Alignment Healthcare Reports Strong Revenue Growth Amid Rising Medical Costs and Lowered Profit Guidance
Alignment Healthcare (ALHC) reported significant top-line growth for Q3 2026, with revenue increasing 36.7% year-over-year to $1.358 billion. This surge was primarily driven by a 31.2% increase in health plan membership, which reached 301,200 members at quarter end. Despite the scale expansion, the company faced pressure on margins due to an adjusted Medical Benefit Ratio (MBR) of 89.5%, up 240 basis points from last year. The rise in medical expenses was attributed to Part D seasonality, increased provider-led appeals and disputes, and higher costs in skilled nursing and catastrophic cases. Consequently, while the company raised its full-year revenue guidance to $5.245 billion or higher, it lowered its full-year adjusted EBITDA and gross profit outlooks to account for these elevated medical cost trends.
Tickers: $ALHC
Topics: EBITDA decrease guidance revision medical cost trends membership growth revenue growth
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Part of the story Alignment Healthcare Reports Strong Revenue Growth Amid Rising Medical Costs and Lowered Profit Guidance (3 articles)