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CLOV Q2 Earnings In Line, Stock Falls on Raised Insurance BER View
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Key Takeaways
{\"0\":\"CLOV\'s Insurance revenues grew 34.3% in Q2, fueled by 32% Medicare Advantage membership growth.\",\"1\":\"Insurance BER rose to 88.4% in Q2, prompting CLOV to raise its full-year BER outlook to 88.5-89.5%.\",\"2\":\"CLOV reaffirmed 2025 sales guidance, but rising medical costs and margin headwinds weighed on sentiment.\"}
Clover Health Investments, Corp. (CLOV - Free Report) reported second-quarter 2025 earnings per share (EPS) of 3 cents, higher than the year-ago period’s level of 1 cent. The bottom line was in line with the Zacks Consensus Estimate.
Adjusted EPS from continuing operations was approximately 3 cents compared with 7 cents in the year-ago period.
CLOV’s Revenues in Detail
Clover Health registered revenues of $477.6 million, up 34.1% year over year. However, the figure missed the Zacks Consensus Estimate by 1%.
The top line gained from robust Insurance revenues.
Clover Health Investments, Corp. Price, Consensus and EPS Surprise
The company derives its revenues from two primary business segments — Insurance and Other income.
Insurance revenues in the quarter totaled $469.8 million, up 34.3% year over year. According to management, this growth was primarily driven by a 32% increase in Medicare Advantage membership, strong member retention and effective cohort management strategies.
Within CLOV’s Insurance segment, the Insurance Benefit Expense Ratio (BER) was 88.4%, reflecting a modest year-over-year increase from 76.1% in the year-ago quarter, partially impacted by the implementation of a Clover Assistant-enabled affiliate entity.
Other income was $7.8 million, up 21.8% from the prior-year level.
CLOV’s Operational Update
In the quarter under review, Clover Health’s net medical claims increased 52.2% year over year to $378 million. Salaries and benefits expenses increased 10.5% to $61.3 million, while general and administrative expenses rose 9.1% to $48.5 million. Total operating expenses of $488.2 million increased 39.9% on a year-over-year basis.
Total operating loss was $10.6 million against the prior-year quarter’s operating profit of $7.2 million.
Clover Health’s Financial Position
The company exited second-quarter 2025 with cash and cash equivalents of $188.6 million compared with $155.4 million at the end of the first quarter.
Net cash used in operating activities from continuing operations at the end of the second quarter was $10.9 million against net cash provided by operating activities of $70.7 million a year ago.
CLOV’s Guidance
Clover Health has reiterated its sales and income outlook for 2025.
For 2025, Insurance revenues are estimated to be in the range of $1.8-$1.875 billion, suggesting 37% year-over-year growth at the midpoint. The company continues to expect adjusted Net Income in the range of $50-$70 million.
The company raised its projection for Insurance BER, which is now expected to be in the range of 88.5-89.5% (previously 87-88%). Average Medicare Advantage membership is now likely to be in the band of 104,000-108,000, implying 32% year-over-year growth at the midpoint. The company had previously guided 103,000-107,000 for the metric.
Our Take
Clover Health exited the second quarter of 2025 with mixed performance, with earnings being on par with estimates but sales missing the same. However, the robust uptick in consolidated revenues and key Insurance segment revenues was encouraging. CLOV emphasized its continued progress in sustaining adjusted EBITDA profitability while delivering robust membership and revenue growth within Medicare Advantage.
Shares of CLOV lost 15.1% during after-hours trading on Aug. 5, following lower-than-expected second-quarter earnings as well as revenue guidance falling below wall street estimates. The company’s shares have lost 9.5% in the year-to-date period against the industry’s growth of 22.4%. The S&P 500 Index has increased 7.4% in the same period.
Image Source: Zacks Investment Research
The decline in share price can be attributed to rising medical cost ratios (BER) stemming from elevated Part D utilization (linked to IRA impacts) and higher supplemental benefits costs, particularly in dental. Although management reaffirmed its profitability guidance, the raised BER projection flagged near-term margin pressures, fueling investor concerns about cost management visibility for the remainder of 2025.
A key strategic driver is Clover's Counterpart Health initiative, extending its technology platform to external risk-bearing entities, which have shown encouraging uptake. The company also expects CMS’s Health Tech ecosystem push to act as a catalyst for data-driven care models, potentially accelerating Clover's growth trajectory.
The company projects a stronger 2026, supported by a shift to a 4-star payment year and expansion of its technology-driven care model, Clover Assistant, which has demonstrated tangible clinical benefits like reduced hospitalizations in COPD management. Notably, the company highlighted insulation from Medicaid and ACA market pressures, given its exclusive focus on MA.
