Evolent Health (EVH) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 05, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Evolent Health, Inc.
Entity Central Index Key	1,628,908
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Class A
Entity Common Stock, Shares Outstanding		41,475,498
Class B
Entity Common Stock, Shares Outstanding		17,524,596

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 208,157	$ 0
Restricted cash	1,322	0
Accounts receivable, net (amounts related to affiliates: 2015 - $4,468; 2014 - zero)	30,541	0
Prepaid expenses and other current assets	3,520	0
Investments, at amortized cost	2,023	0
Deferred tax assets, net	658	1,074
Total current assets	246,221	1,074
Restricted cash	2,511	0
Investments, at amortized cost	22,048	0
Property and equipment, net	10,755	0
Goodwill	608,903	0
Intangible assets, net	165,661	0
Other non-current assets	82	0
Equity method investment	0	37,203
Total assets	1,056,181	38,277
Current liabilities:
Accounts payable (amounts related to affiliates: 2015 - $5,464; 2014 - zero)	12,642	0
Accrued liabilities (amounts related to affiliates: 2015 - $883; 2014 - zero)	21,682	0
Deferred revenue	33,466	0
Investment payable	22,048	0
Total current liabilities	89,838	0
Other long-term liabilities	67	0
Deferred tax liabilities, net	30,224	1,074
Total liabilities	$ 120,129	$ 1,074
Commitments and Contingencies (See Note 8)
Redeemable Preferred Stock
Redeemable preferred stock, value	$ 0	$ 39,273
Shareholders' Equity (Deficit)
Additional paid-in-capital	335,269	23,733
Retained earnings (accumulated deficit)	310,807	(25,806)
Total shareholders' equity (deficit) attributable to Evolent Health, Inc.	646,666	(2,070)
Non-controlling interests	289,386	0
Total equity (deficit)	936,052	(2,070)
Total liabilities, redeemable preferred stock and shareholders' equity (deficit)	1,056,181	38,277
Series A Preferred Stock
Shareholders' Equity (Deficit)
Preferred stock	0	2
Class A
Shareholders' Equity (Deficit)
Common stock	415	1
Class B
Shareholders' Equity (Deficit)
Common stock	175	0
Preferred Stock | Series A Redeemable Preferred Stock
Redeemable Preferred Stock
Redeemable preferred stock, value	0	12,847
Preferred Stock | Series B Redeemable Preferred Stock
Redeemable Preferred Stock
Redeemable preferred stock, value	0	24,833
Preferred Stock | Series B-1 Redeemable Preferred Stock
Redeemable Preferred Stock
Redeemable preferred stock, value	0	1,593
Preferred Stock | Series A Preferred Stock
Shareholders' Equity (Deficit)
Total equity (deficit)	$ 0	$ 2

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Due from Related Parties, Current	$ 4,468	$ 0
Accounts Payable, Related Parties	5,464	0
Due to Related Parties, Current	$ 883	$ 0
Series A Redeemable Preferred Stock
Temporary Equity, Shares Authorized	0	7,900,000
Temporary Equity, Shares Issued	0	7,900,000
Temporary Equity, Shares Outstanding	0	7,900,000
Temporary Equity, Liquidation Preference	$ 0	$ 25,018
Series B Redeemable Preferred Stock
Temporary Equity, Shares Authorized	0	6,467,376
Temporary Equity, Shares Issued	0	6,467,376
Temporary Equity, Shares Outstanding	0	6,467,376
Temporary Equity, Liquidation Preference	$ 0	$ 27,359
Series B-1 Redeemable Preferred Stock
Temporary Equity, Shares Authorized	0	1,953,124
Temporary Equity, Shares Issued	0	360,420
Temporary Equity, Shares Outstanding	0	360,420
Temporary Equity, Liquidation Preference	$ 0	$ 1,478
Series A Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0	$ 0.001
Preferred Stock, Shares Authorized	0	7,700,000
Preferred Stock, Shares Issued	0	7,400,000
Preferred Stock, Shares Outstanding	0	7,400,000
Preferred Stock, Liquidation Preference, Value	$ 0	$ 23,200
Class A
Common stock, Par value (in dollars per share)	$ 0.01	$ 0.01
Common shares authorized	750,000,000	33,812,808
Common Stock, Shares, Issued	41,475,498	4,047,484
Common Stock, Shares, Outstanding	41,475,498	4,047,484
Class B
Common stock, Par value (in dollars per share)	$ 0.01	$ 0
Common shares authorized	100,000,000	0
Common Stock, Shares, Issued	17,524,596	0
Common Stock, Shares, Outstanding	17,524,596	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue
Transformation	[1]	$ 6,783	$ 0	$ 9,486	$ 0
Platform and operations	[1]	33,623	0	41,334	0
Total revenue		40,406	0	50,820	0
Expenses
Cost of revenues (exclusive of depreciation and amortization presented below)	[1]	24,762	0	32,649	0
Selling, general and administrative expenses	[1]	29,834	0	42,916	0
Depreciation and amortization expenses		3,056	0	4,040	0
Total operating expenses		57,652	0	79,605	0
Operating income (loss)		(17,246)	0	(28,785)	0
Interest income (expense), net		54	0	67	0
Gain on consolidation		0	0	414,133	0
Income (loss) from affiliate		0	(3,167)	(28,165)	(14,548)
Income (loss) before income taxes and non-controlling interests		(17,192)	(3,167)	357,250	(14,548)
Provision (benefit) for income taxes		(104)	0	29,169	0
Net income (loss)		(17,088)	(3,167)	328,081	(14,548)
Net income (loss) attributable to non-controlling interests		(5,108)	0	(8,532)	0
Net income (loss) attributable to Evolent Health, Inc.		(11,980)	(3,167)	336,613	(14,548)
Earnings (Loss) Available to Common Shareholders
Basic (in dollars)		(11,980)	(5,196)	334,429	(19,143)
Diluted (in dollars)		$ (11,980)	$ (5,196)	$ 328,081	$ (19,143)
Earnings (Loss) per Common Share
Basic (in dollars per share)		$ (0.29)	$ (2.07)	$ 17.05	$ (8.77)
Diluted (in dollars per share)		$ (0.29)	$ (2.07)	$ 7.93	$ (8.77)
Weighted-Average Common Shares Outstanding
Basic (in shares)		41,468	2,506	19,618	2,184
Diluted (in shares)		41,468	2,506	41,398	2,184
Affiliates
Revenue
Transformation		$ 485	$ 0	$ 534	$ 0
Platform and operations		10,732	0	14,660	0
Expenses
Cost of revenues (exclusive of depreciation and amortization presented below)		6,470	0	8,303	0
Selling, general and administrative expenses		$ 689	$ 0	$ 940	$ 0
[1]	Amounts related to affiliates included above are as follows (see Note 14)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Net income (loss)	$ 328,081	$ (14,548)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Gain on Offering Reorganization	(414,133)	0
Loss from equity method investees	28,165	14,548
Depreciation and amortization	4,040	0
Stock-based compensation expense	10,536	0
Deferred tax provision	29,169	0
Other	93	0
Changes in assets and liabilities:
Accounts receivables, net	3,663	0
Prepaid expenses and other current assets	(1,348)	0
Accounts payable	1,073	0
Accrued liabilities	(72)	0
Deferred revenue	(1,434)	0
Other current liabilities	10	0
Net cash provided by (used in) operating activities	(12,157)	0
Cash Flows from Investing Activities
Cash acquired upon consolidation of affiliate	13,065	0
Purchases of investments	(2,023)	0
Maturities and sales of investments	4,000	0
Purchases of property and equipment	(3,907)	0
Net cash provided by (used in) investing activities	11,135	0
Cash Flows from Financing Activities
Proceeds from initial public offering, net of offering costs	209,087	0
Proceeds from stock option exercises	92	0
Net cash provided by (used in) financing activities	209,179	0
Net increase (decrease) in cash and cash equivalents	208,157	0
Cash and cash equivalents as of beginning-of-year	0	0
Cash and cash equivalents as of end-of-year	208,157	0
Supplemental Disclosure of Non-cash Investing and Financing Activities
Non-cash contribution of common stock to Evolent Health LLC prior to the Offering Reorganization	21,810	4,722
Unsettled investment purchases	22,048	0
Accrued property and equipment purchases	53	0
Effects of the Offering Reorganization:
Reclassification of deferred offering costs acquired to additional paid-in capital	3,154	0
Conversion of existing equity as part of the Offering Reorganization	39,014	0
Assumption of non-controlling interest as a result of merger with TPG affiliate	34,875	0
Series A Redeemable Preferred Stock
Supplemental Disclosure of Non-cash Investing and Financing Activities
Issuance of stock	0	1,500
Series B-1 Redeemable Preferred Stock
Supplemental Disclosure of Non-cash Investing and Financing Activities
Issuance of stock	0	1,593
Class A
Supplemental Disclosure of Non-cash Investing and Financing Activities
Issuance of stock	0	279
Class B
Supplemental Disclosure of Non-cash Investing and Financing Activities
Issuance of stock	$ 196	$ 0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) AND REDEEMABLE PREFERRED STOCK - USD ($) $ in Thousands	Total	Series A Redeemable Preferred Stock	Series B Redeemable Preferred Stock	Series B-1 Redeemable Preferred Stock	Class A Common Stock	Class B Common Stock	Preferred StockSeries A Redeemable Preferred Stock	Preferred StockSeries B Redeemable Preferred Stock	Preferred StockSeries B-1 Redeemable Preferred Stock	Preferred StockSeries A Preferred Stock	Common StockClass A Common Stock	Common StockClass B Common Stock	Additional Paid-in Capital	Additional Paid-in CapitalClass A Common Stock	Additional Paid-in CapitalClass B Common Stock	Retained Earnings (Accumulated Deficit)	Non-controlling Interests	Non-controlling InterestsClass B Common Stock
Beginning balance, shares at Dec. 31, 2013							7,900,000	6,468,000	0
Beginning balance, amount at Dec. 31, 2013							$ 12,847	$ 24,833	$ 0
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of series B-1 preferred stock, shares									360,000
Issuance of series B-1 preferred stock, amount									$ 1,593
Ending balance, shares at Dec. 31, 2014		7,900,000	6,467,376	360,420			7,900,000	6,468,000	360,000
Ending balance, amount at Dec. 31, 2014	$ 39,273						$ 12,847	$ 24,833	$ 1,593
Beginning balance, shares at Dec. 31, 2013										7,700,000	3,824,000	0
Beginning balance, amount at Dec. 31, 2013	13,260									$ 2	$ 0	$ 0	$ 13,818			$ (560)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Non-cash issuance of common stock to Evolent Health, LLC	11,091												11,091
Issuance of common stock, shares											272,000
Issuance of common stock, amount	325										$ 1		324
Repurchase of series A preferred stock, shares										(300,000)
Repurchase of series A preferred stock, value	(1,500)												(1,500)			0	0
Forfeiture of restricted stock, shares											(48,000)
Net income (loss)	(25,246)															(25,246)
Ending balance, shares at Dec. 31, 2014										7,400,000	4,048,000	0
Ending balance, amount at Dec. 31, 2014	(2,070)									$ 2	$ 1	$ 0	23,733			(25,806)	0
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of existing equity, shares							(7,900,000)	(6,468,000)	(360,000)
Conversion of existing equity, amount							$ (12,847)	$ (24,833)	$ (1,593)
Ending balance, shares at Sep. 30, 2015		0	0	0			0	0	0
Ending balance, amount at Sep. 30, 2015	0						$ 0	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Non-cash issuance of common stock to Evolent Health, LLC	21,810												21,810
Conversion of existing equity, shares										(7,400,000)	22,128,000
Conversion of existing equity, amount	39,273									$ (2)	$ 261		39,014
Net income (loss) prior to Offering Reorganization	(28,165)															(28,165)
Issuance of common stock, shares											13,225,000	19,576,000
Issuance of common stock, amount					$ 205,933	$ 332,793					$ 132	$ 196		$ 205,801	$ (196)			$ 332,793
Merger with TPG affiliate, shares											2,051,468	(2,051,000)
Merger with TPG affiliate, value	0										$ 21	$ (21)	34,875				(34,875)
Net income (loss)	336,613
Tax effect of the Offering Reorganization	(396)												(396)
Stock-based compensation subsequent to the Offering Reorganization	10,536												10,536
Exercise of stock options, shares											23,000
Exercise of stock options, amount	92												92
Net income (loss) subsequent to Offering Reorganization, including portion attributable to noncontrolling interest																364,778
Net income (loss) subsequent to Offering Reorganization, portion attributable to noncontrolling interest	(8,532)																(8,532)
Net income (loss) subsequent to Offering Reorganization	356,246
Ending balance, shares at Sep. 30, 2015										0	41,475,000	17,525,000
Ending balance, amount at Sep. 30, 2015	$ 936,052									$ 0	$ 415	$ 175	$ 335,269			$ 310,807	$ 289,386

