Financial Data and Key Metrics Changes - For Q1 2025, total revenue was $1.53 billion, down from $1.6 billion in Q1 2024, primarily due to market and partnership exits, partially offset by premium growth [21] - Membership at the end of Q1 2025 was 491,000, a decrease from 523,000 in Q1 2024, reflecting a cautious approach to growth and partner exits [19] - Medical margin for Q1 2025 was $128 million, down from $157 million in Q1 2024, driven by elevated utilization and costs [21][22] - Adjusted EBITDA for Q1 2025 was $21 million, compared to $29 million in Q1 2024, reflecting ongoing elevated cost trends [23] Business Line Data and Key Metrics Changes - ACO REACH membership decreased to 114,000 in Q1 2025 from 131,000 in Q1 2024, primarily due to exiting an underperforming partnership [20] - Medical costs for Q1 2025 were in line with expectations, driven by elevated utilization and flu-related costs [22] - The medical cost trend for year two plus markets was 5.5% in Q1 2025, down from 6.7% in Q1 2024 [24] Market Data and Key Metrics Changes - The Medicare Advantage market continues to expand, with CMS data showing a year-over-year growth trend of 3.9% [10] - Overall market trends in 2025 remain consistent with the prior year, with an expected full-year trend of 5.3% [9] Company Strategy and Development Direction - The company is focused on disciplined growth, reducing exposure to costs outside of its control, and enhancing clinical and operational capabilities [6][12] - Investments in technology and clinical programs are expected to drive competitive advantages and improve quality outcomes [13][14] - The company anticipates a more favorable environment in 2026, supported by improved payer bids and final rate notices from CMS [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the final rate notice from CMS for 2026, which is expected to address high cost and utilization trends [6][18] - The company is taking a cautious approach to membership growth, with expectations for retroactive membership assignments in Q2 [5][19] - Management highlighted the importance of early identification and management of chronic diseases as a key focus of their model [7][10] Other Important Information - The company ended Q1 2025 with $369 million in cash and marketable securities, expecting to use approximately $110 million of cash in 2025 [27] - The company is maintaining a disciplined approach to capital allocation to support business objectives while aiming for cash flow breakeven in 2027 [27] Q&A Session Summary Question: Impact of V-28 risk model transition on value-based care companies - Management indicated that the risk adjustment perspective for 2025 is in line with expectations, with a 2% net increase year over year, despite a 3% headwind from V-28 [33][34] Question: Contribution from previously exited areas - Management noted that unfavorable development from exited markets would not impact 2025 significantly, with minimal remaining IBNR [37][38] Question: 2026 MA final rate notice and its flow-through - Management confirmed that 40% of membership was repriced for January 2025, with expected benefits from the average 9% increase across the network [41][42] Question: Risk scores and patient movement - Management clarified that the 2% increase in risk adjustment is on a same member basis, with some movement between payers noted but not significantly affecting care models [49][52] Question: Expectations for 2026 MA bit cycle - Management expressed optimism about the 2026 environment, with a focus on quality incentives and clinical cost-saving initiatives tracking well [58][61] Question: Medical cost trends and visibility on completed claims - Management stated that medical cost trends were in line with expectations, with improved visibility from the new financial data pipeline [65][66] Question: Potential membership reduction due to Part D - Management indicated that they are making progress in reducing Part D exposure and do not anticipate a reduction in membership for 2026 [75][76] Question: Clinical programs and their impact - Management confirmed that while 2025 is an investment year for new clinical programs, benefits are expected to materialize in 2026 and beyond [104][106]

Financial Data and Key Metrics Changes - In Q4 2024, NeueHealth reported consolidated revenue of $232.6 million, with full-year revenue reaching $936.7 million [15] - The gross margin for Q4 was $47.7 million, while the full-year gross margin was $194.5 million [15] - Adjusted EBITDA for Q4 was $5.5 million, contributing to a total of $22.5 million for the full year, marking the fourth consecutive quarter of adjusted EBITDA profitability [15] Business Line Data and Key Metrics Changes - In the NeueCare segment, Q4 revenue was $79.3 million, with full-year revenue at $313.7 million; operating income for Q4 was $9.2 million and $29.6 million for the full year [16] - The NeueSolutions segment generated $157.1 million in revenue for Q4 and $635.1 million for the full year, with an operating income of $3.1 million for Q4 and an operating loss of $5.3 million for the full year [18] Market Data and Key Metrics Changes - NeueHealth served 483,000 consumers in 2024, reflecting a compound annual growth rate of 123% since 2020; this number increased to 717,000 consumers at the start of 2025, a 31% growth from 2024 [10][11] - The company expanded its consumer base in recently expanded markets by 97% [11] Company Strategy and Development Direction - NeueHealth aims to continue its focus on high-quality, affordable healthcare, diversifying the populations served across product categories [24] - The company plans to deepen its presence in local communities and expand into new geographies, enhancing its care model [24] - There is a commitment to grow alongside payer partners and strengthen relationships with providers to enable high-quality personalized care [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive change in the healthcare industry and create a seamless experience for consumers, providers, and payers [26] - The company anticipates closing a transaction to be acquired by an affiliate of NEA in Q2 2025, which is expected to provide flexibility and resources for continued growth [12][13] Other Important Information - As of December 31, 2024, NeueHealth had $202.8 million in total cash and investments, with $93.2 million in nonregulated cash and short-term investments [20] Q&A Session Summary - No specific questions and answers were provided in the content.