NeueHealth Q1 2025 Earnings Report

NeueHealth EPS Results

• Actual EPS: -$1.80
• Consensus EPS: -$2.51
• Beat/Miss: Beat by +$0.71
• One Year Ago EPS: N/A

NeueHealth Revenue Results

• Actual Revenue: $215.79 million
• Expected Revenue: $249.50 million
• Beat/Miss: Missed by -$33.71 million
• YoY Revenue Growth: N/A

NeueHealth Announcement Details

• Quarter: Q1 2025
• Date: 5/8/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, May 8, 2025
• Conference Call Time: 8:00AM ET

NeueHealth (NYSE:NEUE), a healthcare company, provides various healthcare services for health consumers, providers, and payors in the United States. It operates through two segments: NeueCare and NeueSolutions. The NeueCare segment delivers healthcare services to ACA marketplace, medicare, and medicaid through owned and affiliated clinics. It operates risk-bearing clinics under the Centrum Health, AssociatesMD, and Premier Medical Associates brand names. The company also offers integrated system care solution, such as embedded pharmacy, laboratory, radiology, and population health focused specialty services; and chronic care management, transitions of care, and referral management services. The NeueSolutions segment enables providers and medical groups to succeed in performance-based arrangements; and participates in the centers for healthcare access to medicare beneficiaries. The company was formerly known as Bright Health Group, Inc. and changed its name to NeueHealth, Inc. in January 2024. NeueHealth, Inc. was incorporated in 2015 and is headquartered in Doral, Florida.

NeueHealth Q1 2025 Earnings Call Transcript

Key Takeaways

• New Health served over 709,000 consumers in Q1, a 51% increase year-over-year, driven by its value-driven, consumer-centric care model.
• Consolidated Q1 revenue was $215.8 million with adjusted EBITDA profitability of $13.5 million, marking the fifth consecutive profitable quarter.
• The New Care segment generated $90.5 million in revenue and $23 million in operating income while serving 530,000 value-based consumers, a 67% year-over-year increase.
• The New Solutions segment posted $127.6 million in revenue with a $3 million operating loss, expanding its provider enablement business to 138,000 Medicaid consumers and serving approximately 41,000 in ACO REACH and MSSP programs.
• In December 2024, New Health entered a definitive agreement to go private, led by an affiliate of NEA, with the transaction expected to close in mid-2025.

Presentation

[Operator]

Good morning, and welcome to New Health's First Quarter twenty twenty five Earnings Conference Call. As a reminder, this call is being recorded. Leading the call today are New Health's President and CEO, Mike Mikan and CFO, Jay Matuszak. Before we begin, we want to remind you that this call may contain forward looking statements under U. S.

[Operator]

Federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. A description of some of the risks and uncertainties can be found in the reports that we file with the Securities and Exchange Commission, including risk factors in our current and periodic reports we file with the SEC. Except as required by law, we undertake no obligation to revise or update any forward looking statements or information. This call will also reference non GAAP amounts and measures.

[Operator]

A reconciliation of non GAAP to GAAP measures is available in the company's first press release available on the company's Investor Relations page at investors.nuhealth.com. Information presented on this call is contained in the earnings release we issued this morning in our Form eight ks dated 05/08/2025, and in the related presentation, each of which may be accessed from the Investor Relations page of the company's website. With that, I will now turn the conference over to New Chief Executive Officer, Mike Mikan.

[George Mikan, Vice Chairman, CEO & President at NeueHealth]

Good morning, everyone, and thank you for joining New Health's first quarter twenty twenty five earnings call. New Health is pleased to report another solid quarter of financial results. This year, we are continuing to see our value driven consumer centric care model resonate with the market. In the first quarter, we served over 709,000 consumers, which represents growth of approximately 51% over Q1 twenty twenty four. This growth is substantial and is attributable to a few key factors.

[George Mikan, Vice Chairman, CEO & President at NeueHealth]

First, we believe that our care model is driving value for all stakeholders. It tightly aligns the interests of consumers, providers, and payers to deliver differentiated results and create a care experience that is seamless and more coordinated for all. We believe this is unique and represents a clear shift from traditional fragmented approaches to care. Aligning interest is core to what we do and our continued success as a leader in value based care. Second, we are focused on forming strong relationships with consumers, providers and payers across the industry.

[George Mikan, Vice Chairman, CEO & President at NeueHealth]

These relationships are ongoing and rooted in trust and they provide a strong platform to drive continued growth. We see our relationship based approach as a key reason we have been able to successfully advance our care model. And finally, we attribute our success to our commitment to delivering personalized care to all populations across the ACA marketplace, Medicare, and Medicaid. By serving a diverse population base, we can mitigate risk associated with high concentration in any one product area, and we can more easily broaden our reach with a proven set of capabilities built to serve all populations no matter their need or circumstance. Serving a diverse population base is a key component of our model and critical to our continued growth in 2025 and beyond.

