August 8, 2025
Kaiser Permanente and Risant Health Q2 2025 financial update
The organizations continue to deliver high-quality, affordable care and service while navigating a dynamic health care environment.
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 $32.1 billion and operating expenses of $31.1 billion in the second quarter of 2025. Operating revenues were $29.1 billion and operating expenses were $28.2 billion for the same period in 2024. Operating income was $1.0 billion in the second quarter compared to $908 million in the second quarter of 2024.
KFHP/H & Risant Health continued to experience high member utilization, care acuity, and related care delivery costs in the second quarter, partially offset by management of discretionary spending and additional business function efficiencies. Historically, operating income is strongest in the first half of the year due to the timing of the open enrollment cycle for Kaiser Permanente’s health plan. Operating income is typically lower in the last half of the year as expenses tend to increase throughout the year, while revenue stays relatively flat.
Favorable financial market conditions in the second quarter drove nonoperating income of $2.2 billion compared to $1.2 billion in the second quarter of 2024. Net income in the second quarter was $3.3 billion compared to net income of $2.1 billion in the second quarter of 2024.
“While we are pleased with our second-quarter performance, like others in the health care industry, Kaiser Permanente is navigating a shifting landscape marked by an aging population and evolving consumer expectations, as well as the recently enacted federal budget reconciliation bill, which will reduce health care coverage and funding as health care costs rise,” said chair and chief executive officer Greg A. Adams. “To meet these challenges, we are focused on enhancing quality, service, and access, and redesigning our cost structure as we lead the shift toward value-based care that prioritizes affordability and improved patient outcomes.”
Membership
Membership across Kaiser Permanente and Risant Health affiliates was more than 13.1 million as of June 30, 2025.
Capital spending
Capital spending was $1.1 billion in the second quarter compared to $889 million in the second quarter of the prior year. Ongoing investments in facilities and technology support care and operations, allowing Kaiser Permanente and Risant Health to meet members’ needs now and into the future.
“In the second quarter, we continued to invest in our people, facilities, and technology to deliver the high-quality care and service that our members and patients expect,” said executive vice president and chief financial officer Kathy Lancaster. “We are also leveraging innovation, strengthening performance, and accelerating efficiencies to drive affordability and prepare for the financial impact of the new federal budget bill.”
Q2 2025 and Q2 2024 KFHP/H & Risant Health financial summary
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.
