Key Highlights

  • Third quarter total revenues rose 36.7% to $1,358.3 million from $993.7 million.
  • Earned premiums increased 37.1% to $1,348.3 million.
  • The company posted a net loss of $8.1 million versus Net Income of $3.7 million a year earlier.
  • Medical expenses were 89.6% of revenue, up from 87.3%.
  • Nine-month net income reached $39.9 million, compared with $10.0 million.

Revenue surges 36.7% as earned premiums top $1.3 billion

Alignment Healthcare (NASDAQ:ALHC) runs Medicare Advantage plans aimed at seniors, pairing a consumer-focused model with its own clinical platform. In its third quarter 2026 quarterly filing, the company reported total revenues of $1,358.3 million, up 36.7% from $993.7 million in the same quarter of 2025.

Earned premiums were the engine, rising $364.6 million, or 37.1%, to $1,348.3 million. Other Revenue was essentially flat at $10.0 million. For the nine months ended September 30, 2026, total revenues reached $3,929.1 million versus $2,935.9 million a year earlier, and earned premiums were $3,901.4 million.

The scale of the premium gain shows how much larger the plan base has become in a year. The filing's income statement, however, shows that the cost side grew faster than the Top Line in the quarter.

Medical costs outpace premiums and tip the quarter into a loss

Medical expenses were $1,217.6 million in the third quarter, up from $868.0 million, or 89.6% of total revenues versus 87.3% a year earlier. That 2.3 percentage point rise absorbed the benefit of lower overhead as a share of revenue.

Selling, general and administrative expenses were $136.4 million, up from $110.0 million, but fell to 10.0% of revenue from 11.1%. Depreciation and amortization was $8.1 million, compared with $8.0 million.

Total expenses of $1,362.1 million exceeded revenues, producing a loss from operations of $3.8 million, against Operating Income of $7.7 million in the prior year quarter. After $4.3 million of interest expense, the pre-tax loss was $8.1 million, and the net loss was $8.1 million, compared with net income of $3.7 million a year ago.

Nine-month profit still ahead of last year

Despite the third quarter loss, year to date results remained well ahead. Income from operations for the nine months was $53.8 million, more than double the $25.0 million reported for the same period of 2025. Medical expenses were 88.1% of revenue versus 87.6%, while SG&A fell to 9.9% of revenue from 10.8%.

Pre-tax income was $41.2 million compared with $13.3 million. Income tax expense was $1.3 million, down from $3.2 million, so net income attributable to the company rose to $39.9 million from $10.3 million.

Interest expense for the nine months was $12.6 million versus $11.9 million. A small tax provision in both periods helped keep more of operating income at the bottom line.

Net takeaway: growth is strong, cost control is the swing factor

Alignment Healthcare delivered more than 36% revenue growth in the third quarter, yet the move in medical expenses as a share of revenue was enough to push the quarter into a small loss. The nine-month picture remains profitable, with margins above last year's level.

The company's filing lists its dependence on CMS reimbursement, its ability to estimate medical costs and its geographic concentration among the risks it monitors. Readers following the name will likely watch how medical expense ratios trend in coming quarters, since a one point shift on a revenue base above $1.3 billion is worth more than $13 million per quarter on a calculated basis.