Financial Analysis

Commitments and Contingencies Legal Proceedings We record a liability and accrue the costs for a loss when an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. In some cases, no estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made because of the inherently unpredictable nature of legal and regulatory proceedings. While the liability and accrued costs reflect our best estimate, the actual amounts may materially be different. Whistleblower Complaint On July 7, 2026, a former executive officer filed a lawsuit against the Company and certain officers in the U.S. District Court for the Central District of California alleging whistleblower retaliation, constructive discharge, breach of contract and compensation-related claims. The plaintiff alleges that these actions were taken after he reported concerns of accounting irregularities. The Company believes the claims are without merit and intends to defend the matter vigorously. No accrual has been included in the accompanying condensed consolidated financial statements with respect to this lawsuit. We may be involved in various litigation matters in the ordinary course of business. In the opinion of management, the ultimate resolution of legal proceedings is not expected to have a material adverse effect on the condensed consolidated financial statements. Amounts accrued for legal proceedings were not material as of June 30, 2026 and December 31, 2025. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Earned premium revenue consisted of premium revenue and capitation revenue for the three and six months ended June 30, 2026 and 2025 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Premium $ 1,326,344 $ 1,004,580 $ 2,552,652 $ 1,921,202 Capitation 281 1,623 539 3,044 Total $ 1,326,625 $ 1,006,203 $ 2,553,191 $ 1,924,246

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"Equity-Based Compensation Equity Awards Stock Options Our outstanding stock options generally vest 25% annually over four years and generally expire 10 years from the date of the grant. The 2021 Equity Incentive Plan (Plan) provides that stock option grants will be made with an exercise price at no less than the estimated fair value of common stock at the date of the grant. The following is a summary of the stock option transactions as of and for the three and six months ended June 30, 2026: Stock Options Outstanding (amounts in thousands, except shares and per share amount) Shares Subject to Options Outstanding Weighted- Average Exercise Price per Option Weighted- Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value Balances as of December 31, 2025 7,408,212 $ 17.05 5.28 $ 20,001 Options granted Options exercised (137,087) 15.85 Options forfeited / expired (216,537) 18.00 Balances as of March 31, 2026 7,054,588 17.05 5.03 6,477 Options granted Options exercised (231,672) 16.96 Options forfeited / expired (3,400) 18.00 Balances as of June 30, 2026 6,819,516 17.05 4.78 46,106 Vested and Exercisable as of June 30, 2026 6,810,562 $ 17.09 4.78 $ 46,002 Aggregate intrinsic value represents the difference between the exercise price of the option and the closing price of our common stock. The aggregate intrinsic value of options exercised for the three and six months ended June 30, 2026 was $1,588 and $2,679, respectively. No options were granted during the thre …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value The following tables present the carrying value and fair value of these financial instruments as of June 30, 2026 and December 31, 2025: June 30, 2026 Fair Value Carrying Value Level 1 Level 2 Level 3 U.S. Treasury bills $ 16,160 $ 16,159 $ $ Certificate of deposits 2,353 2,353 Total $ 18,513 $ 16,159 $ 2,353 $ December 31, 2025 Fair Value Carrying Value Level 1 Level 2 Level 3 U.S. Treasury bills $ 29,456 $ 29,465 $ $ Certificate of deposits 2,345 2,345 Total $ 31,801 $ 29,465 $ 2,345 $ The Company estimates the fair value of its convertible senior notes based on valuations provided by third-party pricing services. Fair value of the long-term debt as of June 30, 2026 was approximately $562,494. The Company's fair value of long-term debt disclosure is classified within Level 2 of the valuation hierarchy. As of December 31, 2025, the fair value of our long-term debt was approximately $514,164. The carrying value of long-term debt represents the outstanding balance, net of unamortized debt issuance costs which was $324,056 and $323,176 as of June 30, 2026 and December 31, 2025, respectively. Our nonfinancial assets and liabilities, which include goodwill, intangible assets, property, and equipment, are not required to be measured at fair value on a recurring basis. However, on a periodic basis, or whenever events or changes in circumstances indicate that their carrying value may not be recoverable, we assess these assets for impairment. No such impairment resulted du …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets Intangible assets consisted of the following as of June 30, 2026 and December 31, 2025: June 30, 2026 Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted Average Life Goodwill $ 32,060 $ $ 32,060 License (indefinite lived) 4,550 4,550 Plan member relationships 2,700 (2,700) 9 years Other 633 (633) 2 - 10 years Total $ 39,943 $ (3,333) $ 36,610 December 31, 2025 Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted Average Life Goodwill $ 32,060 $ $ 32,060 License (indefinite lived) 4,550 4,550 Plan member relationships 2,700 (2,700) 9 years Other 633 (633) 2 - 10 years Total $ 39,943 $ (3,333) $ 36,610 Amortization expense relating to intangible assets for the three months ended June 30, 2026 and 2025 was $0. Amortization expense relating to intangible assets for the six months ended June 30, 2026 and 2025, was $0 and $634, respectively. Included within the amortization