Financial Performance - Total revenues reached $1395 million[23] - Gross profit was -$52 million[23] - Medical margin was -$53 million[23] - Net loss amounted to -$104 million[23] - Adjusted EBITDA was -$83 million[23] Risk Adjustment Impact - Revised risk adjustment for 2024 and 2025 impacted performance, with a total RAF impact of $85 million[19] - This includes $37 million for FY'24 and $48 million YTD in FY'25[19] - 2024 risk adjustment is now estimated at approximately 12%[22] Membership - Medicare Advantage members totaled 498000[23] - ACO Model members numbered 116000[23] - Total members live on the platform reached 614000[23] Strategic Actions - The company is recalibrating organizational culture to drive urgency, accountability, and performance[6] - The company is accelerating strategic actions to deliver sustainable long-term profitability[9]

Core Insights - Health Net, a subsidiary of Centene Corporation, has awarded $295,000 in grants to organizations aimed at enhancing the quality of life for older adults in California [1][2] - The funding is part of Health Net's broader commitment to community support, having invested over $158 million from 2017 to 2024 in community-based organizations [3] Grant Recipients and Initiatives - A Senior Connection will use the grant to hire personnel for the rollout of the state's Community Supports benefit [6] - NewGen Administrative Services will enhance patient comfort by adding bedside dialysis units, reducing complications from travel to off-site centers [6] - ONEgeneration will expand mental and behavioral health services for older adults, ensuring access to necessary resources [6] - St. Barnabas Senior Services will upgrade kitchen infrastructure to provide healthy, culturally-centered meals for older adults [6] - WISE & Healthy Aging aims to improve collaboration between Skilled Nursing Facility representatives and emergency services to reduce unnecessary 911 calls [6] Company Overview - Health Net has been operating in California for over 45 years, providing health plans for individuals, families, and those eligible for Medi-Cal or Medicare [5] - The company serves more than three million members with a network of over 117,000 providers [5][7] - Centene Corporation, the parent company, is committed to transforming community health through various managed healthcare products and services [7]

Earnings Results - Centene Corporation is set to release its second-quarter earnings results on July 25, with analysts expecting earnings of 23 cents per share, a significant decrease from $2.42 per share in the same period last year [1] - Projected quarterly revenue for Centene is $44.2 billion, an increase from $39.84 billion a year earlier [1] Guidance and Stock Performance - On July 1, Centene withdrew its previous 2025 GAAP and adjusted diluted EPS guidance, leading to a 9% drop in shares, closing at $26.76 [2] Analyst Ratings and Price Targets - Truist Securities analyst maintained a Buy rating but reduced the price target from $84 to $42 [4] - B of A Securities downgraded the stock from Neutral to Underperform, slashing the price target from $52 to $30 [4] - Mizuho maintained a Neutral rating and cut the price target from $71 to $40 [4] - Morgan Stanley downgraded the stock from Overweight to Equal-Weight, lowering the price target from $70 to $33 [4] - UBS downgraded the stock from Buy to Neutral, decreasing the price target from $80 to $45 [4]

Core Viewpoint - A class action lawsuit has been filed against Centene Corporation, alleging securities fraud and unlawful business practices [2]. Group 1: Lawsuit Details - The lawsuit involves Centene and certain officers and/or directors regarding potential securities fraud [2]. - Investors have until September 8, 2025, to request appointment as Lead Plaintiff if they purchased Centene securities during the Class Period [2]. Group 2: Company Performance - On July 1, 2025, Centene announced the withdrawal of its 2025 GAAP and adjusted diluted earnings per share (EPS) guidance due to market growth in 22 out of 29 states not meeting expectations [4]. - The company cited higher-than-anticipated health risks in these states affecting its risk adjustment revenue calculations [4]. Group 3: Stock Market Reaction - Following the announcement, Centene's stock price dropped by $22.87 per share, or 40.37%, closing at $33.78 per share on July 2, 2025 [5].

Core Viewpoint - Analysts forecast that Centene (CNC) will report quarterly earnings of $0.68 per share, indicating a year-over-year decline of 71.9%, while revenues are expected to reach $44.27 billion, reflecting an increase of 11.1% compared to the previous year [1]. Earnings Estimates - Over the last 30 days, there has been a downward revision of 57.3% in the consensus EPS estimate for the quarter, indicating a significant reconsideration by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3]. Revenue Projections - Analysts project 'Revenues- Premium and service revenues' to reach $40.68 billion, a year-over-year increase of 13.1% [5]. - 'Revenues- Premium' is expected to be $39.91 billion, reflecting a 13.6% increase year over year [5]. - 'Revenues- Service' is estimated at $774.23 million, indicating a decline of 7.1% from the prior year [5]. - 'Revenues- Premium tax' is anticipated to be $3.32 billion, showing a decrease of 14.2% year over year [6]. Membership Metrics - 'Membership by line of business - Medicaid' is projected at 12.89 million, down from 13.14 million in the same quarter last year [7]. - 'Membership by line of business - Medicare PDP' is expected to reach 7.89 million, up from 6.60 million a year ago [7]. - 'Membership by line of business - Medicare' is estimated at 1.03 million, compared to 1.14 million last year [8]. - 'Membership Medicaid - Traditional Medicaid' is projected at 11.31 million, down from 11.64 million in the previous year [8]. - 'Membership Medicaid - High Acuity Medicaid' is estimated at 1.58 million, slightly up from 1.50 million last year [9]. - 'Membership Commercial - Commercial Group' is expected to reach 443.35 thousand, compared to 426.40 thousand a year ago [9]. Expense Ratios - Analysts estimate the 'SG&A Expense Ratio' to be 7.8%, a decrease from 8.0% in the same quarter last year [10]. Stock Performance - Centene shares have shown a return of -48.6% over the past month, contrasting with the Zacks S&P 500 composite's +5.9% change, indicating expected underperformance in the near future [11].

