Evolent Health (EVH) AI Stock Analysis

• Market Cap: $285.70M
• Dividend Yield: N/A
• Average Volume (3M): 2.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: -16.65%
• EPS Growth: -71.92%
• Country: US
• Employees: 4,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.08
• Shares Outstanding: 111,600,850
• 10 Day Avg. Volume: 2,227,664
• 30 Day Avg. Volume: 2,843,152
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 96.07
• Enterprise Value/Market Cap: 4.42
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 3.16
• Enterprise Value/Ebitda: -3.43
• 1Y Price Target: $5.50
• Price Target Upside: 114.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $2.50 ▼(-2.34% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held down primarily by weak financial performance (large 2025 losses and declining revenue) and bearish technicals (price below major moving averages with negative MACD). These are partly offset by a more positive earnings-call outlook driven by contract-driven growth and margin protection plans, while valuation inputs are constrained by the negative P/E and lack of dividend yield data.

Positive Factors

Material debt reduction

Dramatic deleveraging materially reduces interest burden and financial risk, giving durable flexibility to fund operations, invest in contract delivery, and absorb near-term losses. Lower leverage supports multi-month stability and reduces refinancing/default tail risks.

Large contracted backlog

A sizeable contracted revenue backlog increases multi-quarter visibility and supports recurring fee-based cash flows. Covered contracts enable predictable scale for care-management services and facilitate margin improvement as new programs ramp and enhanced protections on Performance Suite revenue apply.

Positive operating cash flow

Consistent positive operating cash flow, even if modest, shows the services model can convert revenue to cash and fund working capital. This durable cash generation supports ongoing contract delivery, debt reduction and targeted investments without immediate dependence on external financing.

Negative Factors

Sharp profitability deterioration

Deep negative margins indicate the business is not generating operating profits at scale, reflecting cost pressures or non-recurring charges. Sustained losses erode returns on equity, limit reinvestment capacity and require structural margin recovery to restore long-term financial health.

Revenue decline and volatility

Top-line contraction and volatility undermine scale economics of per-member fee arrangements and complicate forecasting. Inconsistent revenue trends make it harder to realize operating leverage, sustain margins, and execute multi-quarter cost plans tied to predictable membership and utilization.

Membership-driven outlook risk

Exposure to enrollment shifts in exchange/MA/Medicaid is a structural demand risk: membership declines reduce per-member fees and can trigger contract reserving and margin pressure. This enrollment sensitivity creates multi-month EBITDA volatility until membership trends stabilize.

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 Solutions. The Evolent Health Services segment provides an integrated administrative and clinical platform for health plan administration and population health management. It offers financial and administrative management services, such as health plan services, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients, population health performance that delivers patient-centric cost-effective care. The Clinical Solutions segment offers specialty care management services support a range of specialty care delivery stakeholders during their transition from fee-for-service to value-based care, independent of their stage of maturation and specific market dynamics in oncology and cardiology; and holistic total cost of care improvement. The company was founded in 2011 and is headquartered in Arlington, Virginia.

How the Company Makes Money

Evolent Health generates revenue through several key streams, primarily by offering technology and services that support value-based care initiatives. The company operates under a subscription-based model where clients, typically health systems and payers, pay fees for access to Evolent's software platforms and consulting services. Additionally, Evolent earns revenue from performance-based contracts, where they share in the savings generated from improved patient care and reduced healthcare costs. Strategic partnerships with healthcare organizations and payers also contribute to its earnings, allowing Evolent to expand its reach and enhance its service offerings. The company's focus on population health management and analytics positions it well within the evolving landscape of healthcare, where value-based care models are increasingly prioritized.

Evolent Health Financial Statement Overview

Summary

Financial performance is pressured by persistent net losses and a sharp profitability deterioration in 2025 (net margin ~-30.9%, EBITDA margin ~-27.8%) alongside an ~8.7% revenue decline. Positives include a significantly de-risked balance sheet from major debt reduction (debt-to-equity ~0.05) and still-positive operating cash flow with slightly positive 2025 free cash flow, though cash generation remains volatile and modest relative to losses.