Organization

Organization	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Evolent Health, Inc. (“Evolent” or the “Company” which also may be referred to as “we,” “our” or “us”) was incorporated in December 2014 in the state of Delaware, and is a managed services firm that supports integrated health systems in their migration toward value-based care and population health management. The Company’s services include providing customers with a population management platform, integrated data and analytics capabilities, pharmacy benefit management services and comprehensive health plan administration services. Together these services enable health systems to manage patient health in a more cost-effective manner. The Company’s contracts are structured as a combination of advisory fees, monthly member service fees and shared medical savings arrangements. The Company's headquarters is located in Arlington, Virginia. Our predecessor, Evolent Health Holdings, Inc. (“Evolent Health Holdings”), merged with and into Evolent Health, Inc. As a result, the consolidated financial statements of Evolent Health, Inc. reflect the historical accounting of Evolent Health Holdings. Prior to the organizational transactions noted below, due to certain participating rights granted to our investor, TPG Global, LLC and its affiliates (“TPG”), Evolent Health Holdings did not control Evolent Health LLC, our operating subsidiary company, but was able to exert significant influence and, accordingly, accounted for its investment in Evolent Health LLC using the equity method of accounting through June 4, 2015. Subsequent to the organizational transactions and initial public offering (“IPO”) described below, we own 70.3% of Evolent Health LLC, hold 100% of the voting rights, are the sole managing member and, therefore, control its operations. Accordingly, the financial results of Evolent Health LLC are consolidated in the financial statements of Evolent Health, Inc. subsequent to the Offering Reorganization. Initial Public Offering On June 5, 2015, we completed an IPO of 13,225,000 shares of our Class A common stock at a public offering price of $17.00 per share. We received $209.1 million in proceeds, net of underwriting discounts and commissions. Offering expenses incurred were $3.2 million which were recorded as a reduction of proceeds from the offering. We used the net proceeds to purchase newly-issued Class A common units from Evolent Health LLC, our consolidated subsidiary. Evolent Health LLC will use the net proceeds for working capital and other general corporate purposes. See Note 4 for further details surrounding the IPO and related transactions. Organizational Transactions In connection with the IPO, we completed the following organizational transactions (the “Offering Reorganization”) as further described in Note 4 : • We amended and restated our certificate of incorporation to, among other things, authorize two classes of common stock - Class A common stock and Class B exchangeable common stock. Both classes of stock will vote together as a single class. • We acquired, by merger, an affiliate of a member of Evolent Health LLC, for which we issued 2,051,468 shares of Class A common stock. • We issued shares of our Class B exchangeable common stock to certain existing members of Evolent Health LLC. Since its inception, the Company has incurred significant losses from operations. As of September 30, 2015 , the Company had cash and cash equivalents of $208.2 million . The Company believes it has sufficient liquidity for the next 12 months as of September 30, 2015 .

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X, and accordingly do not include all of the information and notes required by GAAP for complete financial statements. We believe the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim condensed consolidated financial statements are read in connection with the audited financial statements and notes included in the Company’s final prospectus filed with the SEC on June 5, 2015. In the opinion of management, these interim statements include all normal recurring adjustments necessary for a fair statement of the Company’s results. Operating results for the three and nine months ended September 30, 2015 , are not necessarily indicative of the results that may be expected for the full year ending December 31, 2015 . The condensed consolidated balance sheet as of December 31, 2014 , has been derived from audited financial statements as of that date, but does not include all disclosures required by GAAP. As discussed in Note 4 , amounts as of December 31, 2014, for the three and nine months ended September 30, 2014 , and for the period from January 1, 2015, through June 4, 2015, presented in our condensed consolidated financial statements and notes to condensed consolidated financial statements represent the historical operations of our predecessor entity, Evolent Health Holdings, which did not consolidate the operations of Evolent Health LLC. The amounts as of September 30, 2015 , and for the period from June 4, 2015, through September 30, 2015 , reflect our operations, which consolidate the operations of Evolent Health LLC. All inter-company accounts and transactions have been eliminated in consolidation. Summary of Significant Accounting Policies Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. In the accompanying unaudited condensed consolidated financial statements, estimates are used for, but not limited to, the valuation of assets, liabilities, consideration related to business combinations and step acquisitions, revenue recognition including discounts and credits, estimated selling prices for deliverables in multiple element arrangements, contingent payments, allowance for doubtful accounts, depreciable lives of assets, impairment of long lived assets (including equity method investments), stock-based compensation, deferred income taxes and valuation allowance, contingent liabilities, valuation of intangible assets (including goodwill) and the useful lives of intangible assets. Fair Value Measurement Our unaudited condensed consolidated balance sheets include various financial instruments (primarily restricted cash, investments, accounts receivable, accounts payable, accrued expenses, deferred revenue and other current liabilities) that are carried at cost and that approximate fair value. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. These tiers include: • Level 1 - inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date; • Level 2 - inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and • Level 3 - inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. Financial Assets and Liabilities Measured at Fair Value The Company holds materially all of our cash and cash equivalents, or $194.5 million , in a money market fund which is measured at fair value and categorized as a Level 1 investment. Non-financial Assets and Liabilities Measured at Fair Value . The Company does not have any non-financial assets and liabilities measured at fair value on a recurring basis. The Company measures certain non-financial assets and liabilities, including property and equipment, goodwill and intangible assets, at fair value on a nonrecurring basis. These assets and liabilities are recognized at fair value when they are deemed to be impaired. No impairment had been recognized as of September 30, 2015 , or December 31, 2014 . On June 4, 2015, the Company completed the Offering Reorganization, following which we were required to remeasure the assets, liabilities and non-controlling interests of our former equity-method investee, Evolent Health LLC, at fair value. Information regarding the determination and allocation of the fair value of the assets and liabilities are further described within Note 4 . Cash and Cash Equivalents The Company holds materially all of our cash and cash equivalents in money market funds with original maturities of three months or less that are carried at fair value. Restricted Cash Restricted cash is carried at cost, which approximates fair value, and includes cash used to collateralize various contractual obligations (in thousands) as follows: As of September 30, 2015 Letters of credit for facility leases $ 3,710 Other 123 Total restricted cash 3,833 Non-current restricted cash 2,511 Current restricted cash $ 1,322 We had no restricted cash as of December 31, 2014. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded when amounts are contractually billable under our customer contracts and are recorded at the invoiced amount and do not bear interest. The Company's contracts typically include installment payments that do not necessarily correlate to the pattern of revenue recognition. In assessing the valuation of the allowance for doubtful accounts, management reviews the collectability of accounts receivable on an individual account basis. The allowance is adjusted periodically based on management's determination of collectability, and any accounts that are determined to be uncollectible are written off against the allowance. As of September 30, 2015 , the Company had not recorded an allowance for doubtful accounts as all amounts were determined to be collectible. Property and Equipment, Net Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are computed using the straight-line method over the shorter of the estimated useful lives of the assets or the lease term. The following summarizes the estimated useful lives by asset classification: Computer hardware 3 years Furniture and equipment 3 years Internal-use software development costs 7 years Leasehold improvements Shorter of useful life or remaining lease term When an item is sold or retired, the cost and related accumulated depreciation or amortization is eliminated and the resulting gain or loss, if any, is recorded in our Condensed Consolidated Statements of Operations. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset group is not recoverable and exceeds fair value. The carrying amount of a long-lived asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset group. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset group exceeds its fair value. As noted above, on June 4, 2015, the Company completed the Offering Reorganization, following which we were required to remeasure the assets, liabilities and non-controlling interests of our equity-method investee, Evolent Health LLC, at fair value. Information regarding the determination and allocation of the fair value of the assets and liabilities are further described within Note 4 . Software Development Costs The Company capitalizes the cost of developing internal-use software, consisting primarily of personnel and related expenses (including stock-based compensation and employee taxes and benefits) for employees and third parties who devote time to their respective projects. Internal-use software costs are capitalized during the application development stage – when the research stage is complete and management has committed to a project to develop software that will be used for its intended purpose and any costs incurred during subsequent efforts to significantly upgrade and enhance the functionality of the software are also capitalized. Capitalized software costs are included in Property and equipment, net on our Condensed Consolidated Balance Sheets. Amortization of internal-use software costs are recorded on a straight-line basis over their estimated useful life and begin once the project is substantially complete and the software is ready for its intended purpose. As noted above, on June 4, 2015, the Company completed the Offering Reorganization, following which we were required to remeasure the assets, liabilities and non-controlling interests of our equity-method investee, Evolent Health LLC, at fair value. Information regarding the determination and allocation of the fair value of the assets and liabilities are further described within Note 4 . Research and Development Costs Research and development costs consist primarily of personnel and related expenses (including stock-based compensation) for employees engaged in research and development activities as well as third party fees. All such costs are expensed as incurred. We focus our research and development efforts on activities that support our technology infrastructure, clinical program development, data analytics and network development capabilities. Research and development costs were $2.5 million and $3.3 million , respectively, for the three and nine months ended September 30, 2015 . Goodwill We recognize the excess of the purchase price, plus the fair value of any non-controlling interests in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed at least annually for indications of impairment, with consideration given to financial performance and other relevant factors. We perform a two-step test in our evaluation of the carrying value of goodwill, if qualitative factors determine it is necessary to complete the two-step goodwill impairment test. In Step 1 of the evaluation, the fair value is determined and compared to the carrying value. If the fair value is greater than the carrying value, then the carrying value is deemed to be recoverable, and Step 2 is not required. If the fair value estimate is less than the carrying value, it is an indicator that impairment may exist, and Step 2 is required. In Step 2, the implied fair value of goodwill is determined. The fair value as determined in Step 1 is assigned to all of its net assets (recognized and unrecognized) as if the entity was acquired in a business combination as of the date of the impairment test. If the implied fair value of goodwill is lower than its carrying amount, goodwill is impaired and written down to its fair value; and a charge is reported in impairment of goodwill on our Condensed Consolidated Statements of Operations. Intangible Assets, Net As noted above, on June 4, 2015, the Company completed the Offering Reorganization, following which we were required to remeasure the assets, liabilities and non-controlling interests of our equity-method investee, Evolent Health LLC, at fair value. Information regarding the determination and allocation of the fair value of the assets and liabilities are further described within Note 4 . Identified intangible assets are recorded at their estimated fair values at the date of acquisition and are amortized over their respective estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are used. The following summarizes the estimated useful lives by asset classification: Corporate trade name 20 years Customer relationships 25 years Technology 7 years Intangible assets are reviewed for impairment if circumstances indicate the Company may not be able to recover the asset’s carrying value. The Company evaluates recoverability by determining whether the undiscounted cash flows expected to result from the use and eventual disposition of that asset or group exceed the carrying value at the evaluation date. If the undiscounted cash flows are not sufficient to cover the carrying value, the Company measures an impairment loss as the excess of the carrying amount of the long-lived asset or group over its fair value. Impairment of Equity Method Investments The Company considers potential impairment triggers for its equity method investment, and the equity method investment will be written down to fair value if there is evidence of a loss in value which is other-than-temporary. The Company may estimate the fair value of its equity method investments by considering recent investee equity transactions, discounted cash flow analyses, and recent operating results. If the fair value of the investment has dropped below the carrying amount, management considers several factors when determining whether other-than-temporary impairment has occurred. The estimation of fair value and whether other-than-temporary impairment has occurred requires the application of significant judgment and future results may vary from current assumptions. There was no such impairment for the nine months ended September 30, 2015 and for the three and nine months ended September 30, 2014 . As discussed further in Note 4 , after June 4, 2015, the Company consolidated the operations of its former equity-method investee, Evolent Health LLC; therefore, the Company no longer accounts for its investment as an equity-method investment. Deferred Revenue Deferred revenue consists of billings or payments received in advance of providing the requisite services or other instances where the revenue recognition criteria have not been met. Revenue Recognition Revenue from the Company's services is recognized when there is persuasive evidence of an arrangement, performance or delivery has occurred, the fee is fixed or determinable and collectability is reasonably assured. At times, the Company enters into contracts that contain multiple deliverables and we evaluate each deliverable to determine whether it represents a separate unit of accounting based on the following criteria: (i) if the delivered item has value to the customer on a standalone basis, and (ii) if the contract includes a general right of return relative to the delivered item, and delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the vendor. Revenue is then allocated to the units of accounting based on an estimate of each unit's relative selling price. Revenue Recognition - Transformation Transformation contracts consist of strategic assessments, or blueprint contracts, and implementation contracts. Based on the strategic assessment generated in a blueprint contract, a customer may decide to move forward with a population health or health plan strategy; in these cases, the customer enters into an implementation contract in which the Company provides services related to the launch of this strategy. The Company recognizes revenue associated with transformation contracts based on a proportionate performance method, where revenue is recognized each period in proportion to the amount of the contract completed during that period. Contract completion is measured using output measures as best estimated by labor hours incurred compared to the total estimated labor hours necessary to complete our performance obligations contained in the contract. Revenue Recognition - Platform and Operations After the transformation phase, the Company often enters into a multi-year service contract with its customers where various population health, health plan operations and pharmacy benefit management services are provided on an ongoing basis to the members of the customers’ plans in exchange for a monthly service fee or per member per month ("PMPM") fee. Revenue from these contracts is recognized in the month in which the services are delivered. In certain arrangements, there is a contingent portion of our service fee including meeting service level targets, sharing in rebates, shared medical savings arrangements based on financial performance and other performance measures. The Company continuously monitors its compliance with these arrangements and recognizes revenue when the amount is estimable and there is evidence to support meeting the criteria. In some cases, the Company recognizes those arrangements on a cash basis since we have limited history to support an estimate. Credits and Discounts We also provide credits and discounts to our customers often based on achieving certain volume commitments or other criteria. Credits are assessed to determine whether they reflect significant and incremental discounts. If the discounts are significant, the Company allocates them between the contract deliverables or future purchases as appropriate. If the future credit expires unused, it is recognized as revenue at that time. Stock-based Compensation The Company sponsors a stock-based incentive plan that provides for the issuance of stock-based awards to employees of our consolidated subsidiary, Evolent Health LLC. Our stock-based awards generally vest over a four year period and expire ten years from the date of grant. Subsequent to a reorganization in 2013, stock-based awards were granted in the stock of the Company to employees of its equity-method investee, Evolent Health LLC. As such, the Company was required to use a “non-employee” model for recognizing stock-based compensation, which required the awards to be marked-to-market through net income at the end of each reporting period until vesting occurred. Subsequent to the Offering Reorganization described in Note 4 , stock-based awards are granted in the Company's stock to the Company's consolidated subsidiary and compensation costs are therefore recognized using an “employee” model. Under the “employee” model, we no longer mark the awards to market at the end of each reporting period. We expense the fair value of stock-based awards included in our incentive compensation plans. Fair value of stock options is determined using a Black-Scholes options valuation methodology. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to additional paid-in capital. Stock-based compensation expense is reflected in cost of revenue and selling, general and administrative expenses in our Condensed Consolidated Statements of Operations. Additionally we capitalize personnel expenses attributable to the development of internal-use software, which include stock-based compensation costs. Income Taxes Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused. For purposes of accounting for income taxes for interim financial reporting, the Company calculates the appropriate income tax provision by estimating an effective tax rate expected to be applicable for the full year and applying it to ordinary income, adjusted for the tax effect of significant unusual items that are reported discretely. We use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. We recognize interest and penalties accrued on any unrecognized tax exposures as a component of income tax expense. We did not have any such amounts accrued as of September 30, 2015 , and December 31, 2014 , and we have not identified any uncertain income tax positions that could have a material impact to the consolidated financial statements. We are subject to taxation in various jurisdictions in the U.S. and remain subject to examination by taxing jurisdictions for the years 2011 and all subsequent periods due to the availability of net operating loss carryforwards. We are a holding company and our assets consist of our direct ownership in Evolent Health LLC, for which we are the managing member. Evolent Health LLC is classified as a partnership for U.S. federal and applicable state and local income tax purposes and, as such, is not subject to U.S. federal, state and local income taxes. Taxable income or loss generated by Evolent Health LLC is allocated to holders of its units, including us, on a pro rata basis. Accordingly, we are subject to U.S. federal, state and local income taxes with respect to our allocable share of any taxable income of Evolent Health LLC. Earnings (Loss) per Share Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to Class A common shareholders by the weighted-average number of Class A common shares outstanding. For periods of net income, and when the effects are not anti-dilutive, we calculate diluted earnings per share by dividing net income available to Class A common shareholders by the weighted average number of Class A common shares assuming the conversion of the convertible preferred securities, which occurred on the date of the Offering Reorganization, occurred at the beginning of the respective period, plus the impact of all potential dilutive common shares, consisting primarily of common stock options and unvested restricted stock awards using the treasury stock method and our exchangeable Class B common stock. For periods of net loss, shares used in the earnings per share calculation represent basic shares as using diluted shares would be anti-dilutive. Operating Segments Operating segments are defined as components of a business that earn revenue and incur expenses for which discrete financial information is available that is evaluated, on a regular basis, by the chief operating decision maker (“CODM”) to decide how to allocate resources and assess performance. The Company’s CODM, the Chief Executive Officer, allocates resources at a consolidated level and therefore the Company views its operations and manages its business as one operating segment. All of the Company’s revenue is generated in the United States and all assets are located in the United States.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards Future Adoption of New Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers , in order to clarify the principles of recognizing revenue. This standard establishes the core principle of recognizing revenue to depict the transfer of promised goods or services in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services. The FASB defines a five-step process that systematically identifies the various components of the revenue recognition process, culminating with the recognition of revenue upon satisfaction of an entity’s performance obligation. By completing all five steps of the process, the core principles of revenue recognition will be achieved. The amendments in the standard are effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted only as of annual reporting periods beginning after December 15, 2016. We will adopt the requirements of this standard effective January 1, 2018, and are currently evaluating the impact of the adoption on our financial condition and results of operations. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40) . This standard requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards by requiring an assessment for a period of one year after the date that the financial statements are issued. Further, based on certain conditions and circumstances, additional disclosures may be required. This standard is effective beginning with the first annual period ending after December 15, 2016, and for all annual and interim periods thereafter. Early application is permitted. The Company does not expect this standard to have an impact on the Company’s financial statements or related disclosures. In September 2015, the FASB issued ASU 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments , to simplify the accounting for measurement-period adjustments. The amendments in this ASU require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The ASU also requires acquirers to present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The ASU is effective for fiscal years beginning after December 15, 2017. The provisions within this ASU must be applied prospectively to adjustments to provisional amounts that occur after the effective date. Early adoption is permitted for financial statements that have not been issued. We will adopt the requirements of this standard effective January 1, 2018, and are currently evaluating the impact of the adoption on our financial condition and results of operations. We have evaluated all other issued and unadopted ASUs and believe the adoption of these standards will not have a material impact on our results of operations, financial position, or cash flows.

