Centene CEO comments on ACA revenue on earnings call

Centene CEO comments on ACA revenue on earnings call

Centene Corporation (NYSE: CNC) reported its second quarter 2025 results, with a diluted loss per share of $(0.51) and an adjusted diluted loss per share of $(0.16) [1]. The company's revenue grew by 18% to $42.5 billion, primarily driven by premium and membership growth in the PDP business, market growth in the Marketplace business, and rate increases in the Medicaid business [1].

During the earnings call, Chief Executive Officer Sarah M. London commented on the Affordable Care Act (ACA) revenue, stating that despite the shifting landscape, the staying power of Medicaid, Medicare, and the Individual Marketplace remains strong [1]. She noted that Centene has significantly fortified its platform in service of these programs over the last three years and is focused on continuing to adapt with the market to deliver meaningful value to its members, stakeholders, and shareholders over the long term [1].

The company's health benefits ratio (HBR) increased to 93.0% for the second quarter of 2025, driven by a reduction in the net 2025 Marketplace risk adjustment revenue transfer estimate, increased Marketplace medical costs, and higher medical costs in Medicaid [1]. The SG&A expense ratio decreased to 7.1%, primarily due to leveraging expenses over higher revenues and growth in the PDP business [1].

Centene's cash flow provided by operations for the second quarter of 2025 was $1.8 billion, primarily driven by improved pharmacy rebate remittance timing [1]. The company's total debt was $17.6 billion, and it maintained $234 million of cash and cash equivalents in its unregulated entities [1].

The company will provide its 2025 earnings expectations on the upcoming conference call [1].

References:
[1] https://investors.centene.com/2025-07-25-CENTENE-CORPORATION-REPORTS-SECOND-QUARTER-2025-RESULTS