Want to see EVH full AI Analyst Report?
Top Page
Evolent Health
(NYSE:EVH)
Select Model
Select Model
Rating:52Neutral
Price Target:
$3.50
▼(-23.75% Downside)
Action:Reiterated
Date:08/07/26
EVH scores in the low-50s primarily because financial performance is improving (renewed growth, positive free cash flow, and sharply lower balance-sheet leverage) but profitability remains deeply negative with pressured margins. The earnings call adds support via raised 2026 guidance and clearer 2027 growth/EBITDA targets, while technicals are a significant headwind given the stock’s persistent downtrend signals. Valuation is also constrained by negative earnings and no dividend yield data.
Positive Factors
Recurring outsourced healthcare services model
Evolent’s recurring contracts combine technology with operating services that customers commonly outsource, creating a foundation for repeat revenue and potential account expansion. Contract breadth, covered membership, renewals, and delegated functions can support durable relationships beyond individual implementation projects.
Negative Factors
Deep losses and sustained margin pressure
Persistent net losses and lower gross margins show that revenue growth has not yet translated into reliable profitability. Continued cost-of-services or mix pressure could limit reinvestment capacity and weaken returns on capital, making the company’s longer-term growth strategy dependent on successful efficiency and margin actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring outsourced healthcare services model
Evolent’s recurring contracts combine technology with operating services that customers commonly outsource, creating a foundation for repeat revenue and potential account expansion. Contract breadth, covered membership, renewals, and delegated functions can support durable relationships beyond individual implementation projects.
Read all positive factors
Evolent Health (EVH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$456.76M
Dividend YieldN/A
Average Volume (3M)2.21M
Price to Earnings (P/E)―
Beta (1Y)0.55
Revenue Growth-4.50%
EPS Growth-184.71%
CountryUS
Employees4,200
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-4.49
Shares Outstanding113,059,330
10 Day Avg. Volume2,370,951
30 Day Avg. Volume2,214,022
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 Cap3.16
Enterprise Value/Revenue0.69
Enterprise Value/Gross Profit5.32
Enterprise Value/Ebitda-4.50
Forecast
1Y Price Target
$5.80Price Target Upside26.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)0.17
Revenue Forecast (FY)$2.64B
Evolent Health Business Overview & Revenue Model
Company Description
Evolent Health, Inc., a prominent healthcare firm, operates through its subsidiary, Evolent Health LLC, to furnish clinical and administrative solutions to both healthcare payers and providers across the United States. Its operations are divided i...
How the Company Makes Money
Evolent Health primarily makes money by contracting with health plans (and, in some cases, provider organizations) to run or support clinical and administrative programs that are commonly outsourced. Revenue is generally generated through recurrin...
Evolent Health Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced mix of strong operational execution and growth momentum (notably 31% QoQ revenue growth, a 50% jump in Performance Suite revenue, raised 2026 revenue guidance, a large oncology deal, and meaningful AI progress) alongside notable near-term challenges (elevated MER, membership headwinds from Medicaid/exchange, timing variability in EBITDA recognition, and elevated net leverage). Management expressed confidence in 2027 growth (>25% revenue) and margin recovery driven by AI, Performance Suite maturation and cost actions, but acknowledged material macro- and client-specific risks that temper near-term financial clarity.Positive Updates
Strong Quarterly Revenue Growth
Total revenue of $653.0 million in Q2 2026, up 31% sequentially versus Q1 2026.
Negative Updates
Medical Expense Ratio (MER) Elevated
Q2 2026 MER was 95%, up ~200 basis points from 93% in Q1 2026, primarily due to conservative reserving and the Highmark launch; company expects full-year MER of approximately 93% and a higher MER in Q3 before improvement into Q4.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Revenue Growth
Total revenue of $653.0 million in Q2 2026, up 31% sequentially versus Q1 2026.
