Summary of Clover Health Investments Conference Call Company Overview - **Company**: Clover Health Investments (NasdaqGS:CLOV) - **Industry**: Medicare Advantage Insurance Key Points and Arguments Business Model and Technology - Clover Health aims to empower physicians with advanced technology to manage chronic diseases effectively, leading to better health outcomes and lower total care costs [2][3] - The company operates primarily in an open network (PPO) focusing on New Jersey and Georgia, expecting to grow membership by 33% while maintaining profitability [3][4] - Clover Assistant, an AI-enabled technology, is used at the point of care to integrate various medical records, enabling earlier identification and management of chronic diseases [4][5][6] Financial Performance - Clover Health anticipates a 33% growth in membership and nearly 40% increase in revenue year-to-date, achieving $45 million in EBITDA [11][12] - The company's Benefit Expense Ratio (BER) is projected at approximately 89%, which is competitive compared to industry averages [5][12] - New members typically incur higher costs initially but are expected to improve profitability over time as they become returning members [12][14] Clinical Outcomes - The technology has led to earlier diagnoses of chronic diseases, such as diabetes, which is diagnosed on average three years earlier, resulting in lower treatment costs and better health outcomes [9][10] - Clover Health has been ranked number one in the nation for PPO plans on clinical quality for two consecutive years [10] Market Trends and Growth Opportunities - The Medicare Advantage market is growing, with 35 million seniors in the U.S. participating [2] - Clover Health expects to benefit from a strong voluntary retention rate above 90% and a transition to a four-star payment year, which could add approximately 5% to revenue [16][17] - The company is also exploring opportunities with third-party payers and risk-bearing providers, leveraging its technology for broader market reach [10][11] Challenges and Future Outlook - The company faces challenges with higher-than-expected utilization rates among new members, which are being monitored for better management [12][19] - Clover Health is working on improving its STAR ratings, particularly in pharmacy metrics, which have seen a decline [28][30] - The company is focused on optimizing SG&A costs and leveraging AI to enhance operational efficiency [36][39] Additional Insights - Clover Health has made a mark in the precision medicine space through investments, such as a $10 million stake in Biochar Science [24] - The integration of AI scribing technology aims to enhance the efficiency of physician-patient interactions within the Clover Assistant platform [44] Conclusion Clover Health is positioned for significant growth in the Medicare Advantage market, driven by its innovative technology and strong clinical outcomes. While facing challenges related to new member utilization and STAR ratings, the company is optimistic about its future financial performance and market opportunities.

Investor Presentation November 2025 LGTMs: Date: Peter K. LGTM 11.10.25 Legal (Karen / Peter R.) LGTM Disclaimer This presentation and the accompanying oral presentation include forward-looking statements, including, without limitation, statements regarding future events and Clover Health Investments, Corp.'s ("Clover Health," "we," "our," or "us") expectations regarding Adjusted EBITDA, Adjusted Net income from continuing operations, Adjusted SG&A, Adjusted SG&A as a percentage of revenue, Insurance BER, N ...

