Clover Health Q3 revenue beats on increase in Medicare Advantage membership

Overview

• Medicare Advantage insurer's Q3 revenue rose yr/yr, beating analyst expectations

• Adjusted EBITDA for Q3 beat analyst expectations

• Net income turned positive in Q3, up from a loss a year ago

Outlook

• Clover Health raises 2026 revenue outlook to $2.97 bln-$3.00 bln from $2.92 bln-$3.00 bln

• Company expects 2026 GAAP net income of $25 mln-$35 mln

• Clover Health sees 2026 adjusted EBITDA of $75 mln-$85 mln

Result Drivers

• MEMBERSHIP GROWTH - Co said Q3 revenue growth was driven by a 45% yr/yr increase in Medicare Advantage membership

• OPERATING LEVERAGE - Co said maturing member cohorts and operating leverage supported profitability

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the managed healthcare peer group is "buy"

• Wall Street's median 12-month price target for Clover Health Investments, Corp. is $5.25, about 22.4% above its November 3 closing price of $4.29

• The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 145 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)