📊 EVH Key Takeaways
Is Evolent Health, Inc. (EVH) a Good Investment?
Evolent Health faces severe operational distress with massive revenue decline of 26.6% YoY, significant operating losses of $410.1M, and deeply negative profitability metrics across all dimensions. The company is burning shareholder value with negative returns on equity (-128.7%) and assets (-28.1%), while carrying substantial debt burden relative to equity.
Evolent Health’s fundamentals show a weak earnings profile: revenue declined sharply, operating losses remain very large, and net margin is deeply negative. While the company still generated positive operating cash flow and roughly breakeven free cash flow, leverage is elevated and interest coverage is severely impaired, which limits financial flexibility unless profitability improves materially.
Why Buy Evolent Health, Inc. Stock? EVH Key Strengths
- Positive operating cash flow of $38.8M provides some liquidity cushion despite losses
- Current ratio of 1.31x indicates adequate short-term liquidity to meet obligations
- Free cash flow remains marginally positive at $3.3M, suggesting operational core has not completely deteriorated
- Positive operating cash flow despite net losses
- Current ratio of 1.31x indicates acceptable near-term liquidity
- Revenue base remains sizable at $1.88B, providing a platform for operating recovery
EVH Stock Risks: Evolent Health, Inc. Investment Risks
- Revenue collapse of 26.6% YoY indicates severe business deterioration and potential loss of major contracts or market share
- Operating losses of $410.1M with -21.9% operating margin demonstrate inability to control costs relative to declining revenue
- High leverage with debt-to-equity ratio of 2.34x and long-term debt of $970.5M against only $151.9M cash creates refinancing and solvency risk
- Negative interest coverage ratio of -68.4x shows company cannot service debt from operating earnings
- Net loss of $534.5M and -28.5% net margin indicate fundamental business model failure
- Revenue fell 26.6% YoY, raising concern about business durability and growth quality
- Operating margin of -21.9% and net margin of -28.5% indicate structurally weak profitability
- High leverage with debt/equity of 2.34x and negative interest coverage creates balance sheet risk
Key Metrics to Watch
- Revenue stabilization and growth trajectory - critical to assess if decline is cyclical or structural
- Operating margin recovery and path to positive operating income
- Cash burn rate and runway given current cash position of $151.9M relative to operating losses
- Debt refinancing needs and ability to access capital markets
- Customer concentration and contract renewals given significant revenue decline
- Revenue stabilization or return to YoY growth
- Operating margin improvement and sustained free cash flow generation
Evolent Health, Inc. (EVH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.2% FCF margin may limit capital allocation flexibility.
EVH Profit Margin, ROE & Profitability Analysis
EVH vs Services Sector: How Evolent Health, Inc. Compares
How Evolent Health, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Evolent Health, Inc. Stock Overvalued? EVH Valuation Analysis 2026
Based on fundamental analysis, Evolent Health, Inc. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Evolent Health, Inc. Balance Sheet: EVH Debt, Cash & Liquidity
EVH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Evolent Health, Inc.'s revenue has grown significantly by 150% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.28 indicates the company is currently unprofitable.
EVH Revenue Growth, EPS Growth & YoY Performance
EVH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $479.5M | -$20.9M | $-0.24 |
| Q2 2025 | $444.3M | $1.6M | $-0.06 |
| Q1 2025 | $483.6M | -$17.3M | $-0.22 |
| Q3 2024 | $511.0M | -$23.1M | $-0.27 |
| Q2 2024 | $469.1M | $1.6M | $-0.06 |
| Q1 2024 | $427.7M | -$17.3M | $-0.22 |
| Q3 2023 | $352.6M | $2.1M | $0.02 |
| Q2 2023 | $319.9M | -$4.6M | $-0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Evolent Health, Inc. Dividends, Buybacks & Capital Allocation
EVH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Evolent Health, Inc. (CIK: 0001628908)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772665349.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772665115.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772664798.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772664508.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772664220.xml | View → |
❓ Frequently Asked Questions about EVH
What is the AI rating for EVH?
Evolent Health, Inc. (EVH) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EVH's key strengths?
Claude: Positive operating cash flow of $38.8M provides some liquidity cushion despite losses. Current ratio of 1.31x indicates adequate short-term liquidity to meet obligations. ChatGPT: Positive operating cash flow despite net losses. Current ratio of 1.31x indicates acceptable near-term liquidity.
What are the risks of investing in EVH?
Claude: Revenue collapse of 26.6% YoY indicates severe business deterioration and potential loss of major contracts or market share. Operating losses of $410.1M with -21.9% operating margin demonstrate inability to control costs relative to declining revenue. ChatGPT: Revenue fell 26.6% YoY, raising concern about business durability and growth quality. Operating margin of -21.9% and net margin of -28.5% indicate structurally weak profitability.
What is EVH's revenue and growth?
Evolent Health, Inc. reported revenue of $1.9B.
Does EVH pay dividends?
Evolent Health, Inc. does not currently pay dividends.
Where can I find EVH SEC filings?
Official SEC filings for Evolent Health, Inc. (CIK: 0001628908) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EVH's EPS?
Evolent Health, Inc. has a diluted EPS of $-5.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EVH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Evolent Health, Inc. has a SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EVH stock overvalued or undervalued?
Valuation metrics for EVH: ROE of -128.7% (sector avg: 16%), net margin of -28.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy EVH stock in 2026?
Our dual AI analysis gives Evolent Health, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EVH's free cash flow?
Evolent Health, Inc.'s operating cash flow is $38.8M, with capital expenditures of $35.5M. FCF margin is 0.2%.
How does EVH compare to other Services stocks?
Vs Services sector averages: Net margin -28.5% (avg: 10%), ROE -128.7% (avg: 16%), current ratio 1.31 (avg: 1.5).
Is Evolent Health, Inc. carrying too much debt?
EVH has a debt-to-equity ratio of 2.34x, which is above the Services sector average of 0.7x. However, the current ratio of 1.31 suggests adequate short-term liquidity.