Core Insights - Centene reported a loss in the third quarter as enrollees in Affordable Care Act plans sought more expensive medical care, highlighting the ongoing challenges faced by health insurers in restoring previous profit levels [1] Financial Performance - The company experienced a significant financial downturn, indicating a shift in enrollee behavior towards higher-cost medical services, which has adversely affected profitability [1] Industry Context - The struggles of Centene reflect broader issues within the health insurance industry, as companies grapple with rising healthcare costs and changing consumer demands [1]

Centene's health benefits ratio increases to 92.7% in the quarter from 89.2% in the same period last year. ...

Core Insights - Centene reported a surprise profit for the third quarter, attributed to a low tax rate [1] Financial Performance - The company achieved a profit in the third quarter, which was unexpected [1] - The low tax rate played a significant role in enhancing the company's profitability [1]

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Financial Performance - Centene Corporation reported total revenues of $49.69 billion for Q3 2025, a 18.2% increase from $42.02 billion in Q3 2024 [30] - Premium and service revenues reached $44.90 billion, up 22% from $36.90 billion in the same period last year [16][30] - The company experienced a GAAP diluted loss per share of $(13.50) due to a non-cash goodwill impairment of $6.7 billion [30][16] - Adjusted diluted earnings per share (EPS) were $0.50, reflecting a $0.10 benefit from a low adjusted effective tax rate [5][16] Membership Growth - Total at-risk membership stood at 27.97 million as of September 30, 2025, compared to 28.64 million in 2024 [3] - Traditional Medicaid membership decreased to 11.12 million from 11.48 million year-over-year, while Marketplace membership increased significantly to 5.83 million from 4.50 million [3][5] Cost and Expense Management - The health benefits ratio (HBR) was 92.7%, up from 89.2% in Q3 2024, primarily due to increased medical costs in the Marketplace and Medicaid segments [16] - Selling, general, and administrative (SG&A) expense ratio improved to 7.0% from 8.3% in the prior year, driven by leveraging expenses over higher revenues [16] Outlook and Guidance - The company updated its full-year 2025 adjusted diluted EPS forecast to at least $2.00, an increase of $0.25 from previous guidance [10] - The GAAP diluted loss per share forecast for the full year is updated to not exceed $(12.85) [10] Community Engagement and Recognition - Centene was recognized in the inaugural 2025 Forbes® America's Best Employers for Company Culture™ list, highlighting high employee satisfaction [6] - The company announced various community engagement initiatives, including investments in mental health programs and the opening of a community health center in Texas [6]

Core Insights - Centene's results exceeded Wall Street expectations, indicating a "fairly positive" performance despite a mixed quarter overall [3] - The company reported a net loss of $6.6 billion in the third quarter, primarily due to a non-cash goodwill impairment charge of $6.7 billion [8] - Operationally, Centene is making progress on its turnaround, with a medical loss ratio of 92.7% in Q3, which is an increase from 89.2% year-over-year but lower than analysts' expectations [6] Financial Performance - Centene's earnings improved on an adjusted basis compared to the second quarter, although they were down year-over-year [3] - The company's stock hit a decade low in July following disappointing second quarter results, resulting in significant value loss [4] - The full-year earnings outlook was increased by executives following the quarterly results, indicating confidence in future performance [8] Market Context - The GOP's "One Big Beautiful Bill," which includes cuts to Medicaid and changes to the ACA, has negatively impacted Centene's goodwill and contributed to the impairment charge [5] - Medicaid remains a crucial segment for Centene, accounting for 45% of its nearly 28 million medical members and 52% of its $44.9 billion in premium and service revenue [7] - Elevated utilization in Medicaid continues to be a challenge for the company, but executives expressed satisfaction with managing medical costs [8]

