Shares of Alignment Healthcare, Inc. (ALHC) jumped 7.18% in after-hours trading on Thursday following the release of the company's impressive third-quarter results and upgraded full-year guidance. The Medicare Advantage company reported better-than-expected revenue growth and raised its outlook across all key metrics, driven by significant membership expansion and high-quality plan ratings.
Alignment Healthcare reported Q3 revenue of $993.7 million, up 43.5% year-over-year and surpassing analyst expectations of $981.35 million. The company's earnings per share came in at $0.02, marking a substantial improvement from a loss of $0.14 per share in the same period last year. Adjusted EBITDA for the quarter reached $32.4 million, reflecting the company's strong operational performance.
The robust financial results were underpinned by a 25.9% year-over-year increase in health plan membership, which stood at approximately 229,600 at the end of the quarter. Notably, Alignment Healthcare maintained 100% of its members in plans rated 4 stars or higher for the second consecutive year, including two 5-star contracts in Nevada and North Carolina and a 4.5-star contract in Texas.
In light of the strong performance, Alignment Healthcare raised its full-year 2025 outlook. The company now projects revenue between $3.931 billion and $3.946 billion, with adjusted EBITDA expected to range from $90 million to $98 million. For the fourth quarter, Alignment anticipates revenue between $995 million and $1.01 billion.
"Our third quarter results mark the third consecutive quarter in which we surpassed the high end of our guidance across all key metrics," said John Kao, founder and CEO of Alignment Healthcare. "These outcomes reinforce the strength and scalability of our care model, which continues to deliver consistent results across our markets. With 100% of our members in 4-star or higher plans for the second year in a row, we are leading a paradigm shift in Medicare Advantage that prioritizes quality, access and putting seniors first."