Core Insights - Molina Healthcare, Inc. reported a fourth-quarter 2025 adjusted loss of $2.75 per share, significantly missing the Zacks Consensus Estimate of an adjusted EPS of 43 cents, compared to an EPS of $5.05 in the prior-year quarter [1][9] - Revenues for the quarter reached $11.4 billion, reflecting an 8.3% year-over-year increase and surpassing the consensus estimate by 5.3% [1][5] Financial Performance - For the full year 2025, Molina reported total revenues of $45.4 billion, up from $40.7 billion in 2024, exceeding the consensus estimate of $44.8 billion [5] - Adjusted EPS for 2025 declined to $11.03 from $22.65 in 2024 but still beat the consensus estimate of $10.65 [5] - Adjusted net income fell to $584 million from $1.3 billion a year ago [5] Operational Highlights - Premium revenues in Q4 totaled $10.7 billion, a 7.3% year-over-year increase, exceeding both the Zacks Consensus Estimate and internal estimates [6] - Total membership as of December 31, 2025, declined by 0.8% year over year to approximately 5.49 million, missing the Zacks Consensus Estimate of 5.52 million [6] - The medical care ratio (MCR) increased by 440 basis points year over year to 94.6%, exceeding both the consensus estimate and internal estimates [8] Expense and Income Analysis - Investment income decreased by 11.7% year over year to $98 million, below the consensus estimate of $100.1 million [7] - Total operating expenses rose by 14% year over year to $11.5 billion, exceeding internal estimates, primarily due to higher medical care costs and increased general and administrative expenses [7][8] - Interest expense grew by 52.9% year over year to $52 million [8] Future Guidance - For 2026, management expects premium revenues to decline by 2% year over year to $42.2 billion, with adjusted earnings projected to be at least $5.00 per share [12] - Adjusted net income is anticipated to be $256 million, with total membership estimated to decrease to 5.1 million by the end of 2026 [13]