Financial Performance - Total revenues for Q3 2025 were $49.69 billion, with premium and service revenues at $44.90 billion, representing a 22% increase from $36.90 billion in Q3 2024[2][11] - Adjusted diluted EPS for Q3 2025 was $0.50, benefiting from a low adjusted effective tax rate of 0.6% compared to 22.9% in Q3 2024[4][11] - The company updated its full year 2025 adjusted diluted EPS forecast to at least $2.00, an increase of $0.25 from previous guidance[4][10] - Total revenues for the three months ended September 30, 2025, increased to $49,690 million, up from $42,023 million in the same period of 2024, representing a growth of 18.9%[33] - Premium revenues for the nine months ended September 30, 2025, reached $127,578 million, compared to $106,784 million in 2024, reflecting a year-over-year increase of 19.4%[33] - Net loss attributable to Centene Corporation for the three months ended September 30, 2025, was $6,631 million, compared to a net income of $713 million in the same period of 2024[33] Expenses and Liabilities - The GAAP diluted loss per share was $(13.50), primarily due to a non-cash goodwill impairment of $6.7 billion[4][11] - The adjusted selling, general and administrative expenses for the nine months ended September 30, 2025, were $9,522 million, compared to $9,081 million for the same period in 2024, reflecting an increase of approximately 4.9%[23] - The total GAAP selling, general and administrative expenses for the three months ended September 30, 2025, were $3,145 million, compared to $3,057 million for the same period in 2024[23] - Total liabilities increased to $61,032 million as of September 30, 2025, from $55,935 million at December 31, 2024, reflecting a rise of 9.4%[31] - The company reported an impairment charge of $6,743 million for the three months ended September 30, 2025, compared to no impairment in the same period of 2024[33] Membership and Market Position - Total Medicaid membership decreased to 12.71 million from 13.07 million year-over-year, while Marketplace membership increased to 5.83 million from 4.50 million[5][11] - Total commercial membership increased to 6,276,000 in Q3 2025, up 7.1% from 4,927,900 in Q3 2024[37] - The company serves over 1 in 15 individuals across the nation, focusing on under-insured and uninsured individuals through government-sponsored and commercial healthcare programs[25] Operational Efficiency - The health benefits ratio (HBR) for Medicaid was 93.4%, reflecting a 40 basis point benefit from a retroactive revenue adjustment[4][11] - The Health Benefits Ratio (HBR) is calculated as medical costs divided by premium revenues, which is a key metric for assessing operational efficiency[24] - The medical claims liability balance increased to $21,493 million as of September 30, 2025, up from $17,995 million on September 30, 2024[38] - The incurred medical claims for the current period totaled $150,533 million, while total paid claims amounted to $144,535 million[38] - The Health Benefits Ratio (HBR) for Medicaid was 93.4% in Q3 2025, slightly up from 93.1% in Q3 2024[37] Cash Flow and Capital Structure - Cash flow provided by operations for Q3 2025 was $1.36 billion, primarily driven by the timing of claims and other payments[11] - Cash flows from operating activities for the nine months ended September 30, 2025, were $4,651 million, significantly higher than $741 million in the same period of 2024[35] - Total current assets as of September 30, 2025, amounted to $44,062 million, up from $37,999 million at December 31, 2024, indicating a growth of 15.4%[31] - Cash and cash equivalents at the end of the period were $17,185 million, compared to $14,650 million at the end of September 2024, showing an increase of 10.4%[35] - Total debt stood at $17.6 billion, with a debt-to-capital ratio of 45.5% as of September 30, 2025[4][9] Employee and Corporate Recognition - The company was recognized in the 2025 Forbes® America's Best Employers for Company Culture™ list, highlighting high employee satisfaction[3] - The number of employees increased to 60,900 in Q3 2025 from 60,300 in Q2 2025[37] Regulatory and Strategic Considerations - The company anticipates potential impacts from changes in federal or state laws or regulations, which could affect its government-sponsored healthcare programs[27] - The company emphasizes the importance of maintaining adequate premium levels and controlling future medical and administrative costs to ensure financial stability[28] - Favorable development in prior periods resulted in a reduction of approximately $106 million in premium revenues due to minimum HBR and return of premium programs[39]

For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ ____________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ____________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-31826 _________________ ...

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Core Insights - Centene Corporation (CNC) is expected to report a loss of $0.21 per share for Q3 2025, with revenues projected at $47.62 billion, reflecting a year-over-year revenue growth of 13.3% despite a significant earnings decline of 113% [1][2][6]. Financial Performance - The earnings estimate for Q3 2025 has remained stable over the past 60 days, indicating a year-over-year plunge in earnings, while revenue projections suggest growth [2][3]. - For the full year 2025, Centene's revenue is estimated at $190.45 billion, representing a 16.8% increase year-over-year, but the EPS is projected to decrease by 76.4% [3][4]. Membership and Revenue Trends - Total commercial memberships are expected to increase by 26.6% year-over-year, with Medicare PDP memberships also showing nearly 17% growth [6][7]. - However, total membership is projected to decline by 2.2% year-over-year, primarily due to decreases in Medicaid and Medicare memberships [8]. - The consensus estimate for service revenues indicates a 7.2% decline from the previous year, while investment and other income is expected to fall by 11.7% [9]. Cost and Expense Outlook - Centene's medical costs are anticipated to remain high, with the health benefits ratio expected to rise to 93%, indicating a reduced portion of premiums available after claims [10]. - Total operating expenses are projected to increase by more than 15% in Q3, which may negatively impact the bottom line [10].