Organizational Transactions

Organizational Transactions	9 Months Ended
	Sep. 30, 2015
Organizational Transactions [Abstract]
Organizational Transactions	Organizational Transactions The Offering Reorganization Evolent Health, Inc. was incorporated as a Delaware corporation on December 12, 2014, for the purpose of pursuing the Company’s IPO. Immediately prior to the completion of the IPO in June 2015, we amended and restated our certificate of incorporation to, among other things, authorize two classes of common stock, Class A common stock and Class B common stock (the “Offering Reorganization”). Each share of our Class A common stock and Class B common stock will entitle its holder to one vote on all matters to be voted on by stockholders, and holders of Class A common stock and holders of Class B common stock will vote together as a single class on all matters presented to stockholders for their vote or approval (except as otherwise required by law). Pursuant to the Offering Reorganization: • Evolent Health Holdings merged with and into Evolent Health, Inc. and the surviving corporation of the merger was Evolent Health, Inc.; • An affiliate of TPG merged with and into Evolent Health, Inc. and the surviving corporation of the merger was Evolent Health, Inc.; • Each of the then-existing stockholders of Evolent Health Holdings received four shares of our Class A common stock and the right to certain payments under the Income Tax Receivables Agreement (“TRA”) in exchange for each share of Class A common stock held in Evolent Health Holdings; • TPG received shares of our Class A common stock and the right to certain payments under the TRA in exchange for 100% of the equity that it held in its affiliate that was merged with Evolent Health, Inc.; and • We issued shares of our Class B common stock and the right to certain payments under the TRA to The Advisory Board, TPG and an affiliate of TPG each of which was a member of Evolent Health LLC prior to the Offering Reorganization. The existing shareholders of Evolent Health Holdings held the same economic and voting interest before and after the merger of Evolent Health Holdings with and into Evolent Health, Inc., which represents a transaction among entities with a high degree of common ownership. As such, the merger is viewed as non-substantive and the consolidated financial statements of Evolent Health, Inc. reflect the historical accounting of Evolent Health Holdings except that the legal capital reflects the capital of Evolent Health, Inc. In addition, in connection with the Offering Reorganization, Evolent Health LLC amended and restated its operating agreement to establish two classes of equity (voting Class A common units and non-voting Class B common units); after the amendment, the pre-reorganization members of Evolent Health LLC (other than Evolent Health, Inc.) hold 100% of the Class B common units and Evolent Health, Inc. holds the Class A voting common units. Evolent Health LLC’s Class B common units can be exchanged (together with a corresponding number of shares of our Class B common stock) for one share of our Class A common stock. As a result of the Offering Reorganization, Evolent Health, Inc. obtained voting control over Evolent Health LLC and therefore consolidated Evolent Health LLC and recognized a gain of $414.1 million upon obtaining control. The gain represents the excess of the fair value of our interest in Evolent Health LLC’s net assets over the carrying value of our equity method investment prior to the Offering Reorganization and is included in Gain on consolidation on the Condensed Consolidated Statement of Operations. We accounted for obtaining control of Evolent Health LLC as a step acquisition and, accordingly, recognized the fair value of Evolent Health LLC's assets acquired, liabilities assumed, non-controlling interests recognized and the remeasurement gain recorded on the previously held equity interests. As the acquisition was the result of the Offering Reorganization and not the purchase of additional interest in Evolent Health LLC, there were no assets acquired or liabilities assumed, and there was no purchase price paid as a part of the transaction. The allocation of the value of the transaction (in thousands) is included below: Goodwill $ 608,903 Intangible assets 169,000 Cash and restricted cash 21,930 Other assets 51,306 Remeasurement gain on previously held equity interest (414,133 ) Liabilities and deferred revenue (73,366 ) Non-controlling interests (332,793 ) Carrying value of previously held equity interest (30,847 ) Purchase price $ — The estimated fair value of Evolent Health LLC was determined using a business enterprise valuation approach that discounted Evolent Health LLC’s projected cash flows based on an estimate of its weighted average cost of capital. Evolent Health LLC’s fair value was estimated to be $777.8 million . In addition, we determined the fair value of Evolent Health LLC’s tangible and identifiable intangible assets, deferred revenue and other liabilities, based on various income and market approaches, including the relief from royalty method for trade name and technologies, and the discounted cash flow method for customer relationships, both of which use Level 3 inputs (see Note 2 for discussion of fair value and use of Level 3 inputs). We are amortizing the acquired identifiable intangible assets over their estimated useful lives (see Note 2 for discussion of useful lives for intangible assets). The Offering Reorganization was structured as a tax-free exchange and, therefore, did not result in tax deductible goodwill. The above allocation of fair values is based upon preliminary valuations and other analyses that have not been completed as of the date of this filing. Any changes in the estimated fair values of the net assets recorded upon the finalization of more detailed analyses of the facts and circumstances that existed at the date of the Offering Reorganization will change the allocation of the fair value. After the Offering Reorganization and the IPO, we own 70.3% of the economic interests and 100% of the voting rights in Evolent Health LLC. Our operations will continue to be conducted through Evolent Health LLC and subsequent to the Offering Reorganization the financial results of Evolent Health LLC are consolidated in the financial statements of Evolent Health, Inc. Evolent Health, Inc. is a holding company whose principal asset is all of the Class A common units it holds in Evolent Health LLC, and its only business is to act as sole managing member of Evolent Health LLC. Pro forma financial information (unaudited) The unaudited pro forma statement of operations data presented below gives effect to the consolidation of Evolent Health LLC as if it had occurred on January 1, 2014. The following amounts include adjustments to: • Remove the gain recognized upon the consolidation of the previously held equity interests in 2015 and reclassified said amount to 2014; • Remove transaction costs of $1.2 million in 2015 and reclassify said amount to 2014; • Record amortization expenses related to intangible assets beginning January 1, 2014; • Record adjustments of income taxes associated with these pro forma adjustments This pro forma data is presented for informational purposes only and does not purport to be indicative of the results of future operations or of the results that would have occurred had the consolidation taken place on January 1, 2014. The pro forma adjustments were based on available information and assumptions that the Company believes are reasonable to reflect the impact of this acquisition on the Company's historical financial information on a pro forma basis (in thousands). For the Three For the Nine Months Ended Months Ended September 30, September 30, 2015 2014 2015 2014 Revenue $ 43,276 $ 27,396 $ 116,779 $ 69,161 Net income (loss) (14,024 ) 368,310 (26,067 ) 344,283 Net income (loss) attributable to non-controlling interests (5,028 ) (3,599 ) (11,704 ) (16,379 ) Net income (loss) attributable to Evolent Health, Inc. $ (8,996 ) $ 371,909 $ (14,363 ) $ 360,662 Net income (loss) available to common shareholders: Basic $ (0.22 ) $ 14.65 $ (0.44 ) $ 14.35 Diluted (0.22 ) 7.99 (0.44 ) 7.61 Evolent Health LLC Governance The Company serves as sole managing member of Evolent Health LLC. As such, it controls Evolent Health LLC’s business and affairs and is responsible for the management of its business. Coordination of Evolent Health, Inc. and Evolent Health LLC We must, at all times, maintain a one -to-one ratio between the number of outstanding shares of our Class A common stock and the number of outstanding Class A common units of Evolent Health LLC. Issuances of Common Units Evolent Health LLC may only issue Class A common units to us, as the sole managing member of Evolent Health LLC. Class B common units may be issued only to persons or entities we permit (The Advisory Board, TPG and an affiliate of TPG). Such issuances of Class B common units shall be made in exchange for cash or other consideration. Class B common units may not be transferred as Class B common units except to certain permitted transferees and in accordance with the restrictions on transfer set forth in the third amended and restated operating agreement of Evolent Health LLC. Any such transfer must be accompanied by the transfer of an equal number of shares of our Class B common stock. We entered into an exchange agreement with Evolent Health LLC, The Advisory Board, TPG and an affiliate of TPG. Pursuant to and subject to the terms of the exchange agreement and the third amended and restated operating agreement of Evolent Health LLC, holders of Class B common units, at any time and from time to time, may exchange one or more Class B common units, together with an equal number of shares of our Class B common stock, for shares of our Class A common stock on a one -for-one basis. The amount of Class A common stock issued or conveyed will be subject to equitable adjustments for stock splits, stock dividends and reclassifications. As holders exchange their Class B common units and Class B common stock for Class A common stock, our interest in Evolent Health LLC will increase.

