Evolent Health (EVH) saw its stock price tumble 5.05% in pre-market trading on Friday, following the release of its disappointing second-quarter earnings report for 2025. The healthcare company's performance fell short of analysts' expectations, sparking concern among investors.

According to the earnings summary, Evolent Health reported a quarterly adjusted loss of 10 cents per share for the quarter ended June 30, significantly lower than the 8 cents per share profit analysts had expected. This result also marks a substantial decline from the same quarter last year when the company reported earnings of 30 cents per share. The company's revenue also disappointed, falling 31.3% to $444.33 million, below the $459.42 million analysts had forecast.

The weak quarterly performance has contributed to a challenging year for Evolent Health. The company's shares have already fallen by 16.4% this quarter and have lost 16.4% year-to-date. Despite these setbacks, Wall Street maintains a generally positive outlook on the stock. The current average analyst rating is "buy," with 13 analysts recommending either "strong buy" or "buy," and only one suggesting a "hold." The median 12-month price target stands at $16.00, representing a potential upside of about 39.4% from its last closing price of $9.69. However, investors will be closely watching how the company plans to address its recent underperformance and return to profitability in the coming quarters.