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Clover Health Q3 revenue beats on increase in Medicare Advantage membership

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$759 mln

$738.42 mln (4 Analysts)

Q3 Net Income

$6 mln

Q3 Adjusted EBITDA

Beat

$16 mln

$9.31 mln (4 Analysts)


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


Reuters Recommended Reads

  • Nov 4 - Health insurers, hospitals rally after sweeping midterm win for Democrats

  • Nov 3 - Canadian insurer Intact Financial Q3 adj EPS misses estimates

  • Nov 2 - Greenlight Capital Re Q3 net income returns to profit as premiums slip


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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