[George Mikan, Vice Chairman, CEO & President at NeueHealth]

Overall, 2025 is off to a great start, reflecting the value we are driving for consumers, providers and payers across the industry. This gives us confidence that we are in a strong position to continue to advance our model, broaden our scope of capabilities, expand our footprint, and deepen our partnerships with providers and payers in 2025 and beyond. As I mentioned on our last call, in December 2024, we announced that we entered into a definitive agreement to go private, led by an affiliate of one of our largest investors, NEA. We anticipate the transaction closing in mid-twenty twenty five, pending satisfaction of the necessary closing conditions. For additional information regarding the proposed transaction, please consult our filings with the SEC.

[George Mikan, Vice Chairman, CEO & President at NeueHealth]

I'll now hand it over to Jay to provide additional details on our first quarter financial performance.

[Jay Matushak, Chief Financial Officer at NeueHealth]

Thank you, Mike, and good morning, everyone. I'll now discuss our first quarter performance for our continuing consolidated New Health business as well as each of our continuing New Care and New Solutions segments, then I will review our balance sheet. GAAP financials are included in our press release and 10 Q and contain results that include our discontinued operations. New Health consolidated revenue for the first quarter was $215,800,000 slightly lower than prior year due to a shift in membership mix away from ACO reach to other lines of business. First quarter gross margin was $54,900,000 For the fifth consecutive quarter, we achieved adjusted EBITDA profitability, driving $13,500,000 of adjusted EBITDA in the first quarter.

[Jay Matushak, Chief Financial Officer at NeueHealth]

As Mike mentioned, to start the year, we generated significant growth in the number of consumers we served across our new care and new solutions segments, serving 709,000 consumers across the ACA marketplace, Medicare and Medicaid, and we continue to see opportunities to expand the populations we serve across product categories. In our New Care segment, revenue was $90,500,000 in the first quarter and New Care operating income was $23,000,000 Through our clinics, we served 530,000 value based consumers, representing an increase of approximately 67% over 2024. This growth was made possible by the ongoing personalized relationships we have formed with our consumers and their trust in our ability to deliver high quality, affordable care. Turning now to our new solutions segment, which consists of our provider enablement business as well as our participation in ACO REACH and MSSP. In the first quarter, new solutions revenue was 127,600,000.0 with operating loss of $3,000,000 In the first quarter, we drove strong growth in our provider enablement business, continuing to expand the Medicaid consumers we are serving and building on the relationships we have established and provider groups across the country to serve 138,000 consumers.

[Jay Matushak, Chief Financial Officer at NeueHealth]

In 2025, we are leveraging our experience in innovative government programs, participating in MSSP as well as ACO REACH. For these programs, we are serving approximately 41,000 consumers in 2025. I'll now review our balance sheet. As of 03/31/2025, we had $239,400,000 in total cash and investments, including amounts in our regulated entities. Our non regulated cash and short term investments were $145,100,000 at the end of the first quarter, including $31,800,000 of restricted cash and investments.

[Jay Matushak, Chief Financial Officer at NeueHealth]

Mike, I'll now turn it back over to you for some closing comments.

[George Mikan, Vice Chairman, CEO & President at NeueHealth]

Thank you, Jay. As you've heard today, we delivered strong results in the first quarter, significantly growing the consumers we serve to $709,000 and driving $13,500,000 of adjusted EBITDA. Our solid first quarter performance provides a strong foundation to continue to advance our value driven consumer centric care model in 2025 and beyond. As we mentioned on our last call, we are focused on a few key growth areas in 2025. First, leveraging our ability to serve a diverse population base, we intend to continue to capitalize on the opportunities to bring high quality affordable healthcare to more consumers across product categories, delivering personalized care to all populations across the continuum of need.

[George Mikan, Vice Chairman, CEO & President at NeueHealth]

Second, we will look to expand our footprint in our existing markets, leveraging our strong local presence and deep relationships we have developed in the communities we serve. In addition, we will evaluate opportunities to grow in new geographies with attractive market conditions. And third, we will look to grow alongside our existing payer partners as well as prioritize forming relationships with new payer groups. And finally, we expect to build upon the relationships we have established with providers across the country, continuing to partner with them on our path to participating in performance based arrangements. I'm looking forward to building on the strong momentum we have established to start 2025.

[George Mikan, Vice Chairman, CEO & President at NeueHealth]

We are well positioned to continue to align the interests of consumers, providers and payers, drive strategic growth and create a seamless, more coordinated care experience for all. We have a strong team in place, and I'm excited about all we will accomplish together this year and beyond. That concludes today's call. Thank you for joining and for your interest in New Health.

Participants

Executives

• George Mikan, Vice Chairman, CEO & President
• Jay Matushak, Chief Financial Officer