CLOV’s Zacks Rank and Key Picks
Clover Health currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Medpace Holdings, sporting a Zacks Rank #1 (Strong Buy) at present, reported second-quarter 2025 EPS of $3.10, which beat the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, which beat the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, which beat the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.
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CLOV Q2 Earnings In Line, Stock Falls on Raised Insurance BER View
Key Takeaways
Clover Health Investments, Corp. (CLOV - Free Report) reported second-quarter 2025 earnings per share (EPS) of 3 cents, higher than the year-ago period’s level of 1 cent. The bottom line was in line with the Zacks Consensus Estimate.
Adjusted EPS from continuing operations was approximately 3 cents compared with 7 cents in the year-ago period.
CLOV’s Revenues in Detail
Clover Health registered revenues of $477.6 million, up 34.1% year over year. However, the figure missed the Zacks Consensus Estimate by 1%.
The top line gained from robust Insurance revenues.
Clover Health Investments, Corp. Price, Consensus and EPS Surprise
Clover Health Investments, Corp. price-consensus-eps-surprise-chart | Clover Health Investments, Corp. Quote
Clover Health’s Segmental Details
The company derives its revenues from two primary business segments — Insurance and Other income.
Insurance revenues in the quarter totaled $469.8 million, up 34.3% year over year. According to management, this growth was primarily driven by a 32% increase in Medicare Advantage membership, strong member retention and effective cohort management strategies.
Within CLOV’s Insurance segment, the Insurance Benefit Expense Ratio (BER) was 88.4%, reflecting a modest year-over-year increase from 76.1% in the year-ago quarter, partially impacted by the implementation of a Clover Assistant-enabled affiliate entity.
Other income was $7.8 million, up 21.8% from the prior-year level.
CLOV’s Operational Update
In the quarter under review, Clover Health’s net medical claims increased 52.2% year over year to $378 million. Salaries and benefits expenses increased 10.5% to $61.3 million, while general and administrative expenses rose 9.1% to $48.5 million. Total operating expenses of $488.2 million increased 39.9% on a year-over-year basis.
Total operating loss was $10.6 million against the prior-year quarter’s operating profit of $7.2 million.
Clover Health’s Financial Position
The company exited second-quarter 2025 with cash and cash equivalents of $188.6 million compared with $155.4 million at the end of the first quarter.
Net cash used in operating activities from continuing operations at the end of the second quarter was $10.9 million against net cash provided by operating activities of $70.7 million a year ago.
CLOV’s Guidance
Clover Health has reiterated its sales and income outlook for 2025.
For 2025, Insurance revenues are estimated to be in the range of $1.8-$1.875 billion, suggesting 37% year-over-year growth at the midpoint. The company continues to expect adjusted Net Income in the range of $50-$70 million.
The company raised its projection for Insurance BER, which is now expected to be in the range of 88.5-89.5% (previously 87-88%). Average Medicare Advantage membership is now likely to be in the band of 104,000-108,000, implying 32% year-over-year growth at the midpoint. The company had previously guided 103,000-107,000 for the metric.
Our Take
Clover Health exited the second quarter of 2025 with mixed performance, with earnings being on par with estimates but sales missing the same. However, the robust uptick in consolidated revenues and key Insurance segment revenues was encouraging. CLOV emphasized its continued progress in sustaining adjusted EBITDA profitability while delivering robust membership and revenue growth within Medicare Advantage.
Shares of CLOV lost 15.1% during after-hours trading on Aug. 5, following lower-than-expected second-quarter earnings as well as revenue guidance falling below wall street estimates. The company’s shares have lost 9.5% in the year-to-date period against the industry’s growth of 22.4%. The S&P 500 Index has increased 7.4% in the same period.
Image Source: Zacks Investment Research
The decline in share price can be attributed to rising medical cost ratios (BER) stemming from elevated Part D utilization (linked to IRA impacts) and higher supplemental benefits costs, particularly in dental. Although management reaffirmed its profitability guidance, the raised BER projection flagged near-term margin pressures, fueling investor concerns about cost management visibility for the remainder of 2025.
A key strategic driver is Clover's Counterpart Health initiative, extending its technology platform to external risk-bearing entities, which have shown encouraging uptake. The company also expects CMS’s Health Tech ecosystem push to act as a catalyst for data-driven care models, potentially accelerating Clover's growth trajectory.
The company projects a stronger 2026, supported by a shift to a 4-star payment year and expansion of its technology-driven care model, Clover Assistant, which has demonstrated tangible clinical benefits like reduced hospitalizations in COPD management. Notably, the company highlighted insulation from Medicaid and ACA market pressures, given its exclusive focus on MA.
CLOV’s Zacks Rank and Key Picks
Clover Health currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Medpace Holdings, sporting a Zacks Rank #1 (Strong Buy) at present, reported second-quarter 2025 EPS of $3.10, which beat the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, which beat the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, which beat the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.