Clover Health 2025 Q3 Earnings Deepened Losses Overshadow Revenue Surge

Clover Health (CLOV) reported mixed third-quarter 2025 results, with revenue surpassing expectations but profitability declining sharply. The company’s net loss widened by 166.3% year-over-year, and it slashed full-year EBITDA guidance, signaling ongoing margin pressures.

Revenue

Clover Health’s total revenue surged 50.1% to $496.65 million in Q3 2025, outpacing the $330.99 million reported in the same period of 2024. This growth was driven by strong membership expansion and higher premiums, reflecting robust top-line performance despite underlying profitability challenges.

Earnings/Net Income

The company’s financial losses deepened significantly, with a net loss of $24.38 million in Q3 2025, representing a 166.3% increase from the $9.15 million loss in 2024 Q3. On a per-share basis, the loss widened to $0.05, compared to $0.02 in the prior year. These results highlight persistent operational inefficiencies and cost pressures, with the CEO noting higher-than-expected medical expenses and increased healthcare utilization among new members. The earnings figures underscore a disappointing performance, with both EPS and net income falling well below expectations.

Price Action

Clover Health’s stock price experienced volatile movements following the earnings report. While it gained 2.50% during the latest trading day, it plummeted 24.36% during the most recent full trading week and dropped 3.96% month-to-date. The sharp post-earnings decline reflects investor concerns over the company’s profitability outlook and revised guidance.

The strategy of buying Clover Health (CLOV) shares on the date of its revenue raise announcement and holding for 30 days shows poor performance over the past three years. The cumulative return is -46.8%, significantly underperforming the market. This indicates the strategy failed to capitalize on the positive revenue momentum.

CEO Commentary

Jamie Reynoso, CEO of Clover Health, emphasized the company’s commitment to scaling membership growth while addressing cost challenges. He acknowledged the impact of rising medical expenses and noted investments in technology to improve member outcomes. Reynoso stated, “Our focus remains on balancing growth with financial discipline, but near-term margin pressures will persist as we onboard new members and navigate higher-than-anticipated healthcare costs.”

Guidance

Clover Health revised its full-year 2025 adjusted EBITDA guidance downward to a range of $15 million–$30 million, significantly below the previous forecast of $50 million–$70 million. The company also adjusted its revenue outlook to $1.85–$1.88 billion for 2025. These revisions reflect ongoing challenges in managing medical costs and maintaining profitability amid rapid growth.

Additional News

Three key non-earnings developments impacted Clover Health in late October and early November 2025. First, CEO Jamie Reynoso sold 30,385 shares on November 4, 2025, marking his ninth insider sale in the past year. Second, the stock dropped 24.2% following the Q3 earnings report, driven by weaker-than-expected profitability and revised EBITDA guidance. Third, Canaccord Genuity reduced its price target for CLOV to $3.70 per share while maintaining a “Buy” rating, citing long-term growth potential despite near-term challenges. These developments highlight market skepticism about short-term profitability and insider caution, though some analysts remain optimistic about the company’s strategic direction.