Astrana Health Reports Strong Revenue Growth in Q1 2025 Amid Strategic Expansion and Operational Efficiencies
Astrana Health, Inc. (NASDAQ: ASTH), a provider-centric and technology-powered healthcare company, today announced its consolidated financial results for the first quarter ended March 31, 2025. The company, known for its delegated value-based care model, reported a substantial increase in revenue year-over-year, underscoring continued momentum across its care delivery ecosystem and its ongoing commitment to expanding access to high-quality, high-value care nationwide.
Astrana’s President and CEO, Brandon Sim, framed the quarter as a reflection of the company’s strengthening position in the healthcare sector and its ability to scale responsibly while delivering positive outcomes. “Astrana’s strong start to the year reflects the continued momentum behind our mission to build the nation’s leading patient-centered healthcare platform,” Sim said in a statement accompanying the results. “Our differentiated clinical capabilities and technology-enabled delegated model continue to drive strong, profitable growth while delivering better outcomes for both patients and providers. Even in a complex regulatory and economic environment, we continue to prove that value-based care can deliver meaningful impact at scale with long-term sustainability.”
First Quarter 2025 Financial Results: A Snapshot of Growth and Challenges
Astrana Health reported total revenue of $620.4 million for the first quarter of 2025, representing a 53% increase from $404.4 million in the same quarter a year earlier. The revenue growth was driven predominantly by its Care Partners segment, which saw revenue jump 57% year-over-year to $601.0 million, up from $382.3 million in Q1 2024. This growth underscores Astrana’s deepening reach into provider partnerships and its increasing impact across its national footprint.
Despite the robust revenue growth, the company reported a decline in net income. Net income attributable to Astrana was $6.7 million for the quarter, compared to $14.8 million in the prior-year period. This drop is reflective of ongoing strategic investments, including technology integrations, leadership expansion, and acquisition-related costs. Earnings per diluted share also decreased to $0.14, from $0.31 a year earlier.
Adjusted EBITDA, a non-GAAP metric often used to assess the underlying performance of healthcare businesses, came in at $36.4 million, compared to $42.2 million in Q1 2024. The decline in Adjusted EBITDA also reflects the company’s focus on long-term strategic investments, particularly in areas such as artificial intelligence and automation, as well as costs associated with recent and pending acquisitions.
Leadership Appointments Bolster Growth and Organizational Maturity
In the first quarter, Astrana continued strengthening its executive team to support its expanding operational scale and reinforce its data and analytics capabilities. The company welcomed Georgie Sam as Chief Data & Analytics Officer. Sam is charged with overseeing the company’s enterprise-wide data strategy, a crucial function as Astrana deepens its use of AI and advanced analytics to improve care outcomes, optimize operations, and enhance provider decision-making.
In addition, Glenn Sobotka joined the team as Chief Accounting Officer, bringing deep accounting and financial oversight expertise to support Astrana’s ongoing efforts in financial discipline, compliance, and scalability. The company also promoted Rita Pew to the role of Chief People Officer. Pew will play a critical role in advancing Astrana’s talent strategy, culture development, and organizational cohesion as the company continues to grow both organically and through acquisitions.
Integration Milestones and Acquisition Pipeline
A major operational highlight of the quarter was the successful integration of Collaborative Health Systems (CHS), which Astrana acquired previously. The integration included onboarding CHS onto Astrana’s proprietary technology platform. According to the company, this transition has already begun to yield material general and administrative (G&A) cost savings, enhancing both operational efficiency and margin performance over time.
Additionally, Astrana reported progress on its pending acquisition of Prospect Health. The company received Hart-Scott-Rodino (HSR) antitrust clearance, allowing the deal to proceed. Management reaffirmed that the acquisition remains on track to close in the summer of 2025. While financial contributions from Prospect Health have not yet been factored into forward guidance, Astrana views the acquisition as a key step in strengthening its clinical footprint and scaling its delegated risk model across additional geographies.
2025 Outlook: Investment-Driven Growth with an Eye on Efficiency
For the second quarter ending June 30, 2025, Astrana issued forward guidance that reflects continued top-line expansion and measured investment in strategic initiatives. The company reaffirmed its full-year guidance for 2025, with the expectation that results will include approximately $15 million in costs associated with the development and deployment of new automation and AI technologies, as well as integration expenses related to ongoing and anticipated acquisitions.
Importantly, the company’s guidance does not include projected contributions from acquisitions that have not yet closed. This conservative approach allows Astrana to maintain flexibility in its projections while preserving transparency with shareholders.
Astrana emphasized that while Adjusted EBITDA is expected to be impacted in the short term by these investments, the long-term goal is sustainable, profitable growth that balances innovation with cost management. The company continues to view its delegated care model as a differentiator in the healthcare landscape, particularly as regulatory and reimbursement pressures challenge traditional fee-for-service models.
The Value-Based Care Imperative
Astrana’s core model is built around delegated risk arrangements, in which the company assumes full financial and clinical accountability for a defined population. This model aligns incentives across patients, providers, and payers, and is enabled by Astrana’s proprietary technology stack and analytics infrastructure.
As the U.S. healthcare system continues its slow but steady shift toward value-based care, Astrana’s ability to deliver better outcomes at lower cost positions it well for both organic and acquisitive growth. The company has shown a consistent ability to scale its model across markets and drive improvements in clinical quality, utilization, and patient satisfaction.
Despite macroeconomic uncertainty and ongoing regulatory scrutiny in the healthcare sector, Astrana believes it is well positioned to navigate the evolving landscape. The company’s investment in automation, AI, and workforce development is intended to create a scalable infrastructure capable of supporting sustainable long-term growth.
As Astrana moves further into 2025, the company is focused on several key priorities: completing the integration of recent acquisitions, scaling its platform across new geographies, enhancing its technology capabilities, and delivering consistent value to stakeholders. Management remains confident in its ability to meet or exceed financial and operational goals while staying true to its mission of transforming healthcare delivery for the better.
With a strong balance sheet, an experienced leadership team, and a growing national network of provider partners, Astrana is poised to continue its evolution as a leader in patient-centered, value-driven healthcare.
