Toggle SGML Header (+)


Section 1: 10-Q (10-Q)

Document
false--12-31Q2201900016289080.4511000000800000058940008500010900025000003500000P5YP5Y156100039500000.180.180.590.590.0650.0550.0650.0551000000.010.010.010.0175000000010000000075000000010000000079172118319030183814852706273791721183190301838148527062730.04160820.0299135851900062600007980004400000000.400.040.400.040.29P25YP20YP10YP10Y02900000 0001628908 2019-01-01 2019-06-30 0001628908 us-gaap:CommonClassAMember 2019-08-05 0001628908 us-gaap:CommonClassBMember 2019-08-05 0001628908 2019-06-30 0001628908 2018-12-31 0001628908 us-gaap:CommonClassAMember 2019-06-30 0001628908 us-gaap:CommonClassAMember 2018-12-31 0001628908 us-gaap:CommonClassBMember 2019-06-30 0001628908 us-gaap:CommonClassBMember 2018-12-31 0001628908 2018-01-01 2018-06-30 0001628908 2019-04-01 2019-06-30 0001628908 2018-04-01 2018-06-30 0001628908 evh:PremiumsRevenueMember 2019-04-01 2019-06-30 0001628908 evh:PremiumsRevenueMember 2019-01-01 2019-06-30 0001628908 evh:TransformationServicesMember 2019-01-01 2019-06-30 0001628908 evh:TransformationServicesMember 2018-01-01 2018-06-30 0001628908 evh:PlatformsAndOperationsServicesMember 2019-01-01 2019-06-30 0001628908 evh:PlatformsAndOperationsServicesMember 2019-04-01 2019-06-30 0001628908 evh:PremiumsRevenueMember 2018-04-01 2018-06-30 0001628908 evh:TransformationServicesMember 2018-04-01 2018-06-30 0001628908 evh:TransformationServicesMember 2019-04-01 2019-06-30 0001628908 evh:PlatformsAndOperationsServicesMember 2018-01-01 2018-06-30 0001628908 evh:PremiumsRevenueMember 2018-01-01 2018-06-30 0001628908 evh:PlatformsAndOperationsServicesMember 2018-04-01 2018-06-30 0001628908 2018-06-30 0001628908 2017-12-31 0001628908 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2018-04-01 2018-06-30 0001628908 us-gaap:RetainedEarningsMember 2018-03-31 0001628908 us-gaap:RetainedEarningsMember 2018-06-30 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-06-30 0001628908 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-06-30 0001628908 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-06-30 0001628908 us-gaap:RetainedEarningsMember 2019-06-30 0001628908 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001628908 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001628908 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-03-31 0001628908 us-gaap:NoncontrollingInterestMember 2019-06-30 0001628908 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001628908 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001628908 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0001628908 us-gaap:NoncontrollingInterestMember 2018-03-31 0001628908 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2019-06-30 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-03-31 0001628908 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-03-31 0001628908 us-gaap:NoncontrollingInterestMember 2019-03-31 0001628908 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-06-30 0001628908 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001628908 2018-03-31 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001628908 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-06-30 0001628908 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001628908 us-gaap:RetainedEarningsMember 2019-03-31 0001628908 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2019-03-31 0001628908 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001628908 us-gaap:NoncontrollingInterestMember 2018-06-30 0001628908 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001628908 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2019-04-01 2019-06-30 0001628908 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2018-06-30 0001628908 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-03-31 0001628908 2019-03-31 0001628908 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-01-01 2019-06-30 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-01-01 2018-06-30 0001628908 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0001628908 us-gaap:NoncontrollingInterestMember 2018-01-01 0001628908 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-06-30 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-01-01 2019-06-30 0001628908 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2017-12-31 0001628908 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0001628908 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-01-01 2018-06-30 0001628908 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-06-30 0001628908 us-gaap:RetainedEarningsMember 2018-01-01 0001628908 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2018-01-01 2018-06-30 0001628908 us-gaap:RetainedEarningsMember 2018-01-01 2018-06-30 0001628908 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0001628908 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-12-31 0001628908 us-gaap:NoncontrollingInterestMember 2017-12-31 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2017-12-31 0001628908 us-gaap:RetainedEarningsMember 2018-12-31 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-12-31 0001628908 2018-01-01 0001628908 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2019-01-01 2019-06-30 0001628908 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2018-12-31 0001628908 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001628908 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001628908 us-gaap:NoncontrollingInterestMember 2018-12-31 0001628908 us-gaap:RetainedEarningsMember 2017-12-31 0001628908 evh:PreOrganizationMembersMember evh:EvolentHealthLLCMember 2019-06-30 0001628908 evh:EvolentHealthLLCMember 2019-06-30 0001628908 evh:CurrentCustomerMember us-gaap:NotesReceivableMember evh:SurplusNoteMember 2019-06-30 0001628908 evh:CurrentCustomerMember us-gaap:NotesReceivableMember evh:SurplusNoteMember 2019-04-01 2019-06-30 0001628908 evh:CollateralWithFinancialInstitutionsMoneyMarketFundMember 2019-06-30 0001628908 evh:CollateralWithFinancialInstitutionsMoneyMarketFundMember 2018-12-31 0001628908 us-gaap:BankTimeDepositsMember 2019-06-30 0001628908 evh:RestrictedCashforBenefitManagementServicesMember 2019-06-30 0001628908 evh:RestrictedCashforOtherContractualCommitmentsMember 2019-06-30 0001628908 evh:RestrictedCashforLettersofCreditforFacilityLeasesMember 2018-12-31 0001628908 evh:RestrictedCashforLettersofCreditforFacilityLeasesMember 2019-06-30 0001628908 evh:CollateralwithFinancialInstitutionsMember 2019-06-30 0001628908 evh:CollateralwithFinancialInstitutionsMember 2018-12-31 0001628908 evh:RestrictedCashforOtherContractualCommitmentsMember 2018-12-31 0001628908 evh:RestrictedCashforBenefitManagementServicesMember 2018-12-31 0001628908 us-gaap:ContractBasedIntangibleAssetsMember 2019-01-01 2019-06-30 0001628908 us-gaap:DevelopedTechnologyRightsMember 2019-01-01 2019-06-30 0001628908 us-gaap:BankTimeDepositsMember 2018-12-31 0001628908 srt:MinimumMember us-gaap:TradeNamesMember 2019-01-01 2019-06-30 0001628908 srt:MaximumMember us-gaap:TradeNamesMember 2019-01-01 2019-06-30 0001628908 srt:MinimumMember us-gaap:CustomerRelationshipsMember 2019-01-01 2019-06-30 0001628908 srt:MaximumMember us-gaap:CustomerRelationshipsMember 