Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 FORM 10-Q OR (Mark One) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact Name of Registrant as Specified in its Charter) Delaware 47-4991296 (State or other jurisdiction of incorporation or organization) 9250 NW 36th St, Suite 420, Doral, F ...

Exhibit 99.1 NEUEHEALTH REPORTS SECOND QUARTER 2025 RESULTS DORAL, Fla. (August 7, 2025) (BUSINESSWIRE) – NeueHealth, Inc. ("NeueHealth" or the "Company") (NYSE: NEUE), the value-driven healthcare company, today reported financial results for its second quarter ended June 30, 2025. "We are pleased to report another strong quarter of financial results as we continue to build on the momentum we have established across our business this year," said Mike Mikan, President and CEO of NeueHealth. "We delivered our ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements for Q1 2025 report a **net loss of $10.8 million** and **operating income of $2.7 million**, with a 'going concern' warning [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the pending NEA Merger, a 'Going Concern' warning, **$207.4 million** in long-term borrowings, and **$271.8 million** risk adjustment payable - On December 23, 2024, NeueHealth entered into a **merger agreement with an affiliate of New Enterprise Associates, Inc. (NEA)**, with stockholder approval obtained on May 7, 2025, pending other closing conditions[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - The company has a **$271.8 million** risk adjustment payable related to its discontinued commercial insurance business, with modified repayment agreements extending the due date to **September 15, 2026**, at an **11.5%** interest rate per annum[38](index=38&type=chunk)[39](index=39&type=chunk)[179](index=179&type=chunk) - Discontinued operations, including the sale of its California Medicare Advantage business and exit from commercial plans, resulted in a **net loss of $9.4 million** for Q1 2025[154](index=154&type=chunk)[155](index=155&type=chunk)[158](index=158&type=chunk) - The company participates in the CMS ACO REACH Model, recording a **$468.3 million** ACO REACH performance year receivable and a corresponding **$382.5 million** obligation as of March 31, 2025[142](index=142&type=chunk)[143](index=143&type=chunk)[147](index=147&type=chunk) Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | 788,206 | 434,648 | | **Total Assets** | **895,680** | **544,383** | | **Total Current Liabilities** | 1,064,052 | 710,228 | | **Total Liabilities** | **1,288,652** | **930,491** | | **Total Shareholders' Equity (Deficit)** | (1,361,158) | (1,355,105) | Condensed Consolidated Statements of Income (Loss) Highlights (Unaudited) | Account | Three Months Ended Mar 31, 2025 ($ in thousands) | Three Months Ended Mar 31, 2024 ($ in thousands) | | :--- | :--- | :--- | | **Total Revenue** | 215,787 | 245,095 | | **Total Operating Expenses** | 213,126 | 268,197 | | **Operating Income (Loss)** | 2,661 | (23,102) | | **Net (Loss) Income from Continuing Operations** | (1,438) | 5,688 | | **Loss from Discontinued Operations, Net of Tax** | (9,410) | (9,865) | | **Net Loss** | **(10,848)** | **(4,177)** | | **Net Loss Attributable to Common Shareholders** | (24,875) | (28,518) | | **Basic and Diluted Loss Per Share** | **(2.90)** | **(3.53)** | - The company's history of net losses, negative operating cash flows, and significant obligations raises **substantial doubt about its ability to continue as a going concern**, as existing cash is insufficient for the next 12 months[38](index=38&type=chunk)[43](index=43&type=chunk)[45](index=45&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, noting a **12.0% revenue decline** to **$215.8 million**, improved **operating income to $2.7 million**, and reiterating the 'going concern' warning - The company's strategic focus is on its two continuing segments: **NeueCare** (value-driven care delivery) and **NeueSolutions** (provider enablement)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk) Key Metrics (as of March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Value-Based Consumers Served | 571,000 | 360,000 | | Enablement Services Lives | 138,000 | 109,000 | Adjusted EBITDA Reconciliation Highlight | Metric ($ in thousands) | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net Loss | (10,848) | (4,177) | | **Adjusted EBITDA** | **13,478** | **3,657** | - Management states that existing cash and investments are **not sufficient** to satisfy anticipated cash requirements for the next twelve months, leading to **substantial doubt about its ability to continue as a going concern**[222](index=222&type=chunk) [Results of Operations](index=45&type=section&id=Results%20of%20Operations) Q1 2025 total revenues decreased **12.0%** due to lower ACO REACH revenue, partially offset by capitated