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Clover Health Investments, Corp. (CLOV - Free Report) delivered a fourth-quarter 2024 loss per share of 4 cents, narrower than the year-ago period’s loss of 14 cents. The bottom line beat the Zacks Consensus Estimate of a loss of 7 cents.
Adjusted earnings per share from continuing operations were approximately 2 cents against a loss of 5 cents in the year-ago period.
CLOV’s Revenues in Detail
Clover Health registered revenues of $337 million, up 7.9% year over year. However, the figure missed the Zacks Consensus Estimate by 2%.
The top line was aided by robust Insurance revenues.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Clover Health Investments, Corp. Price, Consensus and EPS Surprise
Clover Health’s total 2024 revenues rose 8.8% year over year to 1.34 billion. The company reported a loss of 9 cents per share compared with a loss of 44 cents in the year-ago period.
Clover Health’s Segmental Details
The company derives its revenues from two business sources — Insurance and Other income.
Insurance revenues in the fourth quarter totaled $330.7 million, indicating an uptick of 9.1% year over year. Per management, this was primarily driven by strong member retention and cohort management.
Within CLOV’s Insurance segment, the Insurance Benefits Expense Ratio (BER) was 82.8%, which contracted 460 basis points (bps) year over year. Insurance medical care ratios (MCR) was 73.5%, which contracted 890 bps year over year.
Clover Health’s Insurance members were 82,664 as of Dec. 31, 2024, up 1.8% year over year.
Other income generated revenues totaled $6.3 million, down 32.5% year over year.
CLOV’s Operational Update
In the quarter under review, Clover Health’s net medical claims decreased 2.7% year over year to $243 million. Salaries and benefits expenses decreased 3.7% year over year to $62.7 million, while general and administrative expenses rose 22.4% to $52.3 million. Total operating expenses of $358.4 million declined 4.6% on a year-over-year basis.
Total operating loss was $21.4 million compared with the prior-year quarter’s adjusted operating loss of $63.1 million.
Clover Health’s Financial Position
The company exited fourth-quarter 2024 with cash and cash equivalents and short-term investments of $194.5 million compared with $289.7 million at the end of the third quarter.
Cumulative net cash provided by operating activities from continuing operations at the end of fourth-quarter 2024 was $34.8 million against cumulative net cash used in operating activities of $144.7 million a year ago.
CLOV’s Guidance
Clover Health has issued its outlook for 2025.
For 2025, Insurance revenues are estimated to be in the range of $1.8-$1.875 billion, suggesting 37% year-over-year growth at the midpoint.
Insurance BER is expected to be in the range of 87-88%. Average Medicare Advantage membership is likely to be in the band of 103,000-107,000, implying 30% year-over-year growth at the midpoint.
Our Take
Clover Health exited the fourth quarter of 2024 with a narrower-than-expected loss. The uptick in consolidated revenues and key Insurance segment revenues was encouraging. The contraction in the Insurance BER and MCR was promising as well.
Shares of CLOV were up 0.2% during after-hours trading on Feb. 27 following the mixed quarterly performance and better-than-expected revenue guidance for 2025. The company’s shares have gained 31.4% year to date compared with the industry’s growth of 17.2%. The S&P 500 Index has increased 0.9% in the same period.
Image Source: Zacks Investment Research
CLOV delivered a pivotal fourth quarter, marking a significant turning point with adjusted EBITDA profitability and strong membership growth. It reported a 27% year-over-year increase in Medicare Advantage membership and a 95% retention rate, which are clear indicators of its competitive benefits and improved star ratings. Home care is key to CLOV’s strategy, enhancing proactive care for high-risk members. In 2025, the company plans to expand services, scale teams, and integrate Clover Assistant for better outcomes and cost control.
Another key factor to watch is the financial impact of CLOV’s improved star ratings, which should continue to boost revenues in 2026. Additionally, the launch of Counterpart Health, CLOV’s software division, presents a promising avenue for high-margin SaaS revenues over the long term. The company has already signed its first external partners and is expanding its reach to providers and payers, currently focusing on expanding the user base.
Despite these positives, challenges remain. CLOV’s rapid expansion will pressure near-term margins, as new members typically have higher loss ratios before cost efficiencies materialize. While the company achieved profitability in 2024 with $70 million in adjusted EBITDA, rising SG&A expenses (up 9% in fourth-quarter) highlight the need for continued cost discipline. Management expects higher costs in 2025 due to new member growth and investments in Clover Assistant and home care services, though these efforts should drive long-term efficiency gains.
CLOV’s Zacks Rank and Key Picks
Clover Health Investments currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the industry have been discussed below.
MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.41%. Its shares have risen 63.5% against the industry’s 1.9% decline in the past six months.
Alphatec (ATEC - Free Report) , carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 40% for 2025. Its earnings missed estimates in each of the trailing four quarters, delivering an average negative surprise of 12.60%.
ATEC’s shares have gained 77% against the industry’s 1.9% decline in the past six months.
Avenna Healthcare (AVAH - Free Report) , carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 666.7% for 2025.
AVAH delivered a trailing four-quarter average earnings surprise of 135.00%. The company is expected to release fourth-quarter results in March. Its shares have lost 21.8% in the past six months compared with the industry’s 2.9% decline.
