Centene Corporation Reports 15% Revenue Growth to $46.6 Billion in Q1 2025

Centene Corporation reported a significant increase in its financial performance for the first quarter of 2025, with total revenues reaching $46.6 billion, a 15% increase from $40.4 billion in the same period last year. The company's premium and service revenues also grew by 17%, totaling $42.5 billion compared to $36.3 billion in the first quarter of 2024. Net earnings attributable to Centene increased by 13% to $1.311 billion, or $2.63 per diluted share, up from $1.163 billion, or $2.16 per diluted share, in the prior year. The adjusted diluted earnings per share rose to $2.90 from $2.26, reflecting the company's strong operational performance.

The company experienced notable changes in its operational metrics, with managed care membership decreasing by 479,000 members, or 2%, year-over-year, totaling 27.9 million members. The health benefits ratio (HBR) for the quarter was 87.5%, slightly higher than the 87.1% reported in the first quarter of 2024, primarily due to increased medical costs associated with influenza and other illnesses. The selling, general, and administrative (SG&A) expense ratio improved to 7.9%, down from 8.9% in the previous year, indicating better expense management relative to revenue growth.

Strategically, Centene has made several key developments, including the expansion of its Health Insurance Marketplace product, Ambetter Health, which added 60 new counties across 10 states, contributing to a 29% increase in Marketplace membership. Additionally, the company has secured multiple Medicaid contracts, including a six-year contract for its subsidiary Sunshine Health to provide integrated managed care services in Florida. These strategic moves are expected to enhance Centene's market position and drive future growth.

In terms of financial health, Centene's total assets increased to $87.0 billion as of March 31, 2025, up from $82.4 billion at the end of 2024. The company's cash and cash equivalents also rose to $14.8 billion, compared to $14.1 billion in the previous quarter. Centene's debt-to-capital ratio improved to 39.5% from 41.2%, reflecting a stronger equity position. The company anticipates continued operational cash flow and expects to receive approximately $2.2 billion in net dividends from its insurance subsidiaries throughout 2025, supporting its liquidity and capital expenditure plans.

Looking ahead, Centene remains focused on navigating regulatory changes and market dynamics, particularly in the Medicaid and Medicare segments. The company is well-positioned to adapt to evolving healthcare policies and maintain its commitment to providing high-quality, affordable healthcare services. With a strong liquidity position and ongoing strategic initiatives, Centene aims to enhance its operational efficiency and shareholder value in the coming quarters.