2019-01-01 2019-06-30 0001628908 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001628908 evh:NewMexicoHealthConnectionsMember us-gaap:CustomerRelationshipsMember 2018-01-02 0001628908 evh:NewMexicoHealthConnectionsMember 2018-01-02 0001628908 evh:NewMexicoHealthConnectionsMember us-gaap:AboveMarketLeasesMember 2018-01-02 0001628908 evh:NewMexicoHealthConnectionsMember 2018-01-02 2018-01-02 0001628908 evh:NewMexicoHealthConnectionsMember us-gaap:ContractBasedIntangibleAssetsMember 2018-01-02 0001628908 evh:NewCenturyHealthMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-12-31 0001628908 evh:NewMexicoHealthConnectionsMember 2017-12-31 0001628908 evh:EvolentHealthSellingStockholdersMember us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-11-01 2018-11-30 0001628908 evh:NewCenturyHealthMember us-gaap:CustomerRelationshipsMember 2018-10-01 2018-10-01 0001628908 evh:InvestorStockholdersMember us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-03-01 2018-03-31 0001628908 evh:TPGMember us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-11-01 2018-11-30 0001628908 evh:FormerOwnersOfNewCenturyHealthMember evh:NewCenturyHealthMember 2018-10-01 0001628908 evh:NewCenturyHealthMember 2018-10-01 0001628908 evh:NewMexicoHealthConnectionsMember us-gaap:ContractBasedIntangibleAssetsMember 2018-01-02 2018-01-02 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-11-01 2018-11-30 0001628908 evh:NewCenturyHealthMember us-gaap:ContractBasedIntangibleAssetsMember 2018-10-01 2018-10-01 0001628908 evh:EvolentHealthSellingStockholdersMember us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-03-01 2018-03-31 0001628908 evh:NewCenturyHealthMember 2018-10-01 2018-10-01 0001628908 evh:NewCenturyHealthMember us-gaap:CommonClassBMember 2018-01-01 2018-12-31 0001628908 evh:NewCenturyHealthMember us-gaap:DevelopedTechnologyRightsMember 2018-10-01 2018-10-01 0001628908 evh:NewCenturyHealthMember us-gaap:CommonClassBMember 2018-10-01 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-03-01 2018-03-31 0001628908 evh:NewMexicoHealthConnectionsMember us-gaap:CustomerRelationshipsMember 2018-01-02 2018-01-02 0001628908 evh:NewCenturyHealthMember 2018-12-31 0001628908 evh:EvolentHealthLLCMember 2018-09-30 0001628908 evh:FormerEmployeesOfNewCenturyHealthMember evh:NewCenturyHealthMember 2018-10-01 0001628908 evh:EvolentHealthLLCMember 2018-11-30 0001628908 evh:InvestorStockholdersMember us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-06-30 0001628908 evh:EvolentHealthLLCMember 2018-10-01 0001628908 evh:EvolentHealthLLCMember 2018-10-31 0001628908 evh:EvolentHealthLLCMember 2018-03-31 0001628908 evh:EvolentHealthLLCMember 2017-08-31 0001628908 evh:NewCenturyHealthMember us-gaap:TradeNamesMember 2018-10-01 2018-10-01 0001628908 evh:NewCenturyHealthMember us-gaap:CustomerRelationshipsMember 2018-10-01 0001628908 evh:NewCenturyHealthMember us-gaap:TradeNamesMember 2018-10-01 0001628908 evh:NewCenturyHealthMember us-gaap:ContractBasedIntangibleAssetsMember 2018-10-01 0001628908 evh:NewCenturyHealthMember us-gaap:DevelopedTechnologyRightsMember 2018-10-01 0001628908 evh:ContractFulfillmentCostsMember 2019-01-01 2019-06-30 0001628908 evh:BonusesAndCommissionsMember 2019-01-01 2019-06-30 0001628908 evh:ContractFulfillmentCostsMember 2018-12-31 0001628908 evh:BonusesAndCommissionsMember 2018-12-31 0001628908 evh:ContractFulfillmentCostsMember 2018-04-01 2018-06-30 0001628908 evh:ContractFulfillmentCostsMember 2019-04-01 2019-06-30 0001628908 evh:ContractFulfillmentCostsMember 2018-01-01 2018-06-30 0001628908 evh:ContractFulfillmentCostsMember 2019-06-30 0001628908 evh:BonusesAndCommissionsMember 2019-06-30 0001628908 evh:BonusesAndCommissionsMember 2019-04-01 2019-06-30 0001628908 evh:BonusesAndCommissionsMember 2018-04-01 2018-06-30 0001628908 evh:TransformationServicesMember evh:ServicesSegmentMember 2018-04-01 2018-06-30 0001628908 evh:PlatformsAndOperationsServicesMember evh:ServicesSegmentMember 2018-01-01 2018-06-30 0001628908 evh:TransformationServicesMember evh:ServicesSegmentMember 2019-01-01 2019-06-30 0001628908 evh:PlatformsAndOperationsServicesMember evh:ServicesSegmentMember 2019-01-01 2019-06-30 0001628908 evh:PlatformsAndOperationsServicesMember evh:ServicesSegmentMember 2019-04-01 2019-06-30 0001628908 evh:TransformationServicesMember evh:ServicesSegmentMember 2018-01-01 2018-06-30 0001628908 evh:TransformationServicesMember evh:ServicesSegmentMember 2019-04-01 2019-06-30 0001628908 evh:PlatformsAndOperationsServicesMember evh:ServicesSegmentMember 2018-04-01 2018-06-30 0001628908 evh:BonusesAndCommissionsMember 2018-01-01 2018-06-30 0001628908 us-gaap:ComputerEquipmentMember 2018-12-31 0001628908 us-gaap:FurnitureAndFixturesMember 2019-06-30 0001628908 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2018-12-31 0001628908 us-gaap:LeaseholdImprovementsMember 2019-06-30 0001628908 us-gaap:FurnitureAndFixturesMember 2018-12-31 0001628908 us-gaap:LeaseholdImprovementsMember 2018-12-31 0001628908 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2019-06-30 0001628908 us-gaap:ComputerEquipmentMember 2019-06-30 0001628908 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2019-04-01 2019-06-30 0001628908 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2018-04-01 2018-06-30 0001628908 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2018-01-01 2018-06-30 0001628908 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2019-01-01 2019-06-30 0001628908 evh:TrueHealthSegmentMember 2019-01-01 2019-06-30 0001628908 evh:TrueHealthSegmentMember 2018-12-31 0001628908 evh:ServicesSegmentMember 2018-12-31 0001628908 evh:TrueHealthSegmentMember 2019-06-30 0001628908 evh:ServicesSegmentMember 2019-06-30 0001628908 evh:ServicesSegmentMember 2019-01-01 2019-06-30 0001628908 evh:TrueHealthSegmentMember 2018-01-01 2018-12-31 0001628908 evh:ServicesSegmentMember 2018-01-01 2018-12-31 0001628908 2018-01-01 2018-12-31 0001628908 evh:TrueHealthSegmentMember 2017-12-31 0001628908 evh:ServicesSegmentMember 2017-12-31 0001628908 2019-05-01 2019-06-30 0001628908 us-gaap:CustomerRelationshipsMember 2018-12-31 0001628908 us-gaap:ContractBasedIntangibleAssetsMember 2018-12-31 0001628908 us-gaap:DevelopedTechnologyRightsMember 2018-12-31 0001628908 evh:BelowMarketLeasesNetMember 2018-01-01 2018-12-31 0001628908 us-gaap:TradeNamesMember 2018-12-31 0001628908 us-gaap:DevelopedTechnologyRightsMember 2018-01-01 2018-12-31 0001628908 evh:BelowMarketLeasesNetMember 2018-12-31 0001628908 us-gaap:CustomerRelationshipsMember 2018-01-01 2018-12-31 0001628908 us-gaap:ContractBasedIntangibleAssetsMember 2018-01-01 2018-12-31 0001628908 us-gaap:TradeNamesMember 2018-01-01 2018-12-31 0001628908 us-gaap:DevelopedTechnologyRightsMember 2019-06-30 0001628908 us-gaap:ContractBasedIntangibleAssetsMember 2019-06-30 0001628908 evh:BelowMarketLeasesNetMember 2019-06-30 0001628908 us-gaap:TradeNamesMember 2019-06-30 0001628908 us-gaap:CustomerRelationshipsMember 2019-06-30 0001628908 us-gaap:TradeNamesMember 2019-01-01 2019-06-30 0001628908 evh:BelowMarketLeasesNetMember 2019-01-01 2019-06-30 0001628908 us-gaap:CustomerRelationshipsMember 2019-01-01 2019-06-30 