Evolent Health, Inc.

Welcome to the Evelyn Earnings Conference Call for the first quarter ended March 31, 2026. As a reminder, this conference call is being recorded. Your hosts for the call today from Evelyn are Seth Blackley, Chief Executive Officer, and Mario Ramos, Chief Financial Officer. This call will be archived and available later this evening and for the next week via the webcast on the company's website in the section titled Investor Relations. This conference call will contain forward-looking statements under the U.S. federal laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. A description of some of the risks and uncertainties can be found in the company's reports that are filed with the Securities and Exchange Commission, including cautionary statements included in our current and periodic filings. For additional information on the company's results and outlook, please refer to our third quarter press release issued earlier today. Finally, as a reminder, Reconciliations of non-GAAP measures discussed during today's call to the most direct comparable GAAP measures are available in the summary presentation available in the Investor Relations section of our website or in the company's press release issued today and posted on the Investor Relations website, ir.evalent.com, and the Form 8-K filed by the company with the SEC earlier today. In addition to reconciliations, We provide details on the numbers and operating metrics for the quarter in both our press release and supplemental investor presentation. And now, I will turn the call over to Evelyn's CEO, Seth Blackley. Please go ahead.

Good morning, and thank you for joining us.

Today, Evelyn reported strong first quarter results that were in line with our expectations. Our performance reflects the continued focus and discipline with which we are executing the plan we laid out for you on our call in February. For the quarter, Evelyn reported total revenue of $496 million, representing 9% sequential growth versus Q4 2025, excluding the divestiture of Evelyn Care Partners, or ECP. and adjusted EBITDA of $22 million, consistent with our expectations and the outlook we provided in February. Our medical expense ratio, or MER, for Q1 2026 was 93%, improving 150 basis points versus Q4 2025, excluding ECP. This performance, we believe, underscores our disciplined execution. and our belief in the growing importance and demand for Evelyn's solutions in the marketplace. Looking ahead to the full year, we feel confident in our ability to continue delivering against our outlook and priorities. Accordingly, we are reiterating our 2026 revenue guidance range of $2.4 to $2.6 billion, as well as our adjusted EBITDA guidance range of $110 to $140 million. and estimate that MER will be approximately 93% for the full year. Mario will walk you through our financial results in more detail in a few moments, but I first want to touch on several key business highlights. Starting with our new performance suite launches, we had a successful launch with Aetna on January 1st, supported by strong collaboration with the Aetna team. While it remains early, initial indicators are encouraging. with our clinical intervention and provider engagement metrics above our internal targets for Q1. We will have greater visibility into performance over the course of the year, but we're happy with the start. We're also pleased to have launched with Highmark on May 1st. We have had great collaboration with the Highmark team on the launch, and I will be excited to give you a broader update on Highmark in the coming quarters. Our pipeline for new business remains strong as we continue to see demand for our products, specifically in oncology. While the market is seeing some positive developments this quarter, overall medical trend remains elevated for our plan partners, and oncology in particular continues to be one of the most challenging categories for health plans to manage as they seek to balance quality outcomes with affordability. We believe Evelyn is recognized as a leader in helping health plans manage both quality and cost for cancer care. Our recent wins with marquee plans like Highmark and Aetna, as well as our renewal rates with existing partners, point to our market position today. At the core of our work in oncology are two simple principles. First and foremost, ensuring patients receive the very best care. And second, the cost of that care is thoughtfully managed. I often share with our partners that if I had a family member diagnosed with cancer, I'd absolutely want the Evelyn Clinical Team to review the case. The clinical reality is that, according to certain studies, up to 30% or more of cancer cases involve either an incorrect diagnosis or a suboptimal treatment plan prior to any second review, which is somewhat understandable when you consider, for example, that there are up to 32 different approvable regimens, for a typical advanced metastatic non-small cell lung cancer case. While some of this gap can be addressed through traditional utilization management, we believe to more fully close the gap, treating oncologists need to have ready access to the very latest evidence and data, as well as the right of financial incentives to select the best care plan for my family member or yours. Pairing our traditional oncology solution with consumer-facing solutions like our member navigation platform are critical to fully close the gap. And of course, we believe we've been able to show that when we help oncologists and patients pick the right care plan the first time, costs on average come down, a win-win to the patient and the system. As a result of all these dynamics, we're increasingly seeing interest in our solution And we're addressing this market demand with both our technology and services solution and with our enhanced performance suite solution, which has narrow corridors and the protections we've