v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We have one operating segment and one reportable segment as our CODM, reviews financial information on a consolidated basis for purposes of evaluating financial performance and allocating resources. The performance measure closest to U.S. GAAP used by our CODM to evaluate the performance of the Company’s ongoing operations on a consolidated basis and as part of the Company’s internal planning and forecasting activities is net loss attributable to common shareholders of Evolent Health, Inc. The CODM does not evaluate performance or allocate resources based on segment assets, and therefore such information is not presented in the notes to the financial statements.
The following table presents our revenue and significant expenses reviewed by our CODM, other segment items and net loss attributable to common shareholders of Evolent Health, Inc. (in thousands):
For the Three Months Ended June 30,For the Six Months Ended June 30,
2025202420252024
Revenue$444,328 $647,145 $927,977 $1,286,798 
Less:
Medical expense and device costs249,161 453,725 541,838 885,061 
Cost of revenue excluding medical expense and device costs and other segment items (1)
93,732 85,370 181,576 188,576 
Selling, general and administrative expenses excluding other segment items (2)
63,888 56,100 130,156 107,113 
Depreciation and amortization expenses23,141 29,870 47,199 59,373 
Interest income(1,084)(1,370)(2,358)(3,920)
Interest expense11,601 5,995 21,986 11,992 
Gain (loss) from equity method investees(197)1,700 (178)1,394 
Provision from income taxes(825)(238)645 327 
Change in tax receivables agreement liability— — — 173 
Other segment items (3)
56,001 22,376 130,453 68,317 
Net loss attributable to common shareholders of Evolent Health, Inc.$(51,090)$(6,383)$(123,340)$(31,608)
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(1)Other segment items excluded from cost of revenue excluding medical expense and device costs include $1.0 million and $1.7 million of stock compensation for the three and six months ended June 30, 2025, respectively, and $1.2 million and $2.2 million for the three and six months ended June 30, 2024, respectively.

(2)Other segment items excluded from selling, general and administrative expenses include the following (in thousands):

For the Three Months Ended June 30,For the Six Months Ended June 30,
2025202420252024
Stock-based compensation$10,530 $11,452 $20,954 $29,233 
Severance costs791 800 1,805 1,180 
Transaction-related costs— 163 703 163 
Repositioning costs— 670 — 10,599 
(3)Other segment items is defined as stock-based compensation, severance costs, transaction-related costs and repositioning costs not included in cost of revenue or selling, general and administrative expenses calculated in accordance with GAAP, loss on lease termination, change in fair value of contingent consideration, extinguishment of Series A Preferred Stock, loss on option exercise, other income (expense), net, and dividends and accretion of Series A Preferred Stock. Management believes cost of revenue excluding medical expense and device costs and other segment items and selling, general and administrative expenses excluding other segment items are useful to investors because they facilitate an understanding of our long-term operational costs while removing the effect of costs that are not a representative component of the day-to-day operating performance of our business, and are useful to management as supplemental performance measures.