Clover Health Investments(US:CLOV)2025-11-07 13:06Membership 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]