Membership Growth - As of September 30, 2025, Clover Health has 109,226 members, an increase from 81,110 members in the same period of 2024, representing a growth of approximately 34.6%[111] Financial Performance - Gross premiums earned for the three months ended September 30, 2025, were $479,220,000, compared to $322,676,000 for the same period in 2024, reflecting a year-over-year increase of 48.5%[117] - Adjusted EBITDA for the nine months ended September 30, 2025, was $45,028,000, down from $62,292,000 in the same period of 2024, a decrease of approximately 27.7%[117] - Adjusted EBITDA for the three months ended September 30, 2025, was $2.1 million, compared to $19.3 million in 2024[134] - Total revenues increased by $165.7 million, or 50.1%, to $496.7 million for the three months ended September 30, 2025, compared to the same period in 2024[139] - Total revenues for the nine months ended September 30, 2025, were $1,436.6 million, reflecting a $402.4 million, or 38.9% increase compared to the previous year[146] Expense Management - The benefits expense ratio, gross, for the three months ended September 30, 2025, was 93.5%, compared to 82.8% in the same period of 2024, indicating a deterioration in expense management[117] - The normalized benefits expense ratio, gross, for the three months ended September 30, 2025, was 92.4%, compared to 85.4% in the same period of 2024, indicating increased costs relative to premiums[117] - General and administrative expenses increased by $13.8 million, or 39%, to $49.0 million for the three months ended September 30, 2025, compared to the same period in 2024[144] - Total operating expenses increased by $414.3 million, or 39.1%, to $1,472.8 million, with significant contributions from net medical claims and general administrative expenses[146] Claims and Premiums - Net medical claims incurred increased by $173.7 million, or 70%, to $423.5 million for the three months ended September 30, 2025, compared to the same period in 2024[142] - Premiums earned, net rose by $156.5 million, or 49%, to $479.1 million for the three months ended September 30, 2025, driven by a 35% growth in average members[140] - Net medical claims incurred increased by $391.6 million, or 51%, to $1,154.9 million, influenced by a 32% growth in average members and changes from the Inflation Reduction Act[149] Net Income and Loss - Adjusted net income from continuing operations for the three months ended September 30, 2025, was $1,705,000, compared to $18,924,000 in the same period of 2024, a decline of approximately 91%[117] - Net loss from continuing operations was $24.4 million for the three months ended September 30, 2025, compared to a loss of $8.8 million in 2024, representing a 177.5% increase in loss[139] - Net loss for the nine months ended September 30, 2025, was $36.2 million, a 73.2% increase from the net loss of $20.9 million in the prior year[146] Cash Flow - Cash and cash equivalents for the company were $395.9 million as of September 30, 2025, down from $437.6 million at the end of 2024[154] - Net cash provided by operating activities from continuing operations was $1.2 million for the nine months ended September 30, 2025, compared to $129.5 million in the prior year[159] - Net cash provided by investing activities was $39.1 million for the nine months ended September 30, 2025, primarily from sales and maturities of investment securities[164] - Net cash used in financing activities was $44.8 million for the nine months ended September 30, 2025, mainly due to stock-based compensation and share repurchases[166] Ratings and Technology - The company’s PPO Medicare Advantage plans received a CMS Star rating of 3.5 for 2026, a decrease from previous ratings, while the HMO MA plan rating increased to 4.0 stars[112] - The company’s proprietary software platform, Clover Assistant, is designed to enhance chronic disease management and improve clinical decision-making for physicians[110] - Clover Health's strategy focuses on expanding its physician networks and leveraging technology to improve care for Medicare beneficiaries[110]

Core Insights - Clover Health Investments, Corp. (CLOV) reported break-even adjusted quarterly earnings per share (EPS) for Q3 2025, missing the Zacks Consensus Estimate of earnings of 2 cents, compared to an adjusted loss of 2 cents in the same period last year [1][8] - The company experienced a significant revenue increase of 50.1% year over year, totaling $496.7 million, which exceeded the Zacks Consensus Estimate by 4.5% [2][8] Revenue Breakdown - Clover Health's revenues are primarily derived from two segments: Insurance and Other income. Insurance revenues reached $479.1 million, reflecting a year-over-year increase of 48.5%, driven by a 35% rise in Medicare Advantage membership and strong member retention [3][8] - Other income amounted to $17.5 million, marking a substantial increase of 108.4% from the previous year [5] Operational Performance - Net