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2018-12-31 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:SeniorNotesMember 2018-01-01 2018-06-30 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:SeniorNotesMember us-gaap:CommonClassAMember us-gaap:CommonStockMember 2016-12-01 2016-12-31 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:SeniorNotesMember 2016-12-31 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:SeniorNotesMember 2018-10-01 2018-10-31 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:SeniorNotesMember 2019-04-01 2019-06-30 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:SeniorNotesMember 2016-12-01 2016-12-31 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:SeniorNotesMember us-gaap:CommonStockMember 2018-10-01 2018-10-31 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:SeniorNotesMember 2019-01-01 2019-06-30 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2019-06-30 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:SeniorNotesMember 2018-10-31 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2018-12-31 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:SeniorNotesMember us-gaap:CommonClassAMember us-gaap:CommonStockMember 2016-12-31 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:SeniorNotesMember 2019-01-01 2019-06-30 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:SeniorNotesMember 2019-06-30 0001628908 evh:SeniorConvertibleNotesDue2025Member 2018-10-31 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:SeniorNotesMember 2018-10-22 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:SeniorNotesMember 2018-10-24 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:SeniorNotesMember 2018-04-01 2018-06-30 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2019-06-30 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:SeniorNotesMember 2019-06-30 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:SeniorNotesMember 2019-04-01 2019-06-30 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:SeniorNotesMember 2018-12-31 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:SeniorNotesMember 2018-01-01 2018-12-31 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:SeniorNotesMember 2018-12-31 0001628908 evh:ConvertibleSeniorNotesdue2021Member us-gaap:SeniorNotesMember 2018-01-01 2018-12-31 0001628908 evh:SeniorConvertibleNotesDue2025Member us-gaap:SeniorNotesMember us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-10-01 2018-10-31 0001628908 evh:NewMexicoHealthConnectionsMember 2017-10-01 2017-12-31 0001628908 us-gaap:SuretyBondMember 2019-06-30 0001628908 srt:MinimumMember 2019-06-30 0001628908 evh:NewMexicoHealthConnectionsMember 2018-12-31 0001628908 us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2017-03-31 0001628908 us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2019-06-30 0001628908 evh:NewMexicoHealthConnectionsMember 2018-10-01 2018-12-31 0001628908 evh:NewMexicoHealthConnectionsMember evh:RestrictedCashForReinsuranceAgreementMember 2017-12-31 0001628908 us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2017-01-01 2017-03-31 0001628908 evh:CustomerCMember us-gaap:FinanceReceivablesMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-12-31 0001628908 evh:CustomerDMember us-gaap:FinanceReceivablesMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-06-30 0001628908 evh:CustomerCMember us-gaap:FinanceReceivablesMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-06-30 0001628908 evh:CustomerAMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-04-01 2019-06-30 0001628908 evh:CustomerBMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-06-30 0001628908 evh:CustomerBMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-04-01 2018-06-30 0001628908 evh:CustomerCMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-04-01 2018-06-30 0001628908 evh:CustomerAMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-06-30 0001628908 evh:CustomerCMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-06-30 0001628908 evh:CustomerBMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-06-30 0001628908 evh:CustomerBMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-04-01 2019-06-30 0001628908 us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2018-12-31 0001628908 evh:RestrictedStockUnitsRSUsPerformanceBasedRestrictedStockUnitsPBRSUsAndLeveragedStockUnitsLSUsMember 2019-04-01 2019-06-30 0001628908 evh:ExchangeableClassBCommonStockMember 2019-01-01 2019-06-30 0001628908 us-gaap:ConvertibleDebtSecuritiesMember 2019-01-01 2019-06-30 0001628908 us-gaap:StockOptionMember 2019-04-01 2019-06-30 0001628908 evh:RestrictedStockUnitsRSUsPerformanceBasedRestrictedStockUnitsPBRSUsAndLeveragedStockUnitsLSUsMember 2018-01-01 2018-06-30 0001628908 us-gaap:ConvertibleDebtSecuritiesMember 2019-04-01 2019-06-30 0001628908 evh:ExchangeableClassBCommonStockMember 2018-01-01 2018-06-30 0001628908 us-gaap:ConvertibleDebtSecuritiesMember 2018-01-01 2018-06-30 0001628908 evh:ExchangeableClassBCommonStockMember 2019-04-01 2019-06-30 0001628908 evh:ExchangeableClassBCommonStockMember 2018-04-01 2018-06-30 0001628908 us-gaap:StockOptionMember 2019-01-01 2019-06-30 0001628908 evh:RestrictedStockUnitsRSUsPerformanceBasedRestrictedStockUnitsPBRSUsAndLeveragedStockUnitsLSUsMember 2019-01-01 2019-06-30 0001628908 evh:RestrictedStockUnitsRSUsPerformanceBasedRestrictedStockUnitsPBRSUsAndLeveragedStockUnitsLSUsMember 2018-04-01 2018-06-30 0001628908 us-gaap:StockOptionMember 2018-04-01 2018-06-30 0001628908 us-gaap:StockOptionMember 2018-01-01 2018-06-30 0001628908 us-gaap:ConvertibleDebtSecuritiesMember 2018-04-01 2018-06-30 0001628908 evh:LeveragedStockUnitsLSUsMember 2018-01-01 2018-06-30 0001628908 evh:LeveragedStockUnitsLSUsMember 2018-04-01 2018-06-30 0001628908 evh:LeveragedStockUnitsLSUsMember 2019-04-01 2019-06-30 0001628908 us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-06-30 0001628908 us-gaap:RestrictedStockUnitsRSUMember 2019-04-01 2019-06-30 0001628908 us-gaap:RestrictedStockUnitsRSUMember 2018-04-01 2018-06-30 0001628908 us-gaap:EmployeeStockOptionMember 2018-04-01 2018-06-30 0001628908 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-06-30 0001628908 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-06-30 0001628908 evh:LeveragedStockUnitsLSUsMember 2019-01-01 2019-06-30 0001628908 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0001628908 us-gaap:EmployeeStockOptionMember 2019-04-01 2019-06-30 0001628908 us-gaap:PerformanceSharesMember 2018-04-01 2018-06-30 0001628908 us-gaap:PerformanceSharesMember 2019-04-01 2019-06-30 0001628908 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-01-01 2018-06-30 0001628908 us-gaap:CostOfSalesMember 2018-04-01 2018-06-30 0001628908 evh:PerformanceBasedRestrictedStockUnitsPBRSUsMember 2018-01-01 2018-06-30 0001628908 us-gaap:CostOfSalesMember 2019-01-01 2019-06-30 0001628908 us-gaap:PerformanceSharesMember 2018-01-01 2018-06-30 0001628908 us-gaap:CostOfSalesMember 2019-04-01 2019-06-30 0001628908 us-gaap:PerformanceSharesMember 2019-01-01 2019-06-30 0001628908 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-01-01 2019-06-30 0001628908 evh:PerformanceBasedRestrictedStockUnitsPBRSUsMember 