Investments

Investments	9 Months Ended
	Sep. 30, 2015
Investments [Abstract]
Investments	Investments The amortized cost, gross unrealized gains and losses, and fair value of our investments (in thousands) as of September 30, 2015, were as follows: Gross Gross Amortized Unrealized Unrealized Fair Costs Gains Losses Value U.S. Treasury bills $ 12,125 $ 21 $ (1 ) $ 12,145 Corporate bonds 11,946 54 (19 ) 11,981 Total investments $ 24,071 $ 75 $ (20 ) $ 24,126 The amortized cost and fair value of our investments by contractual maturities (in thousands) as of September 30, 2015, were as follows: Amortized Fair Cost Value Due in one year or less $ 2,023 $ 2,021 Due after one year through five years 22,048 22,105 Total $ 24,071 $ 24,126 Our investments are classified as held-to-maturity as we have both the intent and ability to hold the investments until their individual maturities. There were no identified events or changes in circumstances that had a significant adverse effect on the values of these investments. If there was evidence of a decline in fair value below the amortized cost basis which is other than temporary the cost basis of the individual security would be written down to fair value as a new cost basis and the amount of the write-down would be included in earnings. The new cost basis would not be changed for subsequent recoveries in fair value.

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net The following summarizes our property and equipment (in thousands): As of September 30, 2015 Computer hardware $ 228 Furniture and equipment 1,604 Internal-use software development costs 3,802 Leasehold improvements 5,822 Total property and equipment 11,456 Accumulated depreciation and amortization (701 ) Total property and equipment, net $ 10,755 We had no property or equipment as of December 31, 2014. The Company capitalized $2.8 million and $3.8 million of these internal-use software development costs for the three and nine months ended September 30, 2015 , respectively (subsequent to the date of the Offering Reorganization). The net book value of capitalized internal-use software development costs was $3.8 million as of September 30, 2015 . Depreciation expense related to property and equipment was $0.5 million and $0.7 million for the three and nine months ended September 30, 2015 , respectively (subsequent to the date of the Offering Reorganization), of which amortization expense related to capitalized internal-use software development costs was less than $0.1 million for the three and nine months ended September 30, 2015 , (subsequent to the date of the Offering Reorganization).

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net Goodwill As part of the Offering Reorganization described in Note 4 , we recorded $608.9 million in goodwill on our Condensed Consolidated Balance Sheets. Goodwill has an estimated indefinite life and is not amortized; rather it is reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount the asset may not be recoverable. The Company believes that no such impairment indicators existed during the three and nine months ended September 30, 2015 , and accordingly, did not recognize any impairment of goodwill for the three and nine months ended September 30, 2015 . During the fourth quarter of 2015, we will perform our annual impairment test. We will first evaluate qualitative factors including, but not limited to (i) macroeconomic conditions, (ii) industry and market considerations, (iii) our overall financial performance including an analysis of our current and projected cash flows, revenue and earnings, (iv) a sustained decrease in share price and (v) other relevant entity-specific events including changes in strategy, customers, or litigation. As a result of the Offering Reorganization, we revalued our consolidated balance sheet to the market value of our IPO share price of $17.00 . Subsequent to September 30, 2015, our share price has declined below the IPO price. If this trend continues, under Step 1, we may determine it is more likely than not that the fair value of our goodwill is less than the carrying amount and Step 2 would be required. If we perform Step 2 and the results confirm those of Step 1, we may be required to write down a portion of our $608.9 million of goodwill as of September 30, 2015, on our Condensed Consolidated Balance Sheet and report a charge in impairment of goodwill on our Condensed Consolidated Statements of Operations for the relevant periods. Any impairment charges that we may record in the future could be material to our results of operations and financial condition. Intangible Assets, Net As part of the Offering Reorganization described in Note 4 , intangible assets of $169.0 million were recorded on our Condensed Consolidated Balance Sheets. Details of our intangible assets (in thousands) as of September 30, 2015 , are presented below: Weighted- Average Gross Net Remaining Carrying Accumulated Carrying Useful Life Amount Amortization Value Corporate trade name 19.7 $ 19,000 $ 316 $ 18,684 Customer relationships 24.7 120,000 1,597 118,403 Technology 6.7 30,000 1,426 28,574 Total $ 169,000 $ 3,339 $ 165,661 We had no intangible assets as of December 31, 2014. Amortization expense related to intangible assets for the three and nine months ended September 30, 2015 , was $2.5 million and $3.3 million , respectively. Future estimated amortization of intangible assets for the next five years as of September 30, 2015 , was approximately $10.0 million per year.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies UPMC Reseller Agreement The Company and the University of Pittsburgh Medical Center (“UPMC”) are parties to a Reseller, Services and Non-Competition Agreement, dated August 31, 2011 (the “Original UPMC Reseller Agreement”), which was amended and restated by the parties on June 27, 2013 (as so amended, the “UPMC Reseller Agreement”). Under the terms of the UPMC Reseller Agreement, UPMC has appointed the Company as a non-exclusive reseller of certain services, subject to certain conditions and limitations specified in the UPMC Reseller Agreement. If the Company failed to generate minimum revenue for UPMC as a result of the provision of services during the four year period ended August 31, 2015, UPMC would be entitled to receive, for no consideration, up to 1,000,000 shares of Class A common stock, based on a formula set forth in the UPMC Reseller Agreement. The Company met this commitment in the first quarter of 2015. In consideration for the Company’s obligations under the UPMC Reseller Agreement and subject to certain conditions described therein, UPMC has agreed not to sell certain products and services directly to the Company’s customers and top prospects. The Advisory Board Company Reseller Agreement The Company and The Advisory Board are parties to a Services, Reseller, and Non-Competition Agreement, dated August 31, 2011 (the “Original Advisory Board Reseller Agreement”), which was amended and restated by the parties on June 27, 2013, and May 1, 2015 (as so amended, the “Advisory Board Company Reseller Agreement”). Under the terms of the Advisory Board Company Reseller Agreement, The Advisory Board shall provide certain services to the Company on an as-requested basis. In addition, The Advisory Board has a right of first offer to provide certain specified services during the term of the Agreement and has the rights to collect certain fees for specified referrals. Contingencies Tax Receivables Agreement In connection with the Offering Reorganization, the Company entered into the TRA with certain of its investors, which provides for the payment by the Company to these investors of 85% of the amount of the tax benefits, if any, that the Company is deemed to realize as a result of increases in our tax basis related to exchanges of Class B common units as well as tax benefits attributable to the future utilization of pre-IPO net operating losses. These payment obligations are obligations of the Company. For purposes of the TRA, the benefit deemed realized by the Company will be computed by comparing its actual income tax liability to the amount of such taxes that the Company would have been required to pay had there been no increase to the tax basis of the assets of the Company as a result of the exchanges or had the Company had no net operating loss carryforward balance. The actual amount and timing of any payments under the TRA will vary depending upon a number of factors, including: • The timing of the exchanges and the price of the Class A shares at the time of the transaction, triggering a tax basis increase in the Company’s asset and a corresponding benefit to be realized under the TRA; and • The amount and timing of our taxable income - the Company will be required to pay 85% of the tax savings as and when realized, if any. If the Company does not have taxable income, it will not be required to make payments under the TRA for that taxable year because no tax savings were actually realized. Due to the items noted above, the fact that no share exchanges have occurred as of September 30, 2015 , and that the Company's historical losses have not been utilized, the Company has not recorded a liability pursuant to the TRA. Litigation Matters We are engaged from time to time in certain legal disputes arising in the ordinary course of business, including employment claims. When the likelihood of a loss contingency becomes probable and the amount of the loss can be reasonably estimated, we accrue a liability for the loss contingency. We continue to review accruals and adjust them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel, and other relevant information. To the extent new information is obtained, and our views on the probable outcomes of claims, suits, assessments, investigations, or legal proceedings change, changes in our accrued liabilities would be recorded in the period in which such determination is made. Commitments Lease Commitments The Company has entered into lease agreements for its office location in Arlington, Virginia. In connection with these lease agreements, the Company is required to maintain a $2.0 million letter of credit, which declines annually throughout the term of the lease, and restricted cash of $1.7 million . As of September 30, 2015 , the restricted funds held in connection with the lease were $3.7 million . Total rental expense on operating leases for the three and nine months ended September 30, 2015 , was $0.9 million and $1.3 million , respectively. Indemnifications The Company’s customer agreements generally include a provision by which the Company agrees to defend its customers against third party claims (a) for death, bodily injury, or damage to personal property caused by Company negligence or willful misconduct, (b) by former or current Company employees arising from such managed service agreements, (c) for intellectual property infringement under specified conditions and (d) for Company violation of applicable laws, and to indemnify them against any damages and costs awarded in connection with such claims. To date, the Company has not incurred any material costs as a result of such indemnities and has not accrued any liabilities related to such obligations in the accompanying financial statements. Registration rights agreement We entered into a registration rights agreement with The Advisory Board, UPMC, TPG and an affiliate of TPG (our “Investors”) to register for sale under the Securities Act of 1933, as amended (the “Securities Act”), shares of our Class A common stock, including those delivered in exchange for Class B common units in the circumstances described above. Subject to certain conditions and limitations, this agreement provides our Investors with certain demand, piggyback and shelf registration rights. The registration rights granted under the registration rights agreement will terminate upon the date the holders of shares that are a party thereto no longer hold any such shares that are entitled to registration rights. We will pay all expenses relating to any demand, piggyback or shelf registration, other than underwriting discounts and commissions and any transfer taxes, subject to specified conditions and limitations. The registration rights agreement will include customary indemnification provisions, including indemnification of the participating holders of shares of Class A common stock and their directors, officers and employees by us for any losses, claims, damages or liabilities in respect thereof and expenses to which such holders may become subject under the Securities Act, state law or otherwise. Credit and Concentration Risk The Company is subject to significant concentrations of credit risk related to cash and cash equivalents, investments and accounts receivable. The Company's cash and cash equivalents and investments are held at financial institutions that management believes to be of high credit quality. While the Company maintains its cash and cash equivalents and investments with financial institutions with high credit ratings, it often maintains these deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses on cash and cash equivalents or investments to date. The following table summarizes those customers who represented at least 10% of our accounts receivable or revenue as of and for the periods presented: For the Three For the Nine As of Months Ended Months Ended September 30, September 30, September 30, 2015 2015 2015 Accounts Receivable Revenue Customer A * 13.6 % 13.1 % Customer B 13.7 % 12.7 % 12.3 % Customer C 15.9 % 15.7 % 15.8 % Customer D 39.3 % 14.3 % 14.6 % Customer E * 17.1 % 17.1 % Customer F 14.4 % 10.6 % 10.5 % * Represents less than 10.0% of the respective balance At times our contracts may be amended to change the nature of the services and/or the time period over which they are provided. In September 2015, we signed an amendment to our agreement with Piedmont WellStar Health Plan, noted as Customer C above, that reduced our expected revenue under that contract in future periods. The Company is also subject to significant concentration risk as a significant portion of our revenue is derived from services provided to our customers on our behalf by UPMC. UPMC is a founding investor in our organization and we have entered into a long-term agreement with them to conduct these services on our behalf; however, in the event of a disruption in service from UPMC, our revenue would be adversely impacted while we obtained a replacement vendor. The Company is also subject to significant concentration risk as materially all of our cash and cash equivalents are held in a single money market fund. As of September 30, 2015 , $194.5 million of cash and cash equivalents were held in a money market fund.