Income Statement

Revenue growth has been volatile: strong expansion through 2022–2024 (peaking in 2022–2023), followed by a notable decline in 2025 (annual revenue down ~8.7%). Profitability is the key weakness—net income is negative in every year provided, with a sharp deterioration in 2025 (net margin ~-30.9% vs ~-2.4% in 2024). Gross margin improved meaningfully in 2025 (~21.3% vs ~14.4% in 2024), but operating profitability collapsed (2025 EBITDA margin ~-27.8%), indicating cost pressure and/or charges outweighing the margin recovery.

Balance Sheet

Leverage improved dramatically in 2025, with total debt falling to ~19M and debt-to-equity dropping to ~0.05 (from ~0.71 in 2024), which materially reduces financial risk. Equity remains positive (~415M in 2025), supporting balance-sheet stability despite losses. The main concern is ongoing negative returns to shareholders (return on equity deeply negative in 2025), suggesting the capital base is not currently generating profits and could be pressured if losses persist.

Cash Flow

Cash generation is mixed. Operating cash flow is positive in most years (including 2025), but it is relatively modest versus the scale of losses (2025 operating cash flow to net income is ~0.10), implying earnings losses are not being offset by strong cash conversion. Free cash flow is positive in 2025 but small (~4.8M) and down sharply versus prior periods (free cash flow growth ~-106.9%); results have also been volatile (very strong free cash flow in 2023, negative in 2022 and 2024).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.88B	2.55B	1.96B	1.35B	907.96M
Gross Profit	399.88M	367.35M	460.47M	316.58M	250.41M
EBITDA	-361.31M	84.85M	-24.79M	43.75M	55.66M
Net Income	-579.40M	-61.62M	-113.04M	-19.16M	-37.60M
Balance Sheet
Total Assets	1.90B	2.54B	2.68B	1.82B	1.42B
Cash, Cash Equivalents and Short-Term Investments	151.86M	163.50M	192.82M	188.20M	266.28M
Total Debt	19.16M	713.67M	644.80M	476.12M	280.47M
Total Liabilities	1.48B	1.54B	1.61B	957.88M	725.83M
Stockholders Equity	415.19M	1.00B	1.07B	859.42M	693.63M
Cash Flow
Free Cash Flow	4.75M	-6.13M	113.84M	-49.91M	13.76M
Operating Cash Flow	38.84M	18.77M	142.58M	-11.55M	38.75M
Investing Cash Flow	-233.00K	-62.93M	-415.54M	-259.12M	-15.79M
Financing Cash Flow	0.00	-565.00K	281.34M	131.54M	-29.55M

Evolent Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVH, the sentiment is Negative. The current price of 2.56 is below the 20-day moving average (MA) of 2.91, below the 50-day MA of 3.57, and below the 200-day MA of 7.08, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 25.23 is Positive, neither overbought nor oversold. The STOCH value of 47.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVH.

Evolent Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSTM	71 Outperform	$655.37M	34.91	5.87%	0.52%	3.68%	5.62%
PHR	60 Neutral	$702.95M	-121.33	-1.87%	―	14.33%	93.62%
OMDA	56 Neutral	$667.10M	-24.77	―	―	50.51%	50.92%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DH	49 Neutral	$196.90M	-0.83	-47.69%	―	-5.30%	46.01%
EVH	47 Neutral	$285.70M	-1.63	-13.63%	―	-16.65%	-71.92%
TDOC	47 Neutral	$805.73M	-3.55	-15.42%	―	-2.37%	77.85%

Evolent Health Corporate Events

Evolent Health Completes Stock Purchase Agreement

On December 5, 2025, Evolent Health LLC completed the transactions outlined in a Stock Purchase Agreement with Privia Management Company, LLC, initially announced on September 23, 2025. This transaction may have implications for Evolent Health’s strategic positioning and operational capabilities within the healthcare sector.

The most recent analyst rating on (EVH) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Evolent Health stock, see the EVH Stock Forecast page.

Evolent Health Appoints Jill Smith to Board

Evolent Health, Inc. announced the retirement of Ms. Cheryl Scott from its Board of Directors on December 1, 2025, and the appointment of Ms. Jill Smith as her successor. Ms. Smith, an experienced business leader with a strong background in technology and executive roles, will serve until the company’s 2026 Annual Meeting. The company also reaffirmed its fourth quarter 2025 revenue and Adjusted EBITDA guidance, maintaining its previous estimates despite the challenges in reconciling non-GAAP measures to net income due to various adjustments.

The most recent analyst rating on (EVH) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Evolent Health stock, see the EVH Stock Forecast page.