revenue growth, with significant reductions in medical and operating costs - Total revenues decreased by **12.0%** YoY, driven by a **$47.8 million** decline in ACO REACH revenue, partially offset by a **$19.5 million** increase in capitated revenue from growth in third-party payor contracts[201](index=201&type=chunk) - Operating costs decreased by **27.1%** YoY, mainly due to lower compensation-related costs from reduced employee headcount as part of ongoing restructuring efforts[203](index=203&type=chunk) [Segment Performance](index=47&type=section&id=Segment%20Performance) NeueCare segment operating income increased to **$23.0 million** due to capitated revenue growth, while NeueSolutions reported a stable **$3.0 million** operating loss with **27.8%** revenue decrease NeueCare Segment Performance ($ in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Segment Revenue | 90,517 | 73,623 | | Total Operating Expenses | 67,510 | 63,811 | | **Operating Income** | **23,007** | **9,812** | NeueSolutions Segment Performance ($ in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Segment Revenue | 127,610 | 173,896 | | Total Operating Expenses | 130,602 | 176,828 | | **Operating Loss** | **(2,992)** | **(2,932)** | [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is critical, with **$239.3 million** in cash and investments and significant debt, raising substantial doubt about its ability to continue as a going concern - The company had **$224.8 million** in cash and cash equivalents and **$14.5 million** in short-term investments as of March 31, 2025, across both continuing and discontinued operations[249](index=249&type=chunk) - Cash used in operating activities decreased to **$21.0 million** in Q1 2025 from **$48.7 million** in Q1 2024, primarily due to lower payments for medical costs and risk adjustment obligations in discontinued operations[253](index=253&type=chunk) - The company has **multiple debt facilities**, including the 2023 Credit Agreement and the Hercules Credit Agreement, with **significant covenants and conditions** for accessing additional funds[228](index=228&type=chunk)[237](index=237&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This item is not applicable - Not applicable[257](index=257&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Based on an evaluation as of March 31, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective at the reasonable assurance level**[260](index=260&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control[261](index=261&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several legal matters, including an appealed securities class action lawsuit and three lawsuits related to the pending NEA merger - A securities class action lawsuit (*Marquez v. Bright Health Group, Inc. et al.*) was dismissed on November 1, 2024, but the plaintiff filed an **appeal** on November 27, 2024[124](index=124&type=chunk) - **Three lawsuits** have been filed against the company related to the **NEA Merger** announced on December 23, 2024[125](index=125&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2024 Form 10-K - There have been **no material changes** to the risk factors disclosed in the 2024 Form 10-K[263](index=263&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) None reported for this item - None[264](index=264&type=chunk) [Defaults upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) None reported for this item - None[265](index=265&type=chunk) [Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable - Not applicable[266](index=266&type=chunk) [Other Information](index=55&type=section&id=Item%205.%20Other%20Information) None reported for this item - None[267](index=267&type=chunk) [Exhibits](index=56&type=section&id=Item%206.%20Exhibits) Exhibits filed with the Form 10-Q include the NEA Merger Agreement, corporate governance documents, CMS repayment agreements, and CEO/CFO certifications - Filed exhibits include the **NEA Merger Agreement**, corporate certificates, **modified repayment agreements with CMS** for Florida and Colorado, and **CEO/CFO certifications**[268](index=268&type=chunk)

Exhibit 99.1 As previously announced, NeueHealth will discuss the Company's results, strategy, and outlook on a conference call with investors at 8:00 a.m. Eastern Time today. NeueHealth will host a live webcast of this conference call which can be accessed from the Investor Relations page of the Company's website (investors.neuethealth.com). Following the call, a webcast replay will be available on the same site. This earnings release and the Form 8-K filed May 8, 2025 can be accessed on the Investor Relat ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | | Trading | Name of each exchange | | --- | --- | --- | | Title of each class | Symbol(s) | on which registered | | Common Stock, $0.0001 par v ...