Earnings (Loss) Per Common Shar

Earnings (Loss) Per Common Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings (Loss) Per Common Share	Earnings (Loss) Per Common Share The following table sets forth the computation of basic and diluted earnings per share available for common stockholders (in thousands, except per share data): For the Three For the Nine Months Ended Months Ended September 30, September 30, 2015 2014 2015 2014 Net income (loss) $ (17,088 ) $ (3,167 ) $ 328,081 $ (14,548 ) Less: Net income (loss) attributable to non-controlling interests (5,108 ) — (8,532 ) — Undeclared cumulative preferred dividends — 1,279 2,184 3,845 Redemption of preferred stock at amount in excess of carrying value — 750 — 750 Net income (loss) available for common shareholders - Basic (11,980 ) (5,196 ) 334,429 (19,143 ) Add: Net income (loss) attributable to non-controlling interests — — (8,532 ) — Undeclared cumulative preferred dividends converted during the period — — 2,184 — Net income (loss) available for common shareholders - Diluted $ (11,980 ) $ (5,196 ) $ 328,081 $ (19,143 ) Weighted-average common shares outstanding - Basic 41,468 2,506 19,618 2,184 Dilutive effect of restricted stock — — 19 — Dilutive effect of options — — 1,623 — Assumed conversion of convertible preferred stock at beginning-of-period — — 12,563 — Assumed conversion of Class B common shares to Class A common shares — — 7,575 — Weighted-average common shares outstanding - Diluted 41,468 2,506 41,398 2,184 Earnings (Loss) per Common Share Basic $ (0.29 ) $ (2.07 ) $ 17.05 $ (8.77 ) Diluted (0.29 ) (2.07 ) 7.93 (8.77 ) Anti-dilutive shares (in thousands) excluded from the calculation of weighted-average common shares presented above are presented below: For the Three For the Nine Months Ended Months Ended September 30, September 30, 2015 2014 2015 2014 Exchangeable Class B common stock 17,525 — — — Convertible preferred stock — 21,468 — 21,956 Restricted stock 55 1,122 — 520 Options 1,847 — — — Total 19,427 22,590 — 22,476

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Stock-based Compensation The 2011 Equity Incentive Plan (the “2011 Plan”) was amended on September 23, 2013, to increase the number of shares authorized to 9,141,268 shares of the Company's common stock. As of September 30, 2015 , and December 31, 2014 , 5,095,400 and 4,156,400 stock options, respectively, and 3,775,240 shares of restricted stock have been issued, net of forfeitures, under the 2011 Plan. On May 1, 2015, the Board of Directors approved and authorized the 2015 Evolent Health, Inc. Omnibus Incentive Compensation Plan (the “2015 Plan”) which provides for the issuance of 6,000,000 shares of the Company's Class A common stock. As of September 30, 2015 , 643,411 stock options and 301,735 restricted stock units (“RSUs”) have been issued, net of forfeitures, under the 2015 Plan. Total compensation expense (in thousands) by award type and line item in our condensed consolidated financial statements (in thousands) were as follows: For the Three For the Nine Months Ended Months Ended September 30, September 30, 2015 2015 Award Type Stock options $ 3,982 $ 5,148 Restricted stock — 4,875 RSUs 400 513 Total $ 4,382 $ 10,536 Line Item Cost of revenue $ 384 $ 793 Selling, general and administrative expenses 3,998 9,743 Total $ 4,382 $ 10,536 We recorded $4.9 million in stock-based compensation during the nine months ended September 30, 2015 , for the acceleration of our unvested restricted shares which vested immediately after the Offering Reorganization and prior to the IPO. For the three and nine months ended September 30, 2015 , less than $0.1 million of stock-based compensation included in the totals above was capitalized as software development costs (subsequent to the date of the Offering Reorganization). Stock-based awards granted were as follows: For the Three For the Nine Months Ended Months Ended September 30, September 30, 2015 2015 Stock options — 1,789,243 RSUs — 318,336

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Pursuant to the Offering Reorganization, the Company recorded $0.1 million in income tax benefit and $29.2 million in income tax provision for the three and nine months ended September 30, 2015 , respectively, due to changes in our deferred tax liability related to the increased difference in the book basis compared to the tax basis in our partnership interest in Evolent Health LLC. The basis difference resulted in an effective tax rate of 0.6% and 8.2% for the three and nine months ended September 30, 2015 . A portion of the basis difference is indefinite and relates to differences in profit and loss allocations before and after the Offering Reorganization. This resulted in deferred tax expense and is recorded as a component of the $29.2 million income tax expense. For the three and nine months ended September 30, 2014 , the effective tax rate was 0% , due to the impact of the full valuation allowance recorded against the Company’s net deferred tax assets; therefore, the Company recorded no provision or benefit for income taxes for these periods. The Offering Reorganization was treated as a nontaxable transaction and as such there was no step-up to fair value to the historical tax bases of the assets. The Company is required to record a deferred tax asset or liability resulting from book and tax basis differences related to assets and liabilities; therefore, the Company established a deferred tax liability in the amount of $29.6 million , recorded as a discrete item in the nine months ended September 30, 2015 , as income tax expense in the amount of $29.2 million and additional-paid-in capital of $0.4 million . As of September 30, 2015 , the Company had net operating losses (“NOLs”) of approximately $118.0 million available to offset future taxable income that begin to expire in 2031 through 2035 . However, as realization of such tax benefit is not more likely than not, based on management's evaluation, the Company has also established a valuation allowance. Internal Revenue Code Section 382 imposes limitations on the utilization of NOLs in the event of certain changes in ownership of the Company, which may have occurred or could occur in the future. This could impose an annual limit on the Company’s ability to utilize pre-IPO NOLs and could cause U.S. federal income taxes to be paid earlier than otherwise would be paid if such limitations were not in effect. As of each applicable period-end, the Company has not recognized any uncertain tax positions, penalties or interest as we have concluded that no such positions exist. The Company is not currently subject to income tax audits in any U.S. or state jurisdictions for any tax year. Tax Receivables Agreement Pursuant to the Offering Reorganization, subsequent exchanges of Class B common units of Evolent Health LLC, together with an equal number of shares of our Class B common stock, for shares of our Class A common stock, are expected to increase our tax basis in our share of Evolent Health LLC’s tangible and intangible assets. These increases in tax basis are expected to increase our depreciation and amortization deductions and create other tax benefits and, therefore, may reduce the amount of tax that we would otherwise be required to pay in the future. In addition, certain net operating losses of Evolent Health Holdings (and of an affiliate of TPG) are available to us as a result of the Offering Reorganization. As part of the Offering Reorganization, we entered into a TRA with the holders of Class B common units. The agreement requires us to pay to such holders 85% of the cash savings, if any, in U.S. federal, state and local and foreign income tax (as applicable) we realize as a result of any deductions attributable to future increases in tax basis following the exchanges described above (calculated assuming that any post-offering transfer of Class B common units had not occurred) or deductions attributable to imputed interest or future increases in tax basis following payments made under the TRA. We are accounting for these payments as contingent liabilities and will recognize them in our Condensed Consolidated Statement of Operations when their realization is probable. Additionally, pursuant to the same agreement we will pay the former stockholders of Evolent Health Holdings 85% of the amount of the cash savings, if any, in U.S. federal, state and local and foreign income tax that we realize as a result of the utilization of the NOLs of Evolent Health Holdings (and the affiliate of TPG) attributable to periods prior to the Offering Reorganization, approximately $98.2 million, as well as deductions attributable to imputed interest on any payments made under the agreement. We will benefit from the remaining 15% of any realized cash savings. The TRA was effective upon the completion of the Offering Reorganization and will remain in effect until all such tax benefits have been used or expired, or until the agreement is terminated. See Note 8 for additional discussion of the implications of the TRA.

Equity Method Investment

Equity Method Investment	9 Months Ended
	Sep. 30, 2015
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investment	Equity Method Investment Prior to the Offering Reorganization described in Note 4 , we did not control Evolent Health LLC, but were able to exert significant influence and, accordingly, accounted for our investment in Evolent Health LLC using the equity method of accounting. Subsequent to the Offering Reorganization, the Company consolidates the results of operations of Evolent Health LLC. The allocation of profits and losses to the shareholders of Evolent Health LLC were based upon the second amended and restated operating agreement of Evolent Health LLC. As part of recording our equity portion of the losses of Evolent Health LLC, the Company applied the hypothetical liquidation at book value basis of accounting which allocates profits and losses to the members based upon the value that would accrue to each member at each period end based upon a theoretical liquidation at book value at that time. During the nine months ended September 30, 2015 , Evolent Health, Inc.'s proportionate share of the losses of Evolent Health LLC was $28.2 million which included $0.8 million related to the amortization of a basis differential. During the three and nine months ended September 30, 2014 , Evolent Health, Inc.'s proportional share of the losses of Evolent Health LLC was $3.2 million and $14.5 million , respectively, which included $0.5 million and $1.5 million , respectively, related to the amortization of a basis differential. The following is a summary of the operating results of Evolent Health LLC (in thousands) for the periods that it was accounted for as an equity method investment: For the For the Three January 1, Nine Months 2015 Months Ended through Ended September 30, June 3, September 30, 2014 2015 2014 Total revenue $ 29,896 $ 61,814 $ 74,161 Cost of revenue (exclusive of depreciation and amortization) 19,326 44,839 52,193 Gross profit 10,570 16,975 21,968 Operating income (loss) (6,105 ) (44,119 ) (30,710 ) Net income (loss) (6,051 ) (44,079 ) (30,593 )

Non-controlling Interests

Non-controlling Interests	9 Months Ended
	Sep. 30, 2015
Noncontrolling Interest [Abstract]
Non-controlling Interests	Non-controlling Interests In connection with the closing of the IPO, we used the net proceeds of the IPO to purchase 13,225,000 newly-issued Class A common units in Evolent Health LLC. Additionally, in connection with the Offering Reorganization, we acquired 2,051,468 Class A common units in Evolent Health LLC. As of September 30, 2015 , we owned 70.3% of Evolent Health LLC. Changes in non-controlling interests (in thousands) were: For the Three For the Nine Months Ended Months Ended September 30, September 30, 2015 2015 Non-controlling interests as of beginning-of-period $ 294,494 $ — Increase in non-controlling interests as a result of the Offering Reorganization — 332,793 Decrease in non-controlling interests as a result of the merger of the TPG affiliate with and into Evolent Health, Inc. — (34,875 ) Net income (loss) subsequent to the Offering Reorganization attributable to non-controlling interests (5,108 ) (8,532 ) Non-controlling interests as of end-of-period $ 289,386 $ 289,386

Related Parties

Related Parties	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Parties	Related Parties The Company works closely with both of its founding investors, The Advisory Board and UPMC. The relationship with The Advisory Board is centered on educating health system CEOs on innovations in the healthcare space. In return, the Company makes valuable connections with CEOs of health systems that could then become customers. The Company’s relationship with UPMC is a subcontractor relationship where UPMC has agreed to execute certain tasks (primarily third-party administration or “TPA” services) necessary to deliver on the Company’s customer commitments. Prior to the Offering Reorganization, we issued shares of our stock to certain of our customers while concurrently entering into revenue contracts with those customers. Those customers are considered related parties and the balances and/or transactions with them are reported on our condensed consolidated financial statements.

