February 26, 2028, providing enhanced financial flexibility and liquidity.
• 2025-06-30: End of Second Quarter — Period for which the 10-Q filing reports financial results, showing revenue growth but a decline in net income.

Glossary

Noncontrolling Interests

The portion of equity ownership in a subsidiary that is not attributable to the parent company. It represents the claims of minority shareholders on the subsidiary's net assets and net income. (Impacts the net income attributable to Astrana Health, Inc. stockholders, as reported in the 10-Q.)

Unrealized Gain/Loss on Investments

The change in the market value of an investment that has not yet been sold. It is recognized in earnings or other comprehensive income depending on the classification of the investment. (Astrana Health reported a $1.5 million unrealized gain in Q2 2025, contrasting with a loss in the prior year, affecting other income.)

Revolving Credit Facility

A type of credit line that allows a company to borrow, repay, and re-borrow funds up to a certain limit over a specified period. It provides flexible access to capital. (Astrana Health increased its revolving credit facility to $150.0 million, enhancing its liquidity and financial management capabilities.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Astrana Health demonstrated robust revenue growth, with Q2 2025 revenue up 14.3% to $1.02 billion. However, net income experienced a notable decline, falling 23.9% year-over-year for the quarter. General and administrative expenses also rose significantly, contributing to margin pressures. The company has strengthened its financial position by increasing its revolving credit facility.

Key Financial Figures

• $0.001 — nge on Which Registered Common Stock, $0.001 par value per share ASTH The Nasdaq

Filing Documents

• asth-20250630.htm (10-Q) — 4218KB
• asth-ex10_2.htm (EX-10.2) — 246KB
• asth-ex31_1.htm (EX-31.1) — 17KB
• asth-ex31_2.htm (EX-31.2) — 17KB
• asth-ex32.htm (EX-32) — 14KB
• img124446507_0.jpg (GRAPHIC) — 35KB
• 0000950170-25-105242.txt ( ) — 17540KB
• asth-20250630.xsd (EX-101.SCH) — 1992KB
• asth-20250630_htm.xml (XML) — 3970KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 46 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 59 Item 4.

Controls and Procedures

Controls and Procedures 59 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 60 Item 1A.

Risk Factors

Risk Factors 60 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 62 Item 3. Defaults Upon Senior Securities 62 Item 4. Mine Safety Disclosures 62 Item 5. Other Information 62 Item 6. Exhibits 63 2 Glossary The following abbreviations or acronyms that may be used in this document shall have the adjacent meanings set forth below: ACO REACH ACO Realizing Equity, Access, and Community Health ADSC Advanced Diagnostic and Surgical Center, Inc. AHMC AHMC Healthcare Inc. AHMS Advanced Health Management Systems, L.P. AHM Astrana Health Management, Inc. (f/k/a Network Medical Management Inc.) APC Allied Physicians of California, a Professional Medical Corporation APC-LSMA APC-LSMA Designated Shareholder Medical Corporation Astrana Astrana Health Inc. (f/k/a Apollo Medical Holdings, Inc.) Astrana Medical Astrana Health Medical Corporation (f/k/a AP-AMH Medical Corporation) Astrana Care Partners Medical Astrana Care Partners Medical Corporation (f/k/a AP-AMH 2 Medical Corporation) CFC Community Family Care Medical Group IPA, Inc. CHS Collaborative Health Systems, LLC, Golden Triangle Physician Alliance, and Heritage Physician Networks CMS Centers for Medicare & Medicaid Services DMHC California Department of Managed Health Care IPA Independent Practice Association Prospect Prospect Medical Holdings, Inc. Sun Labs Sun Clinical Labs VIE Variable Interest Entity 3 INTRODUCTORY NOTE Unless the context dictates otherwise, references in this Quarterly Report on Form 10-Q to the "Company," "we," "us," "our," and similar words are references to Astrana Health, Inc., a Delaware corporation ("Astrana"), and its consolidated subsidiaries and affiliated entities, as appropriate, including its consolidated variable interest entities ("VIEs"). This Quarterly Report on Form 10-Q includes the financial statements for the quarter ended June 30, 2025, and provi

– FINA NCIAL INFORMATION

PART I – FINA NCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ASTRANA HEALTH, INC. CONDENSED CONSOLIDATE D BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) June 30, 2025 December 31, 2024 (Unaudited) Assets Current assets Cash and cash equivalents $ 339,703 $ 288,455 Investment in marketable securities 2,417 2,378 Receivables, net (including amounts with related parties) 348,730 275,990 Income taxes receivable 7,893 19,316 Other receivables 8,655 29,496 Prepaid expenses and other current assets 21,754 22,861 Total current assets 729,152 638,496 Non-current assets Property and equipment, net 17,800 14,274 Intangible assets, net 105,737 118,179 Goodwill 416,917 419,253 Income taxes receivable, non-current 15,943 15,943 Loans receivable, non-current 48,370 51,266 Investments in other entities – equity method 38,454 39,319 Investments in privately held entities 8,896 8,896 Operating lease right-of-use assets 30,631 32,601 Other assets 30,450 16,667 Total non-current assets 713,198 716,398 Total assets (1) $ 1,442,350 $ 1,354,894 6 June 30, 2025 December 31, 2024 (Unaudited) Liabilities, Mezzanine Deficit, and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $ 119,661 $ 106,142 Fiduciary accounts payable 4,734 8,223 Medical liabilities 287,691 209,039 Operating lease liabilities 5,319 5,350 Current portion of long-term debt 12,500 9,375 Other liabilities 29,841 27,479 Total current liabilities 459,746 365,608 Non-current liabilities Deferred tax liability 2,593 4,555 Operating lease liabilities, net of current portion 28,714 30,654 Long-term debt, net of current portion and deferred financing costs 401,057 425,299 Other long-term liabilities 12,294 14,610 Total non-current liabilities 444,658 475,118 Total liabiliti

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View this 10-Q filing on SEC EDGAR