Revenue growth remains strong at 33.3% year-over-year, though operating margins remain fragile at 1.3% due to the inherent constraints of the Medicare Advantage business model.
| Sales/Revenue | 4.26B | 3.95B | 2.7B | 1.82B | 1.43B | 1.17B | 959.22M | 756.96M |
| Revenue Growth % | 41.81% | 46.06% | 48.25% | 27.16% | 22.81% | 21.74% | 26.72% | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - |
| Gross Profit | 382.53M | 488.56M | 296.69M | 201.03M | 184.28M | 128.73M | 166.23M | 95.57M |
| Gross Margin % | 8.99% | 12.37% | 10.97% | 11.02% | 12.85% | 11.02% | 17.33% | 12.63% |
| Gross Profit Growth % | - | 64.67% | 47.59% | 9.09% | 43.15% | -22.56% | 73.93% | - |
| Operating Expenses | 483.52M | 473.81M | 398.25M | 328.85M | 312.92M | 306.8M | 171.49M | 125.06M |
| OpEx % of Revenue | - | 12% | 14.73% | 18.03% | 21.82% | 26.27% | 17.88% | 16.52% |
| Selling, General & Admin | 121.14M | 0 | 371.37M | 307.43M | 295.65M | 290.99M | 156.4M | 110.13M |
| SG&A % of Revenue | - | - | 13.74% | 16.86% | 20.61% | 24.92% | 16.3% | 14.55% |
| Research & Development | 0 | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - |
| Operating Income | 35.65M | 14.75M | -101.56M | -127.82M | -128.64M | -178.07M | -5.26M | -29.48M |
| Operating Margin % | 0.84% | 0.37% | -3.76% | -7.01% | -8.97% | -15.25% | -0.55% | -3.9% |
| Operating Income Growth % | - | 114.53% | 20.55% | 0.64% | 27.76% | -3283.47% | 82.15% | - |
| EBITDA | 66.34M | 45.23M | -74.49M | -106.15M | -111.15M | -162.04M | 10.2M | -12.9M |
| EBITDA Margin % | 1.56% | 1.15% | -2.76% | -5.82% | -7.75% | -13.88% | 1.06% | -1.7% |
| EBITDA Growth % | 278.43% | 160.72% | 29.82% | 4.5% | 31.4% | -1688.93% | 179.05% | - |
| D&A (Non-Cash Add-back) | 30.69M | 30.48M | 27.06M | 21.67M | 17.49M | 16.03M | 15.46M | 16.58M |
| EBIT | 20.22M | 14.84M | -104.5M | -126.96M | -131.01M | -177.84M | -6M | -29.84M |
| Net Interest Income | -11.85M | -15.8M | -23.55M | -21.23M | -18.29M | -17.44M | -16.93M | -14.9M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 15.91M | 15.8M | 23.55M | 21.23M | 18.29M | 17.44M | 16.93M | 14.9M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - |
| Pretax Income | 19.82M | -958K | -128.05M | -148.19M | -149.3M | -195.29M | -22.93M | -44.73M |
| Pretax Margin % | 0.47% | -0.02% | -4.74% | -8.13% | -10.41% | -16.72% | -2.39% | -5.91% |
| Income Tax | 24K | 20K | 21K | -22K | 339K | 0 | 0 | 0 |
| Effective Tax Rate % | 0.12% | -2.09% | -0.02% | 0.01% | -0.23% | 0% | 0% | 0% |
| Net Income | 19.81M | -724K | -128.03M | -148.02M | -149.55M | -195.29M | -22.93M | -44.73M |
| Net Margin % | 0.47% | -0.02% | -4.74% | -8.12% | -10.43% | -16.72% | -2.39% | -5.91% |
| Net Income Growth % | 121.85% | 99.43% | 13.5% | 1.02% | 23.42% | -751.81% | 48.75% | - |
| Net Income (Continuing) | 19.79M | -978K | -128.07M | -148.17M | -149.64M | -195.29M | -22.93M | -44.73M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 1.1M | 1.13M | 1.18M | 15K | 0 | 0 |
| EPS (Diluted) | 0.09 | -0.00 | -0.67 | -0.79 | -0.83 | -1.14 | -0.12 | -0.29 |
| EPS Growth % | 118.4% | 99.45% | 15.19% | 4.82% | 27.19% | -850% | 58.62% | - |
| EPS (Basic) | - | -0.00 | -0.67 | -0.79 | -0.83 | -1.14 | -0.12 | -0.29 |
| Diluted Shares Outstanding | 213.13M | 198.01M | 190.79M | 186.21M | 181.21M | 171.96M | 187.27M | 152.13M |
| Basic Shares Outstanding | 205.36M | 198.01M | 190.79M | 186.21M | 181.21M | 171.96M | 187.27M | 152.13M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Regulatory reimbursement rate volatility
As reported in recent financial statements, Alignment Healthcare achieved a 33.3% year-over-year revenue growth in 2026Q1, maintaining a robust expansion trajectory that significantly outpaces the broader managed care sector's typical growth rates, despite the inherent challenges of scaling Medicare Advantage membership in a highly competitive market.