Financial Performance - NeueHealth reported revenue of $232,638,000 for Q4 2024, a decrease from $292,871,000 in Q4 2023, and full-year revenue of $936,657,000, down from $1,160,802,000 in 2023[3]. - The company achieved a net income of $2,523,000 in Q4 2024, compared to a net loss of $460,572,000 in Q4 2023, and a full-year net loss of $99,717,000, improved from a loss of $1,265,808,000 in 2023[3]. - Adjusted EBITDA for Q4 2024 was $5,482,000, a significant improvement from a loss of $10,356,000 in Q4 2023, with full-year adjusted EBITDA at $22,496,000, compared to a loss of $8,480,000 in 2023[3]. - Total revenue for the year ended December 31, 2024, was $936.657 million, a decrease of 19.3% from $1,160.802 million in 2023[17]. - Capitated revenue increased to $259.881 million for the year ended December 31, 2024, up 18.3% from $219.774 million in 2023[17]. - ACO REACH revenue decreased significantly to $625.339 million in 2024, down 30.3% from $896.504 million in 2023[17]. - Operating loss for the year ended December 31, 2024, was $107.410 million, compared to a loss of $576.996 million in 2023, showing improvement[17]. - Net loss attributable to common shareholders for the year ended December 31, 2024, was $186.330 million, a reduction from $1,200.599 million in 2023[17]. - The company reported a net cash used in operating activities of $123.217 million for the year ended December 31, 2024, compared to $2,726.546 million in 2023, reflecting a significant reduction in cash burn[19]. - Total assets decreased to $544.383 million in 2024 from $1,225.480 million in 2023, indicating a substantial reduction in the asset base[17]. Consumer Growth and Market Strategy - The number of value-based consumers served increased to 360,000 in 2024, up from 355,000 in 2023, while enablement services lives rose to 123,000 from 106,000[3]. - The company is experiencing significant growth in 2025, serving 717,000 consumers, representing a 48% increase compared to 2024[5]. - NeueHealth is focused on strategic growth in 2025, aiming to serve more consumers in new and existing markets and strengthen relationships with payors and providers[2]. - NeueHealth's value-driven, consumer-centric care model is expected to continue transforming the healthcare experience and maximizing value across the healthcare system[7]. Operational Efficiency - Total current liabilities decreased to $710.228 million in 2024, down from $1,391.257 million in 2023, indicating improved liquidity[17]. - Medical costs for the year ended December 31, 2024, were $742.140 million, a decrease of 25.6% from $996.582 million in 2023[17]. - Operating income for Q4 2024 was $3,104,000, a significant improvement compared to a loss of $14,632,000 in Q4 2023[22]. - Total operating expenses decreased to $153,968,000 in Q4 2024 from $235,494,000 in Q4 2023, a reduction of 34.6%[22]. - Medical costs for Q4 2024 were $149,926,000, down from $231,095,000 in Q4 2023, a decrease of 35%[22]. - The Operating Cost Ratio increased to 31.3% in Q4 2024 from 22.3% in Q4 2023[27]. - Adjusted Operating Cost Ratio improved to 18.4% in Q4 2024 from 11.1% in Q4 2023[27]. Merger and Acquisition Activity - The company entered into a Merger Agreement with NH Holdings 2025, Inc., which will make NeueHealth a wholly owned subsidiary of Parent, controlled by private investment funds affiliated with New Enterprise Associates, Inc.[8]. - The company has filed a preliminary proxy statement with the SEC regarding the merger transaction, urging investors to read the relevant documents carefully[9]. - The company incurred $16,122,000 in transaction-related costs in Q4 2024, compared to $4,363,000 in Q4 2023[26].

