Evolent Health Inc. (EVH)
NYSE:EVH
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Evolent Health
(NYSE:EVH)
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Rating:51Neutral
Price Target:
$4.00
▲(40.85% Upside)
Action:Reiterated
Date:05/09/26
The score is held down primarily by weak financial performance—large and worsening TTM losses, low gross margins, and thin/declining free cash flow despite strong revenue growth. Technicals are moderately supportive in the near term (price above key short/intermediate averages and positive MACD) but are tempered by overbought signals and a still-weak longer-term trend (below the 200-day). Valuation remains challenged due to losses (negative P/E) and no dividend support, while the earnings call was constructive on guidance and growth initiatives but flagged meaningful near-term headwinds and leverage considerations.
Positive Factors
Platform & large contract wins
Large, multi-year Performance Suite contracts materially expand covered lives and recurring service revenue. Such wins validate the platform, drive scale economics, and create durable cross-sell and retention opportunities as go-lives progress into recurring revenue streams.
Negative Factors
Weak profitability and low margins
Persistently low gross margins and large net losses indicate weak unit economics and limited current pricing power. Until margins recover, the company will struggle to generate sustainable earnings to reinvest, impairing long-term returns and financial resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Platform & large contract wins
Large, multi-year Performance Suite contracts materially expand covered lives and recurring service revenue. Such wins validate the platform, drive scale economics, and create durable cross-sell and retention opportunities as go-lives progress into recurring revenue streams.
Read all positive factors
Evolent Health (EVH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$431.93M
Dividend YieldN/A
Average Volume (3M)2.71M
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth-21.26%
EPS Growth-290.08%
CountryUS
Employees4,500
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-4.68
Shares Outstanding112,481,064
10 Day Avg. Volume3,149,698
30 Day Avg. Volume2,710,081
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.10
Price to Sales (P/S)0.24
P/FCF Ratio96.07
Enterprise Value/Market Cap2.93
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit4.73
Enterprise Value/Ebitda12.33
Forecast
1Y Price Target
$5.85Price Target Upside105.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)0.17
Revenue Forecast (FY)$2.49B
Evolent Health Business Overview & Revenue Model
Company Description
Evolent Health, Inc., a healthcare company, through its subsidiary, Evolent Health LLC, provides clinical and administrative solutions to payers and providers in the United States. It operates in two segments, Evolent Health Services and Clinical ...
How the Company Makes Money
Evolent primarily makes money by selling services (often enabled by its technology platforms) to health plans and other organizations that administer or bear risk for healthcare costs. Its revenue model is largely based on fees paid by customers f...
Evolent Health Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed a generally constructive operational picture: solid sequential revenue growth (ex-ECP), strong Performance Suite momentum with marquee client launches and two large new contracts, MER improvement, and continued AI automation progress. Counterbalancing these positives are meaningful near-term headwinds tied to exchange membership declines, temporary servicing and reserve-related cost pressures, a notable sequential decline in Specialty Tech & Services revenue, and elevated net leverage. Management reiterated full-year guidance and outlined expectations for MER peaking in Q3 with improving EBITDA cadence thereafter, signaling confidence in execution while acknowledging near-term uncertainty tied to exchange disenrollment and launch reserves.Positive Updates
Total Revenue and Sequential Growth
Q1 total revenue of $496 million, representing 9% sequential growth versus Q4 2025 (ex-ECP).
Negative Updates
Specialty Tech & Services Revenue Decline
Specialty Tech & Services revenue fell to $81 million, a 16% sequential decline driven by exchange membership declines and estimated additional disenrollment impacts tied to grace period expirations.
Read all updates
Q1-2026 Updates
Positive
Negative
Total Revenue and Sequential Growth
Q1 total revenue of $496 million, representing 9% sequential growth versus Q4 2025 (ex-ECP).
