Clover Health (CLOV) Achieves Profitability as Medicare Advantage Membership Surges

We recently published 12 Best Healthcare Stocks to Buy Under $30. ABC is one of the best healthcare stocks.

Clover Health Investments, Corp. (NASDAQ:CLOV) is one of the best healthcare stocks. It is a Medicare Advantage insurer that leverages its AI-powered Clover Assistant platform to improve health outcomes, particularly for chronic conditions such as congestive heart failure. Its PPO-focused model offers broader network access compared to typical HMO plans, aiming to reduce hospitalizations and readmissions through advanced analytics and clinical decision support.

In Q2 2025, Clover Health Investments, Corp. (NASDAQ:CLOV) reported a 32% year-over-year increase in Medicare Advantage membership, reaching over 106,000 members. Insurance revenue grew 34% to about $470 million, with adjusted EBITDA and net income both at roughly $17 million, maintaining profitability despite elevated sector-wide medical costs.

Clover Assistant has demonstrated measurable impact, including an 18% reduction in hospitalizations and 25% fewer 30-day readmissions for heart failure patients under its care model. The business plans to use these results as a competitive differentiator and is expanding the platform to other risk-bearing organizations.

The corporation also improved its Medicare star ratings, with PPO plans projected to rise from 3.5 stars in 2025 to 4.0 stars in 2026, boosting reimbursement potential and market competitiveness. While facing rising costs from supplemental benefits and regulatory changes, Clover Health Investments, Corp. (NASDAQ:CLOV) is pursuing cost-efficiency measures such as renegotiating partnerships and expects these efforts, along with regulatory adjustments, to help ease pressures by 2026.

While we acknowledge the potential of CLOV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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