Molina Healthcare Reports Q1 2025 Net Income of $298 Million, Revenue Increases 12% to $11.1 Billion

Molina Healthcare, Inc. reported a net income of $298 million, or $5.45 per diluted share, for the first quarter of 2025, reflecting a slight decrease from the $301 million, or $5.17 per diluted share, reported in the same period last year. The company's total revenue for the quarter reached $11.1 billion, a 12% increase from $9.9 billion in the first quarter of 2024, driven primarily by growth in premium revenue, which rose to $10.6 billion from $9.5 billion. Operating income also saw a modest increase to $433 million, compared to $426 million in the prior year.

The company experienced a 0.4% increase in membership, serving approximately 5.8 million members as of March 31, 2025, up from 5.75 million a year earlier. This growth was attributed to the expansion in the Marketplace segment, bolstered by the recent acquisition of ConnectiCare, which added approximately 140,000 members. However, this growth was partially offset by the impact of Medicaid redeterminations. The consolidated medical care ratio (MCR) increased to 89.2% from 88.5%, reflecting higher medical benefits utilization, particularly in the Medicaid segment.

Molina Healthcare's strategic developments included the acquisition of ConnectiCare for $350 million, which closed on February 1, 2025. This acquisition is expected to enhance Molina's presence in the Marketplace and Medicare segments. The company also reported a general and administrative expense ratio of 6.9%, down from 7.2% in the previous year, indicating improved operational efficiency. The company’s total assets increased to $16.4 billion, up from $15.6 billion at the end of 2024, with cash and cash equivalents rising to $4.9 billion.

In terms of operational metrics, Molina's Medicaid segment reported premium revenue of $8.1 billion, a 9% increase year-over-year, while the Medicare segment saw a 2% rise in premium revenue to $1.5 billion. The Marketplace segment experienced a significant increase in premium revenue, reaching $1 billion, up from $570 million, largely due to the ConnectiCare acquisition and increased membership. The company’s total liabilities also rose to $12.1 billion, up from $11.1 billion, primarily due to increased long-term debt.

Looking ahead, Molina Healthcare remains focused on organic growth and strategic acquisitions to enhance its market position. The company is navigating challenges such as Medicaid rate adjustments and regulatory changes while maintaining a strong liquidity position, with $191 million in cash and investments at the parent company level. The outlook for the remainder of 2025 includes continued emphasis on operational efficiency and member retention, alongside the integration of recent acquisitions to drive future growth.