Clover Health Investments (NASDAQ:CLOV) Releases Quarterly Earnings Results

Key Points

• Clover beat quarterly estimates: EPS was $0.03 versus analysts’ expected loss of $0.01, while revenue of $759.3 million topped the $740.1 million consensus.
• Management cited strong growth, including a 49% increase in average Medicare Advantage membership and 57% revenue growth, and expects its first full year of GAAP net income profitability in 2026.
• The company’s flagship PPO earned a five-star rating for payment year 2028, and its HMO received 4.5 stars; all members are in plans rated at least 4.5 stars.

Clover Health Investments (NASDAQ:CLOV - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $0.03 EPS for the quarter, beating the consensus estimate of ($0.01) by $0.04, FiscalAI reports. Clover Health Investments had a negative net margin of 0.74% and a negative return on equity of 4.20%. The business had revenue of $759.30 million during the quarter, compared to analyst estimates of $740.07 million.

Here are the key takeaways from Clover Health Investments' conference call:

• Clover reported strong year-to-date growth: average Medicare Advantage membership rose 49%, revenue increased 57%, and adjusted EBITDA more than doubled to $97 million. Management expects its first full year of GAAP net income profitability in 2026 and raised the low end of its full-year guidance ranges.
• The flagship PPO earned five Stars for payment year 2028, while the HMO earned 4.5 Stars; all members are in plans rated at least 4.5 Stars. Management also cited three consecutive years ranking first among comparable PPO plans on core HEDIS measures.
• Medical cost trends were mixed but generally in line with expectations: inpatient utilization remained favorable and Part D costs performed better than anticipated, while outpatient utilization was elevated year over year. Management said its 2025 and 2026 cohorts are developing as projected, with Clover Assistant coverage tracking ahead of last year.
• Management sees potential for meaningful earnings expansion in 2027 and further opportunity in 2028, driven by maturing member cohorts and operating leverage. It cited historical gross-profit-per-member improvements as cohorts age, but did not provide formal 2027 or 2028 guidance.
• Management expects the usual fourth-quarter seasonal decline in gross profit and a seasonal adjusted EBITDA loss as planned AEP spending rises. It also acknowledged that new-member growth can weigh on near-term earnings as members enter the care model, and did not quantify how much potential 2027 gains may be reinvested.

Clover Health Investments Stock Up 9.3%

Shares of CLOV traded up $0.40 during mid-day trading on Wednesday, hitting $4.69. 7,249,618 shares of the company traded hands, compared to its average volume of 5,813,165. The company has a market capitalization of $2.49 billion, a PE ratio of -93.78 and a beta of 2.52. The business has a 50 day moving average of $4.51 and a 200 day moving average of $3.56. Clover Health Investments has a 1-year low of $1.58 and a 1-year high of $5.59.

Insider Activity at Clover Health Investments

In other Clover Health Investments news, CEO Andrew Toy sold 62,176 shares of the business's stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $4.68, for a total transaction of $290,983.68. Following the sale, the chief executive officer owned 9,078,334 shares of the company's stock, valued at approximately $42,486,603.12. The trade was a 0.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Joseph Frank Oldakowski sold 20,000 shares of the company's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $5.16, for a total transaction of $103,200.00. Following the transaction, the vice president owned 279,067 shares in the company, valued at $1,439,985.72. The trade was a 6.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 856,371 shares of company stock valued at $3,870,740 over the last 90 days. Company insiders own 23.51% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Clover Health Investments in a research note on Monday, September 21st. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Clover Health Investments in a research note on Thursday, September 10th. They issued a "buy" rating and a $6.00 target price for the company. Wall Street Zen lowered shares of Clover Health Investments from a "strong-buy" rating to a "buy" rating in a report on Sunday, August 16th. Needham & Company LLC started coverage on shares of Clover Health Investments in a report on Wednesday, October 28th. They issued a "buy" rating and a $6.00 price target on the stock. Finally, Zacks Research raised Clover Health Investments to a "hold" rating in a research report on Monday, September 14th. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $5.00.

Clover Health Investments Company Profile

Clover Health Investments, Corp. is a health insurance technology company focused on providing Medicare Advantage plans to eligible seniors in the United States. Its plans combine hospital, medical and prescription drug coverage with additional benefits that may vary by plan and location.

The company uses its Clover Assistant technology platform to provide physicians with data-driven insights intended to support clinical decision-making and care coordination. The platform aggregates member health information and helps participating providers identify care opportunities, manage chronic conditions and engage with patients.

Clover Health was founded in 2012 and became a publicly traded company in 2021 through a merger with a special purpose acquisition company.

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