UnitedHealth(UNH) - 2025 Q1 - Quarterly Report

Financial Performance - Consolidated revenues increased by 10% to $109.575 billion, with UnitedHealthcare revenues growing by 12% and Optum revenues by 5%[53] - Consolidated earnings from operations rose to $9.1 billion, compared to $7.9 billion in the previous year, with diluted earnings per share at $6.85[53] - Medical costs increased by 12% to $73.411 billion, primarily due to growth in Medicare Advantage and higher acuity needs[54] - The medical care ratio (MCR) was 84.8%, up from 84.3% in the previous year, reflecting increased care patterns and funding pressures[54] - UnitedHealthcare's operating margin improved to 6.2%, while Optum Health's operating margin decreased to 6.4%[60] - Optum Rx revenues grew by 14% to $35.132 billion, contributing significantly to overall revenue growth[60] Membership Growth - UnitedHealthcare served 945,000 more people, driven by growth in commercial offerings and Medicare Advantage[53] - Total revenues for UnitedHealthcare increased by 12% to $84,617 million in Q1 2025 from $75,357 million in Q1 2024[61] - The number of people served by UnitedHealthcare's Medicare Advantage increased by 6% to 8,245 thousand in Q1 2025 from 7,760 thousand in Q1 2024[62] - The company experienced a decrease in the number of people served in risk-based commercial offerings by 2% to 8,410 thousand in Q1 2025 from 8,545 thousand in Q1 2024[62] Cash Flow and Liquidity - Cash provided by operating activities increased significantly by $4,312 million to $5,456 million in Q1 2025 compared to $1,144 million in Q1 2024[66] - As of March 31, 2025, the company had cash and cash equivalents of $30.7 billion, with a total liquidity position of $79.1 billion[68] - The company repurchased approximately 6.0 million shares at an average price of $503.72 per share during Q1 2025[74] Regulatory and Market Conditions - Regulatory pressures on Medicare Advantage funding are expected to persist, impacting pricing and benefit design in future periods[51] - The company anticipates continued growth in healthcare spending driven by inflation, technology advancements, and demographic trends[45] - Earnings from operations at Optum Health decreased due to Medicare Advantage funding reductions and changes in member profiles[63] Interest Rate Exposure - As of March 31, 2025, a 2% increase in market interest rates would result in an annual investment income of $777 million and interest expense of $645 million[83] - A 1% decrease in market interest rates would lead to a decrease in investment income by $389 million and interest expense by $305 million[83] - The fair value of financial assets would increase by $4,350 million with a 2% decrease in market interest rates, while financial liabilities would increase by $13,169 million[83] - The company manages market interest rate exposure by diversifying investments across different fixed-income sectors and maturities[82] Forward-Looking Statements - The company does not undertake to update or revise any forward-looking statements except as required by law[81] - Forward-looking statements are subject to risks, uncertainties, and assumptions that may cause actual results to vary materially from expectations[81]