Why Is Clover Health Investments (CLOV) Down 11.6% Since Last Earnings Report?

Core Viewpoint - Clover Health Investments reported a mixed earnings performance for Q3 2025, with revenues increasing significantly but missing earnings expectations, leading to a decline in stock price [2][3][10]. Financial Performance - Clover Health reported adjusted quarterly earnings per share (EPS) of break-even, missing the Zacks Consensus Estimate of 2 cents, compared to an adjusted loss of 2 cents in the same period last year [2]. - Revenues for the quarter reached $496.7 million, reflecting a year-over-year increase of 50.1% and surpassing the Zacks Consensus Estimate by 4.5% [3]. - Insurance revenues totaled $479.1 million, up 48.5% year over year, driven by a 35% increase in Medicare Advantage membership and strong member retention [4]. Expense and Loss Analysis - The Insurance Benefit Expense Ratio (BER) was reported at 92.4%, up from 85.4% in the previous year, attributed to new-member growth and increased medical utilization [5]. - Net medical claims rose 70.5% year over year to $428.9 million, while total operating expenses increased by 53.3% to $521 million [7]. Financial Position - At the end of Q3 2025, Clover Health had cash and cash equivalents of $190.1 million, slightly up from $188.6 million at the end of the previous quarter [8]. - Net cash provided by operating activities from continuing operations was $1.2 million, a significant decrease from $129.5 million a year ago [8]. Guidance and Outlook - The company raised its sales outlook for 2025, estimating Insurance revenues between $1.85 billion and $1.88 billion, indicating a 39% year-over-year growth at the midpoint [10]. - Adjusted Net Income guidance was lowered to a range of $15 million to $30 million, down from a previous estimate of $50 million to $70 million [10]. - The Insurance BER projection was raised to 90-91%, and average Medicare Advantage membership is expected to grow by 33% year over year [11]. Market Position and Comparisons - Clover Health has a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [14]. - In comparison, Omnicell, a peer in the Medical Info Systems industry, has seen a stock gain of 13.3% over the past month, highlighting a contrasting performance within the sector [15].