2019-01-01 2019-06-30 0001628908 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-04-01 2019-06-30 0001628908 evh:PerformanceBasedRestrictedStockUnitsPBRSUsMember 2018-04-01 2018-06-30 0001628908 evh:PerformanceBasedRestrictedStockUnitsPBRSUsMember 2019-04-01 2019-06-30 0001628908 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-04-01 2018-06-30 0001628908 us-gaap:CostOfSalesMember 2018-01-01 2018-06-30 0001628908 us-gaap:CorporateJointVentureMember 2019-01-01 2019-06-30 0001628908 us-gaap:CorporateJointVentureMember 2019-05-24 0001628908 us-gaap:CorporateJointVentureMember 2019-05-24 2019-05-24 0001628908 srt:MinimumMember 2018-12-31 0001628908 us-gaap:CorporateJointVentureMember 2019-04-01 2019-06-30 0001628908 us-gaap:CorporateJointVentureMember 2019-06-30 0001628908 srt:MaximumMember 2019-06-30 0001628908 evh:ServicesAgreementsMember us-gaap:EquityMethodInvesteeMember 2018-04-01 2018-06-30 0001628908 evh:ServicesAgreementsMember us-gaap:EquityMethodInvesteeMember 2019-04-01 2019-06-30 0001628908 srt:MaximumMember 2018-12-31 0001628908 evh:ServicesAgreementsMember us-gaap:EquityMethodInvesteeMember 2019-01-01 2019-06-30 0001628908 evh:ServicesAgreementsMember us-gaap:EquityMethodInvesteeMember 2018-01-01 2018-06-30 0001628908 evh:EvolentHealthLLCMember 2019-04-30 0001628908 evh:EvolentHealthLLCMember 2019-05-31 0001628908 evh:EvolentHealthLLCMember 2018-12-31 0001628908 evh:EvolentHealthLLCMember 2018-06-29 0001628908 evh:EvolentHealthLLCMember 2019-03-31 0001628908 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-05-01 2019-05-31 0001628908 evh:NewCenturyHealthMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember evh:MeasurementInputRiskNeutralProbabilityExceedsThresholdMember evh:RealOptionsApproachValuationTechniqueMember 2019-06-30 0001628908 evh:UniversityHealthCaredbaPassportHealthPlanMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputLongTermRevenueGrowthRateMember evh:RealOptionsApproachValuationTechniqueMember 2019-06-30 0001628908 us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputSharePriceMember us-gaap:CorporateJointVentureMember evh:ValuationManagementEstimateMember 2019-06-30 0001628908 evh:NewCenturyHealthMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember evh:MeasurementInputRiskNeutralProbabilityMeetsEarnOutCapMember evh:RealOptionsApproachValuationTechniqueMember 2019-06-30 0001628908 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001628908 us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001628908 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001628908 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001628908 evh:UniversityHealthCaredbaPassportHealthPlanMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputLongTermRevenueGrowthRateMember evh:RealOptionsApproachValuationTechniqueMember 2018-12-31 0001628908 evh:NewCenturyHealthMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember evh:MeasurementInputRiskNeutralProbabilityMeetsEarnOutCapMember evh:RealOptionsApproachValuationTechniqueMember 2018-12-31 0001628908 evh:NewCenturyHealthMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember evh:MeasurementInputRiskNeutralProbabilityExceedsThresholdMember evh:RealOptionsApproachValuationTechniqueMember 2018-12-31 0001628908 evh:NewCenturyHealthMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001628908 evh:UniversityHealthCaredbaPassportHealthPlanMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001628908 evh:UniversityHealthCaredbaPassportHealthPlanMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001628908 evh:NewCenturyHealthMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateJointVentureMember 2019-06-30 0001628908 evh:UniversityHealthCaredbaPassportHealthPlanMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputLongTermRevenueGrowthRateMember evh:RealOptionsApproachValuationTechnique20192021Member 2019-06-30 0001628908 evh:UniversityHealthCaredbaPassportHealthPlanMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputLongTermRevenueGrowthRateMember evh:RealOptionsApproachValuationTechnique20172021Member 2019-06-30 0001628908 evh:NewCenturyHealthMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001628908 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001628908 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001628908 us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001628908 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001628908 us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember evh:RealOptionsApproachValuationTechnique20172021Member 2019-01-01 2019-06-30 0001628908 evh:UniversityHealthCaredbaPassportHealthPlanMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember evh:RealOptionsApproachValuationTechnique20172021Member 2019-01-01 2019-06-30 0001628908 srt:MaximumMember evh:UniversityHealthCaredbaPassportHealthPlanMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputDiscountRateMember evh:RealOptionsApproachValuationTechniqueMember 2019-06-30 0001628908 srt:MinimumMember evh:UniversityHealthCaredbaPassportHealthPlanMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputDiscountRateMember evh:RealOptionsApproachValuationTechniqueMember 2018-12-31 0001628908 srt:MaximumMember evh:UniversityHealthCaredbaPassportHealthPlanMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputDiscountRateMember evh:RealOptionsApproachValuationTechniqueMember 2018-12-31 0001628908 srt:MinimumMember evh:UniversityHealthCaredbaPassportHealthPlanMember us-gaap:FairValueInputsLevel3Member evh:ContingentConsiderationLiabilityMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MeasurementInputDiscountRateMember evh:RealOptionsApproachValuationTechniqueMember 2019-06-30 0001628908 evh:TransformationServicesMember srt:AffiliatedEntityMember 2018-01-01 2018-06-30 0001628908 srt:AffiliatedEntityMember 2018-04-01 2018-06-30 0001628908 evh:TransformationServicesMember srt:AffiliatedEntityMember 2018-04-01 2018-06-30 0001628908 srt:AffiliatedEntityMember 2018-01-01 2018-06-30 0001628908 evh:TransformationServicesMember srt:AffiliatedEntityMember 2019-04-01 2019-06-30 0001628908 srt:AffiliatedEntityMember 2019-01-01 2019-06-30 0001628908 srt:AffiliatedEntityMember 2019-04-01 2019-06-30 0001628908 evh:TransformationServicesMember srt:AffiliatedEntityMember 2019-01-01 2019-06-30 0001628908 evh:PlatformsAndOperationsServicesMember srt:AffiliatedEntityMember 2019-04-01 2019-06-30 0001628908 evh:PlatformsAndOperationsServicesMember srt:AffiliatedEntityMember 2018-01-01 2018-06-30 0001628908 evh:PlatformsAndOperationsServicesMember srt:AffiliatedEntityMember 2019-01-01 2019-06-30 0001628908 evh:PlatformsAndOperationsServicesMember srt:AffiliatedEntityMember 2018-04-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:ServicesSegmentMember 2018-01-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:ServicesSegmentMember 2019-01-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:TrueHealthSegmentMember 2018-01-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:TrueHealthSegmentMember 2019-01-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:ServicesSegmentMember 2018-04-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:TrueHealthSegmentMember 