LGTMs: Date: Andrew T. LGTM Peter K. LGTM via First Quarter 2025 Earnings Conference Call May 6, 2025 These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described under Item 1A. "Risk Factors" in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC"), filed with the SEC on March 3, 2025, as such risk factors may be updated in our subsequent filings with the SEC. In light of these risks, ...

Membership Growth - First quarter 2025 Medicare Advantage membership reached 103,418, representing a 30% year-over-year increase[4] - Average Medicare Advantage membership is projected to be between 103,000 and 107,000 for full-year 2025, maintaining a 30% growth year-over-year[7] - The average Medicare Advantage membership for the first quarter 2025 was 101,959, up 28.6% from 79,265 in the previous year[5] Financial Performance - Total revenues for the first quarter 2025 were $462 million, up 33% year-over-year[4] - Adjusted EBITDA for the first quarter 2025 was $26 million, reflecting a 279% increase compared to the previous year[4] - Adjusted Net income for the first quarter 2025 was $25 million, a 322% increase year-over-year[4] - Total revenues for the three months ended March 31, 2025, increased to $462.3 million, up 33.2% from $346.9 million in the same period of 2024[21] - Adjusted EBITDA for the three months ended March 31, 2025, was $25.8 million, compared to $6.8 million in the same period of 2024, representing a substantial increase[29] Guidance and Projections - Full-year 2025 insurance revenue guidance is between $1.800 billion and $1.875 billion, indicating a 37% growth year-over-year at the midpoint[7] - Adjusted EBITDA profitability for full-year 2025 is expected to be between $50 million and $70 million[7] - Insurance Benefits Expense Ratio (BER) is projected to be between 87% and 88% for full-year 2025[7] Loss and Expense Management - First quarter 2025 GAAP Net loss improved to $1 million from a loss of $19 million in the same quarter last year, a 94.4% reduction[4] - The company reported a net loss of $1.3 million for Q1 2025, a significant improvement from a net loss of $23.2 million in Q1 2024[21] - The insurance benefits expense ratio (Non-GAAP) for Q1 2025 was 86.1%, compared to 83.2% in Q1 2024, indicating a slight increase in costs relative to premiums earned[33] Cash Flow and Equity - Cash and cash equivalents decreased to $155.4 million at the end of Q1 2025, down from $194.5 million at the end of 2024[23] - Total stockholders' equity decreased to $336.1 million as of March 31, 2025, down from $341.1 million at the end of 2024[21] - The company experienced a net cash used in operating activities of $16.3 million for Q1 2025, compared to a net cash provided of $25.9 million in Q1 2024[23] Operating Efficiency - The company’s adjusted SG&A as a percentage of total revenues improved to 18.0% in Q1 2025 from 21.6% in Q1 2024[27] - Adjusted SG&A excludes stock-based compensation and non-recurring legal expenses, providing a clearer view of operating spend[35] - Adjusted EBITDA is a key measure for evaluating operating performance, excluding various non-cash and non-recurring expenses[36] - Adjusted Net income from continuing operations helps assess financial performance by excluding stock-based compensation and other non-recurring costs[37] - Insurance Benefits Expense Ratio (BER) is calculated by dividing total net medical expenses and quality improvements by net premiums earned, reflecting investment in healthcare quality[38]

Core Insights - Clover Health reported strong financial results for Q1 2025, with significant growth in membership and profitability, reflecting the effectiveness of its strategic plan [2][3][5] - The company has improved its full-year 2025 guidance, maintaining expectations for insurance revenue and adjusted EBITDA while increasing projected adjusted net income [6][5] Financial Performance - Insurance revenue for Q1 2025 reached $456.9 million, a 33.7% increase from $341.7 million in Q1 2024 [3][5] - Total revenues for Q1 2025 were $462.3 million, up 33.3% year-over-year [3][5] - Adjusted net income from continuing operations was $25.3 million, a 321.7% increase compared to $6.0 million in Q1 2024 [3][5] - Adjusted EBITDA for Q1 2025 was $25.8 million, reflecting a 279.4% increase from $6.8 million in the same quarter last year [3][5] Membership Growth - Average Medicare Advantage membership increased to 101,959 in Q1 2025, representing a 28.6% growth from 79,265 in Q1 2024 [3][5] - The company expects average Medicare Advantage membership to be between 103,000 and 107,000 for the full year 2025, indicating a 30% growth year-over-year at the midpoint [5][6] Cost Management - Medical costs for Q1 2025 were in line with expectations, demonstrating the strength of Clover's technology-driven care management model [5] - Adjusted SG&A as a percentage of total revenues improved to 18.0% in Q1 2025 from 21.6% in Q1 2024, indicating better operational efficiency [3][5] Future Outlook - Clover Health's updated guidance for full-year 2025 includes insurance revenue between $1.800 billion and $1.875 billion, with adjusted EBITDA profitability projected between $50 million and $70 million [6][5] - The company aims to continue strategic investments in its growth model and expand the reach of Clover Assistant to enhance competitive positioning [3][5]