shared with you on the last earnings calls. Enhanced performance suite structure allows us to reduce some of our direct risk exposure while still offering guarantees to our clients. We believe this shift creates a more sustainable and attractive operating model for our clients, Evelyn, and our shareholders. In terms of new announcements, we have two new contracts to announce today. First, an existing Performance Suite client has signed a contract for our advanced imaging solution for 4.5 million lives across commercial, Medicaid, and Medicare Advantage. We expect this contract to go live in Q3, subject to state regulatory approvals in certain states, and we view this agreement as further validation of our ability to cross-sell solutions into our existing client base. More broadly, we believe this new contract validates the nation's leading payers are looking for a trusted partner, not just for our leading solution oncology, but that there is value in having our company provide our services and technology for multiple integrated solutions. Imaging in particular benefits from product integration given the importance of diagnostics for oncology, cardiology, and musculoskeletal specialties. And second, in the performance suite, one of our national payer clients is expanding their existing oncology and cardiology solution in several new markets across commercial and Medicare Advantage. This expansion is expected to generate over $200 million of annual revenue and is slated to go live in Q3, subject to regulatory approvals in certain states. We believe this new win is strategically important, reflecting growing client confidence in our platform and our ability to scale existing solutions across new populations. Similar to our other new performance suite launches, this oncology and cardiology expansion will run at higher MERs initially due to reserve building. We had already incorporated this new expansion into our full-year MER expectation, so this announcement does not change our outlook. With respect to our update on the exchange impact, we've seen declines in exchange membership in the performance suite as clients saw reduced membership in select markets as previously communicated over the last few quarters. On the specialty DNS side of the business, early indicators are that the exchange membership decline may be slightly lower than the 40% we'd assumed, but the data is still coming in and we expect better clarity around this by the end of Q2. For now, our guidance for the four-year continues to take a cautious approach and assumes the 40% decline we referenced previously. Turning to our continued efforts around AI and automation, we recently added a number of strong technology and data science players to our team, including naming Archie Mayani as our Chief Product Officer. Archie brings deep expertise scaling technology-enabled healthcare platforms, and her leadership further strengthens our ability to execute against our product and automation roadmap. We continue to test automation initiatives while preserving and, in many cases, enhancing the value we deliver to our customers and patients. Our ability to automatically approve authorizations through the use of technology and AI continues to expand and remains central to our goal of auto-approving approximately 80% of authorization volume. with the goal of making the process easier for providers and patients while driving down our internal operating costs. Deployment of new AI models is accelerated, particularly within our imaging solution. Our initial rollouts have shown auto-approval increases in the high teens on cases evaluated by these models, and in some cases up to 30%, all with minimal clinical value loss for our customers. Finally, Touching on our capital structure, we ended the quarter with unrestricted cash of $142 million and net debt of $792 million. With no debt maturities until 2029, we continue to believe that we have the balance sheet strength to support near-term execution while maintaining a clear and credible path to deleveraging over the long term. To conclude, everyone's off to a solid start in 2026. Our discipline execution in Q1, expanding performance suite footprint, and strong early momentum gives us confidence in our full-year outlook. Stepping back from the quarter and 2026, we believe there is a large long-term opportunity for Evelyn that is supported by two major super cycles. First, despite the strength of our product and the opportunity to reduce variability in care and oncology care, Evelyn today only manages approximately 10% of the oncology market. We believe this is due to two factors. One, we've only been accelerating our work in this area across the last five years. And two, we believe that approximately half of the market is still insourced by health plans. As costs and complexities to treat cancer diagnoses have continued to accelerate over the last five years, more plans are making the decision to outsource oncology management and upgrade to a more sophisticated partner like Evelyn. We believe this will further accelerate over the coming decade as the oncology drug pipeline continues to grow and complexity increases. As such, we expect to be able to meaningfully increase our market share, which in turn should provide a long-term growth opportunity for Evelyn. The second super cycle is the massive opportunity that AI can provide in automating specialty reviews. I covered this topic earlier, so I'll just add that our specialties outside of oncology care are especially well-suited to automation, and we're investing to be a market leader in the innovations necessary to reach the 80% automation threshold goal I referenced earlier. Taken together, we believe these two super cycles should help Evelyn continue to meet our near-term commitments and expect them to fuel our long-term success. With that, let me turn it over to Mario to dive into the quarter.