Clover Health — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 GAAP Net Income was $6.4 million, an improvement of $31 million year-over-year compared to a loss of $24.4 million in the prior year period.
• Year-to-date GAAP Net Income for the nine months ended September 30, 2026, reached $61.8 million, compared to a loss of $36.2 million in the same period of 2025.
• Third quarter 2026 Total Revenues were $759.3 million, up 52.9% year-over-year from $496.7 million.
• Year-to-date Total Revenues were $2,251.7 million, up 56.7% year-over-year from $1,436.6 million.
• Third quarter 2026 Consolidated Gross Profit was $129.8 million, up 77.3% year-over-year from $73.2 million.
• Year-to-date Consolidated Gross Profit was $442.4 million, up 57.0% year-over-year from $281.7 million.
• Third quarter 2026 Adjusted EBITDA was $16.1 million, up 666.7% year-over-year from $2.1 million.
• Year-to-date Adjusted EBITDA was $97.2 million, up 116.0% year-over-year from $45.0 million.
• Third quarter 2026 Adjusted Net Income was $15.4 million, up 805.9% year-over-year from $1.7 million.
• Year-to-date Adjusted Net Income was $95.5 million, up 118.5% year-over-year from $43.7 million.
• Third quarter 2026 Insurance Benefits Expense Ratio (BER) was 91.1%, an improvement of 240 basis points from 93.5% in the prior year period.
• Year-to-date Insurance BER was 88.4%, an improvement of 100 basis points from 89.4% in the prior year period.
• Total cash, cash equivalents, and investments stood at $512.6 million as of September 30, 2026, up 29.5% from $395.9 million in the prior year period.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $203.5 million, compared to $1.2 million in the prior year period.

Guidance and Future Outlook:

• Full Year 2026 Average Medicare Advantage membership guidance was raised to 157,000–158,000, representing 47% growth year-over-year at the midpoint.
• Full Year 2026 Total Revenues guidance was raised to $2.97 billion–$3.00 billion, representing 55% growth year-over-year at the midpoint.
• Full Year 2026 GAAP Net Income guidance was raised to $25 million–$35 million.
• Full Year 2026 Consolidated Gross Profit guidance was raised to $540 million–$555 million, representing 54% growth year-over-year at the midpoint.
• Full Year 2026 Adjusted EBITDA guidance was raised to $75 million–$85 million.
• Management expects to deliver its first full year of GAAP Net Income profitability in 2026.
• Management anticipates meaningful earnings expansion in 2027 driven by maturing member cohorts, continued operating leverage, and strong Star ratings performance.
• 2027 Annual Enrollment Period (AEP) tracking is reported as strong with significant growth expected due to product positioning in core markets.

Business Segments and Product Lines:

• Third quarter 2026 Medicare Advantage membership was 158,907, up 45% year-over-year.
• Year-to-date Average Medicare Advantage membership was 156,610, up 48.8% year-over-year.
• Insurance Segment revenue for the third quarter was $748.8 million, up 56.3% year-over-year.
• Insurance Segment revenue for the nine months was $2,230.7 million, up 58.7% year-over-year.
• Insurance Segment net medical claims incurred for the third quarter were $654.1 million, up 52.5% year-over-year.
• Insurance Segment net medical claims incurred for the nine months were $1,879.5 million, up 57.8% year-over-year.
• Clover's flagship PPO plan, representing approximately 98% of current membership, received a 5-Star rating for Payment Year 2028.
• The company reported its third consecutive year of nation-leading HEDIS performance.
• Clover Assistant technology is being utilized to deliver better clinical quality and lower total cost of care.

Market and Competitive Landscape:

• The company maintains a focus on seniors who have historically lacked access to affordable, high-quality healthcare.
• Clover Health operates PPO and HMO Medicare Advantage plans in several states with a differentiated focus on wide-network, high-choice PPO plans.
• The company extends its data-driven technology platform to external payors and providers via its subsidiary, Counterpart Health.

Risks and Challenges:

• Forward-looking statements are subject to risks including current, pending, or future legislation and regulations relating to healthcare and Medicare.
• Risks include the ability to successfully enter new service markets, manage operations, and maintain or improve Star Ratings.
• Potential risks involve the ability to effectively manage the beneficiary base and provider network, and the adoption of Clover Assistant.
• Risks include security breaches, inability to retain staff, timing of investments, and outcomes of litigation and regulatory proceedings.
• General economic conditions, persistent high inflation, fluctuating interest rates, and geopolitical uncertainty are cited as potential risks.

Management Commentary and Tone:

• CEO Andrew Toy stated that results demonstrate technology-powered differentiation, where earlier care management, market-leading growth, and increasing profitability reinforce one another.
• CFO Clay Thornton noted that Clover is on track for its first full year of GAAP Net Income profitability in 2026 and is well-positioned for earnings expansion in 2027.
• Management expressed confidence in the company's ability to utilize its platform to manage medical expenses and maintain financial performance.

Other Key Points:

• A conference call to discuss results was held on November 4, 2026, at 5:00 p.m. ET.
• The company will present at the 2026 UBS Global Healthcare Conference on November 9, 2026.
• The company discontinued disclosure of the Normalized Insurance Benefits Expense Ratio beginning in the first quarter of 2026.
• Stock-based compensation for the nine months ended September 30, 2026, was $29.4 million, down from $78.7 million in the prior year period.
• Cash paid for shares withheld related to stock-based compensation was $9.7 million for the nine months ended September 30, 2026, compared to $27.7 million in the prior year period.
• There were no repurchases of common stock in the nine months ended September 30, 2026, compared to $18.3 million in the prior year period.