Core Viewpoint - Leverage Shares by Themes has launched a new single stock leveraged ETF targeting 200% daily exposure to UnitedHealth Group (UNH), aimed at providing investors with tools to capitalize on market movements in the healthcare sector [1][2][3]. Company Overview - UnitedHealth Group (UNH) is a leader in healthcare and insurance innovation, playing a crucial role in the U.S. economy through managed healthcare and data-driven health services [3]. - The new ETF, UNHG Leverage Shares 2X Long UNH Daily ETF, is part of a broader strategy to offer targeted tools for investors to express market views, particularly in the healthcare sector [2][3]. Product Details - The ETF is designed to provide 200% exposure to the daily performance of UNH, allowing both sophisticated traders and retail investors to engage with market movements efficiently [1][2]. - The management fee for this ETF is set at 0.75%, which is competitive within the single stock leveraged ETF market [1][8]. Market Position - With the launch of this ETF, the total count of Leveraged Single Stock ETFs at Leverage Shares by Themes has increased to 19, indicating a growing product lineup aimed at various sectors [4][5].

Core Viewpoint - Rosen Law Firm has announced the filing of a class action lawsuit on behalf of purchasers of Centene Corporation securities between December 12, 2024, and June 30, 2025, alleging misleading statements regarding the company's financial performance and enrollment rates [1][5]. Group 1: Lawsuit Details - The class action lawsuit claims that during the Class Period, Centene's management provided investors with overly positive information regarding expected revenue guidance and adjusted diluted earnings per share (EPS) for the 2025 fiscal year [5]. - Defendants allegedly made confident statements about Centene's enrollment and morbidity rates, as well as strong retention rates in its Medicare business, while concealing material adverse facts about the true state of these metrics [5]. Group 2: Participation Information - Investors who purchased Centene common stock during the Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - To join the class action, interested parties can visit the provided link or contact the law firm directly for more information [3][6]. Group 3: Law Firm Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time and being ranked No. 1 for the number of settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, securing over $438 million in 2019 alone [4].

Core Viewpoint - Centene experienced a significant drop in stock price, closing down over 40% on July 2, resulting in a loss of over $11 billion in market capitalization, with competitors also facing declines [1][2][5] Group 1: Financial Impact - The drop in Centene's shares was primarily due to the withdrawal of its 2025 full-year guidance, indicating a more challenging financial outlook [2][4] - The company received data indicating lower growth in the ACA exchange market and higher morbidity among enrollees, leading to fewer and sicker patients [3][4] - The expected impact on Centene's 2025 diluted earnings per share (EPS) is a reduction of $2.75, which is 38% of the previously expected EPS of greater than $7.25 [4][5] Group 2: Market Valuation - Despite the significant stock sell-off, Wall Street analysts see a more attractive valuation for Centene, with a 12-month price target of $68.87, implying a potential upside of 108.31% from the current price [5][6] - The average price target post-guidance withdrawal is $51, suggesting a 53% upside, which is higher than the 32% average upside prior to the drop [6][7] Group 3: Regulatory Environment - The recent legislation signed into law includes $1 trillion in cuts to Medicaid, which accounted for approximately 46% of Centene's revenue last quarter, potentially leading to 10.3 million to 11.8 million fewer Medicaid recipients over the next decade [8][9] - The reduction in expected Medicaid users could have a more significant and lasting impact on Centene compared to the ACA exchange enrollment issues, which only made up 20% of the firm's total revenue last quarter [9]

Core Viewpoint - Centene Corporation is under investigation for potential violations of federal securities laws due to allegations of providing misleading business information, which has led to significant stock price decline following the withdrawal of its earnings guidance [1][4]. Company Overview - Centene is a managed healthcare company that specializes in government-sponsored programs such as Medicaid and Medicare, as well as health insurance plans on individual exchanges and commercial marketplaces [3]. Alleged Wrongdoing - On July 1, 2025, Centene announced its decision to withdraw its 2025 earnings guidance, citing declining market growth in 22 out of the 29 states it operates in. The company indicated that health risks in these states were much higher than previously anticipated in its risk adjustment calculations [4]. - Following this announcement, Centene's stock price dropped by $22.87 per share, representing a 40.37% decline, closing at $33.78 per share on July 2, 2025 [4].

Group 1 - Centene Corporation is under investigation for potential securities fraud and unlawful business practices involving its officers and directors [1] - On July 1, 2025, Centene withdrew its 2025 GAAP and adjusted diluted earnings per share guidance due to underperformance in market growth across 22 out of 29 states and higher-than-expected health risks affecting revenue calculations [2] - Following the announcement, Centene's stock price dropped by $22.87, or 40.37%, closing at $33.78 per share on July 2, 2025 [3] Group 2 - Pomerantz LLP is a prominent law firm specializing in corporate, securities, and antitrust class litigation, with a history of recovering significant damages for victims of securities fraud and corporate misconduct [4]