Core Insights - GoHealth, Inc. will announce strategic capital and governance actions along with its Q2 2025 financial results on August 7, 2025 [1] - The CEO and CFO will host a conference call to discuss these actions at 8:00 a.m. (ET) on the same day [2] Company Overview - GoHealth is a leading health insurance marketplace focused on Medicare, aiming to simplify healthcare decisions for consumers [3] - The company utilizes a proprietary technology platform that employs machine-learning algorithms to match health plans to consumer needs, enhancing the enrollment process for millions of Medicare consumers [3]

All right, thank you very much, Rick Santelli. Let's turn to the equity markets. Value stocks are greatly underperforming growth names.Since the recent market bottom on April 8th, the Russell Growth Index has outperformed the Russell value index by more than 20 percentage points in just the past four months. So, how are value investors supposed to survive in this hot growth driven market rally. I heard it described as growthy.I thought that was really great. Joining us on set to discuss is Chris Croanti, th ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was reported at $2,900,000,000, representing a 29% increase year over year [7][18] - The medical loss ratio (MLR) increased by 12 points year over year to 91.1%, primarily due to an overall increase in average market morbidity [7][19] - The SG&A ratio improved by 90 basis points year over year to 18.7% [8][21] - The loss from operations was $230,000,000, a decrease of $298,000,000 year over year, while the adjusted EBITDA loss was $199,000,000 [8][22] - The company reaffirmed its 2025 guidance, projecting total revenue between $12,000,000,000 and $12,200,000,000 [8][24] Business Line Data and Key Metrics Changes - Membership grew to over 2,000,000, an increase of 28% year over year, driven by solid retention and above-market growth during open enrollment [19] - The second quarter MLR was impacted by a $316,000,000 increase in risk adjustment payable for 2025 due to higher ACA marketplace morbidity [19] Market Data and Key Metrics Changes - The latest risk adjustment data indicates a meaningful market-wide increase in morbidity in 2025, affecting all carriers with increases in mid to high single digits [9] - The company anticipates double-digit rate increases in the market for 2026 to address current morbidity pressures [10] Company Strategy and Development Direction - The company is focused on the individual market, believing it will stabilize in 2026 and is taking actions to mitigate current industry headwinds [8][12] - Oscar Health is acquiring early-stage assets to build a consumer marketplace, including a brokerage and a direct enrollment technology platform [13][14] - The company is launching a new ICRA product in partnership with Hy Vee Inc., targeting employers and employees in Des Moines, Iowa [15] Management's Comments on Operating Environment and Future Outlook - Management believes the individual market has significant long-term growth potential and is taking corrective actions to return to profitability in 2026 [16][27] - The company is confident in its capital position and expects to absorb the majority of forecasted losses through its excess capital [32][90] Other Important Information - The company is reducing its workforce in the second half of 2025, expecting to save approximately $60,000,000 in administrative costs for 2026 [12][27] - The company has a strong capital position with approximately $5,400,000,000 in cash and investments [22][90] Q&A Session Summary Question: Guidance on 2025 free cash flow and risk adjustment payable - Management confirmed a strong capital position and indicated that the majority of expected losses would be absorbed by excess capital [31] Question: Long-term targets for 2027 - Management reaffirmed the 5% margin target and stated that no changes to long-term forecasts are being made at this time [34] Question: Multiyear earnings levers - Management indicated that there are still opportunities to improve medical costs and administrative efficiencies [41] Question: Potential risk pool deterioration - Management expressed confidence that the risk pool would not deteriorate further and that they have factored risks into their pricing for 2026 [48] Question: Market stabilization assumptions for 2026 - Management stated that conservative assumptions have been built into the 2026 guidance, considering market morbidity shifts and program integrity impacts [52] Question: Membership shifts and retention - Management noted that improved membership retention and lower lapse rates contributed to membership growth, with no adverse selection observed [105]

