Clover Health down despite hike to revenue outlook

[Quarterly results]
CharlieAJA

Shares of Clover Health (CLOV [https://seekingalpha.com/symbol/CLOV]) plunged ~20% on Wednesday following the company’s Q3 2025 results, as the health insurer sharply lowered its full-year guidance for adjusted EBITDA despite increasing its revenue outlook. [https://seekingalpha.com/news/4514958-clover-health-gaap-eps-of-005-misses-by-002-revenue-of-4967m-beats-by-2562m]

However, the Wilmington, Delaware-based Medicare Advantage insurer reported better-than-expected revenue for the period, with $496.7M and ~50% YoY growth as its MA memberships grew ~35% YoY to more than 109K members.

However, the company's benefit expense ratio rose to 93.5% from 82.8% in the prior year period, and adjusted EBITDA plunged ~89% YoY to $2.1M, while its net loss widened ~150% YoY to $0.05 per share, missing the consensus.

CFO Peter Kuipers attributed the margin headwinds to increased medical utilization and an unfavorable mix of new members.

“The margin pressures that we experienced during the third quarter reflect a higher-than-expected mix of new members, relative to our returning base, with elevated inpatient and outpatient utilization,” he said.

Looking ahead, CLOV projected $1.850B - $1.880B in revenue for 2025 compared to $1.800B - $1.875B in the prior forecast, but it painted a gloomier outlook for cost trends, indicating 90% - 91% of BER this year, up from 88.5% - 89.5% previously.

The company also slashed its adjusted EBITDA outlook for 2025 to $15M - $30M, down from $50M - $70M in the prior forecast. [https://seekingalpha.com/pr/20293095-clover-health-reports-third-quarter-2025-results#hasComeFromMpArticle=false]

MORE ON CLOVER HEALTH

* Clover Health Investments, Corp. 2025 Q3 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4838217-clover-health-investments-corp-2025-q3-results-earnings-call-presentation]
* Clover Health Investments, Corp. (CLOV) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4837924-clover-health-investments-corp-clov-q3-2025-earnings-call-transcript]
* Clover Health: Clinical Excellence To Fuel SaaS Growth Beyond The Star Downgrade [https://seekingalpha.com/article/4834521-clover-health-clinical-excellence-to-fuel-saas-growth-beyond-the-star-downgrade]
* Clover Health outlines 33% membership growth outlook and targets adjusted EBITDA expansion amid utilization headwinds [https://seekingalpha.com/news/4515335-clover-health-outlines-33-percent-membership-growth-outlook-and-targets-adjusted-ebitda]
* Clover Health GAAP EPS of -$0.05 misses by $0.02, revenue of $496.7M beats by $25.62M [https://seekingalpha.com/news/4514958-clover-health-gaap-eps-of-005-misses-by-002-revenue-of-4967m-beats-by-2562m]