Basis of Presentation and Sum21

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Accounting	Basis of Presentation The accompanying unaudited condensed consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X, and accordingly do not include all of the information and notes required by GAAP for complete financial statements. We believe the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim condensed consolidated financial statements are read in connection with the audited financial statements and notes included in the Company’s final prospectus filed with the SEC on June 5, 2015. In the opinion of management, these interim statements include all normal recurring adjustments necessary for a fair statement of the Company’s results.
Accounting estimates and assumptions	Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. In the accompanying unaudited condensed consolidated financial statements, estimates are used for, but not limited to, the valuation of assets, liabilities, consideration related to business combinations and step acquisitions, revenue recognition including discounts and credits, estimated selling prices for deliverables in multiple element arrangements, contingent payments, allowance for doubtful accounts, depreciable lives of assets, impairment of long lived assets (including equity method investments), stock-based compensation, deferred income taxes and valuation allowance, contingent liabilities, valuation of intangible assets (including goodwill) and the useful lives of intangible assets.
Fair value measurement	Fair Value Measurement Our unaudited condensed consolidated balance sheets include various financial instruments (primarily restricted cash, investments, accounts receivable, accounts payable, accrued expenses, deferred revenue and other current liabilities) that are carried at cost and that approximate fair value. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. These tiers include: • Level 1 - inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date; • Level 2 - inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and • Level 3 - inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. Financial Assets and Liabilities Measured at Fair Value The Company holds materially all of our cash and cash equivalents, or $194.5 million , in a money market fund which is measured at fair value and categorized as a Level 1 investment. Non-financial Assets and Liabilities Measured at Fair Value . The Company does not have any non-financial assets and liabilities measured at fair value on a recurring basis. The Company measures certain non-financial assets and liabilities, including property and equipment, goodwill and intangible assets, at fair value on a nonrecurring basis. These assets and liabilities are recognized at fair value when they are deemed to be impaired.
Cash and cash equivalents	Cash and Cash Equivalents The Company holds materially all of our cash and cash equivalents in money market funds with original maturities of three months or less that are carried at fair value.
Restricted cash	Restricted Cash Restricted cash is carried at cost, which approximates fair value, and includes cash used to collateralize various contractual obligations
Accounts receivable and allowance for doubtful accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded when amounts are contractually billable under our customer contracts and are recorded at the invoiced amount and do not bear interest. The Company's contracts typically include installment payments that do not necessarily correlate to the pattern of revenue recognition. In assessing the valuation of the allowance for doubtful accounts, management reviews the collectability of accounts receivable on an individual account basis. The allowance is adjusted periodically based on management's determination of collectability, and any accounts that are determined to be uncollectible are written off against the allowance.
Property and equipment, net	Property and Equipment, Net Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are computed using the straight-line method over the shorter of the estimated useful lives of the assets or the lease term. The following summarizes the estimated useful lives by asset classification: Computer hardware 3 years Furniture and equipment 3 years Internal-use software development costs 7 years Leasehold improvements Shorter of useful life or remaining lease term When an item is sold or retired, the cost and related accumulated depreciation or amortization is eliminated and the resulting gain or loss, if any, is recorded in our Condensed Consolidated Statements of Operations. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset group is not recoverable and exceeds fair value. The carrying amount of a long-lived asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset group. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset group exceeds its fair value.
Software development costs	Software Development Costs The Company capitalizes the cost of developing internal-use software, consisting primarily of personnel and related expenses (including stock-based compensation and employee taxes and benefits) for employees and third parties who devote time to their respective projects. Internal-use software costs are capitalized during the application development stage – when the research stage is complete and management has committed to a project to develop software that will be used for its intended purpose and any costs incurred during subsequent efforts to significantly upgrade and enhance the functionality of the software are also capitalized. Capitalized software costs are included in Property and equipment, net on our Condensed Consolidated Balance Sheets. Amortization of internal-use software costs are recorded on a straight-line basis over their estimated useful life and begin once the project is substantially complete and the software is ready for its intended purpose.
Research and development costs	Research and Development Costs Research and development costs consist primarily of personnel and related expenses (including stock-based compensation) for employees engaged in research and development activities as well as third party fees. All such costs are expensed as incurred. We focus our research and development efforts on activities that support our technology infrastructure, clinical program development, data analytics and network development capabilities.
Goodwill	Goodwill We recognize the excess of the purchase price, plus the fair value of any non-controlling interests in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed at least annually for indications of impairment, with consideration given to financial performance and other relevant factors. We perform a two-step test in our evaluation of the carrying value of goodwill, if qualitative factors determine it is necessary to complete the two-step goodwill impairment test. In Step 1 of the evaluation, the fair value is determined and compared to the carrying value. If the fair value is greater than the carrying value, then the carrying value is deemed to be recoverable, and Step 2 is not required. If the fair value estimate is less than the carrying value, it is an indicator that impairment may exist, and Step 2 is required. In Step 2, the implied fair value of goodwill is determined. The fair value as determined in Step 1 is assigned to all of its net assets (recognized and unrecognized) as if the entity was acquired in a business combination as of the date of the impairment test. If the implied fair value of goodwill is lower than its carrying amount, goodwill is impaired and written down to its fair value; and a charge is reported in impairment of goodwill on our Condensed Consolidated Statements of Operations.
Intangible assets, net	Intangible Assets, Net As noted above, on June 4, 2015, the Company completed the Offering Reorganization, following which we were required to remeasure the assets, liabilities and non-controlling interests of our equity-method investee, Evolent Health LLC, at fair value. Information regarding the determination and allocation of the fair value of the assets and liabilities are further described within Note 4 . Identified intangible assets are recorded at their estimated fair values at the date of acquisition and are amortized over their respective estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are used. The following summarizes the estimated useful lives by asset classification: Corporate trade name 20 years Customer relationships 25 years Technology 7 years Intangible assets are reviewed for impairment if circumstances indicate the Company may not be able to recover the asset’s carrying value. The Company evaluates recoverability by determining whether the undiscounted cash flows expected to result from the use and eventual disposition of that asset or group exceed the carrying value at the evaluation date. If the undiscounted cash flows are not sufficient to cover the carrying value, the Company measures an impairment loss as the excess of the carrying amount of the long-lived asset or group over its fair value.
Impairment of equity method investments	Impairment of Equity Method Investments The Company considers potential impairment triggers for its equity method investment, and the equity method investment will be written down to fair value if there is evidence of a loss in value which is other-than-temporary. The Company may estimate the fair value of its equity method investments by considering recent investee equity transactions, discounted cash flow analyses, and recent operating results. If the fair value of the investment has dropped below the carrying amount, management considers several factors when determining whether other-than-temporary impairment has occurred. The estimation of fair value and whether other-than-temporary impairment has occurred requires the application of significant judgment and future results may vary from current assumptions.
Deferred revenue	Deferred Revenue Deferred revenue consists of billings or payments received in advance of providing the requisite services or other instances where the revenue recognition criteria have not been met.
Revenue recognition	Revenue Recognition Revenue from the Company's services is recognized when there is persuasive evidence of an arrangement, performance or delivery has occurred, the fee is fixed or determinable and collectability is reasonably assured. At times, the Company enters into contracts that contain multiple deliverables and we evaluate each deliverable to determine whether it represents a separate unit of accounting based on the following criteria: (i) if the delivered item has value to the customer on a standalone basis, and (ii) if the contract includes a general right of return relative to the delivered item, and delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the vendor. Revenue is then allocated to the units of accounting based on an estimate of each unit's relative selling price. Revenue Recognition - Transformation Transformation contracts consist of strategic assessments, or blueprint contracts, and implementation contracts. Based on the strategic assessment generated in a blueprint contract, a customer may decide to move forward with a population health or health plan strategy; in these cases, the customer enters into an implementation contract in which the Company provides services related to the launch of this strategy. The Company recognizes revenue associated with transformation contracts based on a proportionate performance method, where revenue is recognized each period in proportion to the amount of the contract completed during that period. Contract completion is measured using output measures as best estimated by labor hours incurred compared to the total estimated labor hours necessary to complete our performance obligations contained in the contract. Revenue Recognition - Platform and Operations After the transformation phase, the Company often enters into a multi-year service contract with its customers where various population health, health plan operations and pharmacy benefit management services are provided on an ongoing basis to the members of the customers’ plans in exchange for a monthly service fee or per member per month ("PMPM") fee. Revenue from these contracts is recognized in the month in which the services are delivered. In certain arrangements, there is a contingent portion of our service fee including meeting service level targets, sharing in rebates, shared medical savings arrangements based on financial performance and other performance measures. The Company continuously monitors its compliance with these arrangements and recognizes revenue when the amount is estimable and there is evidence to support meeting the criteria. In some cases, the Company recognizes those arrangements on a cash basis since we have limited history to support an estimate. Credits and Discounts We also provide credits and discounts to our customers often based on achieving certain volume commitments or other criteria. Credits are assessed to determine whether they reflect significant and incremental discounts. If the discounts are significant, the Company allocates them between the contract deliverables or future purchases as appropriate. If the future credit expires unused, it is recognized as revenue at that time.
Stock-based compensation	Stock-based Compensation The Company sponsors a stock-based incentive plan that provides for the issuance of stock-based awards to employees of our consolidated subsidiary, Evolent Health LLC. Our stock-based awards generally vest over a four year period and expire ten years from the date of grant. Subsequent to a reorganization in 2013, stock-based awards were granted in the stock of the Company to employees of its equity-method investee, Evolent Health LLC. As such, the Company was required to use a “non-employee” model for recognizing stock-based compensation, which required the awards to be marked-to-market through net income at the end of each reporting period until vesting occurred. Subsequent to the Offering Reorganization described in Note 4 , stock-based awards are granted in the Company's stock to the Company's consolidated subsidiary and compensation costs are therefore recognized using an “employee” model. Under the “employee” model, we no longer mark the awards to market at the end of each reporting period. We expense the fair value of stock-based awards included in our incentive compensation plans. Fair value of stock options is determined using a Black-Scholes options valuation methodology. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to additional paid-in capital. Stock-based compensation expense is reflected in cost of revenue and selling, general and administrative expenses in our Condensed Consolidated Statements of Operations. Additionally we capitalize personnel expenses attributable to the development of internal-use software, which include stock-based compensation costs.
Income taxes	Income Taxes Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused. For purposes of accounting for income taxes for interim financial reporting, the Company calculates the appropriate income tax provision by estimating an effective tax rate expected to be applicable for the full year and applying it to ordinary income, adjusted for the tax effect of significant unusual items that are reported discretely. We use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. We recognize interest and penalties accrued on any unrecognized tax exposures as a component of income tax expense. We did not have any such amounts accrued as of September 30, 2015 , and December 31, 2014 , and we have not identified any uncertain income tax positions that could have a material impact to the consolidated financial statements. We are subject to taxation in various jurisdictions in the U.S. and remain subject to examination by taxing jurisdictions for the years 2011 and all subsequent periods due to the availability of net operating loss carryforwards. We are a holding company and our assets consist of our direct ownership in Evolent Health LLC, for which we are the managing member. Evolent Health LLC is classified as a partnership for U.S. federal and applicable state and local income tax purposes and, as such, is not subject to U.S. federal, state and local income taxes. Taxable income or loss generated by Evolent Health LLC is allocated to holders of its units, including us, on a pro rata basis. Accordingly, we are subject to U.S. federal, state and local income taxes with respect to our allocable share of any taxable income of Evolent Health LLC.
Earnings (loss) per share	Earnings (Loss) per Share Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to Class A common shareholders by the weighted-average number of Class A common shares outstanding. For periods of net income, and when the effects are not anti-dilutive, we calculate diluted earnings per share by dividing net income available to Class A common shareholders by the weighted average number of Class A common shares assuming the conversion of the convertible preferred securities, which occurred on the date of the Offering Reorganization, occurred at the beginning of the respective period, plus the impact of all potential dilutive common shares, consisting primarily of common stock options and unvested restricted stock awards using the treasury stock method and our exchangeable Class B common stock. For periods of net loss, shares used in the earnings per share calculation represent basic shares as using diluted shares would be anti-dilutive.
Operating segments	Operating Segments Operating segments are defined as components of a business that earn revenue and incur expenses for which discrete financial information is available that is evaluated, on a regular basis, by the chief operating decision maker (“CODM”) to decide how to allocate resources and assess performance. The Company’s CODM, the Chief Executive Officer, allocates resources at a consolidated level and therefore the Company views its operations and manages its business as one operating segment. All of the Company’s revenue is generated in the United States and all assets are located in the United States.

