It has been about a month since the last earnings report for Clover Health Investments, Corp. (CLOV). Shares have lost about 11.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Clover Health Investments due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
CLOV Q3 Earnings Miss, Stock Falls on Raised Insurance BER View
Clover Health Investments reported break-even adjusted quarterly earnings per share (EPS) for the third quarter of 2025, missing the Zacks Consensus Estimate of earnings of 2 cents. The company had reported an adjusted loss of 2 cents in the year-ago period.
The company's loss per share from continuing operations was 5 cents compared with a loss of 2 cents in the year-ago period.
CLOV’s Revenues in Detail
Clover Health registered revenues of $496.7 million, up 50.1% year over year. The figure beat the Zacks Consensus Estimate by 4.5%.
The top line gained from robust Insurance revenues.
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 $479.1 million, up 48.5% year over year. According to management, this growth was primarily driven by a 35% 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 92.4%, reflecting a modest year-over-year increase from 85.4% in the year-ago quarter. Insurance BER rose due to a combination of heavy new-member growth, elevated medical utilization, pharmacy cost pressures, higher supplemental benefits usage, one-off dental/DME impacts, and prior-period claims adjustments. Clover expects many of these pressures to moderate as new cohorts mature and more members come under Clover Assistant management.
Other income was $17.5 million, up 108.4% from the prior-year level.
CLOV’s Operational Update
In the quarter under review, Clover Health’s net medical claims increased 70.5% year over year to $428.9million. Salaries and benefits expenses decreased 12.4% to $48.2 million, while general and administrative expenses rose 39.1% to $48.9 million. Total operating expenses of $521 million increased 53.3% on a year-over-year basis.
Total operating loss was $24.4 million compared with the prior-year quarter’s operating loss of $8.9 million.
Clover Health’s Financial Position
The company exited third-quarter 2025 with cash and cash equivalents of $190.1 million compared with $188.6 million at the end of the first quarter.
Net cash provided by operating activities from continuing operations at the end of the third quarter was $1.2 million compared with $129.5 million a year ago.
CLOV’s Guidance
Clover Health raised its sales outlook for 2025 but lowered the income outlook.
For 2025, Insurance revenues are estimated to be in the range of $1.85-$1.88 billion (previously $1.8-$1.875 billion), suggesting 39% year-over-year growth at the midpoint. The company now expects adjusted Net Income to be in the range of $15-$30 million (previously $50-$70 million).
The company raised its projection for Insurance BER to the range of 90-91% (previously 88.5-89.5%). Average Medicare Advantage membership is now likely to be in the band of 106,000-108,000, implying 33% year-over-year growth at the midpoint. The company had previously guided 104,000-108,000 for the metric.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -83.33% due to these changes.
VGM Scores
At this time, Clover Health Investments has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Clover Health Investments has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Clover Health Investments belongs to the Zacks Medical Info Systems industry. Another stock from the same industry, Omnicell (OMCL), has gained 13.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Omnicell reported revenues of $310.63 million in the last reported quarter, representing a year-over-year change of +10%. EPS of $0.51 for the same period compares with $0.56 a year ago.
Omnicell is expected to post earnings of $0.48 per share for the current quarter, representing a year-over-year change of -20%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.8%.
Omnicell has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Clover Health Investments, Corp. (CLOV): Free Stock Analysis Report Omnicell, Inc. (OMCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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