Clover Health Reports $46.3 Million Net Loss for 2024, Revenue Increases to $1.37 Billion

Clover Health Investments Corp. reported a net loss of $46.3 million for the year ended December 31, 2024, compared to a net loss of $210.1 million in 2023. Total revenues increased by $110.6 million (8.8%) to $1.37 billion, primarily driven by a 9% increase in net premiums earned to $1.34 billion due to increased risk adjustment revenue from member retention efforts. Other income also rose by $1.5 million (6%) to $26.3 million, mainly due to higher net investment income from increased interest rates. Operating expenses decreased by $49 million (3.3%) to $1.42 billion, reflecting reductions in salaries and benefits and general and administrative expenses.

Significant changes compared to the previous year include a substantial decrease in restructuring costs, from $9.8 million in 2023 to $0.3 million in 2024. The decrease in salaries and benefits was primarily attributed to lower share-based compensation costs, while the reduction in general and administrative expenses stemmed from lower legal, consulting, and contractor costs. The company also noted a $0.5 million loss on investment in Character Biosciences for 2024. The company's medical care ratio (MCR) remained relatively consistent year-over-year.

During 2024, Clover Health launched Counterpart Health, Inc., a subsidiary offering a Software-as-a-Service (SaaS) solution, Counterpart Assistant, to external payors and providers serving the Medicare-eligible population. This expansion aims to leverage Clover's existing technology platform for new revenue streams. The company also exited the ACO REACH program in December 2023, with remaining activity in 2024 relating to prior performance years and classified as discontinued operations. As of January 13, 2025, Clover reported a 27% year-over-year increase in Medicare Advantage membership during the Annual Election Period, starting 2025 with over 100,000 members. CMS also increased the Star Rating of Clover's PPO Medicare Advantage plans to 4.0 stars for 2025, impacting the 2026 payment year.

At December 31, 2024, Clover Health employed 570 employees, with approximately 87% based in the U.S. and 9% in Hong Kong. The company operates Medicare Advantage plans in five states and 200 counties. The company's cash, cash equivalents, and investments totaled $437.6 million at December 31, 2024, compared to $417.3 million at December 31, 2023. The company's cash flow from operations was positive for the year ended December 31, 2024, at $82.5 million, a significant improvement from the negative cash flow from operations in 2023.

The company's 10-K filing includes numerous risk factors, including the potential for continued losses, dependence on Clover Assistant's success, challenges in managing medical expenses, and the complexities of the CMS risk adjustment payment system. The filing also highlights risks related to competition, regulatory changes, intellectual property protection, and cybersecurity. The company stated that it does not intend to pay dividends for the foreseeable future and anticipates using future earnings for business development and general corporate purposes.