medical claims surged by 70.5% year over year to $428.9 million. Salaries and benefits expenses decreased by 12.4% to $48.2 million, while general and administrative expenses rose by 39.1% to $48.9 million. Total operating expenses increased by 53.3% to $521 million, resulting in an operating loss of $24.4 million compared to a loss of $8.9 million in the prior year [6][8] Financial Position - At the end of Q3 2025, Clover Health had cash and cash equivalents of $190.1 million, slightly up from $188.6 million at the end of Q1. Net cash provided by operating activities from continuing operations was $1.2 million, down from $129.5 million a year ago [7][8] Guidance and Outlook - The company raised its 2025 Insurance revenue outlook to a range of $1.85-$1.88 billion, suggesting a 39% year-over-year growth at the midpoint, while lowering the adjusted Net Income forecast to $15-$30 million from a previous estimate of $50-$70 million [9][10] - Insurance Benefit Expense Ratio (BER) is projected to be between 90-91%, up from the previous estimate of 88.5-89.5%. Average Medicare Advantage membership is expected to be between 106,000-108,000, indicating a 33% year-over-year growth at the midpoint [10] Market Reaction - Following the earnings report, CLOV shares fell by 17.9% in after-hours trading on November 4, attributed to lower-than-expected earnings and revenue guidance [12] - Year-to-date, CLOV shares have increased by 11.7%, compared to the industry growth of 26.8% and the S&P 500 Index's increase of 18.1% [12] Strategic Insights - Management outlined a path to profitability expansion in 2026, citing a larger base of returning Clover Assistant-managed members and favorable payment dynamics as key drivers [13] - Clover Assistant continues to demonstrate industry-leading clinical quality, with potential for significant long-term opportunities with external payers and providers [14]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Points - U.S. stock futures are lower, with Dow futures falling over 50 points [1] - Super Micro Computer Inc reported disappointing first-quarter results, with earnings of 35 cents per share, missing the consensus estimate of 40 cents, and revenue of $5.01 billion, below the expected $5.99 billion [2] - Super Micro's revenue decreased from $5.93 billion in the same period last year [2] - The company's shares fell 9.2% to $43.12 in pre-market trading [2] Company-Specific Movements - Biohaven Ltd experienced a significant drop of 46.2% to $7.51 after receiving an FDA Complete Response Letter for VYGLXIA [4] - Trex Company Inc declined 31.9% to $32.02 following worse-than-expected third-quarter results and lowered FY25 sales guidance [4] - Soleno Therapeutics Inc fell 22.2% to $49.65 after reporting third-quarter results [4] - Axon Enterprise Inc's shares dropped 19.6% to $567.50 after mixed third-quarter results and an acquisition announcement [4] - Pinterest Inc dipped 18.8% to $26.69 after posting disappointing third-quarter earnings [4] - SSR Mining Inc fell 17.5% to $17.90 after its third-quarter results [4] - Uniqure NV's shares decreased by 15.8% to $25.61 after a prior gain [4] - Clover Health Investments Corp fell 15.5% to $2.97 after mixed third-quarter results [4] - Upstart Holdings Inc declined 15.3% to $39.15 after mixed results and lowered FY25 guidance [4] - Corsair Gaming Inc fell 12.4% to $6.59 following worse-than-expected third-quarter results [4] - Advanced Micro Devices, Inc. declined 5% to $237.80 despite reporting better-than-expected third-quarter results and projecting fourth-quarter revenue of approximately $9.6 billion [4]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - SMX (Security Matters) Public Limited Company (SMX) increased by 52% to $2.24 [3] - Entravision Communications Corporation (EVC) rose by 33% to $2.66 [3] - Babcock & Wilcox Enterprises, Inc. (BW) saw a 28% increase to $4.79 [3] - NeuroPace, Inc. (NPCE) gained 24% reaching $11.71 [3] - Kennedy-Wilson Holdings, Inc. (KW) also increased by 24% to $9.30 [3] - Rigel Pharmaceuticals, Inc. (RIGL) rose by 22% to $34.72 [3] - Digital Turbine, Inc. (APPS) increased by 21% to $7.20 [3] - Lumentum Holdings Inc. (LITE) saw a 15% increase to $218.06 [3] - AsiaStrategy (SORA) rose by 14% to $3.63 [3] - Marine Petroleum Trust (MARPS) increased by 7% to $5.05 [3] Premarket Losers - Biohaven Ltd. (BHVN) decreased by 42% to $7.96 [4] - Trex Company, Inc. (TREX) fell by 34% to $30.65 [4] - Soleno Therapeutics, Inc. (SLNO) saw a 23% decline to $49.00 [4] - Axon Enterprise, Inc. (AXON) decreased by 19% to $572.00 [4] - Clover Health Investments, Corp. (CLOV) fell by 19% to $2.82 [4] - Pinterest, Inc. (PINS) decreased by 18% to $26.91 [4] - SSR Mining Inc. (SSRM) saw a 17% decline to $17.91 [4] - Upstart Holdings, Inc. (UPST) decreased by 16% to $38.81 [4] - WF International Limited (WXM) fell by 12% to $2.25 [4] - Corsair Gaming, Inc. (CRSR) decreased by 11% to $6.66 [4]

