Astrana Health (NASDAQ:ASTH) Posts Quarterly Earnings Results, Beats Expectations By $0.25 EPS

Astrana Health (NASDAQ:ASTH) released its quarterly earnings results on Thursday. The company reported $0.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.25, FiscalAI reports. The company had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $1.02 billion. Astrana Health had a return on equity of 10.30% and a net margin of 1.05%. The firm’s revenue was up 7.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.01 EPS.

Here are the key takeaways from Astrana Health’s conference call:

• Astrana reported record third-quarter revenue of $1.02 billion, up 7%, and adjusted EBITDA of $77.2 million, up 13% year over year and near the high end of guidance. Management said EBITDA growth was organic, supported by maturing risk-bearing cohorts, improved medical cost performance, and operating efficiencies.
• Cash generation and debt reduction strengthened the balance sheet: Astrana generated about $105 million in free cash flow through the first nine months and repaid $116 million of debt, bringing net leverage to 2.2x. The company expects to approach 2.0x net leverage by year-end.
• Growth initiatives include new Medicare Advantage partnerships for 2027, expansion into Georgia, and two new Care Enablement clients. Management said Texas risk-bearing cohorts are performing ahead of plan and expects the platform, including AI-enabled tools, to support scalable growth and operating leverage.
• Medicaid remains a headwind: membership attrition is tracking toward the middle-to-high end of this year’s 10%–15% range, and medical cost trends are above initial assumptions. For 2027, Astrana is planning for a 10%–15% Medicaid membership decline and a mid-single-digit EBITDA growth headwind, while also anticipating exchange and ACO-related changes.
• Astrana narrowed its 2026 guidance ranges while maintaining their midpoints: revenue of $3.9–$4.0 billion, adjusted EBITDA of $261–$274 million, and free cash flow of $107.5–$130 million. Management expects the fourth quarter to be the lowest-profitability quarter of the year and said it will provide formal 2027 guidance with its next results.

Astrana Health Stock Performance

ASTH stock traded down $0.66 during midday trading on Thursday, hitting $39.01. The stock had a trading volume of 529,029 shares, compared to its average volume of 289,416. Astrana Health has a 52 week low of $18.08 and a 52 week high of $51.60. The company has a current ratio of 1.23, a quick ratio of 1.23 and a debt-to-equity ratio of 1.05. The stock has a 50-day simple moving average of $37.06 and a 200 day simple moving average of $33.98. The firm has a market capitalization of $2.17 billion, a price-to-earnings ratio of 47.57 and a beta of 1.18.

Analyst Ratings Changes

Several equities research analysts recently weighed in on ASTH shares. Weiss Ratings restated a “hold (c)” rating on shares of Astrana Health in a report on Thursday, August 27th. TD Cowen increased their price target on Astrana Health from $45.00 to $50.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Wall Street Zen downgraded Astrana Health from a “buy” rating to a “hold” rating in a report on Sunday, August 16th. BTIG Research lifted their price target on shares of Astrana Health from $50.00 to $65.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. Finally, Oppenheimer began coverage on shares of Astrana Health in a research report on Tuesday, September 15th. They issued an “outperform” rating and a $53.00 price target on the stock. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Astrana Health has an average rating of “Moderate Buy” and an average price target of $49.88.

About Astrana Health

Astrana Health, Inc (NASDAQ: ASTH), formerly known as Apollo Medical Holdings, is a healthcare enablement company focused on helping providers and health plans deliver coordinated, value-based care. The company combines physician networks, care-management capabilities, technology and data analytics to support improved clinical outcomes and more efficient healthcare delivery.

Astrana Health’s services include population health management, physician practice support, utilization management, care coordination and clinical analytics.