Core Insights - The Medical sector is expected to see double-digit earnings growth in 2025, driven by strong product revenues and growing demand, despite geopolitical issues and a stronger U.S. dollar impacting costs for domestic companies [1][4]. Earnings Overview - As of April 30, 45% of Medical sector companies, representing 57.9% of the sector's market capitalization, reported earnings, with 66.7% exceeding earnings and revenue estimates. Year-over-year earnings increased by 85.2% on a revenue increase of 70.4% [3]. - First-quarter 2025 earnings for the Medical sector are projected to improve by 40% with an 8.3% sales increase, compared to 13.4% earnings growth and 9.4% revenue growth in the previous quarter [4]. MedTech Trends - The adoption of generative AI and digital therapies is enhancing patient-friendly services, driven by an aging population and increased healthcare awareness, creating new revenue opportunities for MedTech companies [5]. - Despite positive trends, challenges such as macroeconomic uncertainties, supply-chain disruptions, and labor shortages may have impacted the sector's performance [6]. Company-Specific Insights - **Fresenius Medical Care**: Expected to report revenues of $5.25 billion with an EPS estimate of 43 cents, benefiting from the FME25 transformation program, but facing challenges from high U.S. dialysis patient mortality and labor cost inflation [8][9]. - **Masimo Corporation**: Anticipated to report revenues of $367.3 million and an EPS of $1.24, supported by strong performance across major product platforms and manufacturing efficiencies [10][11]. - **Clover Health**: Projected to report revenues of $476.9 million with a loss per share estimate of 7 cents, driven by strong member retention and growth in Medicare Advantage membership, though facing near-term margin pressures due to rapid expansion [12][13].

Core Insights - Counterpart Health's research indicates that the use of Counterpart Assistant (CA) is linked to improved clinical management and reduced hospitalizations (18% lower) and readmissions (25% lower) for heart failure patients [1][6] Group 1: Study Findings - The study titled "Driving Clinical Excellence in Chronic Disease: Counterpart Assistant's Role in Heart Failure Care" highlights the positive correlation between better clinical care and lower hospitalizations for congestive heart failure (CHF) patients who have a relationship with a Primary Care Physician (PCP) using CA [1][2] - CA empowers healthcare providers by offering timely, data-driven insights, which lead to significant improvements in patient outcomes, particularly in chronic disease management [2][3] - The technology focuses on proactive interventions and longitudinal care, addressing the high burden of CHF among Medicare enrollees, who experience the highest readmission rates [2] Group 2: Company Overview - Counterpart Health, a subsidiary of Clover Health Investments, is an AI-powered physician enablement platform that aims to enhance patient outcomes and reduce healthcare costs through its flagship software, Counterpart Assistant [5] - The company has conducted multiple retrospective analyses to measure CA's clinical impact, previously focusing on Diabetes and Chronic Kidney Disease, as well as Medication Adherence [3][5] - The relationship with a CA provider is associated with better clinical outcomes, including increased outpatient cardiologist visits and in-home care management for CHF patients [6]

Core Viewpoint - Clover Health Investments, Corp. announces that Lee A. Shapiro will not seek reelection to the Board of Directors due to new responsibilities as Chairman of the American Heart Association, with his term ending on June 10, 2025 [1][2]. Company Leadership Changes - Lee A. Shapiro has served on Clover Health's Board for four years and has contributed significantly to the company's mission [2]. - Andrew Toy, CEO of Clover Health, expresses gratitude for Shapiro's leadership and insights during his tenure [2]. - Vivek Garipalli, Executive Chairperson and founder, acknowledges Shapiro's unique contributions and announces that Thomas L. Tran will take over as Chairman of the Audit Committee and Nominating and Corporate Governance Committee effective June 10, 2025 [2][3]. Company Overview - Clover Health is a physician enablement technology company focused on providing access to quality healthcare for Medicare recipients, particularly seniors [4]. - The company utilizes its software platform, Clover Assistant, to aggregate patient data and improve health outcomes through early identification and management of chronic diseases [4]. - Clover Health offers PPO and HMO Medicare Advantage plans and extends its technology benefits to a broader audience through its subsidiary, Counterpart Health [4].