2019-04-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:ServicesSegmentMember 2019-04-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:TrueHealthSegmentMember 2018-04-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PremiumsRevenueMember evh:TrueHealthSegmentMember 2018-04-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PremiumsRevenueMember evh:TrueHealthSegmentMember 2019-04-01 2019-06-30 0001628908 us-gaap:ServiceMember 2018-04-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember us-gaap:ServiceMember evh:ServicesSegmentMember 2019-04-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PlatformsAndOperationsServicesMember evh:ServicesSegmentMember 2018-04-01 2018-06-30 0001628908 us-gaap:ServiceMember 2019-04-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PremiumsRevenueMember evh:ServicesSegmentMember 2018-04-01 2018-06-30 0001628908 us-gaap:IntersegmentEliminationMember evh:PlatformsAndOperationsServicesMember 2019-04-01 2019-06-30 0001628908 us-gaap:IntersegmentEliminationMember evh:PlatformsAndOperationsServicesMember 2018-04-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:TransformationServicesMember evh:ServicesSegmentMember 2018-04-01 2018-06-30 0001628908 us-gaap:IntersegmentEliminationMember evh:TransformationServicesMember 2018-04-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PlatformsAndOperationsServicesMember evh:TrueHealthSegmentMember 2018-04-01 2018-06-30 0001628908 us-gaap:IntersegmentEliminationMember 2018-04-01 2018-06-30 0001628908 us-gaap:IntersegmentEliminationMember us-gaap:ServiceMember 2018-04-01 2018-06-30 0001628908 us-gaap:IntersegmentEliminationMember evh:PremiumsRevenueMember 2019-04-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PlatformsAndOperationsServicesMember evh:ServicesSegmentMember 2019-04-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PremiumsRevenueMember evh:ServicesSegmentMember 2019-04-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PlatformsAndOperationsServicesMember evh:TrueHealthSegmentMember 2019-04-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember us-gaap:ServiceMember evh:TrueHealthSegmentMember 2018-04-01 2018-06-30 0001628908 us-gaap:IntersegmentEliminationMember evh:TransformationServicesMember 2019-04-01 2019-06-30 0001628908 us-gaap:IntersegmentEliminationMember us-gaap:ServiceMember 2019-04-01 2019-06-30 0001628908 us-gaap:IntersegmentEliminationMember evh:PremiumsRevenueMember 2018-04-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:TransformationServicesMember evh:ServicesSegmentMember 2019-04-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:TransformationServicesMember evh:TrueHealthSegmentMember 2019-04-01 2019-06-30 0001628908 us-gaap:IntersegmentEliminationMember 2019-04-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember us-gaap:ServiceMember evh:ServicesSegmentMember 2018-04-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:TransformationServicesMember evh:TrueHealthSegmentMember 2018-04-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember us-gaap:ServiceMember evh:TrueHealthSegmentMember 2019-04-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PremiumsRevenueMember evh:TrueHealthSegmentMember 2018-01-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember us-gaap:ServiceMember evh:ServicesSegmentMember 2019-01-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:TransformationServicesMember evh:TrueHealthSegmentMember 2019-01-01 2019-06-30 0001628908 us-gaap:IntersegmentEliminationMember evh:PremiumsRevenueMember 2019-01-01 2019-06-30 0001628908 us-gaap:IntersegmentEliminationMember 2018-01-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PremiumsRevenueMember evh:ServicesSegmentMember 2019-01-01 2019-06-30 0001628908 us-gaap:ServiceMember 2019-01-01 2019-06-30 0001628908 us-gaap:IntersegmentEliminationMember us-gaap:ServiceMember 2019-01-01 2019-06-30 0001628908 us-gaap:IntersegmentEliminationMember evh:TransformationServicesMember 2018-01-01 2018-06-30 0001628908 us-gaap:IntersegmentEliminationMember evh:PlatformsAndOperationsServicesMember 2018-01-01 2018-06-30 0001628908 us-gaap:IntersegmentEliminationMember 2019-01-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PremiumsRevenueMember evh:ServicesSegmentMember 2018-01-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PremiumsRevenueMember evh:TrueHealthSegmentMember 2019-01-01 2019-06-30 0001628908 us-gaap:ServiceMember 2018-01-01 2018-06-30 0001628908 us-gaap:IntersegmentEliminationMember evh:PremiumsRevenueMember 2018-01-01 2018-06-30 0001628908 us-gaap:IntersegmentEliminationMember evh:PlatformsAndOperationsServicesMember 2019-01-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember us-gaap:ServiceMember evh:TrueHealthSegmentMember 2018-01-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PlatformsAndOperationsServicesMember evh:TrueHealthSegmentMember 2019-01-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PlatformsAndOperationsServicesMember evh:ServicesSegmentMember 2018-01-01 2018-06-30 0001628908 us-gaap:IntersegmentEliminationMember evh:TransformationServicesMember 2019-01-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:TransformationServicesMember evh:ServicesSegmentMember 2019-01-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember us-gaap:ServiceMember evh:TrueHealthSegmentMember 2019-01-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PlatformsAndOperationsServicesMember evh:TrueHealthSegmentMember 2018-01-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:PlatformsAndOperationsServicesMember evh:ServicesSegmentMember 2019-01-01 2019-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:TransformationServicesMember evh:TrueHealthSegmentMember 2018-01-01 2018-06-30 0001628908 us-gaap:IntersegmentEliminationMember us-gaap:ServiceMember 2018-01-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember evh:TransformationServicesMember evh:ServicesSegmentMember 2018-01-01 2018-06-30 0001628908 us-gaap:OperatingSegmentsMember us-gaap:ServiceMember evh:ServicesSegmentMember 2018-01-01 2018-06-30 0001628908 evh:TrueHealthSegmentMember 2018-01-01 2018-06-30 0001628908 evh:TrueHealthSegmentMember 2018-06-30 0001628908 evh:ServicesSegmentMember 2018-01-01 2018-06-30 0001628908 evh:ServicesSegmentMember 2018-06-30 0001628908 us-gaap:FairValueInputsLevel2Member 2018-12-31 0001628908 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0001628908 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember 2018-12-31 0001628908 us-gaap:FairValueInputsLevel2Member evh:YankeesSecuritiesMember 2018-12-31 0001628908 us-gaap:FairValueInputsLevel2Member us-gaap:OtherDebtSecuritiesMember 2018-12-31 0001628908 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember 2019-06-30 0001628908 us-gaap:FairValueInputsLevel2Member 2019-06-30 0001628908 us-gaap:FairValueInputsLevel2Member evh:YankeesSecuritiesMember 2019-06-30 0001628908 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember 2019-06-30 0001628908 us-gaap:FairValueInputsLevel2Member us-gaap:OtherDebtSecuritiesMember 2019-06-30 evh:segment xbrli:pure xbrli:shares iso4217:USD evh:reporting_unit iso4217:USD xbrli:shares

