v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We have one operating segment and one reportable segment as our CODM assesses the performance of our operations, develops strategy and 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,
2026202520262025
Revenue$652,520 $444,328 $1,148,766 $927,977 
Less:
Medical expense and device costs (1)
493,023 249,161 828,385 541,838 
Cost of revenue excluding medical expense and device costs and other segment items (2)
77,966 93,732 154,557 181,576 
Selling, general and administrative expenses excluding other segment items (3)
53,481 63,888 115,707 130,156 
Depreciation and amortization expenses21,566 23,141 43,121 47,199 
Interest income(703)(1,084)(1,717)(2,358)
Interest expense16,859 11,601 33,727 21,986 
Gain (loss) from equity method investees41 (197)52 (178)
Provision for (benefit from) income taxes2,715 (825)3,625 645 
Other segment items (4)
15,936 56,001 26,305 130,453 
Net loss attributable to common shareholders of Evolent Health, Inc.$(28,364)$(51,090)$(54,996)$(123,340)
————————
(1)Medical expenses and device costs include $461.5 million and $763.3 million for the three and six months ended June 30, 2026, respectively, and $214.2 million and $420.2 million for the three and six months ended June 30, 2025, respectively, of total claims incurred related to our specialty care management services solution for the six months ended June 30, 2026 and 2025, respectively.
(2)Other segment items excluded from cost of revenue excluding medical expense and device costs include $0.7 million and $1.2 million of stock compensation for the three and six months ended June 30, 2026, respectively, and $1.0 million and $1.7 million for the three and six months ended June 30, 2025, respectively.
(3)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,
2026202520262025
Stock-based compensation$14,506 $10,530 $24,636 $20,954 
Severance costs275 791 275 1,805 
Transaction-related costs569 — 1,031 703 
(4)Other segment items is defined as stock-based compensation, severance costs and transaction-related 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, loss on option exercise, extinguishment of Series A Preferred Stock and other refinancing fees, other income (expense), net, and dividends and accretion of Series A Preferred Stock and excise tax on 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.