Consumer Base - As of September 30, 2024, NeueCare maintained approximately 404,000 consumers, including 347,000 value-based consumers and 57,000 fee-for-service consumers[198] - NeueSolutions had approximately 43,000 value-based care consumers attributed to its REACH ACOs and 119,000 enablement services lives as of September 30, 2024[199] - Year-over-year, the number of value-based care consumers increased by approximately 35,000, driven by a rise of 55,000 through third-party payor relationships[208] - Enablement services lives increased to approximately 119,000 as of September 30, 2024, compared to 31,000 in the previous year[207] - The company aims to diversify and grow its consumer base across all product categories, including ACA Marketplace, Medicare, and Medicaid[202] Financial Performance - The company reported an Adjusted EBITDA of $9,396,000 for the three months ended September 30, 2024, compared to $3,431,000 for the same period in 2023, marking a significant increase[210] - The loss from continuing operations before income taxes for the three months ended September 30, 2024, was $23,214,000, a substantial improvement from $482,690,000 for the same period in 2023[210] - The net loss for the three months ended September 30, 2024, was $40,365,000, a significant reduction from $547,148,000 for the same period in 2023[214] - Total revenue decreased by $36.5 million, or 13.5%, for the three months ended September 30, 2024, and $163.9 million, or 18.9%, for the nine months ended September 30, 2024, compared to the same periods in 2023[219] - ACO REACH revenue decreased by $50.6 million and $205.8 million for the three and nine months ended September 30, 2024, respectively, primarily due to a decrease of approximately 20,000 beneficiaries aligned to the REACH ACOs[219] Costs and Expenses - Medical costs decreased by $43.7 million, or 19.3%, for the three months ended September 30, 2024, and $174.5 million, or 23.8%, for the nine months ended September 30, 2024, primarily due to a decrease in beneficiaries aligned to the REACH ACOs[220] - Operating costs decreased by $8.5 million, or 11.7%, for the three months ended September 30, 2024, and $20.6 million, or 9.3%, for the nine months ended September 30, 2024, primarily due to a reduction in professional fees[221] - The operating cost ratio increased to 27.5% and 28.6% for the three and nine months ended September 30, 2024, respectively, reflecting a decline in revenue that outweighed the decrease in operating costs[222] - Interest expense decreased by $4.6 million and $14.5 million for the three and nine months ended September 30, 2024, respectively, primarily due to the payoff of the 2021 Credit Agreement[225] - Loss from discontinued operations decreased by $53.5 million and $197.7 million for the three and nine months ended September 30, 2024, respectively, due to the sale of the California Medicare Advantage business[229] Investments and Financing - The company acquired full ownership of Centrum Health on October 30, 2024, to streamline operations and enhance its value-driven care model[203] - The company declared $28.2 million in dividends from regulated insurance entities during the nine months ended September 30, 2024, compared to no dividends in the same period of 2023[249] - As of September 30, 2024, the company was out of compliance with minimum risk-based capital and surplus levels for certain regulated insurance entities[250] - The company had $86.4 million in long-term borrowings under the Amended 2023 Credit Agreement as of September 30, 2024[260] - The Company has a term loan Tranche 2 of up to $25,000,000 available from November 10 to December 31, 2024, subject to achieving specific funding milestones[263] Cash Flow - As of September 30, 2024, the Company had $226.4 million in cash and cash equivalents and $15.8 million in short-term investments[273] - The net cash used in operating activities for the nine months ended September 30, 2024, was $(98,823) thousand, a decrease of $2.3 billion compared to the same period in 2023[278] - Net cash provided by investing activities for the nine months ended September 30, 2024, was $189,230 thousand, a decrease of $956.2 million compared to the prior year[279] - The Company had net cash used in financing activities of $(239,274) thousand for the nine months ended September 30, 2024, an increase of $280.3 million compared to the same period in 2023[280] - As of September 30, 2024, the Company had letters of credit of $16.5 million and surety bonds of $19.7 million[269] Stock and Assets - The Centrum Promissory Note issued on October 29, 2024, has a principal of $64.0 million and bears a cash interest rate of 6% per annum, due on October 29, 2028[270] - The Company issued 750,000 shares of Series A Preferred Stock for $750.0 million and 175,000 shares of Series B Preferred Stock for $175.0 million[271] - As of September 30, 2024, the Company had non-regulated cash and cash equivalents of $110.3 million, with $33.7 million restricted as collateral[274]