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________
FORM 10-Q
_________________________


(Mark One)
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
For the quarterly period ended June 30, 2019
OR
 
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
For the transition period from              to               
 
Commission File Number:  001-37415
_________________________
 Evolent Health, Inc.
(Exact name of registrant as specified in its charter)
_________________________
 
Delaware
 
 
 
 
 
 
 
32-0454912
 
 
(State or other jurisdiction of
incorporation or organization)
 
 
 
 
 
 
 
(I.R.S. Employer
Identification No.)
 
 
 
 
 
 
 
 
 
 
 
 
 
800 N. Glebe Road
,
Suite 500
,
Arlington
,
Virginia
 
22203
 
 
(Address of principal executive offices)
 
(Zip Code)
 
  
(571) 389-6000
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former name, former address and former fiscal year, if changed since last report.)
_________________________
 
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock of Evolent Health, Inc., par value $0.01 per share
EVH
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
 



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐

Smaller reporting company Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. ☐
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No  ☒
 
As of August 5, 2019, there were 83,812,845 shares of the registrant’s Class A common stock outstanding and 706,273 shares of the registrant’s Class B common stock outstanding.



Evolent Health, Inc.
Table of Contents

Item
 
Page
 
 
1.
2.
3.
4.
 
 
1.
1A.
2.
3.
4.
5.
6.
 





Explanatory Note

In this Quarterly Report on Form 10-Q, unless the context otherwise requires, “Evolent,” the “Company,” “we,” “our” and “us” refer to Evolent Health, Inc. and its consolidated subsidiaries. Evolent Health LLC, a subsidiary of Evolent Health, Inc. through which we conduct our operations, has owned all of our operating assets and substantially all of our business since inception. Evolent Health, Inc. is a holding company and its principal asset is all of the Class A common units of Evolent Health LLC.
 
FORWARD-LOOKING STATEMENTS - CAUTIONARY LANGUAGE
 
Certain statements made in this report and in other written or oral statements made by us or on our behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: “believe,” “anticipate,” “expect,” “estimate,” “aim,” “predict,” “potential,” “continue,” “plan,” “project,” “will,” “should,” “shall,” “may,” “might” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services, future performance or financial results and the outcome of contingencies, such as legal proceedings. We claim the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.
 
These statements are only predictions based on our current expectations and projections about future events. Forward-looking statements involve risks and uncertainties that may cause actual results, level of activity, performance or achievements to differ materially from the results contained in the forward-looking statements. Risks and uncertainties that may cause actual results to vary materially, some of which are described within the forward-looking statements, include, among others: 
 
the significant portion of revenue we derive from our largest partners, and the potential loss, termination or renegotiation of our relationship or contract with Passport or another significant partner, or multiple partners in the aggregate;
uncertainty relating to expected future revenues from and our relationship with one of our largest customers, Passport, and the value of our pending investment in Passport, including as a result of the ongoing Medicaid request for proposal process in the Commonwealth of Kentucky;
the structural change in the market for health care in the United States;
uncertainty in the health care regulatory framework, including the potential impact of policy changes;
uncertainty in the public exchange market;
the uncertain impact of CMS waivers to Medicaid rules and changes in membership and rates;
the uncertain impact the results of elections may have on health care laws and regulations;
our ability to effectively manage our growth and maintain an efficient cost structure;
our ability to offer new and innovative products and services;
risks related to completed and future acquisitions, investments, alliances and joint ventures, including the partnership with GlobalHealth, the acquisition of assets from New Mexico Health Connections (“NMHC”), and the acquisitions of Valence Health Inc., excluding Cicerone Health Solutions, Inc. (“Valence Health”), Aldera Holdings, Inc. (“Aldera”), NCIS Holdings, Inc. (“New Century Health”), and the pending transactions with Passport, which may be difficult to integrate, divert management resources, or result in unanticipated costs or dilute our stockholders;
our ability to consummate opportunities in our pipeline;
certain risks and uncertainties associated with the pending Passport transaction, the acquisition of assets from NMHC and the acquisitions of Valence Health, Aldera and New Century Health, including future revenues may be less than expected, the timing and extent of new lives expected to come onto the platform may not occur as expected and the expected results of Evolent may not be impacted as anticipated;
risks relating to our ability to maintain profitability for our and New Century Health’s performance-based contracts and products, including capitation and risk-bearing contracts;
the growth and success of our partners, which is difficult to predict and is subject to factors outside of our control, including governmental funding reductions and other policy changes, enrollment numbers for our partners’ plans (including in Florida), premium pricing reductions, selection bias in at-risk membership and the ability to control and, if necessary, reduce health care costs;
our ability to attract new partners and successfully capture new growth opportunities;
the increasing number of risk-sharing arrangements we enter into with our partners;
our ability to recover the significant upfront costs in our partner relationships;
our ability to estimate the size of our target markets;
our ability to maintain and enhance our reputation and brand recognition;
consolidation in the health care industry;
competition which could limit our ability to maintain or expand market share within our industry;
risks related to governmental payer audits and actions, including whistleblower claims;
our ability to partner with providers due to exclusivity provisions in our contracts;
restrictions and penalties as a result of privacy and data protection laws;
adequate protection of our intellectual property, including trademarks;
any alleged infringement, misappropriation or violation of third-party proprietary rights;

1


our use of “open source” software;
our ability to protect the confidentiality of our trade secrets, know-how and other proprietary information;
our reliance on third parties and licensed technologies;
our ability to use, disclose, de-identify or license data and to integrate third-party technologies;
data loss or corruption due to failures or errors in our systems and service disruptions at our data centers;
online security risks and breaches or failures of our security measures, including with respect to privacy of health information;
our reliance on Internet infrastructure, bandwidth providers, data center providers, other third parties and our own systems for providing services to our users;
our reliance on third-party vendors to host and maintain our technology platform;
our ability to contain health care costs, implement increases in premium rates on a timely basis, maintain adequate reserves for policy benefits or maintain cost effective provider agreements;
the risk of a significant reduction in the enrollment in our health plan;
our ability to accurately underwrite performance-based risk-bearing contracts;
risks related to our offshore operations;
our dependency on our key personnel, and our ability to attract, hire, integrate and retain key personnel;
the risk of potential future goodwill and intangible asset impairment on our results of operations;
our indebtedness and our ability to obtain additional financing;
our ability to achieve profitability in the future;
the requirements of being a public company;
our adjusted results may not be representative of our future performance;
the risk of potential future litigation;
the impact of changes in accounting principles and guidance on our reported results;
our holding company structure and dependence on distributions from Evolent Health LLC;
our obligations to make payments to certain of our pre-IPO investors for certain tax benefits we may claim in the future;
our ability to utilize benefits under the tax receivables agreement described herein;
our ability to realize all or a portion of the tax benefits that we currently expect to result from past and future exchanges of Class B common units of Evolent Health LLC for our Class A common stock, and to utilize certain tax attributes of Evolent Health Holdings and an affiliate of TPG Global, LLC (along with its affiliates, “TPG”);
distributions that Evolent Health LLC will be required to make to us and to the other members of Evolent Health LLC;
our obligations to make payments under the tax receivables agreement that may be accelerated or may exceed the tax benefits we realize;
different interests among our pre-IPO investors, or between us and our pre-IPO investors;
the terms of agreements between us and certain of our pre-IPO investors;
the conditional conversion feature of the 2025 Notes, which, if triggered, could require us to settle the 2025 Notes in cash;
the impact of the accounting method for convertible debt securities that may be settled in cash;
the potential volatility of our Class A common stock price;
the potential decline of our Class A common stock price if a substantial number of shares are sold or become available for sale or if a large number of Class B common units are exchanged for shares of Class A common stock;
provisions in our second amended and restated certificate of incorporation and second amended and restated by-laws and provisions of Delaware law that discourage or prevent strategic transactions, including a takeover of us;
the ability of certain of our investors to compete with us without restrictions;
provisions in our second amended and restated certificate of incorporation which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees;
our intention not to pay cash dividends on our Class A common stock;
our ability to maintain effective internal control over financial reporting;
our expectations regarding the additional management attention and costs that will be required as we have transitioned from an “emerging growth company” to a “large accelerated filer”; and
our lack of public company operating experience.
 
The risks included here are not exhaustive. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Our Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”), this Form 10-Q and other documents filed with the SEC include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.
 
Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we

2


disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this report.