balance for the six months ended June 30, 2025 was $634 in impairment charges related to the remeasurement of goodwill associated with one of our subsidiaries. …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Income Taxes For the three and six months ended June 30, 2026, we recorded income tax expense of $1,266 and $1,291. For the three and six months ended June 30, 2025 we recorded income tax expense of $3,224 and $3,245. The change in tax for the three months ended June 30, 2026 when compared to the three months ended June 30, 2025 is primarily attributable to a change in state taxes. Our future effective tax rate may vary from the statutory tax rate primarily due to changes in our valuation allowance, state taxes, and excess executive compensation. We have federal and state cumulative net operating losses (""NOLs"") as of June 30, 2026 and December 31, 2025. Given the history of losses, and after consideration for the risk associated with estimates of future taxable income, we established a full valuation allowance against net deferred tax assets at June 30, 2026 and 2025. Under the Tax Cuts and Jobs Act (TCJA), federal NOLs generated after 2017 will be carried forward indefinitely but are limited to an 80% deduction of taxable income. NOLs generated prior to 2018 have a 20-year carryforward period and can be used to offset 100% of taxable income. An exception to the TCJA federal NOL rule applies to certain of our subsidiaries and requires all NOLs generated from those entities to have a 20-year carryforward period and offset 100% of taxable income. For the year ended December 31, 2025 federal and state NOL carryforwards were $617,001 and $531,012, respectively. $95,332 of the …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Long-Term Debt Long-term debt is recorded at carrying value in the condensed consolidated balance sheets. The carrying value of long-term debt outstanding, net of unamortized debt issuance costs, consisted of the following as of June 30, 2026 and December 31, 2025: June 30, 2026 December 31, 2025 Long-term debt $ 330,000 $ 330,000 Less unamortized debt issuance costs (5,944) (6,824) Long-term debt-net of amortization 324,056 323,176 Less current maturities of long-term debt Long-term debt - net of current portion $ 324,056 $ 323,176 Convertible Senior Notes On November 22, 2024 the Company completed the sale of $330,000 of our 4.25% Convertible Senior Notes (the Notes). The Notes were issued pursuant to an indenture (the Indenture), dated as of November 22, 2024, between the Company and U.S. Bank Trust Company, National Association, as trustee (the Trustee). The Notes are senior, unsecured obligations of the Company, and interest will be payable semi-annually in arrears at a rate of 4.25% per annum beginning on May 15, 2025. The Notes will mature on November 15, 2029, unless earlier repurchased, redeemed or converted in accordance with their terms. The net cash proceeds from the sale of the Notes was approximately $321,100, after subtracting fees, discounts and estimated expenses in connection with the transaction. Prior to the close of business on the business day immediately preceding August 15, 2029, the Notes will be convertible at the option of holders during certain per …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"In December 2025, the FASB issued ASU 2025-11 ""Interim Reporting (Topic 270): Narrow-Scope Improvements"", which clarifies and reorganizes existing U.S. GAAP guidance for interim financial reporting without changing the underlying disclosure requirements. The update refines the scope of Topic 270 to apply to entities that present a complete set of interim financial statements (or condensed financial statements with accompanying notes) and introduces a more principles-based disclosure objective focused on reporting material changes since the most recent annual reporting period. It also consolidates and streamlines interim disclosure guidancepreviously dispersed across various topicsinto a more accessible framework within Topic 270, with the goal of improving consistency and usability in practice while avoiding unnecessary repetition of annual disclosures. ASU 2025-11 is effective for public business entities for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its financial statements. In September 2025, the FASB issued ASU 2025-06 ""IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software"", which removes the multi-stage model when determining internal-use software development cost capitalization. Under the new ASU, such software costs are capitalized when management has authorized and committed to fund …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The balance sheet as of December 31, 2025, included herein, was derived from audited financial statements, but does not include all disclosures required by GAAP. In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (""SEC""), the Company has omitted certain footnote disclosures that would substantially duplicate the disclosures contained in its annual audited consolidated financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year-ended December 31, 2025 as filed with the SEC. Management believes that the accompanying condensed consolidated financial statements include all normal and recurring adjustments necessary to present the interim financial statements fairly. Furthermore, the condensed consolidated financial statements include the accounts of the Company, our subsidiaries, and three immaterial variable interest entities in which we are the primary beneficiary. All intercompany transactions have been eliminated in consolidation. We have no components of other comprehensive income, and accordingly, comprehensive income is the same as the net income for all pe …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing