Oakland, Calif.-based Kaiser Permanente recorded an operating income of $1.4 billion (1.1% operating margin) in 2025, up from an operating income of $569 million (0.5% margin) in 2024, according to its Feb. 6 financial report.
Kaiser’s results for the 12 months ended Dec. 31, include Risant Health, the Washington, D.C.-based nonprofit it formed “to expand and accelerate the adoption of value-based care in diverse, multi-payer, multi-provider, community-based health system environments.” Risant acquired Danville, Pa.-based Geisinger and Greensboro, N.C.-based Cone Health in 2024.
Total operating revenue was $127.7 billion in 2025, up from $115.8 billion in 2024. Operating expenses were $126.3 billion compared to $115.2 billion in the prior year.
Kaiser said in its report that, like the rest of the healthcare sector, it faced rising costs to deliver care in 2025.
“High demand for care, including more complex care, and high costs for prescription medications contributed to expense increases,” the report said. “The organizations worked to mitigate these costs by advancing operational efficiencies and reducing outside medical expenses while continuing to provide high-quality care.”
Capital spending was $4.8 billion in 2025, up from $3.7 billion the year prior. Spending included preparations to meet California’s earthquake safety mandates, as well as advancing other facility and technology improvements.
“In recent years, we have relied on our investment returns and the balance sheet to bridge the gap in our operating performance to support our capital needs without interruption and keep care affordable,” Kaiser Executive vice president and CFO Kathy Lancaster said in the report. “Additionally, although our cash reserves are sufficient for daily operations, our days cash on hand is still below the industry average for organizations with similar creditworthiness.”
As of Dec. 31, Kaiser and Risant operate 55 hospitals and 847 medical offices. Health plan membership across Kaiser and Risant was about 13.1 million.
The organization reported a net income of $9.3 billion in 2025, down from $12.9 billion the year prior. Net income in 2024 included $6.8 billion related to Risant’s acquisitions of Geisinger and Cone.
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