Financial Performance - NeueHealth reported a revenue of $232.9 million for Q3 2024, a decrease of 13.5% compared to $269.4 million in Q3 2023[4] - The company achieved an Adjusted EBITDA of $9.4 million in Q3 2024, up from $3.4 million in Q3 2023, marking the third consecutive quarter of positive Adjusted EBITDA[4] - Net loss for Q3 2024 was reported at $40.4 million, a significant improvement from a net loss of $547.1 million in Q3 2023[4] - Total revenue for the three months ended September 30, 2024, was $232,933,000, a decrease of 13.5% compared to $269,399,000 for the same period in 2023[13] - Operating loss for the nine months ended September 30, 2024, was $(77,993,000), an improvement from $(531,061,000) in the same period of 2023[13] - Net loss attributable to common shareholders for the three months ended September 30, 2024, was $(70,475,000), compared to $(646,357,000) in the prior year[13] - The company reported a net loss of $(40,365) for the three months ended September 30, 2024, compared to $(547,148) for the same period in 2023[21] Revenue Breakdown - Capitated revenue increased to $71,334,000 for the three months ended September 30, 2024, up 18.3% from $60,371,000 in the prior year[13] - ACO REACH revenue decreased significantly to $149,477,000, down 25.2% from $200,044,000 year-over-year[13] - Total segment revenue for NeueCare was $83,867,000 for the three months ended September 30, 2024, an increase of 24.9% from $67,134,000 in the same period of 2023[16] - Total segment revenue for the nine months ended September 30, 2024, was $478,014, down 29.6% from $678,521 in the prior year[17] Cost Management - Total operating expenses for the three months ended September 30, 2024, were $250,275,000, a decrease of 65.8% from $732,174,000 in the same period of 2023[13] - Total operating expenses for the three months ended September 30, 2024, were $157,875, down from $230,132 in the prior year[17] - Medical costs for the three months ended September 30, 2024, were $182,693,000, a decrease from $226,438,000 in the prior year[13] - Medical costs for the three months ended September 30, 2024, were $153,840, a decrease from $204,017 in the same period of 2023[17] - The Operating Cost Ratio for the three months ended September 30, 2024, was 27.5%, up from 26.9% in the prior year[22] - Adjusted Operating Cost Ratio for the nine months ended September 30, 2024, improved to 17.8% from 15.9% in the same period last year[22] - The impact of share-based compensation on the Operating Cost Ratio was (7.0)% for the three months ended September 30, 2024[22] Consumer and Market Growth - As of September 30, 2024, NeueHealth served 390,000 value-based consumers, an increase of 9.86% from 355,000 in the same period of 2023[3] - The number of lives served through enablement services rose significantly to 119,000, compared to just 31,000 a year earlier, representing a growth of 283.87%[3] - The company is well-positioned to capitalize on strategic growth opportunities in 2025 and beyond, focusing on aligning interests among consumers, providers, and payors[2] Future Projections - For the full year 2024, NeueHealth expects total revenue to be approximately $950 million, with NeueCare revenue projected at $320 million and NeueSolutions revenue at $640 million[5] - The company reaffirmed its Adjusted EBITDA guidance for 2024, expecting it to be between $15 million and $25 million[5] Asset and Liability Management - Total assets as of September 30, 2024, were reported at $696.8 million, a decrease from $1.2 billion at the end of 2023[12] - Current liabilities decreased to $872.4 million from $1.4 billion at the end of 2023, indicating improved financial management[12]

Consumer and Care Services - As of June 30, 2024, NeueHealth served approximately 372,000 consumers, including 320,000 value-based consumers and 52,000 fee-for-service consumers[165] - NeueSolutions had approximately 44,000 value-based care consumers attributed to its REACH ACOs and 113,000 enablement services lives as of June 30, 2024[166] - Value-based consumers decreased by approximately 9,000 year-over-year, driven by a decline of approximately 24,000 ACO REACH lives, partially offset by an increase of 15,000 through third-party payor relationships[175] - The company reported a year-over-year increase in enablement services lives from 31,000 in June 2023 to 113,000 in June 2024[174] - NeueHealth's model aims to improve care delivery by fostering strong