Core Insights - Clover Health Investments, Corp. will report its first quarter 2025 financial results on May 6, 2025, after market close, followed by a conference call at 5:00 p.m. Eastern Time to discuss the results [1][3] Company Overview - Clover Health is a physician enablement technology company focused on providing access to quality healthcare for Medicare recipients, particularly seniors who have historically faced challenges in accessing affordable healthcare [2] - The company's strategy is driven by its software platform, Clover Assistant, which aggregates patient data to support clinical decision-making and improve health outcomes, particularly in managing chronic diseases [2] - Clover Health offers PPO and HMO Medicare Advantage plans across several states, emphasizing its flagship wide-network, high-choice PPO plans [2] - Through its subsidiary, Counterpart Health, Clover Health extends its data-driven technology to a broader audience, aiming to enhance patient outcomes and reduce healthcare costs nationwide [2] - The company has published data showcasing the positive impact of its technology on medication adherence and the early identification and management of diabetes and chronic kidney disease [2]

Core Insights - Clover Health has appointed Dr. Shelly Gupta as Chief Medical Officer, bringing over a decade of Medicare Advantage and healthcare leadership experience [1][2] - Dr. Gupta's role will focus on enhancing clinical operations, quality initiatives, and chronic disease management programs, emphasizing patient choice and provider autonomy [1][3] Company Overview - Clover Health is a physician enablement technology company dedicated to improving access to quality healthcare for Medicare beneficiaries, particularly seniors [5] - The company utilizes its software platform, Clover Assistant, to aggregate patient data and support clinical decision-making, aiming to improve health outcomes and manage chronic diseases [5] Leadership and Strategy - Dr. Gupta has a proven track record in enhancing clinical outcomes for senior populations, having previously held leadership roles at Humana [2][4] - His expertise in operationalizing clinical innovation aligns with Clover Health's mission to simplify healthcare decisions and empower providers [4] Technology and Innovation - Clover Health's strategy includes leveraging advanced data-driven solutions and innovative technology to optimize Medicare Advantage clinical operations [3][4] - The company aims to enhance care delivery and member satisfaction while advancing value-based care initiatives [3]

Group 1 - The article emphasizes the identification of investment opportunities in undervalued companies, leveraging the author's experience in financial markets and institutions [1] - The analysis includes thorough research on financial statements, market trends, and upcoming events that may impact specific companies or industries [1]

Core Viewpoint - Hims & Hers Health Inc. experienced significant stock volatility, reaching an all-time high of nearly $73 before dropping to $36, but there are reasons for investors to remain optimistic about the stock's long-term potential [1][2]. Group 1: Stock Performance - Hims & Hers stock rebounded by 24% from its recent lows, suggesting that the market may have found a bottom [3]. - Clover Health Investments Inc. is currently favored in the market, trading at 82% of its 52-week high, compared to Hims & Hers at only 62% [6]. - Clover's stock price is projected to reach a fair valuation of $5.0 per share, indicating a potential upside of 26% from current levels [10]. Group 2: Financial Metrics - Clover Health reported a 30% annual growth in average Medicare Advantage memberships, contributing to $330.7 million in insurance revenue, a 9.1% increase year-over-year [8]. - Wall Street forecasts earnings per share (EPS) for Clover to improve significantly, with expectations of reaching $0.03 by Q2 2025, up from a current net loss of $0.02 per share [6][7]. Group 3: Investment Sentiment - The Vanguard Group increased its holdings in Clover stock by 2.0%, bringing their total position to $61.7 million, representing 3.9% ownership [12]. - Clover stock is currently trading at a price-to-book (P/B) ratio of 6.6x, which is above the industry average of 4.9x, indicating a premium valuation that some investors are willing to pay for perceived growth potential [12][13].