Clover Health (CLOV) Q2 Sales Up 34%

Core Insights - Clover Health Investments reported Q2 2025 results with significant revenue growth, achieving GAAP sales of $477.6 million, exceeding analyst expectations of $468.3 million [1][5] - Despite revenue gains, profitability metrics weakened compared to Q2 2024, with a net loss per share of $(0.02) and an insurance benefits expense ratio (BER) of 88.4% [1][2] Financial Performance - Revenue increased by 34.0% year-over-year from $356.3 million in Q2 2024 to $477.6 million in Q2 2025 [2][5] - Adjusted net income from continuing operations fell to $16.7 million, down 53.5% from $35.9 million in Q2 2024 [2][6] - Adjusted EBITDA decreased by 52.8% to $17.1 million compared to $36.2 million in the previous year [2][6] - The insurance BER rose from 76.1% to 88.4%, indicating increased medical costs relative to premiums [2][7] Membership Growth - Medicare Advantage membership grew by 32% year-over-year, reaching 106,323 members as of June 30, 2025, up from 80,261 in the previous year [5][11] - The company aims to expand its membership in underserved markets and enhance the Clover Assistant platform [4][9] Strategic Initiatives - Clover Health is focusing on three main areas: expanding the Clover Assistant platform, growing MA plan membership, and developing Counterpart Health, a new technology and services business [4][9] - Management highlighted the importance of balancing rapid membership growth with the need to control rising medical costs [4][6] Outlook - The company updated its fiscal 2025 guidance, expecting average Medicare Advantage membership to reach between 104,000 and 108,000 [11] - Insurance revenue forecast remains at $1.8 billion to $1.875 billion, with adjusted EBITDA and net income targets set at $50 million to $70 million each [11] - The updated forecast for the Insurance BER is now projected to be between 88.5% and 89.5% for the full year [11]