Astrana Health Shines in Q3 2026: Strong Revenue Growth, Record Adjusted EBITDA, and Robust Free Cash Flow
Astrana Health's third quarter of 2026 was marked by outstanding performance, with the company delivering a record-breaking $1.02 billion in revenue, up 7% year-over-year. This impressive growth was driven by continued expansion in margin, as well as disciplined execution across the business.
The adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also reached a record high of $77.2 million, representing a 13% increase from the same period last year. This result fell within the company's guidance range and demonstrates the underlying earnings power of Astrana Health's combined business.
Key to these achievements was the maturation of the company's risk-bearing cohorts in Texas, improved medical cost performance across its Care Partners business, and continued operating efficiencies. Additionally, capitation revenue experienced a 8.5% growth despite a decline in Medicaid and exchange membership attrition, showcasing the resilience of Astrana Health's operations.
The adjusted EBITDA grew approximately twice as fast as total revenue, highlighting the operating leverage that allows Astrana to navigate through various market conditions effectively. Furthermore, free cash flow remains strong, with the company generating $105 million in the first nine months of the year and repaying $116 million of debt.
This performance brings net leverage down to approximately 2.2 times, well ahead of the deleveraging commitments made when Astrana acquired Prospect. This achievement positions the company favorably for continued growth and puts it on track to meet its free cash flow guidance for the year.
The strong results from Q3 2026 can be attributed to the operating platform that Astrana Health has built, comprising three foundational capabilities: intelligence, alignment, and delivery. These interconnected elements enable the company to leverage vast clinical and operational data, align incentives, and deliver high-quality care effectively.
Brandon Sim, President and Chief Executive Officer of Astrana Health, emphasized during the conference call that these outcomes demonstrate the differentiated operating platform built at the company. He explained how intelligence, alignment, and delivery work together to identify what patients need, when they need it, and how to deliver it most effectively.
These achievements underscore Astrana Health's commitment to delivering sustainable long-term value, responding to changing environments, and integrating acquisitions successfully. As the healthcare landscape continues to evolve, Astrana Health remains poised for continued growth, driven by its strong performance in Q3 2026."
