Kaiser Permanente
11/07/2025 | Press release | Distributed by Public on 11/07/2025 17:39
Kaiser Permanente and Risant Health Q3 2025 financial update
Financial results
Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals, Risant Health, Inc., and their respective subsidiaries and affiliates (KFHP/H & Risant Health) reported consolidated operating revenues of $31.8 billion and operating expenses of $31.6 billion in the third quarter of 2025 ending September 30. Operating revenues were $29.0 billion and operating expenses were $29.6 billion for the same period in 2024. Operating income was $218 million in the third quarter compared to an operating loss of $608 million in the third quarter of 2024. The operating margin was 0.7% in the third quarter - below the average for nonprofit health care organizations - compared to an operating margin of -2.1% in the third quarter of 2024.
Investment and other nonoperating income were consistent with third quarter favorable financial market conditions - resulting in nonoperating income of $2.4 billion in the third quarter compared to $1.5 billion in the third quarter of 2024. While operating income for the third quarter was low, investment returns lifted net income to $2.6 billion in the third quarter compared to net income of $845 million in the third quarter of 2024. Nonoperating income is used to support ongoing and future capital needs, while adequate operating income is required to support the organizations' long-term sustainability.
"There are new and ongoing challenges in health care, ranging from an aging and sicker population to the impacts of the federal budget bill that will reduce health care coverage and funding as health care costs rise," said chair and chief executive officer Greg A. Adams. "These challenges strengthen our resolve to fulfill our mission to provide high-quality, affordable care as we expand access to value-based care. This includes delivering the right care at the right place and providing evidence-based care everywhere we operate. I want to thank our employees and physicians for all they do in service to our members and our mission."
Membership
Membership across Kaiser Permanente and Risant Health affiliates was more than 13.1 million as of September 30, 2025.
Capital spending
Capital spending was $1.3 billion in the third quarter compared to $922 million in the third quarter of 2024, reflecting a commitment to maintaining facilities and providing technology to better serve members.
"Like others in health care, we face inflation, rising care acuity, high pharmaceutical costs, and increasing labor expenses, all of which continue to narrow our operating margin," said executive vice president and chief financial officer Kathy Lancaster. "Despite these headwinds, we continue to drive affordability for our members while maintaining quality and improving access and the member experience."
Q3 2025 and Q3 2024 KFHP/H & Risant Health financial summary
| $ in millions, except % | Q3 2025 | Q3 2024 |
| Operating revenues | $31,809 | $28,967 |
| Operating expenses | $31,591 | $29,575 |
| Operating income (loss) | $218 | ($608) |
| Operating margin (loss) | 0.7% | (2.1%) |
| Investment and other nonoperating income | $2,359 | $1,453 |
| Net income | $2,577 | $845 |
| Capital spending | $1,269 | $922 |
Note: Certain statements included in this document may constitute "forward-looking statements." Such statements are generally identifiable by the terminology used, such as "plan," "project," "forecast," "expect," "estimate," "budget," or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involves known and unknown risks, uncertainties, and other factors, which may cause actual results, performance, or achievements described to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Accordingly, actual results will vary and the variations may be material. None of the KFHP/H & Risant Health organizations plan to issue any updates or revisions to those forward-looking statements if or when expectations change, or events, conditions, or circumstances on which such statements are based occur.
Kaiser Permanente published this content on November 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on November 07, 2025 at 23:39 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]