v3.25.4
Business Combinations and Goodwill (Tables)
 12 Months Ended
Dec. 31, 2025
Business Combination and Asset Acquisition [Abstract]  
Schedule of Business Acquisitions, by Acquisition

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed at the acquisition date (in thousands):

 

Prospect

 

Purchase consideration:

 

$

674,902

 

 

 

 

 

Assets:

 

 

 

Cash and cash equivalents

 

$

124,835

 

Receivables

 

 

86,170

 

Other receivables

 

 

1,329

 

Prepaid expenses and other current assets

 

 

7,684

 

Loan receivable

 

 

794

 

Property and equipment

 

 

37,512

 

Intangible assets

 

 

193,500

 

Goodwill

 

 

442,887

 

Loans receivable, non-current

 

 

278

 

Operating lease right-of-use assets

 

 

4,535

 

Other assets

 

 

6,126

 

Total assets acquired

 

$

905,650

 

 

 

 

 

Liabilities:

 

 

 

Accounts payable and accrued expenses

 

$

93,290

 

Medical liabilities

 

 

124,076

 

Operating lease liabilities

 

 

1,772

 

Other liabilities

 

 

646

 

Deferred tax liability

 

 

5,300

 

Operating lease liabilities, net of current portion

 

 

2,763

 

Other long-term liabilities

 

 

2,901

 

Total liabilities assumed

 

$

230,748

 

 

 

 

 

Total net assets acquired

 

$

674,902

 

 

The following table summarizes the finalized purchase price allocation of the fair value of assets acquired and liabilities assumed related to acquisitions that closed in 2024 (in thousands):

 

 

CHS

 

 

AHMS

 

 

CFC

 

 

Others (1)

 

 

Net Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total purchase consideration:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid

 

$

35,322

 

 

$

63,935

 

 

$

90,998

 

 

$

15,000

 

 

$

205,255

 

Purchase price due to (from) seller

 

 

6,944

 

 

 

(2,995

)

 

 

—

 

 

 

—

 

 

 

3,949

 

Contingent consideration

 

 

5,154

 

 

 

—

 

 

 

8,026

 

 

 

6,161

 

 

 

19,341

 

Common stock issued and replacement awards

 

 

118

 

 

 

—

 

 

 

21,952

 

 

 

—

 

 

 

22,070

 

Conversion of promissory note

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,175

 

 

 

5,175

 

 

 

$

47,538

 

 

$

60,940

 

 

$

120,976

 

 

$

26,336

 

 

$

255,790

 

 

CHS

 

 

AHMS

 

 

CFC

 

 

Others (1)

 

 

Net Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,556

 

 

$

33,950

 

 

$

16,674

 

 

$

3,515

 

 

$

58,695

 

Investment in marketable securities (2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

30

 

 

 

30

 

Receivables

 

 

102,447

 

 

 

11,007

 

 

 

6,530

 

 

 

—

 

 

 

119,984

 

Other receivables

 

 

36,766

 

 

 

—

 

 

 

3,375

 

 

 

—

 

 

 

40,141

 

Prepaid expenses and other current assets

 

 

356

 

 

 

36

 

 

 

—

 

 

 

11

 

 

 

403

 

Property and equipment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

823

 

 

 

823

 

Intangible assets

 

 

14,200

 

 

 

23,600

 

 

 

28,000

 

 

 

6,338

 

 

 

72,138

 

Goodwill

 

 

9,161

 

 

 

25,571

 

 

 

83,571

 

 

 

16,357

 

 

 

134,660

 

Income tax receivable

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Investments in other entities – equity method

 

 

3,121

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,121

 

Restricted cash

 

 

—

 

 

 

300

 

 

 

—

 

 

 

—

 

 

 

300

 

Total assets acquired

 

$

170,607

 

 

$

94,464

 

 

$

138,150

 

 

$

27,075

 

 

$

430,296

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

69,258

 

 

$

13,001

 

 

$

2,487

 

 

$

303

 

 

$

85,049

 

Medical liabilities

 

 

53,889

 

 

 

14,093

 

 

 

14,663

 

 

 

—

 

 

 

82,645

 

Income taxes payable

 

 

—

 

 

 

—

 

 

 

24

 

 

 

—

 

 

 

24

 

Deferred tax liability

 

 

—

 

 

 

6,430

 

 

 

—

 

 

 

8

 

 

 

6,438

 

Non-controlling interest

 

 

(78

)

 

 

—

 

 

 

—

 

 

 

428

 

 

 

350

 

Total liabilities assumed

 

$

123,069

 

 

$

33,524

 

 

$

17,174

 

 

$

739

 

 

$

174,506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net assets acquired

 

$

47,538

 

 

$

60,940

 

 

$

120,976

 

 

$

26,336

 

 

$

255,790

 
(1)
Others consist of estimated fair values of the assets acquired, net of cash acquired, related to ADSC, PCCCV, Airline Complete, and DWGAS.
(2)
Included in prepaid expense and other current assets on the consolidated balance sheet.

Unaudited Pro Forma Financial Information

Operating results of the acquired businesses have been included in the consolidated financial statements. For acquisitions that closed in 2025, the total revenue and net income included in the accompanying consolidated statements of income, in aggregate, were $616.3 million and $27.1 million, respectively.

The pro forma financial information in the table below presents the combined results of the Company and the acquisitions that occurred in 2025 and 2024, as if the acquisitions had occurred on January 1, 2024. The pro forma financial information presented has been adjusted to exclude Prospect’s historical interest expense, as all outstanding debt obligations were settled at closing and not assumed by the Company. The pro forma financial information presented has been adjusted to include the Company’s incremental interest expense, as if the borrowing from the delayed draw term loan credit facility had occurred on January 1, 2024, to finance the purchase of Prospect. The pro forma financial information presented is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company, or results of operations of the Company that would have actually occurred had the transactions been in effect for the periods presented.

 

 

 

For the Years Ended December 31,

 

(in thousands, except per share amounts)

 

2025

 

 

2024

 

Total revenue

 

$

3,812,251

 

 

$

3,952,528

 

Net income attributable to Astrana Health, Inc.

 

$

1,243

 

 

$

2,227

 

 

 

 

 

 

 

 

Earnings per share – basic

 

$

0.03

 

 

$

0.05

 

Earnings per share – diluted

 

$

0.03

 

 

$

0.05

 
Summary of Intangible Assets Acquired

The table below represents intangible assets acquired for the Prospect Acquisition (in thousands):

 

 

Fair Value

 

 

Useful Life
(Years)

License

 

$

1,900

 

 

Indefinite

Member relationships

 

 

123,500

 

 

12 years

Network relationships

 

 

53,800

 

 

15 years

Other (1)

 

 

14,300

 

 

3–10 years

 

 

 

 

 

Total intangible assets acquired

 

$

193,500

 

 

 
(1)
Other consists of management contracts and a trade name.
Schedule of Change in Carrying Value of Goodwill

The change in the carrying value of goodwill for the years ended December 31, 2025 and 2024, was as follows (in thousands):

 

Amount

 

Balance at January 1, 2024

 

$

278,831

 

Acquisitions

 

 

137,810

 

Adjustments

 

 

2,612

 

Balance at December 31, 2024

 

 

419,253

 

Acquisitions

 

 

449,202

 

Adjustments

 

 

(3,150

)

Balance at December 31, 2025

 

$

865,305