Centene Corporation Reports 22% Revenue Growth but $253 Million Loss in Q2 2025

Centene Corporation reported a significant decline in its financial performance for the second quarter of 2025, as detailed in its latest 10-Q filing. The company recorded total revenues of $48.7 billion, a 22% increase from $39.8 billion in the same quarter of the previous year. However, net earnings attributable to Centene fell sharply to a loss of $253 million, compared to a profit of $1.146 billion in the prior year. This resulted in a diluted loss per share of $0.51, a stark contrast to earnings of $2.16 per share in the second quarter of 2024.

The decline in profitability was attributed to several factors, including increased medical costs and a reduction in the company's net risk adjustment revenue estimate for its Marketplace products. The health benefits ratio (HBR) rose to 93.0% from 87.6% year-over-year, indicating a higher proportion of revenues being consumed by medical costs. Additionally, the company recorded impairment charges of $55 million related to the wind-down of certain contracts in its Other segment, further impacting its financial results.

Operationally, Centene's managed care membership decreased by 473,000 members, or 2%, year-over-year, totaling 28 million members as of June 30, 2025. The company experienced growth in its Medicare segment, with revenues increasing by 58% to $9.45 billion, driven by a 19% rise in membership for its Medicare Prescription Drug Plans (PDP). Conversely, the Medicaid segment saw a revenue increase of 16% to $28 billion, despite a decline in membership due to eligibility redeterminations following the end of the COVID-19 public health emergency.

Strategically, Centene has been active in expanding its service offerings and geographic footprint. The company launched new Medicaid contracts in several states, including expanded services in Florida and Kansas, and continued to enhance its Medicare Advantage plans. The company also reported a strong cash flow from operations of $3.3 billion for the first half of 2025, compared to $1.7 billion in the same period of 2024, indicating a solid liquidity position despite the challenges faced in profitability.

Looking ahead, Centene anticipates ongoing pressures from rising medical costs and regulatory changes, particularly with the expiration of enhanced advance premium tax credits for Marketplace members at the end of 2025. The company is focused on adjusting its pricing strategies and managing costs effectively to navigate these challenges while continuing to provide integrated healthcare services to its members.