3


PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
EVOLENT HEALTH, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share data)
 
 
As of
 
 
As of
 
 
June 30,
December 31,
  
 
2019
 
 
2018
 
ASSETS
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 
$
92,821

 
 
$
228,320

 
Restricted cash and restricted investments
 
38,619

 
 
154,718

 
Accounts receivable, net (amounts attributable to related parties: 2019 - $6,260; 2018 - $8,519)
 
71,379

 
 
80,208

 
Prepaid expenses and other current assets (amounts attributable to related parties: 2019 - $109; 2018 - $85)
 
32,810

 
 
22,618

 
Investments, at amortized cost
 
4,048

 
 

 
Contract assets
 
1,187

 
 
2,102

 
Total current assets
 
240,864

 
 
487,966

 
Restricted cash and restricted investments
 
6,539

 
 
6,105

 
Investments, at amortized cost
 
13,084

 
 
10,010

 
Investments in and advances to equity method investees
 
59,167

 
 
6,276

 
Property and equipment, net
 
80,217

 
 
73,628

 
Right-of-use assets - operating
 
76,712

 
 

 
Customer advance for regulatory capital requirements
 
40,000

 
 

 
Prepaid expenses and other noncurrent assets (amounts attributable to related parties: 2019 - $3,500; 2018 - $2,500)
 
10,947

 
 
15,028

 
Contract assets
 
1,491

 
 
961

 
Contract cost assets
 
24,485

 
 
19,147

 
Intangible assets, net
 
326,586

 
 
335,036

 
Goodwill
 
772,164

 
 
768,124

 
Total assets
 
$
1,652,256

 
 
$
1,722,281

 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
Accounts payable (amounts attributable to related parties: 2019 - $3,950; 2018 - $1,564)
 
28,758

 
 
146,760

 
Accrued liabilities (amounts attributable to related parties: 2019 - $440; 2018 - $798)
 
52,631

 
 
48,957

 
Operating lease liabilities - current
 
4,649

 
 

 
Accrued compensation and employee benefits
 
26,860

 
 
25,460

 
Deferred revenue
 
26,923

 
 
20,584

 
Reserve for claims and performance-based arrangements (amounts attributable to related parties: 2019 - $5,894; 2018 - $0)
 
33,052

 
 
27,595

 
Total current liabilities
 
172,873

 
 
269,356

 
Long-term debt, net of discount
 
225,642

 
 
221,041

 
Other long-term liabilities
 
10,423

 
 
17,090

 
Operating lease liabilities - noncurrent
 
70,796

 
 

 
Deferred tax liabilities, net
 
25,766

 
 
25,438

 
Total liabilities
 
505,500

 
 
532,925

 
 
 
 
 
 
 
 
Commitments and Contingencies (See Note 9)
 

 
 

 
 
 
 
 
 
 
 
Shareholders' Equity (Deficit)
 
 
 
 
 
 
Class A common stock - $0.01 par value; 750,000,000 shares authorized as of June 30, 2019 and December 31, 2018;
 
 
 
 
 
 
83,814,852 and 79,172,118 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
 
838

 
 
792

 
Class B common stock - $0.01 par value; 100,000,000 shares authorized as of June 30, 2019 and December 31, 2018;
 
 
 
 
 
 
706,273 and 3,190,301 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
 
7

 
 
31

 
Additional paid-in capital
 
1,158,325

 
 
1,093,174

 
Accumulated other comprehensive income (loss)
 
(147
)
 
 
(182
)
 
Retained earnings (accumulated deficit)
 
(28,345
)
 
 
50,009

 
Total shareholders' equity (deficit) attributable to Evolent Health, Inc.
 
1,130,678

 
 
1,143,824

 
Non-controlling interests
 
16,078

 
 
45,532

 
Total shareholders' equity (deficit)
 
1,146,756

 
 
1,189,356

 
Total liabilities and shareholders' equity (deficit)
 
$
1,652,256

 
 
$
1,722,281

 


See accompanying Notes to Consolidated Financial Statements
4


EVOLENT HEALTH, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited, in thousands, except per share data)

 
For the Three
 
For the Six
 
Months Ended
 
Months Ended
 
June 30,
 
June 30,
 
2019

2018
 
2019
 
2018
Revenue
 
 
 
 
 
 
 
Transformation services (1)
$
1,944

 
$
8,215

 
$
5,297

 
$
14,720

Platform and operations services (1)
144,522

 
113,346

 
291,814

 
223,164

Premiums
45,493

 
22,737

 
92,604

 
46,128

Total revenue
191,959

 
144,298

 
389,715

 
284,012

 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
Cost of revenue (exclusive of depreciation and amortization
 
 
 
 
 
 
 
expenses presented separately below) (1)
108,383

 
69,003

 
225,824

 
140,978

Claims expenses
36,085

 
18,428

 
73,842

 
35,177

Selling, general and administrative expenses (1)
66,932

 
57,403

 
141,770

 
112,929

Depreciation and amortization expenses
15,292

 
10,034

 
29,558

 
19,530

(Gain) loss on disposal of assets
(9,600
)
 

 
(9,600
)
 

Change in fair value of contingent consideration and indemnification asset
100

 
(1,604
)
 
200

 
(1,504
)
Total operating expenses
217,192

 
153,264

 
461,594

 
307,110

Operating income (loss)
(25,233
)
 
(8,966
)
 
(71,879
)
 
(23,098
)
Interest income
842

 
878

 
1,902

 
1,950

Interest expense
(3,620
)
 
(855
)
 
(7,182
)
 
(1,708
)
Income (loss) from equity method investees
(1,904
)
 
(1,275
)
 
(2,328
)
 
(1,406
)
Other income (expense), net
(587
)
 
78

 
(160
)
 
60

Income (loss) before income taxes and non-controlling interests
(30,502
)
 
(10,140
)
 
(79,647
)
 
(24,202
)
Provision (benefit) for income taxes
1,398

 
(109
)
 
902

 
(106
)
Net income (loss)
(31,900
)
 
(10,031
)
 
(80,549
)
 
(24,096
)
Net income (loss) attributable to non-controlling interests
(285
)
 
(115
)
 
(2,195
)
 
(554
)
Net income (loss) attributable to Evolent Health, Inc.
$
(31,615
)
 
$
(9,916
)
 
$
(78,354
)
 
$
(23,542
)
 
 
 
 
 
 
 
 
Earnings (Loss) Available for Common Shareholders
 
 
 
 
 
 
 
Basic and Diluted
$
(31,615
)
 
$
(9,916
)
 
$
(78,354
)
 
$
(23,542
)
 
 
 
 
 
 
 
 
Earnings (Loss) per Common Share
 
 
 
 
 
 
 
Basic and Diluted
$
(0.38
)
 
$
(0.13
)
 
$
(0.97
)
 
$
(0.31
)
 
 
 
 
 
 
 
 
Weighted-Average Common Shares Outstanding
 
 
 
 
 
 
 
Basic and Diluted
82,289

 
77,209

 
80,820

 
76,297

 
 
 
 
 
 
 
 
Comprehensive income (loss)
 
 
 
 
 
 
 
Net income (loss)
$
(31,900
)
 
$
(10,031
)
 
$
(80,549
)
 
(24,096
)
Other comprehensive income (loss), net of taxes, related to:
 
 
 
 
 
 
 
Foreign currency translation adjustment
11

 
(148
)
 
35

 
(148
)
Total comprehensive income (loss)
(31,889
)
 
(10,179
)
 
(80,514
)
 
(24,244
)
Total comprehensive income (loss) attributable to non-controlling interests
(285
)
 
(115
)
 
(2,195
)
 
(554
)
Total comprehensive income (loss) attributable to Evolent Health, Inc.
$
(31,604
)
 
$
(10,064
)
 
$
(78,319
)
 
$
(23,690
)

(1) See Note 17 for amounts related to related parties included in these line items.



