Shares of Clover Health Corp (CLOV) are set to open sharply lower on Wednesday, plummeting 16.19% in pre-market trading following the release of its third-quarter 2025 financial results. The healthcare technology company reported mixed results after the market close on Tuesday, with revenue growth outpacing expectations but earnings and profitability metrics falling short of analyst estimates.
Clover Health posted a quarterly loss of $0.05 per share, missing the analyst consensus estimate of $0.03 by 66.67%. This represents a significant decline from the $0.02 per share loss reported in the same period last year. On a more positive note, the company's quarterly sales reached $496.65 million, surpassing the analyst consensus estimate of $471.091 million by 5.43%. This marks a substantial 50.05% increase compared to sales of $330.986 million in the year-ago quarter.
Despite the impressive revenue growth, investors seem to be focusing on the company's profitability metrics. Clover Health reported a GAAP net loss of $24 million for the quarter. Additionally, Adjusted EBITDA came in at $2 million, falling well below the IBES estimate of $11.4 million. The company highlighted its Medicare Advantage membership growth, which reached 109,226, up 35% from the prior year. However, the market's negative reaction suggests concerns about Clover Health's path to profitability and its ability to control costs in a rapidly growing business. The company's outlook for 2026, projecting Adjusted Net income between $15.0 million and $30.0 million, appears insufficient to allay investor concerns in the face of the current quarter's disappointing profitability figures.
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