Core Insights - Clover Health Investments, Corp. reported break-even quarterly earnings per share, compared to a loss of $0.02 per share a year ago, resulting in an earnings surprise of -100.00% [1] - The company posted revenues of $496.65 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.47%, and showing a year-over-year revenue increase from $330.99 million [2] - Clover Health shares have increased approximately 16.8% since the beginning of the year, slightly outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $486.6 million, while for the current fiscal year, the estimate is $0.10 on revenues of $1.9 billion [7] - The estimate revisions trend for Clover Health was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Medical Info Systems industry, to which Clover Health belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Clover Health's Medicare Advantage membership grew 35% year-over-year to over 109,000 members, with insurance revenue of $479 million, an increase of 49% year-over-year [24] - Year-to-date insurance revenue reached $1.4 billion, up 39% year-over-year [24] - Adjusted EBITDA and adjusted net income for the third quarter were $2 million each, down $70 million year-over-year, while year-to-date adjusted EBITDA and adjusted net income remained positive at $45 million and $44 million, respectively [29][30] Business Line Data and Key Metrics Changes - The company experienced adjusted EBITDA profitability despite increased utilization and a higher proportion of new members, which negatively impacted overall profitability [19][24] - Returning member cohorts generated approximately $217 of contribution profit per member per month, while new member cohorts had a negative contribution of $110 per member per month [21] Market Data and Key Metrics Changes - The company anticipates adding roughly 44,000 gross new members in 2025, with an expected year-end population of approximately 113,000 net members [8] - The current year is expected to be the peak year for the impact of new member growth on profitability, with a larger contribution profit-positive base of returning members anticipated in 2026 and beyond [9] Company Strategy and Development Direction - Clover Health aims to maintain a comprehensive PPO portfolio that prioritizes open access with stable, predictable benefits, despite industry trends of narrowing networks [12] - The company is focused on increasing physician adoption of Clover Assistant, with more than half of new members having received a Clover Assistant visit this year [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged broad systemic utilization pressure and the need for adjustments to address lowered guidance for 2025 adjusted EBITDA profitability [4][6] - The company remains confident in its long-term trajectory, expecting to achieve sustained growth and expanding profitability, particularly with anticipated larger profitable returning member cohorts in 2026 [19][20] Other Important Information - Clover Health received a three and a half star rating for the 2026 ratings year, which management views as below their aspirations, but they believe their model can still perform well in this rating environment [12][14] - The company is actively engaging with CMS to improve how quality is measured and is committed to enhancing performance in pharmacy measures, which impacted star ratings [14][15] Q&A Session Summary Question: How should we think about 2026 from a BER perspective given the elevated utilization? - Management indicated that the underlying incurred cost trends are around 4%, and they believe this is solid performance despite higher utilization trends and a higher mix of new members [40] Question: Is there a mispricing issue for 2026 given the current pressures? - Management expressed confidence that the cost trends are baked into their bids and highlighted several tailwinds, including a four-star payment year and increased leverage from SD&A [40][41] Question: What should we expect for the fourth quarter regarding MCR? - Management suggested averaging the first three quarters to establish a baseline expectation for the fourth quarter, noting that intra-year PPD from the second half impacted the third quarter [42]

Core Insights - Clover Health Investments (NASDAQ: CLOV) has reported its second consecutive profitable quarter, surpassing earnings expectations and demonstrating a trend of operational improvement that is positively altering the company's narrative in the Medicare Advantage sector [1] Financial Performance - The company achieved profitability for two consecutive quarters, indicating a significant turnaround in its financial performance [1] - Clover Health's earnings exceeded market expectations, showcasing its operational efficiency and growth potential [1] Industry Context - The operational improvements at Clover Health are contributing to a broader positive narrative within the Medicare Advantage insurance market, which is increasingly competitive [1]