relationships with consumers and providers, focusing on personalized care[170] - The company is committed to aligning the interests of consumers, providers, and payors to enhance the healthcare experience[172] Financial Performance - Adjusted EBITDA for the three months ended June 30, 2024, was $3.962 million, compared to $7.797 million for the same period in 2023[178] - The net loss from continuing operations for the three months ended June 30, 2024, was $(39.446) million, compared to $(32.584) million for the same period in 2023[182] - Total revenue decreased by $72.0 million, or 24.2%, for the three months ended June 30, 2024, and $127.4 million, or 21.3%, for the six months ended June 30, 2024, compared to the same periods in 2023[186] - ACO REACH revenue decreased by approximately $87.2 million and $155.2 million for the three and six months ended June 30, 2024, respectively, due to a decrease of about 24,000 beneficiaries aligned to REACH ACOs[186] - Capitated revenue increased by $14.2 million, or 28.6%, for the three months ended June 30, 2024, and $26.2 million, or 26.3%, for the six months ended June 30, 2024, compared to the same periods in 2023[193] - Service revenue increased by $1.6 million and $3.4 million for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023[199] Cost Management - Medical costs decreased by $67.5 million, or 27.5%, for the three months ended June 30, 2024, and $130.7 million, or 25.9%, for the six months ended June 30, 2024, compared to the same periods in 2023[187] - Operating costs decreased by $0.1 million, or 0.1%, for the three months ended June 30, 2024, and $12.8 million, or 8.5%, for the six months ended June 30, 2024, compared to the same periods in 2023[188] - Total operating expenses were $263.5 million for the three months ended June 30, 2024, down from $321.4 million in the same period in 2023[185] - The operating cost ratio increased to 31.1% for the three months ended June 30, 2024, up from 23.6% in the same period in 2023[188] - Medical costs decreased by $84.0 million and $150.6 million for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023[199] Strategic Initiatives and Growth - The company is evaluating strategic growth opportunities to expand payor and provider partnerships and grow consumer numbers in new geographies[168] - The company recognized $11.4 million in impairments of intangible assets for the three and six months ended June 30, 2024, due to classifying AMD as held-for-sale[189] Capital and Liquidity - The company secured up to $150 million in a new term loan facility with Hercules Capital, strengthening its capital position[167] - As of June 30, 2024, the company had $66.4 million of long-term borrowings under the 2023 Credit Agreement[209] - The company declared $28.2 million of dividends from regulated insurance entities to the parent company during the six months ended June 30, 2024[203] - The company is out of compliance with minimum risk-based capital and surplus levels for certain regulated insurance legal entities as of June 30, 2024[204] - The company forecasts potential inability to satisfy obligations due to liquidity concerns, raising substantial doubt about its ability to continue as a going concern[200] - The company entered into a Hercules Credit Agreement providing up to $150.0 million in term loans, maturing on June 1, 2028[213] - As of June 30, 2024, the company had $261.5 million in cash and cash equivalents and $16.3 million in short-term investments[219] - The cash and cash equivalents at the beginning of the period for 2024 were $375.3 million, compared to $1,932.3 million at the beginning of 2023[220] - The total net decrease in cash and cash equivalents for the six months ended June 30, 2024, was $113.8 million[220] - The company had no long-term investments as of June 30, 2024, across both continuing and discontinued operations[219] Debt and Financing Activities - Net cash used in operating activities for the six months ended June 30, 2024, decreased by $646.9 million compared to the same period in 2023[221] - Net cash provided by investing activities increased by $32.2 million for the six months ended June 30, 2024, primarily due to the sale of the California Medicare Advantage business[222] - Net cash used in financing activities increased by $221.0 million for the six months ended June 30, 2024, attributed to the payoff of short-term debt from the sale proceeds[223] - As of June 30, 2024, the company had letters of credit of $16.5 million and surety bonds of $19.7 million[217] - The company issued 750,000 shares of Series A Preferred Stock for $750.0 million and 175,000 shares of Series B Preferred Stock for $175.0 million[218] - As of June 30, 2024, $52.0 million of non-regulated cash and cash equivalents was restricted as collateral for letters of credit and surety bonds[219]

