NeueHealth(NEUE) - 2025 Q2 - Quarterly Report

Forward-Looking Statements This section defines forward-looking statements as future projections, subject to risks and uncertainties that could materially alter actual outcomes - Forward-looking statements are not historical facts but projections about future results, business plans, and financial outlook, subject to various risks and uncertainties[9] - Key factors that might materially affect forward-looking statements include the company's ability to continue as a going concern, compliance with credit facilities, obtaining financing, efficient wind-down of discontinued businesses, and regulatory changes in the health insurance markets[9] - The company operates in a competitive and rapidly changing environment, making it impossible to predict all risks or assess the full impact of all factors on actual results[10] PART I. FINANCIAL INFORMATION Item 1. Financial Statements This section presents unaudited condensed consolidated financial statements, including balance sheets, income, comprehensive income, equity, and cash flows, with detailed notes Condensed Consolidated Balance Sheets (Unaudited) The Condensed Consolidated Balance Sheets show significant increases in total assets and liabilities, while shareholders' equity (deficit) further declined | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | Change (%) | | :--------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :--------- | | Cash and cash equivalents | $131,618 | $83,295 | $48,323 | 58.0% | | Total current assets | $639,882 | $434,648 | $205,234 | 47.2% | | Total assets | $743,689 | $544,383 | $199,306 | 36.6% | | Total current liabilities | $908,412 | $710,228 | $198,184 | 27.9% | | Total liabilities | $1,136,744 | $930,491 | $206,253 | 22.2% | | Total shareholders' equity (deficit) | $(1,369,201) | $(1,355,105) | $(14,096) | -1.0% | - ACO REACH performance year receivable significantly increased from $95.1 million at December 31, 2024, to $321.6 million at June 30, 2025, while a new ACO REACH performance year obligation of $248.5 million was recorded[13] Condensed Consolidated Statements of Income (Loss) (Unaudited) The Condensed Consolidated Statements of Income (Loss) show a substantial improvement in net loss for both the three and six months ended June 30, 2025, compared to the same periods in 2024 | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (in thousands) | Change (%) | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :-------------------- | :--------- | | Total revenue | $209,082 | $225,991 | $(16,909) | -7.5% | | Operating income (loss) | $14,257 | $(37,549) | $51,806 | 138.0% | | Net income (loss) from continuing operations | $6,838 | $(39,259) | $46,097 | 117.4% | | Loss from discontinued operations, net of tax | $(8,386) | $(18,439) | $10,053 | 54.5% | | Net Loss | $(1,548) | $(57,698) | $56,150 | 97.3% | | Net loss attributable to NeueHealth, Inc. common shareholders | $(23,501) | $(71,390) | $47,889 | 67.1% | | Basic and diluted loss per share | $(2.62) | $(8.65) | $6.03 | 69.7% | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (in thousands) | Change (%) | | :------------------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | :--------- | | Total revenue | $424,869 | $471,086 | $(46,217) | -9.8% | | Operating income (loss) | $16,918 | $(60,651) | $77,569 | 127.9% | | Net income (loss) from continuing operations | $5,400 | $(33,571) | $38,971 | 116.1% | | Loss from discontinued operations, net of tax | $(17,796) | $(28,304) | $10,508 | 37.1% | | Net Loss | $(12,396) | $(61,875) | $49,479 | 80.0% | | Net loss attributable to NeueHealth, Inc. common shareholders | $(48,376) | $(99,908) | $51,532 | 51.6% | | Basic and diluted loss per share | $(5.53) | $(12.23) | $6.70 | 54.8% | Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) The Condensed Consolidated Statements of Comprehensive Income (Loss) reflect a significant reduction in comprehensive loss for both the three and six months ended June 30, 2025, compared to the prior year | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (in thousands) | Change (%) | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :-------------------- | :--------- | | Net loss | $(1,548) | $(57,698) | $56,150 | 97.3% | | Other comprehensive income | $0 | $104 | $(104) | -100.0% | | Comprehensive loss | $(1,548) | $(57,594) | $56,046 | 97.3% | | Comprehensive loss attributable to NeueHealth, Inc. common shareholders | $(10,055) | $(58,526) | $48,471 | 82.8% | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (in thousands) | Change (%) | | :------------------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | :--------- | | Net loss | $(12,396) | $(61,875) | $49,479 | 80.0% | | Other comprehensive income | $0 | $122 | $(122) | -100.0% | | Comprehensive loss | $(12,396) | $(61,753) | $49,357 | 80.0% | | Comprehensive loss attributable to NeueHealth, Inc. common shareholders | $(21,794) | $(74,422) | $52,628 | 70.7% | Condensed Consolidated Statements of Changes in Redeemable Preferred Stock and Shareholders' Equity (Deficit) (Unaudited) This statement details the changes in redeemable preferred stock and shareholders' equity (deficit) for the six months ended June 30, 2025 and 2024 | Metric (in thousands) | Balance at January 1, 2025 | Balance at June 30, 2025 | Change (in thousands) | | :-------------------- | :------------------------- | :----------------------- | :-------------------- | | Redeemable Preferred Stock Amount | $920,417 | $920,417 | $0 | | Common Stock Amount | $1 | $1 | $0 | | Additional Paid-In Capital | $3,099,423 | $3,107,121 | $7,698 | | Accumulated Deficit | $(4,442,529) | $(4,464,323) | $(21,794) | | Total Shareholders' Equity (Deficit) | $(1,355,105) | $(1,369,201) | $(14,096) | - Share-based compensation contributed $7.698 million to additional paid-in capital for the six months ended June 30, 2025[19] - The accumulated deficit increased by $21.794 million for the six months ended June 30, 2025, reflecting the net loss[19] Condensed Consolidated Statements of Cash Flows (Unaudited) The Condensed Consolidated Statements of Cash Flows show improved operating cash flow, decreased investing cash flow