Financial Data and Key Metrics Changes - Total revenue for the second quarter of 2025 was reported at $2,900,000,000, representing a 29% year-over-year increase [5][18] - The medical loss ratio (MLR) increased by 12 points year-over-year to 91.1%, primarily due to an overall increase in average market morbidity [5][19] - The SG&A ratio improved by 90 basis points year-over-year to 18.7% [6][21] - The loss from operations was $230,000,000, a decrease of $298,000,000 year-over-year, while the adjusted EBITDA loss was $199,000,000, a decrease of $34,000,000 year-over-year [6][22] - The company reaffirmed its updated 2025 guidance, projecting total revenues between $12,000,000,000 and $12,200,000,000 and a loss from operations between $200,000,000 and $300,000,000 [6][24] Business Line Data and Key Metrics Changes - Membership grew to over 2,000,000, an increase of 28% year-over-year, driven by solid retention and above-market growth during open enrollment [19] - The second quarter MLR was impacted by a $316,000,000 increase in risk adjustment payable for 2025 due to higher ACA marketplace morbidity [19] Market Data and Key Metrics Changes - The latest risk adjustment data indicated a meaningful market-wide increase in morbidity in 2025, affecting all carriers with increases in mid to high single digits [7] - The company expects double-digit rate increases in the market for 2026 to address current morbidity pressures [9] Company Strategy and Development Direction - The company is focused on managing expenses and optimizing operations through technology and AI-driven efficiencies, aiming to eliminate approximately $60,000,000 in administrative costs for 2026 [10][11] - Strategic acquisitions include an individual market brokerage and a direct enrollment technology platform to enhance capabilities in the consumer marketplace [12][13] - The company is launching a new ICRA product in partnership with Hy Vee Inc., targeting employers and employees in Des Moines, Iowa [14] Management's Comments on Operating Environment and Future Outlook - Management believes the individual market will stabilize in 2026 and expects to return to profitability in that year [15][26] - The company is taking corrective actions to ensure a strong position for profitability next year, despite current market challenges [18][26] Other Important Information - The company has a strong capital position with approximately $5,400,000,000 in cash and investments, including $579,000,000 in excess capital [22][90] - The company is reducing its workforce in the second half of 2025 to solidify its profitability position for 2026 [26][85] Q&A Session Summary Question: Guidance on 2025 free cash flow and risk adjustment payable - Management indicated a strong capital position and that the majority of expected losses would be absorbed by excess capital [30] Question: Long-term targets for 2027 - Management reaffirmed the 5% margin target but stated that adjustments may be made after assessing the pricing season [32] Question: Multiyear earnings levers - Management highlighted ongoing opportunities to improve medical costs and administrative efficiencies [38] Question: Potential risk pool deterioration - Management expressed confidence in their current position and noted that they have factored risks into their pricing for 2026 [47] Question: Market stabilization assumptions for 2026 - Management built conservative assumptions into their guidance, expecting to improve margins and return to profitability [51] Question: Membership shifts and retention - Management noted that improved membership retention and lower lapse rates contributed to membership growth [105]

Group 1: Company Performance - Oscar Health reported a second-quarter loss of $228 million, or 89 cents per share, marking a $285 million swing from a profit of $56.2 million, or 20 cents per share, in the same quarter last year [5] - Total membership increased by 28% to over 2 million, contributing to a 29% rise in total revenue, which reached nearly $2.9 billion in the second quarter [4] - The medical loss ratio surged to 91.1% in the second quarter, up from 79% in the previous year, indicating higher costs associated with a sicker patient pool [7] Group 2: Industry Context - The health insurance industry is facing challenges due to an influx of sicker-than-expected patients, leading to increased costs and lowered profit forecasts [5][6] - Rising costs in the health insurance sector are attributed to pent-up demand for healthcare following the COVID-19 pandemic, with many patients delaying treatment [6] - Health insurers, particularly those providing government-subsidized coverage, are planning to increase rates next year to manage the costs associated with a sicker patient demographic [5] Group 3: Future Outlook - Oscar's CEO, Mark Bertolini, remains optimistic about the individual health insurance market, believing it has long-term growth potential [8][9] - The company anticipates a market stabilization in 2026 and expects to return to profitability by that year [9] - Oscar is focused on building the individual market into a comprehensive healthcare marketplace for consumers and businesses [9]

Core Viewpoint - Centene Corporation is facing a class action lawsuit due to allegations of misleading investors regarding its revenue outlook and growth prospects during the specified Class Period from December 12, 2024, to June 30, 2025 [1][4]. Company Overview - Centene Corporation is a healthcare enterprise that provides integrated services to government-sponsored and commercial healthcare programs, focusing on underinsured and uninsured individuals [3]. Allegations and Misleading Information - The lawsuit claims that Centene misled investors by presenting a false impression of reliable information concerning its projected revenue and growth, emphasizing strong enrollment rates and low morbidity levels [4]. - Contrary to these claims, the complaint alleges that there were adverse enrollment trends and worsening morbidity rates that were concealed from investors [5]. Financial Guidance and Market Performance - On July 1, 2025, Centene withdrew its 2025 guidance, revealing disappointing findings from its analysis of the Health Insurance Marketplace, with market growth across 22 states being significantly below expectations [6]. - The revised guidance indicated earnings of approximately $1.8 billion, translating to an adjusted diluted EPS of $2.75 [6]. Stock Price Impact - Following the announcement of the revised guidance, Centene's stock price dropped by over 40%, resulting in substantial financial losses for investors and leading to the current class action litigation [7].

