Clover Health Reports Strong 2025 Earnings and Growth Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CLOV?
Source: seekingalpha
- Profitability Improvement: Clover Health achieved adjusted EBITDA profitability in 2025, with insurance revenue reaching $1.9 billion, a 41% year-over-year increase, demonstrating significant success in medical cost control and membership growth, and expects to achieve GAAP net income profitability for the first time in 2026.
- Strong Membership Growth: By the end of 2025, Clover's Medicare Advantage membership increased by 38% year-over-year to approximately 140,000 members, reflecting enhanced competitive positioning in the market, with expectations for membership to grow further to between 154,000 and 158,000 in 2026.
- Significant Revenue Growth: Insurance revenue for Q4 2025 was $486 million, a 47% year-over-year increase, while total revenue grew by 40%, showcasing Clover's market leadership, with projected total revenue for 2026 expected to reach between $2.810 billion and $2.920 billion, reflecting a 49% growth.
- Effective Cost Management: Clover reported a consolidated gross profit of $356 million for 2025, with adjusted SG&A as a percentage of total revenue improving to 20% in Q4, indicating ongoing efforts in cost control and operational efficiency, thereby strengthening the foundation for future profitability.
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Analyst Views on CLOV
Wall Street analysts forecast CLOV stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 2.090
Low
3.00
Averages
3.35
High
3.70
Current: 2.090
Low
3.00
Averages
3.35
High
3.70
About CLOV
Clover Health Investments, Corp. is a physician enablement technology company. The Company is focused on bringing access to healthcare to everyone on Medicare. This includes a health equity-based focus on seniors, who have historically lacked access to affordable healthcare. Its software platform, Clover Assistant, is designed to aggregate patient data from across the healthcare ecosystem to support clinical decision-making and improve health outcomes through the early identification and management of chronic disease. The Company, through its Insurance segment, provides Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO) plans to Medicare Advantage (MA) members in several states, with a differentiated focus on its flagship wide-network, high-choice PPO plans. For healthcare providers outside its MA plan, it focuses on extending the benefits of its data-driven technology platform to a wider audience via its subsidiary, Counterpart Health, Inc.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Profitability Improvement: Clover Health achieved adjusted EBITDA profitability in 2025, with insurance revenue reaching $1.9 billion, a 41% year-over-year increase, demonstrating significant success in medical cost control and membership growth, and expects to achieve GAAP net income profitability for the first time in 2026.
- Strong Membership Growth: By the end of 2025, Clover's Medicare Advantage membership increased by 38% year-over-year to approximately 140,000 members, reflecting enhanced competitive positioning in the market, with expectations for membership to grow further to between 154,000 and 158,000 in 2026.
- Significant Revenue Growth: Insurance revenue for Q4 2025 was $486 million, a 47% year-over-year increase, while total revenue grew by 40%, showcasing Clover's market leadership, with projected total revenue for 2026 expected to reach between $2.810 billion and $2.920 billion, reflecting a 49% growth.
- Effective Cost Management: Clover reported a consolidated gross profit of $356 million for 2025, with adjusted SG&A as a percentage of total revenue improving to 20% in Q4, indicating ongoing efforts in cost control and operational efficiency, thereby strengthening the foundation for future profitability.
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- Optimistic Revenue Outlook: Clover Health projects 2026 revenue between $2.81 billion and $2.92 billion, exceeding the consensus estimate of $2.74 billion, indicating strong confidence in future growth that may attract more investor interest.
- Significant Membership Growth: The company anticipates Medicare Advantage membership to reach 154,000 to 158,000 in 2026, representing approximately 46% year-over-year growth, which highlights substantial progress in market expansion and customer acquisition.
- Increased Cost Pressures: Despite revenue growth, Clover Health's total operating costs surged nearly 50% year-over-year to $537 million in the latest quarter, leading to a widened net loss of $0.10 per share, indicating challenges in profitability.
- Cash Flow Status: As of the end of 2025, the company reported cash, cash equivalents, and investments totaling $319.9 million, down from $437.6 million on December 31, 2024, reflecting the need for careful cash flow management during its expansion phase.
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- Strong Earnings Report: Clover Health reported a Q4 GAAP EPS of -$0.10, in line with expectations, while revenue reached $487.7 million, reflecting a 44.7% year-over-year increase and exceeding market expectations by $20.64 million, indicating robust performance in the Medicare market.
- Positive 2026 Guidance: The company anticipates an average Medicare Advantage membership of 154,000 to 158,000 in 2026, representing a 46% year-over-year growth, with total revenues projected between $2.81 billion and $2.92 billion, reflecting a 49% growth rate, showcasing confidence in future expansion.
- Gross Profit and EBITDA Outlook: Expected consolidated gross profit for 2026 is between $470 million and $510 million, indicating a 38% year-over-year growth, while adjusted EBITDA profitability is forecasted between $50 million and $70 million, demonstrating ongoing improvements in profitability.
- Significant Membership Growth: In 2025, Medicare Advantage membership reached 113,803, up 38% year-over-year, with total revenues of $1.9 billion, a 40% increase, despite a GAAP net loss of $86 million, the adjusted net income of $20 million highlights the company's success in expanding market share.
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- Earnings Announcement: Clover Health (CLOV) is set to release its Q4 earnings on February 26 after market close, with consensus EPS estimated at -$0.05 and revenue expected to reach $467.06 million, reflecting a robust 38.6% year-over-year growth that indicates positive revenue trends.
- Profit Potential: Analysts suggest that Clover Health is undervalued, with clear signs pointing to a potential profit breakout by 2026, which could attract more investor interest and drive stock price appreciation.
- Conference Presentations: Clover Health showcased its strategic positioning and future growth plans at the 44th Annual J.P. Morgan Healthcare Conference and the 2025 Citi Annual Global Healthcare Conference, enhancing market confidence in its long-term prospects.
- Medicare Advantage Growth: The company experienced a 53% increase in Medicare Advantage enrollments, a significant growth that not only boosts market share but also lays a strong foundation for future revenue growth, strengthening its competitive position in the healthcare market.
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- Medicare Payment Rate Impact: The Trump administration's CMS proposed nearly flat MA payment rates for 2027, with a mere 0.09% year-over-year increase, significantly below Wall Street's 4%-6% growth expectations, which could lead to slower revenue growth per member for Clover, forcing the company to either absorb higher medical costs or cut supplemental benefits, thereby impacting its competitiveness in the market.
- Pressure from UnitedHealth Earnings: UnitedHealth Group reported a sharp decline in adjusted EPS and a medical care ratio near 89%, with 2026 sales guidance falling short of expectations, indicating rising utilization and thinner margins in the MA sector, which raises concerns about Clover's profitability as investors perceive it as having less capacity to absorb costs compared to larger players.
- Bearish Stock Trend: Clover's stock is currently trading 7.2% below its 20-day simple moving average and 14.4% below its 100-day SMA, with a 48.70% decrease over the past 12 months, reflecting ongoing challenges, while the RSI is neutral and the MACD indicates mixed momentum for the stock.
- Upcoming Earnings Report Outlook: Investors are looking forward to the earnings report scheduled for February 26, with an EPS estimate of a 7-cent loss and revenue projected at $469.23 million, up from $336.96 million year-over-year, while analysts maintain a hold rating with an average price target of $6.02, indicating cautious sentiment regarding Clover's future performance.
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