Read all positive updates
Company Guidance
Evolent reiterated full‑year 2026 guidance of $2.4–$2.6 billion revenue and $110–$140 million adjusted EBITDA, with an estimated medical expense ratio (MER) of approximately 93% for the year (Q1 MER was 93%, an improvement of ~150 bps vs. Q4‑2025 excl. ECP); Q1 results included $496 million total revenue (+9% sequential excl. ECP), $22 million adjusted EBITDA, Performance Suite revenue of $323 million (+26% seq. excl. ECP), Specialty Tech & Services $81 million (‑16% seq.), and Administrative Services $92 million (‑11% q/q). The company reiterated its assumption of ~40% exchange membership decline in Specialty P&S baked into guidance, expects MER to peak in Q3 (Highmark reserve build) then improve through year‑end, and outlined a quarterly EBITDA cadence with Q2 ~in line with Q1 and $10–$15 million sequential improvements in Q3 and Q4. Financial and cash metrics include adjusted cost of revenue plus adjusted SG&A of $173 million in Q1 and ~ $675 million forecast for the year, unrestricted cash of $142 million, net debt of $792 million (no maturities until 2029), expected operating cash flow of $10–$20 million for 2026 after ~ $60 million of cash interest, and $25–$30 million in software development and capex.Evolent Health Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
55
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.89B | 1.88B | 2.55B | 1.96B | 1.35B | 907.96M |
| Gross Profit | 266.94M | 284.03M | 367.35M | 460.47M | 316.58M | 250.41M |
| EBITDA | 102.45M | 111.42M | 84.85M | -24.79M | 43.75M | 55.66M |
| Net Income | -496.52M | -534.51M | -61.62M | -113.04M | -19.16M | -37.60M |
Balance Sheet | ||||||
| Total Assets | 1.88B | 1.90B | 2.54B | 2.68B | 1.82B | 1.42B |
| Cash, Cash Equivalents and Short-Term Investments | 166.00M | 151.86M | 163.50M | 192.82M | 188.20M | 266.28M |
| Total Debt | 985.42M | 989.70M | 713.67M | 644.80M | 476.12M | 280.47M |
| Total Liabilities | 1.48B | 1.48B | 1.54B | 1.61B | 957.88M | 725.83M |
| Stockholders Equity | 396.39M | 415.19M | 1.00B | 1.07B | 859.42M | 693.63M |
Cash Flow | ||||||
| Free Cash Flow | 1.40M | 4.75M | -6.13M | 113.84M | -49.91M | 13.76M |
| Operating Cash Flow | 33.29M | 38.84M | 18.77M | 142.58M | -11.55M | 38.75M |
| Investing Cash Flow | 6.45M | -233.00K | -62.93M | -415.54M | -259.12M | -15.79M |
| Financing Cash Flow | -147.75M | -35.92M | -565.00K | 281.34M | 131.54M | -29.55M |
Evolent Health Technical Analysis
Positive
2.84
Price Trends
3.14
Positive
3.26
Positive
5.10
Negative
Market Momentum
0.21
Positive
59.59
Neutral
23.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVH, the sentiment is Positive. The current price of 2.84 is below the 20-day moving average (MA) of 3.92, below the 50-day MA of 3.14, and below the 200-day MA of 5.10, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 59.59 is Neutral, neither overbought nor oversold. The STOCH value of 23.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVH.
Evolent Health Risk Analysis
Evolent Health disclosed 60 risk factors in its most recent earnings report. Evolent Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Evolent Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $691.52M | 25.74 | 5.67% | 0.52% | 6.64% | 6.54% | |
73 Outperform | $977.33M | -62.35 | -2.81% | ― | 49.36% | 83.76% | |
57 Neutral | $542.38M | 347.91 | 0.75% | ― | 14.48% | ― | |
54 Neutral | $1.19B | -3.82 | -12.37% | ― | -1.50% | 83.75% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $431.93M | -2.40 | -77.89% | ― | -21.26% | -290.08% | |
49 Neutral | $117.89M | -0.23 | -67.07% | ― | -3.89% | 63.03% |
* Healthcare Sector Average
EVH
Evolent Health
3.95
-3.26
-45.21%
HSTM
HealthStream
23.81
-3.39
-12.46%
TDOC
Teladoc
6.57
-0.24
-3.52%
PHR
Phreesia
8.92
-15.14
-62.93%
DH
Definitive Healthcare Corp
0.85
-2.17
-71.79%
OMDA
Omada Health, Inc.
16.51
-6.09
-26.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.