Bright Health Group(BHG) - 2025 Q2 - Quarterly Report

Consumer Growth - NeueHealth reported a 45% aggregate growth in consumers served compared to the second quarter of last year, reaching approximately 547,000 consumers as of June 30, 2025[180][184]. - The number of value-based consumers served increased to 546,000 in 2025, up from 364,000 in 2024, representing a year-over-year increase of approximately 182,000 consumers[188][189]. - Enablement services lives reached approximately 148,000 in 2025, up from 113,000 in 2024, reflecting a growth in provider partnerships[188][190]. Financial Performance - Adjusted EBITDA for the second quarter of 2025 was $19,020,000, compared to $3,962,000 in the same period of 2024, indicating significant improvement in profitability[191][195]. - Income from continuing operations before income taxes for the second quarter of 2025 was $6,817,000, compared to a loss of $39,446,000 in the same quarter of 2024[191]. - The company reported a net loss of $1,548,000 for the second quarter of 2025, a significant improvement from a net loss of $57,698,000 in the same period of 2024[195]. Revenue Changes - Total revenue decreased by $16.9 million, or 7.5%, for the three months ended June 30, 2025, and $46.2 million, or 9.8%, for the six months ended June 30, 2025, compared to the same periods in 2024[198]. - ACO REACH revenue decreased by $34.5 million and $82.2 million for the three and six months ended June 30, 2025, respectively, primarily due to a decrease of approximately 10,000 beneficiaries aligned to REACH ACOs[198]. - Capitated revenue increased by $18.5 million, or 28.9%, for the three months ended June 30, 2025, and $38.0 million, or 30.3%, for the six months ended June 30, 2025, driven by increased membership through third-party payor contracts[199]. Cost Management - Medical costs decreased by $31.3 million, or 17.6%, for the three months ended June 30, 2025, and $67.3 million, or 18.0%, for the six months ended June 30, 2025, primarily due to a decrease in beneficiaries aligned to REACH ACOs[200]. - Operating costs decreased by $25.6 million, or 36.3%, for the three months ended June 30, 2025, and $43.7 million, or 31.8%, for the six months ended June 30, 2025, primarily due to a decrease in compensation-related costs[201]. - Operating cost ratio improved to 21.5% and 22.0% for the three and six months ended June 30, 2025, a decrease of 980 and 710 basis points compared to the same periods in 2024, respectively[202]. Strategic Initiatives - NeueHealth's focus on consumer-centric healthcare aims to reduce friction between payors and providers, enhancing the overall care experience[180][184]. - The company aims to enhance its data and analytics capabilities into a comprehensive value-based care enablement platform, which is expected to drive future performance and growth[184]. - NeueHealth's NEA Merger Agreement was announced on December 23, 2024, which will result in the company becoming a wholly owned subsidiary of NH Holdings 2025, Inc.[186]. Liquidity and Capital Structure - The company forecasts potential liquidity issues, indicating that existing cash and investments may not be sufficient to meet anticipated cash requirements for the next twelve months[223]. - As of June 30, 2025, the company had $96.4 million of long-term borrowings under the Amended 2023 Credit Agreement, with no additional available borrowings[235]. - As of June 30, 2025, the company had $212.9 million in cash and cash equivalents and $21.5 million in short-term investments[248]. Discontinued Operations - Loss from discontinued operations decreased by $10.1 million and $10.5 million for the three and six months ended June 30, 2025, respectively, as operating costs for the runout operations have further decreased[208]. - The company had no long-term investments as of June 30, 2025, across both continuing and discontinued operations[248]. Stock and Equity Transactions - The company issued 750,000 shares of Series A Preferred Stock for $750.0 million on January 3, 2022, and 175,000 shares of Series B Preferred Stock for $175.0 million on October 17, 2022[246].