The consistent double-digit revenue growth suggests that the company's member acquisition strategy remains effective, likely driven by its proprietary clinical data architecture. Investors should monitor whether this rapid scaling can be sustained without compromising the quality of the member base or triggering adverse selection risks.
Based on the provided income statement data, gross margins have fluctuated within a narrow band, peaking at 13.2% in 2025Q2, which underscores the inherent difficulty of expanding profitability within the rigid, CMS-mandated Medical Loss Ratio requirements that govern the Medicare Advantage insurance business model.
The thin gross margin profile indicates that the company possesses limited pricing power, as premiums are largely dictated by federal reimbursement benchmarks. Any meaningful margin expansion appears contingent on achieving superior clinical outcomes that lower utilization costs, rather than traditional price-based competitive advantages.
According to the latest quarterly figures, the company's operating margin reached 1.3% in 2026Q1, reflecting a fragile transition toward positive operating leverage where small shifts in medical benefit expenses can quickly swing the firm from modest profitability back into an operating loss position.
The historical data shows that operating losses were persistent through 2024, suggesting that the company is only now beginning to achieve the scale necessary to cover its administrative and technology overhead. Future profitability will likely depend on the company's ability to maintain this operating leverage as it enters new, less-proven geographic markets.
Analysis of the income statement reveals that stock-based compensation remains a significant recurring expense, totaling $14.0 million in 2026Q1, which effectively offsets a substantial portion of the company's reported net income and complicates the assessment of its underlying cash-generating capability for common shareholders.
The reliance on equity-based incentives suggests that management is prioritizing talent retention and growth, but this practice dilutes the quality of reported earnings. Investors should scrutinize the gap between GAAP net income and cash flow from operations to determine if the business is truly self-funding its expansion.
While the company has demonstrated strong growth, the extreme geographic concentration of its premium revenue in California, as noted in industry intelligence, creates a significant vulnerability to state-specific regulatory shifts or localized competitive pressures that could disproportionately impair the company's total revenue and profitability.
The lack of geographic diversification suggests that the company's current success may be a function of specific regional dynamics rather than a universally portable model. A failure to replicate California-level clinical outcomes in newer markets like North Carolina could lead to a rapid deterioration of the current growth narrative.
Quick answers to the most common questions about buying ALHC stock.
For fiscal year 2025, Alignment Healthcare, Inc. (ALHC) reported total revenue of $3.95B. This represents a 421.7% increase compared to $757.0M in 2019.
Alignment Healthcare, Inc. (ALHC) reported a net loss of $0.7M for the fiscal year ending 2025.
Alignment Healthcare, Inc. (ALHC) reported an operating income of $14.8M, resulting in an operating profit margin of 0.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Alignment Healthcare, Inc. (ALHC) generated $488.6M in gross profit for the year, representing a gross profit margin of 12.4%. This demonstrates the company's core pricing power and production efficiency.