Clover Health beats Q3 revenue expectations driven by  Medicare Advantage membership

Clover Health Investments

04/11/2025 21:56

Overview

Clover Health Q3 revenue grows 50% yr/yr, beating analyst expectations

Adjusted EBITDA for Q3 misses analyst expectations

Medicare Advantage membership up 35% yr/yr, reaching 109,226

Outlook

Clover raises 2025 Medicare Advantage membership forecast to 106,000 - 108,000

Company increases 2025 insurance revenue guidance to $1.850 bln - $1.880 bln

Clover expects 2026 profitability driven by 4.0 Star payment year and CMS rate update

Result Drivers

MEMBERSHIP GROWTH - Co reports 35% yr/yr increase in Medicare Advantage membership, contributing to revenue growth

CLOVER ASSISTANT IMPACT - High coverage of Clover Assistant expected to improve total cost of care

NEW MEMBER UTILIZATION - Margin pressures due to higher-than-expected mix of new members with elevated utilization

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$497 mln
$467.20 mln (4 Analysts)
Q3 Net Income
-$24 mln
Q3 Adjusted EBITDA
Miss
$2 mln
$11.40 mln (4 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the managed healthcare peer group is "buy."

Wall Street's median 12-month price target for Clover Health Investments Corp is $3.00, about 22.7% below its November 3 closing price of $3.68

Press Release: ID:nGNX8v7pQc

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)