Basis of Presentation and Sum22

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Schedule of restricted cash and cash equivalents	Restricted cash is carried at cost, which approximates fair value, and includes cash used to collateralize various contractual obligations (in thousands) as follows: As of September 30, 2015 Letters of credit for facility leases $ 3,710 Other 123 Total restricted cash 3,833 Non-current restricted cash 2,511 Current restricted cash $ 1,322
Summary of property and equipment	The following summarizes the estimated useful lives by asset classification: Computer hardware 3 years Furniture and equipment 3 years Internal-use software development costs 7 years Leasehold improvements Shorter of useful life or remaining lease term The following summarizes our property and equipment (in thousands): As of September 30, 2015 Computer hardware $ 228 Furniture and equipment 1,604 Internal-use software development costs 3,802 Leasehold improvements 5,822 Total property and equipment 11,456 Accumulated depreciation and amortization (701 ) Total property and equipment, net $ 10,755
Intangible assets estimated useful lives	The following summarizes the estimated useful lives by asset classification: Corporate trade name 20 years Customer relationships 25 years Technology 7 years Details of our intangible assets (in thousands) as of September 30, 2015 , are presented below: Weighted- Average Gross Net Remaining Carrying Accumulated Carrying Useful Life Amount Amortization Value Corporate trade name 19.7 $ 19,000 $ 316 $ 18,684 Customer relationships 24.7 120,000 1,597 118,403 Technology 6.7 30,000 1,426 28,574 Total $ 169,000 $ 3,339 $ 165,661

Organizational Transactions (Ta

Organizational Transactions (Tables)	9 Months Ended
	Sep. 30, 2015
Organizational Transactions [Abstract]
Schedule of Net Assets Acquired	The allocation of the value of the transaction (in thousands) is included below: Goodwill $ 608,903 Intangible assets 169,000 Cash and restricted cash 21,930 Other assets 51,306 Remeasurement gain on previously held equity interest (414,133 ) Liabilities and deferred revenue (73,366 ) Non-controlling interests (332,793 ) Carrying value of previously held equity interest (30,847 ) Purchase price $ —
Business Acquisition, Pro Forma Information	This pro forma data is presented for informational purposes only and does not purport to be indicative of the results of future operations or of the results that would have occurred had the consolidation taken place on January 1, 2014. The pro forma adjustments were based on available information and assumptions that the Company believes are reasonable to reflect the impact of this acquisition on the Company's historical financial information on a pro forma basis (in thousands). For the Three For the Nine Months Ended Months Ended September 30, September 30, 2015 2014 2015 2014 Revenue $ 43,276 $ 27,396 $ 116,779 $ 69,161 Net income (loss) (14,024 ) 368,310 (26,067 ) 344,283 Net income (loss) attributable to non-controlling interests (5,028 ) (3,599 ) (11,704 ) (16,379 ) Net income (loss) attributable to Evolent Health, Inc. $ (8,996 ) $ 371,909 $ (14,363 ) $ 360,662 Net income (loss) available to common shareholders: Basic $ (0.22 ) $ 14.65 $ (0.44 ) $ 14.35 Diluted (0.22 ) 7.99 (0.44 ) 7.61

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2015
Investments [Abstract]
Summary Investment Holdings	Gross Gross Amortized Unrealized Unrealized Fair Costs Gains Losses Value U.S. Treasury bills $ 12,125 $ 21 $ (1 ) $ 12,145 Corporate bonds 11,946 54 (19 ) 11,981 Total investments $ 24,071 $ 75 $ (20 ) $ 24,126
Investments Classified by Contractual Maturity Date	The amortized cost and fair value of our investments by contractual maturities (in thousands) as of September 30, 2015, were as follows: Amortized Fair Cost Value Due in one year or less $ 2,023 $ 2,021 Due after one year through five years 22,048 22,105 Total $ 24,071 $ 24,126

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Summary of property and equipment	The following summarizes the estimated useful lives by asset classification: Computer hardware 3 years Furniture and equipment 3 years Internal-use software development costs 7 years Leasehold improvements Shorter of useful life or remaining lease term The following summarizes our property and equipment (in thousands): As of September 30, 2015 Computer hardware $ 228 Furniture and equipment 1,604 Internal-use software development costs 3,802 Leasehold improvements 5,822 Total property and equipment 11,456 Accumulated depreciation and amortization (701 ) Total property and equipment, net $ 10,755

Goodwill and Intangible Asset26

Goodwill and Intangible Assets, Net (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets estimated useful lives	The following summarizes the estimated useful lives by asset classification: Corporate trade name 20 years Customer relationships 25 years Technology 7 years Details of our intangible assets (in thousands) as of September 30, 2015 , are presented below: Weighted- Average Gross Net Remaining Carrying Accumulated Carrying Useful Life Amount Amortization Value Corporate trade name 19.7 $ 19,000 $ 316 $ 18,684 Customer relationships 24.7 120,000 1,597 118,403 Technology 6.7 30,000 1,426 28,574 Total $ 169,000 $ 3,339 $ 165,661

Commitments and Contingencies

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Summary of major customers	The following table summarizes those customers who represented at least 10% of our accounts receivable or revenue as of and for the periods presented: For the Three For the Nine As of Months Ended Months Ended September 30, September 30, September 30, 2015 2015 2015 Accounts Receivable Revenue Customer A * 13.6 % 13.1 % Customer B 13.7 % 12.7 % 12.3 % Customer C 15.9 % 15.7 % 15.8 % Customer D 39.3 % 14.3 % 14.6 % Customer E * 17.1 % 17.1 % Customer F 14.4 % 10.6 % 10.5 % * Represents less than 10.0% of the respective balance

Earnings (Loss) Per Common Sh28

Earnings (Loss) Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share available for common stockholders (in thousands, except per share data): For the Three For the Nine Months Ended Months Ended September 30, September 30, 2015 2014 2015 2014 Net income (loss) $ (17,088 ) $ (3,167 ) $ 328,081 $ (14,548 ) Less: Net income (loss) attributable to non-controlling interests (5,108 ) — (8,532 ) — Undeclared cumulative preferred dividends — 1,279 2,184 3,845 Redemption of preferred stock at amount in excess of carrying value — 750 — 750 Net income (loss) available for common shareholders - Basic (11,980 ) (5,196 ) 334,429 (19,143 ) Add: Net income (loss) attributable to non-controlling interests — — (8,532 ) — Undeclared cumulative preferred dividends converted during the period — — 2,184 — Net income (loss) available for common shareholders - Diluted $ (11,980 ) $ (5,196 ) $ 328,081 $ (19,143 ) Weighted-average common shares outstanding - Basic 41,468 2,506 19,618 2,184 Dilutive effect of restricted stock — — 19 — Dilutive effect of options — — 1,623 — Assumed conversion of convertible preferred stock at beginning-of-period — — 12,563 — Assumed conversion of Class B common shares to Class A common shares — — 7,575 — Weighted-average common shares outstanding - Diluted 41,468 2,506 41,398 2,184 Earnings (Loss) per Common Share Basic $ (0.29 ) $ (2.07 ) $ 17.05 $ (8.77 ) Diluted (0.29 ) (2.07 ) 7.93 (8.77 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Anti-dilutive shares (in thousands) excluded from the calculation of weighted-average common shares presented above are presented below: For the Three For the Nine Months Ended Months Ended September 30, September 30, 2015 2014 2015 2014 Exchangeable Class B common stock 17,525 — — — Convertible preferred stock — 21,468 — 21,956 Restricted stock 55 1,122 — 520 Options 1,847 — — — Total 19,427 22,590 — 22,476

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based awards issued	Total compensation expense (in thousands) by award type and line item in our condensed consolidated financial statements (in thousands) were as follows: For the Three For the Nine Months Ended Months Ended September 30, September 30, 2015 2015 Award Type Stock options $ 3,982 $ 5,148 Restricted stock — 4,875 RSUs 400 513 Total $ 4,382 $ 10,536 Line Item Cost of revenue $ 384 $ 793 Selling, general and administrative expenses 3,998 9,743 Total $ 4,382 $ 10,536
Stock-based compensation expense	Stock-based awards granted were as follows: For the Three For the Nine Months Ended Months Ended September 30, September 30, 2015 2015 Stock options — 1,789,243 RSUs — 318,336

Equity Method Investment (Table

Equity Method Investment (Tables)	9 Months Ended
	Sep. 30, 2015
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	The following is a summary of the operating results of Evolent Health LLC (in thousands) for the periods that it was accounted for as an equity method investment: For the For the Three January 1, Nine Months 2015 Months Ended through Ended September 30, June 3, September 30, 2014 2015 2014 Total revenue $ 29,896 $ 61,814 $ 74,161 Cost of revenue (exclusive of depreciation and amortization) 19,326 44,839 52,193 Gross profit 10,570 16,975 21,968 Operating income (loss) (6,105 ) (44,119 ) (30,710 ) Net income (loss) (6,051 ) (44,079 ) (30,593 )

Non-controlling Interests (Tabl

Non-controlling Interests (Tables)	9 Months Ended
	Sep. 30, 2015
Noncontrolling Interest [Abstract]
Schedule of Changes in Non-controlling Interests	Changes in non-controlling interests (in thousands) were: For the Three For the Nine Months Ended Months Ended September 30, September 30, 2015 2015 Non-controlling interests as of beginning-of-period $ 294,494 $ — Increase in non-controlling interests as a result of the Offering Reorganization — 332,793 Decrease in non-controlling interests as a result of the merger of the TPG affiliate with and into Evolent Health, Inc. — (34,875 ) Net income (loss) subsequent to the Offering Reorganization attributable to non-controlling interests (5,108 ) (8,532 ) Non-controlling interests as of end-of-period $ 289,386 $ 289,386

Organization (Details)

Organization (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 05, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Organization [Line Items]
Offering expenses	$ 3,200
Proceeds from initial public offering, net of offering costs	$ 209,100	$ 209,087	$ 0
Cash and cash equivalents		$ 208,157	$ 0	$ 0	$ 0
Evolent Health LLC | Pre-Organization Members
Organization [Line Items]
Evolent Health LLC ownership interest	100.00%
Common Stock | Class A
Organization [Line Items]
Common shares authorized	13,225,000	13,225,000		272,000
Share Price (in usd per share)	$ 17
Shares issued in acquisition		2,051,468
Common Stock | Class B
Organization [Line Items]
Common shares authorized		19,576,000
Shares issued in acquisition		(2,051,000)
Evolent Health LLC
Organization [Line Items]
Parent's ownership percentage		70.30%

Basis of Presentation and Sum33

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Money market funds	$ 194,500	$ 194,500
Research and development costs	2,500	3,300
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash and cash equivalents	3,833	3,833
Non-current restricted cash	2,511	2,511	$ 0
Current restricted cash	1,322	1,322	$ 0
Letters of credit for facility leases
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash and cash equivalents	3,710	3,710
Other
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash and cash equivalents	$ 123	$ 123

Basis of Presentation and Sum34

Basis of Presentation and Summary of Significant Accounting Policies - Estimated Useful Life of Property, Plant and Equipment (Details)	9 Months Ended
	Sep. 30, 2015
Computer hardware
Property, Plant and Equipment [Line Items]
Useful life	3 years
Furniture and equipment
Property, Plant and Equipment [Line Items]
Useful life	3 years
Internal-use Software Development Costs
Property, Plant and Equipment [Line Items]
Useful life	7 years

Basis and Presentation and Summ

Basis and Presentation and Summary of Significant Accounting Policies - Intangible Assets (Details)	9 Months Ended
	Sep. 30, 2015
Corporate trade name
Finite-Lived Intangible Assets [Line Items]
Useful life	20 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life	25 years
Technology
Finite-Lived Intangible Assets [Line Items]
Useful life	7 years

Organizational Transactions - N

Organizational Transactions - Narrative (Details) $ in Millions	Jun. 05, 2015USD ($)classvoteshares	Sep. 30, 2015
Class of Stock [Line Items]
Number of classes of common stock | class	2
Evolent Health LLC
Class of Stock [Line Items]
Number of classes of common stock | class	2
Pre-Organization Members | Evolent Health LLC
Class of Stock [Line Items]
Evolent Health LLC ownership interest	100.00%
Evolent Health LLC
Class of Stock [Line Items]
Parent's ownership percentage		70.30%
Evolent Health LLC
Class of Stock [Line Items]
Estimated fair value of Evolent Health LLC | $	$ 777.8
Class A
Class of Stock [Line Items]
Number of votes per share of commons stock	1
Class A | Evolent Health LLC
Class of Stock [Line Items]
Required ratio of outstanding shares of Class A common stock to Class A common units		1
Class A | Evolent Health Holdings, Inc. Merger
Class of Stock [Line Items]
Shares of Class A common stock receivable in exchange for each share of Class A common stock held in Evolent Health Holdings | shares	4
Class A | Affiliate of TPG Merger | Texas Pacific Group
Class of Stock [Line Items]
Percent of common stock held in affiliate exchanged for shares of Class A common stock and the right to certain payments under the TRA	100.00%
Class B
Class of Stock [Line Items]
Number of votes per share of commons stock	1
Class B | Evolent Health LLC
Class of Stock [Line Items]
Exchange ratio of Class B common units to Class A common stock	1

