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Astrana Health (NASDAQ:ASTH) Posts Better-Than-Expected Sales In Q2, Stock Soars

By: StockStory

August 08, 2025 at 04:48 AM EDT

ASTH Cover Image

Healthcare services company Astrana Health reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 34.7% year on year to $654.8 million. On top of that, next quarter’s revenue guidance ($945 million at the midpoint) was surprisingly good and 17.2% above what analysts were expecting. Its GAAP profit of $0.19 per share was 42.3% below analysts’ consensus estimates.

Is now the time to buy Astrana Health? Find out by accessing our full research report, it’s free.

Astrana Health (ASTH) Q2 CY2025 Highlights:

Revenue: $654.8 million vs analyst estimates of $637.4 million (34.7% year-on-year growth, 2.7% beat)
EPS (GAAP): $0.19 vs analyst expectations of $0.33 (42.3% miss)
Adjusted EBITDA: $48.1 million vs analyst estimates of $47.2 million (7.3% margin, 1.9% beat)
The company lifted its revenue guidance for the full year to $3.2 billion at the midpoint from $2.6 billion, a 23.1% increase
EBITDA guidance for the full year is $220 million at the midpoint, above analyst estimates of $217.7 million
Operating Margin: 3.1%, down from 6.2% in the same quarter last year
Free Cash Flow Margin: 13.7%, up from 4.2% in the same quarter last year
Market Capitalization: $1.07 billion

"Astrana Health's strong second quarter results underscore the power of our physician-focused, technology-enabled model to drive profitable growth and deliver better outcomes at scale," said Brandon Sim, President and CEO of Astrana Health.

Company Overview

Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Astrana Health’s sales grew at an exceptional 29.5% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Astrana Health’s annualized revenue growth of 36.6% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Astrana Health Year-On-Year Revenue Growth

This quarter, Astrana Health reported wonderful year-on-year revenue growth of 34.7%, and its $654.8 million of revenue exceeded Wall Street’s estimates by 2.7%. Company management is currently guiding for a 97.4% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 40.8% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will catalyze better top-line performance.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

Operating Margin

Astrana Health was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.1% was weak for a healthcare business.

Analyzing the trend in its profitability, Astrana Health’s operating margin decreased by 13.9 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 5.7 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.

Astrana Health Trailing 12-Month Operating Margin (GAAP)

In Q2, Astrana Health generated an operating margin profit margin of 3.1%, down 3.1 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sadly for Astrana Health, its EPS declined by 2.5% annually over the last five years while its revenue grew by 29.5%. This tells us the company became less profitable on a per-share basis as it expanded.

Astrana Health Trailing 12-Month EPS (GAAP)

Diving into the nuances of Astrana Health’s earnings can give us a better understanding of its performance. As we mentioned earlier, Astrana Health’s operating margin declined by 13.9 percentage points over the last five years. Its share count also grew by 44.2%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. Astrana Health Diluted Shares Outstanding

In Q2, Astrana Health reported EPS at $0.19, down from $0.40 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects Astrana Health’s full-year EPS of $0.51 to grow 212%.

Key Takeaways from Astrana Health’s Q2 Results

We were impressed by Astrana Health’s optimistic revenue guidance for next quarter, which blew past analysts’ expectations. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its EPS missed. Overall, this print had some key positives. The stock traded up 5.1% to $22.55 immediately following the results.

So should you invest in Astrana Health right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.

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