Revenue and Financial Performance - Revenue for Q2 2024 was $225.991 million, a decrease of 24.1% from $297.982 million in Q2 2023[2] - Total revenue for the three months ended June 30, 2024, was $225,991, a decrease of 24.1% from $297,982 in the same period of 2023[10] - Capitated revenue increased to $64,005 for the three months ended June 30, 2024, compared to $49,764 in the prior year, representing a growth of 28.6%[10] - Total segment revenue for NeueCare for the three months ended June 30, 2024, was $76,985, an increase from $66,068 in the same period of 2023, representing a growth of 18.5%[12] - Total segment revenue for the six months ended June 30, 2024, was $321,613, down from $476,801 in the same period of 2023, reflecting a decline of about 32.6%[13] Net Loss and Adjusted EBITDA - Net loss for Q2 2024 was $(57.698) million, compared to a net loss of $(88.627) million in Q2 2023, showing an improvement of 34.8%[2] - Net loss attributable to common shareholders for the three months ended June 30, 2024, was $(71,390), compared to $(125,005) in the same period of 2023, reflecting a reduction of 42.9%[10] - Adjusted EBITDA for Q2 2024 was $3.962 million, down from $7.797 million in Q2 2023[2] - Adjusted EBITDA for the three months ended June 30, 2024, was $3,962, down from $7,797 in the same period of 2023, a decline of approximately 49.1%[18] - NeueCare Adjusted EBITDA for the three months ended June 30, 2024, was $13,496, compared to $15,593 for the same period in 2023, a decrease of approximately 13.5%[21] - Adjusted EBITDA for the three months ended June 30, 2024, was $(566,000), a significant decrease from $2,996,000 in the prior year[22] - For the six months ended June 30, 2024, NeueSolutions reported an Adjusted EBITDA of $(2,250,000), down from $1,487,000 in the same period of 2023[22] Operating Expenses and Costs - Total operating expenses for the three months ended June 30, 2024, were $263,540, a decrease of 17.9% from $321,396 in the same period of 2023[10] - Total operating expenses for the three months ended June 30, 2024, were $151,678, compared to $234,690 for the same period in 2023, a reduction of about 35.4%[13] - Medical costs for the three months ended June 30, 2024, were $177,681, down from $245,160 in the same period of 2023, indicating a decrease of 27.5%[10] - Medical costs for the three months ended June 30, 2024, were $147,258, down from $231,279 in the same period of 2023, indicating a decrease of approximately 36.3%[13] - The company incurred restructuring charges of $239 for the three months ended June 30, 2024, compared to $1,285 in the same period of 2023, reflecting a decrease of 81.4%[10] Assets and Liabilities - Total assets as of June 30, 2024, were $897.265 million, down from $1,225.480 million at the end of 2023[9] - Total liabilities decreased to $1,179.803 million from $1,480.098 million at the end of 2023[9] Future Projections and Guidance - For 2024, revenue is expected to be approximately $950 million, with NeueCare revenue projected at $320 million and NeueSolutions revenue at $640 million[5] - Adjusted EBITDA guidance for 2024 is between $15 million and $25 million[5] - The company aims to reach the high end of its guidance range for consumers served by year-end 2024[3] Consumer Metrics - Value-based consumers served decreased to 364,000 as of June 2024, down from 373,000 in June 2023[1] - Enablement services lives increased significantly to 113,000 from 31,000 year-over-year[1] Cash Flow and Operating Activities - Cash and cash equivalents at the end of the period were $261,458, down from $1,360,441 at the end of the same period in 2023[11] - The company reported a net cash used in operating activities of $(77,148) for the six months ended June 30, 2024, compared to $(724,026) in the same period of 2023, showing a significant improvement[11] Special Items and Adjustments - The company recognized $11.4 million in intangible asset impairment expense due to operations classified as held-for-sale in the second quarter of 2024[22] - The non-cash compensation expense related to stock options and restricted stock units was estimated at $2.5 million for the three and six months ended June 30, 2024[22] - Restructuring and contract termination costs were incurred as part of a workforce reduction and early lease terminations, impacting the financial results[22] - The company plans to exclude the impact of held-for-sale operations from Adjusted EBITDA starting in the second quarter of 2024[22] - Transaction costs related to financing initiatives can vary significantly from period to period, affecting comparability of financial performance[22]