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CLOV Q4 Earnings Beat Estimates, Sales Miss, Membership Rises
Clover Health Investments, Corp. (CLOV - Free Report) delivered a fourth-quarter 2024 loss per share of 4 cents, narrower than the year-ago period’s loss of 14 cents. The bottom line beat the Zacks Consensus Estimate of a loss of 7 cents.
Adjusted earnings per share from continuing operations were approximately 2 cents against a loss of 5 cents in the year-ago period.
CLOV’s Revenues in Detail
Clover Health registered revenues of $337 million, up 7.9% year over year. However, the figure missed the Zacks Consensus Estimate by 2%.
The top line was aided by robust Insurance revenues.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Clover Health Investments, Corp. Price, Consensus and EPS Surprise
Clover Health Investments, Corp. price-consensus-eps-surprise-chart | Clover Health Investments, Corp. Quote
Full-Year Results
Clover Health’s total 2024 revenues rose 8.8% year over year to 1.34 billion. The company reported a loss of 9 cents per share compared with a loss of 44 cents in the year-ago period.
Clover Health’s Segmental Details
The company derives its revenues from two business sources — Insurance and Other income.
Insurance revenues in the fourth quarter totaled $330.7 million, indicating an uptick of 9.1% year over year. Per management, this was primarily driven by strong member retention and cohort management.
Within CLOV’s Insurance segment, the Insurance Benefits Expense Ratio (BER) was 82.8%, which contracted 460 basis points (bps) year over year. Insurance medical care ratios (MCR) was 73.5%, which contracted 890 bps year over year.
Clover Health’s Insurance members were 82,664 as of Dec. 31, 2024, up 1.8% year over year.
Other income generated revenues totaled $6.3 million, down 32.5% year over year.
CLOV’s Operational Update
In the quarter under review, Clover Health’s net medical claims decreased 2.7% year over year to $243 million. Salaries and benefits expenses decreased 3.7% year over year to $62.7 million, while general and administrative expenses rose 22.4% to $52.3 million. Total operating expenses of $358.4 million declined 4.6% on a year-over-year basis.
Total operating loss was $21.4 million compared with the prior-year quarter’s adjusted operating loss of $63.1 million.
Clover Health’s Financial Position
The company exited fourth-quarter 2024 with cash and cash equivalents and short-term investments of $194.5 million compared with $289.7 million at the end of the third quarter.
Cumulative net cash provided by operating activities from continuing operations at the end of fourth-quarter 2024 was $34.8 million against cumulative net cash used in operating activities of $144.7 million a year ago.
CLOV’s Guidance
Clover Health has issued its outlook for 2025.
For 2025, Insurance revenues are estimated to be in the range of $1.8-$1.875 billion, suggesting 37% year-over-year growth at the midpoint.
Insurance BER is expected to be in the range of 87-88%. Average Medicare Advantage membership is likely to be in the band of 103,000-107,000, implying 30% year-over-year growth at the midpoint.
Our Take
Clover Health exited the fourth quarter of 2024 with a narrower-than-expected loss. The uptick in consolidated revenues and key Insurance segment revenues was encouraging. The contraction in the Insurance BER and MCR was promising as well.
Shares of CLOV were up 0.2% during after-hours trading on Feb. 27 following the mixed quarterly performance and better-than-expected revenue guidance for 2025. The company’s shares have gained 31.4% year to date compared with the industry’s growth of 17.2%. The S&P 500 Index has increased 0.9% in the same period.
Image Source: Zacks Investment Research
CLOV delivered a pivotal fourth quarter, marking a significant turning point with adjusted EBITDA profitability and strong membership growth. It reported a 27% year-over-year increase in Medicare Advantage membership and a 95% retention rate, which are clear indicators of its competitive benefits and improved star ratings. Home care is key to CLOV’s strategy, enhancing proactive care for high-risk members. In 2025, the company plans to expand services, scale teams, and integrate Clover Assistant for better outcomes and cost control.
Another key factor to watch is the financial impact of CLOV’s improved star ratings, which should continue to boost revenues in 2026. Additionally, the launch of Counterpart Health, CLOV’s software division, presents a promising avenue for high-margin SaaS revenues over the long term. The company has already signed its first external partners and is expanding its reach to providers and payers, currently focusing on expanding the user base.
Despite these positives, challenges remain. CLOV’s rapid expansion will pressure near-term margins, as new members typically have higher loss ratios before cost efficiencies materialize. While the company achieved profitability in 2024 with $70 million in adjusted EBITDA, rising SG&A expenses (up 9% in fourth-quarter) highlight the need for continued cost discipline. Management expects higher costs in 2025 due to new member growth and investments in Clover Assistant and home care services, though these efforts should drive long-term efficiency gains.
CLOV’s Zacks Rank and Key Picks
Clover Health Investments currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the industry have been discussed below.
Masimo (MASI - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 6.1% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.
MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.41%. Its shares have risen 63.5% against the industry’s 1.9% decline in the past six months.
Alphatec (ATEC - Free Report) , carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 40% for 2025. Its earnings missed estimates in each of the trailing four quarters, delivering an average negative surprise of 12.60%.
ATEC’s shares have gained 77% against the industry’s 1.9% decline in the past six months.
Avenna Healthcare (AVAH - Free Report) , carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 666.7% for 2025.
AVAH delivered a trailing four-quarter average earnings surprise of 135.00%. The company is expected to release fourth-quarter results in March. Its shares have lost 21.8% in the past six months compared with the industry’s 2.9% decline.