Organizational Transactions -37

Organizational Transactions - Net Assets Acquired (Details) - USD ($) $ in Thousands	Jun. 05, 2015	Sep. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill		$ 608,903	$ 0
Evolent Health LLC
Business Acquisition [Line Items]
Goodwill	$ 608,903
Intangible assets	169,000
Cash and restricted cash	21,930
Other assets	51,306
Remeasurement gain on previously held equity interest	(414,133)
Liabilities and deferred revenue	(73,366)
Non-controlling interests	(332,793)
Carrying value of previously held equity interest	(30,847)
Purchase price	$ 0

Organizational Transactions - P

Organizational Transactions - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Organizational Transactions [Abstract]
Adjustment for removal of transaction costs			$ 1,200
Revenue	$ 43,276	$ 27,396	116,779	$ 69,161
Net income (loss)	(14,024)	368,310	(26,067)	344,283
Net income (loss) attributable to noncontrolling interest	(5,028)	(3,599)	(11,704)	(16,379)
Net Income (Loss) attributable to Evolent Health, Inc.	$ (8,996)	$ 371,909	$ (14,363)	$ 360,662
Net income (loss) available to common shareholders, basic	$ (0.22)	$ 14.65	$ (0.44)	$ 14.35
Net income (loss) available to common shareholders, diluted	$ (0.22)	$ 7.99	$ (0.44)	$ 7.61

Investments - Investment Summar

Investments - Investment Summary (Details) $ in Thousands	Sep. 30, 2015USD ($)
Schedule of Held-to-maturity Securities [Line Items]
Investments, Amortized cost	$ 24,071
Gross Unrealized Gains	75
Gross Unrealized Losses	(20)
Fair Value	24,126
U.S. Treasury bills
Schedule of Held-to-maturity Securities [Line Items]
Investments, Amortized cost	12,125
Gross Unrealized Gains	21
Gross Unrealized Losses	(1)
Fair Value	12,145
Corporate bonds
Schedule of Held-to-maturity Securities [Line Items]
Investments, Amortized cost	11,946
Gross Unrealized Gains	54
Gross Unrealized Losses	(19)
Fair Value	$ 11,981

Investments - Contractual Matur

Investments - Contractual Maturity (Details) $ in Thousands	Sep. 30, 2015USD ($)
Investments [Abstract]
Due in one year or less, Amortized cost	$ 2,023
Due in one year or less, Fair value	2,021
Due after one year through five years, Amortized cost	22,048
Due after one year through five years, Fair value	22,105
Investments, Amortized cost	24,071
Investments, Fair value	$ 24,126

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 11,456,000	$ 11,456,000	$ 0
Accumulated depreciation and amortization	(701,000)	(701,000)
Total property and equipment, net	10,755,000	10,755,000	$ 0
Depreciation expense	500,000	700,000
Capitalized computer software, amortization (less than 0.1 million)	100,000	100,000
Computer hardware
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	228,000	228,000
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,604,000	1,604,000
Internal-use Software Development Costs
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	3,802,000	3,802,000
Total property and equipment, net	3,800,000	3,800,000
Capitalized computer software additions	2,800,000	3,800,000
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 5,822,000	$ 5,822,000

Goodwill and Intangible Asset42

Goodwill and Intangible Assets, Net (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Jun. 05, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 608,903	$ 608,903		$ 0
Intangible assets, net	165,661	165,661	$ 168,170	$ 0
Gross carrying amount	169,000	169,000
Accumulated amortization	3,339	3,339
Net carrying amount	165,661	165,661
Amortization of intangible assets	2,500	3,300
Future estimated amortization expense, year one	10,000	10,000
Future estimated amortization expense, year two	10,000	10,000
Future estimated amortization expense, year three	10,000	10,000
Future estimated amortization expense, year four	10,000	10,000
Future estimated amortization expense, year five	10,000	$ 10,000
Corporate trade name
Finite-Lived Intangible Assets [Line Items]
Weighted average remaining useful life		19 years 7 months 26 days
Gross carrying amount	19,000	$ 19,000
Accumulated amortization	316	316
Net carrying amount	18,684	$ 18,684
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted average remaining useful life		24 years 7 months 26 days
Gross carrying amount	120,000	$ 120,000
Accumulated amortization	1,597	1,597
Net carrying amount	118,403	$ 118,403
Technology
Finite-Lived Intangible Assets [Line Items]
Weighted average remaining useful life		6 years 7 months 26 days
Gross carrying amount	30,000	$ 30,000
Accumulated amortization	1,426	1,426
Net carrying amount	$ 28,574	$ 28,574
Common Stock | Class A
Finite-Lived Intangible Assets [Line Items]
Share Price (in usd per share)			$ 17

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014	Jun. 27, 2013
Commitments and Contingencies Disclosure [Abstract]
Shares transferred if minimum revenue not met, Maximum				1,000,000
Percent of tax savings to be paid	85.00%	85.00%
Rent expense	$ 900	$ 1,300
Money market funds	194,500	194,500
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	2,511	2,511	$ 0
Restricted funds	3,833	3,833
Letters of credit for facility leases
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted funds	3,710	3,710
Minimum
Restricted Cash and Cash Equivalents Items [Line Items]
Letters of credit outstanding, Minimum	2,000	2,000
Minimum | Letters of credit for facility leases
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 1,700	$ 1,700

Commitments and Contingencies44

Commitments and Contingencies - Concentration Risk (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Customer A | Revenues | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk (as a percent)	13.60%	13.10%
Customer B | Revenues | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk (as a percent)	12.70%	12.30%
Customer B | Customer Receivable | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk (as a percent)		13.70%
Customer C | Revenues | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk (as a percent)	15.70%	15.80%
Customer C | Customer Receivable | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk (as a percent)		15.90%
Customer D | Revenues | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk (as a percent)	14.30%	14.60%
Customer D | Customer Receivable | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk (as a percent)		39.30%
Customer E | Revenues | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk (as a percent)	17.10%	17.10%
Customer F | Revenues
Concentration Risk [Line Items]
Concentration risk (as a percent)	10.60%	10.50%
Customer F | Customer Receivable | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk (as a percent)		14.40%

Earnings (Loss) Per Common Sh45

Earnings (Loss) Per Common Share - Computation of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Class of Stock [Line Items]
Net income (loss)	$ (17,088)	$ (3,167)	$ 328,081	$ (14,548)
Less:
Net income (loss) attributable to non-controlling interests	(5,108)	0	(8,532)	0
Undeclared cumulative preferred dividends	0	1,279	2,184	3,845
Redemption of preferred stock at amount in excess of carrying value	0	750	0	750
Net income (loss) available for common shareholders - Basic	(11,980)	(5,196)	334,429	(19,143)
Add:
Net income (loss) attributable to non-controlling interests	0	0	(8,532)	0
Undeclared cumulative preferred dividends converted during the period	0	0	2,184	0
Net income (loss) available for common shareholders - Diluted	$ (11,980)	$ (5,196)	$ 328,081	$ (19,143)
Weighted-average common shares outstanding - Basic	41,468	2,506	19,618	2,184
Assumed conversion of convertible preferred stock at beginning-of-period	0	0	12,563	0
Assumed conversion of Class B common shares to Class A common shares	0	0	7,575	0
Weighted-average common shares outstanding - Diluted	41,468	2,506	41,398	2,184
Earnings (Loss) per Common Share
Basic (in dollars per share)	$ (0.29)	$ (2.07)	$ 17.05	$ (8.77)
Diluted (in dollars per share)	$ (0.29)	$ (2.07)	$ 7.93	$ (8.77)
Restricted stock
Add:
Dilutive effect of options	0	0	19	0
Stock options
Add:
Dilutive effect of options	0	0	1,623	0

Earnings (Loss) Per Common Sh46

Earnings (Loss) Per Common Share - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities excluded from the calculation of earning per share	19,427	22,590	0	22,476
Exchangeable Class B Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities excluded from the calculation of earning per share	17,525	0	0	0
Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities excluded from the calculation of earning per share	0	21,468	0	21,956
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities excluded from the calculation of earning per share	55	1,122	0	520
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive securities excluded from the calculation of earning per share	1,847	0	0	0

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - shares	Sep. 30, 2015	May. 01, 2015	Dec. 31, 2014	Sep. 23, 2013
2011 Plan | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)				9,141,268
2011 Plan | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options issued (in shares)	5,095,400		4,156,400
2011 Plan | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs issued (in shares)	3,775,240		3,775,240
2015 Plan | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options issued (in shares)	643,411
2015 Plan | Stock options | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)		6,000,000
2015 Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs issued (in shares)	301,735

Stock-based Compensation - Awar

Stock-based Compensation - Awards Issued (Details) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based awards granted	0	1,789,243
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based awards granted	0	318,336

Stock-based Compensation - Comp

Stock-based Compensation - Compensation Expense (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2015USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation capitalized as software development costs (less than $0.1 million)	$ 100	$ 100
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	4,382	10,536
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	384	793
Selling, general and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	3,998	9,743
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	3,982	5,148
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	0	4,875
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 400	$ 513

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax Contingency [Line Items]
Provision (benefit) for income taxes	$ (104)	$ 0	$ 29,169	$ 0
Effective tax rate	0.60%	0.00%	8.20%	0.00%
Income tax expense due to changes in deferred tax liability			$ 29,200
Deferred tax liability established from book tax basis differences related to assets and liabilities	$ 29,600		29,600
Tax effect of the Offering Reorganization			(396)
Net operating loss carryforwards	118,000		$ 118,000
Tax receivable agreement, percent of cash savings paid to shareholders			85.00%
Tax receivable agreement, percent of cash savings not paid to shareholders			15.00%
Periods Prior to June 2015
Income Tax Contingency [Line Items]
Net operating loss carryforwards	$ 98,200		$ 98,200
Additional Paid-in Capital
Income Tax Contingency [Line Items]
Tax effect of the Offering Reorganization			$ (396)

Equity Method Investment (Detai

Equity Method Investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Schedule of Equity Method Investments [Line Items]
Proportionate share of losses of Evolent Health LLC	$ 0	$ 3,167	$ 28,165	$ 14,548
Evolent Health LLC
Schedule of Equity Method Investments [Line Items]
Proportionate share of losses of Evolent Health LLC		3,200	28,200	14,500
Amortization of basis differential		$ 500	$ 800	$ 1,500

Equity Method Investment - Summ

Equity Method Investment - Summarized Financial Information (Details) - Evolent Health LLC - USD ($) $ in Thousands	3 Months Ended	5 Months Ended	9 Months Ended
	Sep. 30, 2014	Jun. 03, 2015	Sep. 30, 2014
Schedule of Equity Method Investments [Line Items]
Total revenue	$ 29,896	$ 61,814	$ 74,161
Cost of revenue (exclusive of depreciation and amortization)	19,326	44,839	52,193
Gross profit	10,570	16,975	21,968
Operating income (loss)	(6,105)	(44,119)	(30,710)
Net income (loss)	$ (6,051)	$ (44,079)	$ (30,593)

Non-controlling Interests (Deta

Non-controlling Interests (Details) - USD ($) $ in Thousands	Jun. 05, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Non-controlling interests as of beginning-of-period				$ 0
Net income (loss) attributable to non-controlling interests		$ (5,108)	$ 0	(8,532)	$ 0
Non-controlling interests as of end-of-period		289,386		289,386		$ 0
Non-controlling Interests
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Non-controlling interests as of beginning-of-period		294,494		0
Increase in non-controlling interests as a result of the Offering Reorganization		0		332,793
Decrease in non-controlling interests as a result of the merger of the TPG affiliate with and into Evolent Health, Inc.		0		(34,875)
Net income (loss) attributable to non-controlling interests		(5,108)		(8,532)
Non-controlling interests as of end-of-period		$ 289,386		$ 289,386		$ 0
Evolent Health LLC
Noncontrolling Interest [Line Items]
Parent's ownership percentage		70.30%		70.30%
Class A | Common Stock
Noncontrolling Interest [Line Items]
Issuance of common stock, shares	13,225,000			13,225,000		272,000
Merger with TPG affiliate, shares				2,051,468