Clover Health Investments Corp (CLOV)

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Clover Health Reports First Quarter 2025 Results and Improves Full Year 2025 Guidance
First quarter 2025 Medicare Advantage membership of 103,418, up 30% year-over-year
First quarter 2025 Total revenues of $462 million, up 33% year-over-year
Medicare Advantage medical costs are in line with expectations, underscoring the strength of Clover’s technology-first care management model
Meaningful improvement across first quarter 2025 profitability metrics: GAAP Net loss of $1 million, as compared to a GAAP Net loss of $19 million a year agoAdjusted EBITDA of $26 million, up 279% year-over-yearAdjusted Net income of $25 million, up 322% year-over-year
Improved Full Year 2025 Guidance:

Average Medicare Advantage membership of 103,000 - 107,000, representing 30% growth year-over-year at the midpoint
Insurance revenue between $1.800 billion and $1.875 billion, representing 37% growth year-over-year at the midpoint
Adjusted EBITDA profitability between $50 million and $70 million
Adjusted Net income between $50 million and $70 million
WILMINGTON, Del., May 06, 2025 (GLOBE NEWSWIRE) -- Clover Health Investments, Corp. (Nasdaq: CLOV) (“Clover,” “Clover Health” or the “Company”), today reported financial results for the first quarter 2025. Management will host a conference call today at 5:00 p.m. ET to discuss its operating results and other business highlights.

"I am very pleased with our strong start to the year, demonstrating our ability to meaningfully grow membership and expand profitability," said Clover Health CEO Andrew Toy. "Our differentiated model is designed to drive scalable growth and proactively manage our medical costs amidst regulatory changes, outperforming others in the industry, with Clover Assistant. Our recently published clinical whitepaper on Congestive Heart Failure shows that a relationship with a Clover Assistant provider was associated with lower average number of all-cause hospitalizations (18% lower) and 30-day readmissions (25% lower)."

"Our strong first quarter 2025 financial results reflect the execution of our strategic plan to grow revenue and membership above-market rates, while continuing to drive profitability. First quarter 2025 medical costs are in line with expectations," said Clover Health CFO Peter Kuipers. "Our results and strong underlying business fundamentals further reinforce our conviction in 2025, and we will continue to strategically invest into our growth model, manage our new and returning member cohorts, and expand Clover Assistant’s reach, to enhance our already strong competitive positioning in 2026 and beyond."

Key Company highlights are as follows:

Dollars in Millions 1Q25 1Q24 Change (%)
Insurance revenue $ 456.9 $ 341.7 33.7 %
Total revenues 462.3 346.9 33.3 %
Insurance net medical claims incurred 367.9 266.1 38.3 %
Salaries and benefits plus General and administrative expenses ("SG&A") 109.7 103.8 5.7 %
Adjusted Salaries and benefits plus General and administrative expenses ("Adjusted SG&A")(1) 83.1 74.9 10.9 %
Adjusted SG&A as a % of Total revenues 18.0 % 21.6 % (360 bps )
Net loss from continuing operations $ (1.3 ) $ (23.2 ) 94.4 %
Adjusted Net income from continuing operations(1)(2) 25.3 6.0 321.7 %
Adjusted EBITDA(1) 25.8 6.8 279.4 %
Average medicare advantage membership(5) 101,959 79,265 28.6 %
Insurance BER(3) 86.1 % 83.2 % 290 bps
Total cash, cash equivalents, and investments $ 390.8 $ 440.3 (11.2)%

Financial Outlook

For full-year 2025, Clover Health is improving its guidance as follows:

Current 2025 Guidance Previous 2025 Guidance
Insurance revenue $1.800 billion - $1.875 billion $1.800 billion - $1.875 billion
Adjusted SG&A(4) $355 million - $365 million $355 million - $365 million
Adjusted SG&A as a % of Total revenues 19% - 20% 19% - 20%
Adjusted EBITDA(4) $50 million - $70 million $45 million - $70 million
Adjusted Net income(2)(4) $50 million - $70 million $45 million - $70 million
Average Medicare Advantage membership 103,000 - 107,000 103,000 - 107,000
Insurance BER(4) 87% - 88% 87% - 88%

Lives under Clover Management

March 31, 2025 March 31, 2024
Insurance members 103,418 79,527

Earnings Conference Call Details

Clover Health’s management will host a conference call to discuss its financial results on Tuesday, May 6, at 5:00 PM Eastern Time. To access the call via telephone, please dial 800-274-8461 (for U.S. callers) or 203-518-9814 (for callers outside the U.S.) and enter the conference ID: CLOVQ125. A live audio webcast will also be available online at: https://event.on24.com/wcc/r/4907810/54258C9AF223D84ADCF625A1618CDA44 and related presentation materials will be available at Clover Health’s Investor Relations website at investors.cloverhealth.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link and at Clover Health’s Investor Relations website at investors.cloverhealth.com, and will remain available for approximately 12 months.

Upcoming Investor Events & Conferences

2025 Bank of America Healthcare Conference at 6:00 p.m. Eastern Time, Wednesday, May 14, 2025
22nd Annual Craig-Hallum Institutional Investor Conference, Wednesday, May 28, 2025
Any live and archived webcasts and presentations associated with the conferences listed above may be accessed on Clover Health’s Investor Relations website at: investors.cloverhealth.com/news-and-events/investor-events-presentations.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding future events and Clover Health's future results of operations, financial condition, market size and opportunity, business strategy and plans, and the factors affecting our performance and our objectives for future operations. Forward-looking statements are not guarantees of future performance and you are cautioned not to place undue reliance on such statements. In some cases, you can identify forward looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "can," "could," "should," "would," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "outlook," "forecast," "guidance," "objective," "plan," "seek," "grow," "if," "continue" or the negative of these words or other similar terms or expressions that concern Clover Health's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this press release include, but are not limited to, the following: statements under "Financial Guidance" and statements regarding expectations relating to potential improvements in operating expenses, Adjusted SG&A, Insurance BER, and the number of Clover Health's Insurance members, as well as the statements contained in the quotations of our executive officers, future capital needs and other expectations as to future performance, operations and results (including our updated guidance for full-year 2025). Statements regarding our Adjusted EBITDA profitability and Adjusted Net income profitability are also forward-looking, and are based on our current targets which are preliminary and are derived from our 2025 financial outlook. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or im