Company Overview - Molina Healthcare has a market capitalization of $7.8 billion and provides managed healthcare services primarily to low-income families and individuals through Medicaid, Medicare, and state insurance marketplaces [2]. Recent Developments - In Q3 2025, Molina Healthcare reported adjusted earnings of $1.84 per share on premium revenue of $10.8 billion, which fell short of Wall Street expectations [4]. - The company recently reduced its full-year earnings guidance to $14 per share, down from an earlier forecast of $19 per share, and significantly lower than the initial projection of $24.50 per share at the start of 2025 [5]. Financial Performance - The disappointing Q3 results were attributed to rising medical costs and increased healthcare utilization, with the consolidated medical care ratio reaching 92.6% for the quarter [5]. - The Marketplace business, which constitutes 10% of total revenue, faced significant challenges, with its medical care ratio soaring to 95.6%. Management now anticipates a $2-per-share loss for the Marketplace segment, a drastic change from the previous expectation of over $3 per share in profits [6]. Medicaid Business - Despite challenges, the core Medicaid business, which accounts for 75% of premium revenue, continues to perform relatively well, with medical cost trends in Medicaid reaching 7% for the year, surpassing the negotiated rate increase of 5.5% with states [7]. Investment Activity - Notably, investor Michael Burry has taken a position in Molina Healthcare, acquiring 125,000 shares, which are currently down over 60% from their all-time highs [1].