Read all positive updates
Company Guidance
Evolent raised 2026 revenue guidance to $2.6–$2.7 billion and tightened adjusted EBITDA guidance to $120–$135 million (raising the midpoint), while reaffirming a full‑year MER of ~93% after reporting Q2 revenue of $653 million (+31% QoQ) and adjusted EBITDA of $28 million (+27% QoQ); Q2 MER was 95% (≈200 bps above Q1), and the company now expects a more modest Q2→Q3 adjusted EBITDA increase of ~$4–$7 million (vs. the prior $10–$15M) and a Q3→Q4 increase of ~$7–$15 million with roughly a 250 bps MER improvement into Q4. Management expects Q3/Q4 revenue to be meaningfully higher than Q2, full‑year adjusted cost of revenue excl. medical plus adjusted SG&A of ≈$675 million, operating cash flow of $10–$20 million after ≈$60 million of annual cash interest, and software development/capex of $25–$30 million; Q2 cash was $115.7 million with $808.3 million net debt and a $62.5 million ABL minimum draw after a $10 million paydown. For 2027 they expect >25% revenue growth, a midpoint adjusted EBITDA at or above $150 million, continued AI‑driven margin improvement (Auth Intelligence rollouts) and a clear path to materially improve leverage and the maturity profile over the next 12–24 months.Evolent Health Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
72
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.10B | 1.88B | 2.55B | 1.96B | 1.35B | 907.96M |
| Gross Profit | 270.83M | 284.03M | 367.35M | 460.47M | 316.58M | 250.41M |
| EBITDA | -320.22M | -361.31M | 80.06M | -24.79M | 43.75M | 55.66M |
| Net Income | -504.99M | -534.51M | -61.62M | -113.04M | -19.16M | -37.60M |
Balance Sheet | ||||||
| Total Assets | 1.97B | 1.90B | 2.54B | 2.68B | 1.82B | 1.42B |
| Cash, Cash Equivalents and Short-Term Investments | 115.70M | 151.86M | 163.50M | 192.82M | 188.20M | 266.28M |
| Total Debt | 970.43M | 989.70M | 713.67M | 644.80M | 476.12M | 280.47M |
| Total Liabilities | 1.59B | 1.48B | 1.54B | 1.61B | 957.88M | 725.83M |
| Stockholders Equity | 383.22M | 415.19M | 1.00B | 1.07B | 859.42M | 693.63M |
Cash Flow | ||||||
| Free Cash Flow | 16.95M | 4.75M | -6.13M | 113.84M | -49.91M | 13.76M |
| Operating Cash Flow | 53.33M | 38.84M | 18.77M | 142.58M | -11.55M | 38.75M |
| Investing Cash Flow | 53.88M | -233.00K | -62.93M | -415.54M | -259.12M | -15.79M |
| Financing Cash Flow | -153.79M | -35.92M | -565.00K | 281.34M | 131.54M | -29.55M |
Evolent Health Technical Analysis
Positive
4.59
Price Trends
4.02
Positive
4.40
Negative
3.83
Positive
Market Momentum
-0.07
Negative
54.94
Neutral
84.83
Negative
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 4.59 is above the 20-day moving average (MA) of 3.71, above the 50-day MA of 4.02, and above the 200-day MA of 3.83, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 84.83 is Negative, 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $12.61B | 44.57 | 15.23% | ― | 19.91% | 350.11% | |
56 Neutral | $2.66B | 92.71 | 0.01% | ― | 24.10% | 84.08% | |
55 Neutral | $216.01M | -2.66 | -33.27% | ― | -19.00% | 40.98% | |
53 Neutral | $133.20M | -0.48 | -129.70% | ― | -7.54% | -143.41% | |
52 Neutral | $456.76M | -0.90 | -99.16% | ― | -4.50% | -184.71% | |
52 Neutral | $1.05B | -5.83 | -13.08% | ― | -2.08% | 16.88% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
EVH
Evolent Health
4.04
-3.64
-47.40%
TDOC
Teladoc
5.77
-2.48
-30.06%
HCAT
Health Catalyst
1.77
-0.94
-34.69%
AMWL
American Well
12.70
6.87
117.84%
PRVA
Privia Health Group
20.85
-3.29
-13.63%
BTSG
BrightSpring Health Services, Inc.
63.74
34.26
116.21%
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.