Clover Health Q2 Earnings Beat Estimates, Stock Drops Despite Strong Growth

Clover Health Investments Corp. (CLOV) reported Q2 revenue of $477.62 million, up 34% YoY, beating estimates. The company's adjusted net loss was two cents per share, better than the expected loss of three cents per share. CLOV stock is down 9.86% in after-hours trading.

Clover Health Investments Corp. (CLOV), a health insurance company, reported its Q2 2025 earnings, with revenue surging 34% year-over-year (YoY) to $477.6 million, beating Wall Street estimates by 1.7% [1]. The company's adjusted net loss of $0.02 per share was better than the expected loss of $0.03 per share, aligning with analysts' consensus estimates [1].

Key highlights from the Q2 2025 results include:

- Revenue Growth: Clover Health's revenue increased by 34.1% YoY, reaching $477.6 million, which exceeded analysts' estimates of $469.5 million [1].
- Earnings Per Share (EPS): The company reported an adjusted EPS of $0.02 per share, which was better than the expected loss of $0.03 per share [1].
- Segmental Details: Insurance revenues totaled $469.8 million, up 34.3% YoY, driven by a 32% increase in Medicare Advantage membership [3].
- Operational Metrics: Total operating expenses increased by 39.9% YoY, and the company's net medical claims rose by 52.2% YoY [3].
- Financial Position: Clover Health exited Q2 2025 with $188.6 million in cash and cash equivalents [3].
- Guidance: The company expects 2025 Insurance revenues to be in the range of $1.8-$1.875 billion, suggesting 37% YoY growth at the midpoint [3].

CLOV stock is down 9.86% in after-hours trading following the earnings report. The decline in share price can be attributed to rising medical cost ratios (BER) stemming from elevated Part D utilization and higher supplemental benefits costs, particularly in dental [3]. Despite the mixed performance, the company emphasized its progress in sustaining adjusted EBITDA profitability and delivering robust membership and revenue growth within Medicare Advantage.

References:
[1] https://finance.yahoo.com/news/clover-health-nasdaq-clov-beats-215512917.html
[2] https://www.marketscreener.com/news/earnings-flash-clov-clover-health-investments-corp-reports-q2-revenue-477-6m-vs-factset-est-o-ce7c5ed8df8ef324
[3] https://finance.yahoo.com/news/clov-q2-earnings-line-stock-143900176.html