Second Quarter 2025 Earnings Conference Call August 5, 2025 LGTMs: Date: Andrew T. (Input) Verbal LGTM 8/1 Peter K. LGTM 8/1 af Legal (Karen / Peter R.) LGTM 8/4 Accounting (#s confirm) LGTM (7/31 - Joe) Disclaimer This presentation and the accompanying oral presentation include forward-looking statements, including, without limitation, statements regarding future events and Clover Health Investments, Corp.'s ("Clover Health," "we," "our," or "us") expectations regarding Adjusted EBITDA, Adjusted Net income ...

Core Insights - Clover Health Investments, Corp. reported strong financial results for Q2 2025, highlighting significant membership and revenue growth, along with sustained profitability metrics [2][3][4] - The company's technology-first model is credited for driving better care management and improved health outcomes for members, particularly in Medicare Advantage plans [3][20] - Clover Health updated its full-year 2025 guidance, maintaining insurance revenue expectations while improving projections for adjusted SG&A and membership growth [10][4] Financial Performance - Q2 2025 insurance revenue reached $469.8 million, a 34.3% increase from $349.9 million in Q2 2024 [4][3] - Total revenues for Q2 2025 were $477.6 million, up 34% year-over-year [4][3] - Average Medicare Advantage membership increased by 31.8% year-over-year to 105,494 [4][3] - Adjusted net income from continuing operations was $16.7 million, down 53.5% from $35.9 million in Q2 2024 [4][3] - Adjusted EBITDA for Q2 2025 was $17.1 million, a decrease of 52.8% compared to $36.2 million in Q2 2024 [4][3] Membership and Revenue Guidance - The company expects average Medicare Advantage membership to be between 104,000 and 108,000 for the full year 2025, representing a 32% growth year-over-year at the midpoint [4][10] - Insurance revenue guidance for 2025 is maintained at $1.800 billion to $1.875 billion, indicating a 37% growth year-over-year at the midpoint [10][4] - Adjusted SG&A is projected to be between $335 million and $345 million, improving as a percentage of total revenues to 18% - 19% [10][4] Operational Metrics - The Insurance Benefits Expense Ratio (BER) for Q2 2025 was 88.4%, up from 76.1% in Q2 2024 [4][3] - The company reported a net loss from continuing operations of $10.6 million for Q2 2025, compared to a net income of $7.2 million in Q2 2024 [4][3] - Total cash, cash equivalents, and investments decreased by 19.4% to $389.3 million from $482.8 million year-over-year [4][3]

Core Viewpoint - A securities class action lawsuit has been filed against Centene Corporation for allegedly making materially false and misleading statements regarding its business operations and market performance during the specified Class Period from December 12, 2024, to June 30, 2025 [1][2]. Group 1: Allegations Against Centene - The lawsuit claims that Centene's management misrepresented the company's marketplace share, indicating lower-than-expected enrollment and increased market morbidity [2]. - It is alleged that the statements made by Centene's management about the company's business and prospects were materially false and lacked a reasonable basis throughout the Class Period [2]. Group 2: Lead Plaintiff Process - Investors in Centene have until September 8, 2025, to seek appointment as a lead plaintiff, representing the interests of the class in the litigation [3]. - The lead plaintiff is typically the investor or small group of investors with the largest financial interest in the case and who are representative of the class [3]. Group 3: Firm Information - Kessler Topaz Meltzer & Check, LLP is a law firm that prosecutes class actions and has a reputation for recovering billions for victims of corporate misconduct [4]. - The firm encourages Centene investors who have experienced significant losses to contact them for more information regarding the lawsuit [4].

Core Viewpoint - Molina Healthcare, Inc. is under investigation for potential securities fraud and unlawful business practices following disappointing financial results and guidance revisions [1][4]. Financial Performance - On July 7, 2025, Molina reported preliminary adjusted earnings of approximately $5.50 per share and lowered its full-year 2025 adjusted earnings guidance by over 10% to a range of $21.50 to $22.50 per share [3]. - Following this announcement, Molina's stock price decreased by $6.97, or about 2.9%, closing at $232.61 per share [3]. - On July 23, 2025, Molina released finalized second-quarter results, reporting adjusted earnings per diluted share of $5.48, which missed both analyst estimates and prior guidance [4]. - The earnings shortfall was attributed to increased medical cost pressures, including higher utilization of behavioral health, pharmacy, and inpatient/outpatient services [4]. - Molina again revised its full-year guidance downward due to updated information and revised assumptions regarding medical cost trends [4]. - Following the finalized results, Molina's stock price fell by $32.03, or approximately 16.8%, closing at $158.22 per share [5].