See accompanying Notes to Consolidated Financial Statements
5



EVOLENT HEALTH, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)

 
For the Six
 
Months Ended
 
June 30,
  
2019
 
2018
Cash Flows from Operating Activities
 
 
 
Net income (loss)
$
(80,549
)
 
$
(24,096
)
Adjustments to reconcile net income (loss) to net cash and restricted cash
 
 
 
provided by (used in) operating activities:
 
 
 
(Income) loss from equity method investees
2,328

 
1,406

(Gain) loss on disposal of assets
(9,600
)
 

Change in fair value of contingent consideration and indemnification asset
200

 
(1,504
)
Depreciation and amortization expenses
29,558

 
19,530

Amortization of deferred financing costs
4,600

 
459

Stock-based compensation expense
9,287

 
8,513

Deferred tax provision (benefit)
782

 
(171
)
Amortization of contract cost assets
2,773

 
1,166

Other
527

 
(55
)
Changes in assets and liabilities, net of acquisitions:
 
 
 
Accounts receivables, net and contract assets
9,891

 
(21,286
)
Prepaid expenses and other current and noncurrent assets
(8,882
)
 
(12,753
)
Contract cost assets
(8,110
)
 
(762
)
Accounts payable
1,025

 
(342
)
Accrued liabilities
(4,167
)
 
6,140

Accrued compensation and employee benefits
1,394

 
(12,846
)
Deferred revenue
6,339

 
8,267

Reserves for claims and performance-based arrangements
5,457

 
9,466

ROU operating assets
(25,350
)
 

Operating lease liabilities
28,041

 

Other long-term liabilities
(4,786
)
 
864

Net cash and restricted cash provided by (used in) operating activities
(39,242
)
 
(18,004
)
 
 
 
 
Cash Flows from Investing Activities
 
 
 
Cash paid for asset acquisitions or business combinations
(6,000
)
 
(11,676
)
Customer advance for regulatory capital requirements
(45,400
)
 

Principal repayment of implementation funding loan and regulatory capital requirements
2,830

 
8,000

Amount received from escrow in asset acquisition

 
500

Purchases of investments
(7,122
)
 

Investments in and advances to equity method investees
(16,892
)
 
(4,000
)
Investments in internal-use software and purchases of property and equipment
(17,739
)
 
(20,243
)
Purchases of restricted investments
(493
)
 

Maturities of restricted investments

 
8,043

Net cash and restricted cash provided by (used in) investing activities
(90,816
)
 
(19,376
)
 
 
 
 
Cash Flows from Financing Activities
 
 
 
Changes in working capital balances related to claims processing on behalf of partners
(119,506
)
 
(7,258
)
Amount received from escrow in asset acquisition
500

 

Deferred financing costs related to 2025 Notes
(608
)
 

Proceeds from stock option exercises
948

 
4,692

Taxes withheld and paid for vesting of restricted stock units
(2,405
)
 
(1,099
)
Net cash and restricted cash provided by (used in) financing activities
(121,071
)
 
(3,665
)
Effect of exchange rate on cash and cash equivalents and restricted cash
(29
)
 
7

Net increase (decrease) in cash and cash equivalents and restricted cash
(251,158
)
 
(41,038
)
Cash and cash equivalents and restricted cash as of beginning-of-period
388,325

 
295,363

Cash and cash equivalents and restricted cash as of end-of-period
$
137,167

 
$
254,325


See accompanying Notes to Consolidated Financial Statements
6




EVOLENT HEALTH, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT)
(unaudited, in thousands)

 
For the Three Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Accum-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ulated
 
 
Retained
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
Earnings
 
 
 
 
 
Class A
 
Class B
 
Additional
 
Comprehensive
 
(Accum-
 
Non-
 
Total
 
Common Stock
 
Common Stock
 
Paid-in
 
 
Income
 
 
ulated
 
Controlling
 
Equity
 
Shares
 
Amount
 
Shares
 
Amount
 
Capital
 
 
(Loss)
 
 
Deficit)
 
Interests
 
(Deficit)
Balance as of March 31, 2019
79,429

 
$
794

 
3,190

 
$
31

 
$
1,096,089

 
 
$
(158
)
 
 
$
3,270

 
$
50,100

 
$
1,150,126

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation expense

 

 

 

 
4,362

 
 

 
 

 

 
4,362

Exercise of stock options
93

 
1

 

 

 
822

 
 

 
 

 

 
823

Restricted stock units vested, net of shares withheld for taxes
77

 
1

 

 

 
(223
)
 
 

 
 

 

 
(222
)
Shares issued for equity-method investments and asset acquisitions
1,732

 
18

 

 

 
23,538

 
 

 
 

 

 
23,556

Exchange of Class B common stock
2,484

 
24

 
(2,484
)
 
(24
)
 
33,946

 
 

 
 

 
(33,946
)
 

Foreign currency translation adjustment

 

 

 

 

 
 
11

 
 

 

 
11

Net income (loss)

 

 

 

 

 
 

 
 
(31,615
)
 
(285
)
 
(31,900
)
Reclassification of non-controlling interests

 

 

 

 
(209
)
 
 

 
 

 
209

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2019
83,815

 
$
838

 
706

 
$
7

 
$
1,158,325

 
 
$
(147
)
 
 
$
(28,345
)
 
$
16,078

 
$
1,146,756

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Accum-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ulated
 
 
Retained
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
Earnings
 
 
 
 
 
Class A
 
Class B
 
Additional
 
Comprehensive
 
(Accum-
 
Non-
 
Total
 
Common Stock
 
Common Stock
 
Paid-in
 
 
Income
 
 
ulated
 
Controlling
 
Equity
 
Shares
 
Amount
 
Shares
 
Amount
 
Capital
 
 
(Loss)
 
 
Deficit)
 
Interests
 
(Deficit)
Balance as of March 31, 2018
76,979

 
$
770

 
881

 
$
9

 
$
953,322

 
 
$

 
 
$
89,041

 
$
11,772

 
$
1,054,914

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation expense

 

 

 

 
4,718

 
 

 
 

 

 
4,718

Exercise of stock options
412

 
4

 

 

 
3,227

 
 

 
 

 

 
3,231

Restricted stock units vested, net of shares withheld for taxes
72

 
1

 

 

 
(300
)
 
 

 
 

 

 
(299
)
Exchange of Class B common stock
115

 
1

 
(115
)
 
(1
)
 
1,529

 
 

 
 

 
(1,529
)
 

Settlement of indemnification asset

 

 

 

 
(1,004
)
 
 

 
 

 

 
(1,004
)
Foreign Currency Translation Adjustment

 

 

 

 

 
 
(148
)
 
 

 

 
(148
)
Net income (loss)

 

 

 

 

 
 

 
 
(9,916
)
 
(115
)
 
(10,031
)
Reclassification of non-controlling interests

 

 

 

 
(20
)
 
 

 
 

 
20

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2018
77,578

 
$
776

 
766

 
$
8

 
$
961,472

 
 
$
(148
)
 
 
$
79,125

 
$
10,148

 
$
1,051,381


See accompanying Notes to Consolidated Financial Statements
7


EVOLENT HEALTH, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT)
(unaudited, in thousands)

 
For the Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Accum-