NeueHealth Reports Q2 2025 Financial Results with Revenue Decline and Improved Net Loss

NeueHealth, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $209.1 million, a decrease of 7.5% from $226.0 million in the same period last year. The decline was primarily driven by a significant drop in ACO REACH revenue, which fell to $115.3 million from $149.8 million, attributed to a reduction of approximately 10,000 beneficiaries aligned to the company's REACH ACOs. In contrast, capitated revenue increased by 27.2% to $82.5 million, reflecting growth in membership through third-party payor contracts. The company reported a net loss of $1.5 million for the quarter, a notable improvement compared to a net loss of $57.7 million in the prior year.

Operating expenses for the quarter totaled $194.8 million, down from $263.5 million in the previous year, largely due to a reduction in medical costs and operating costs. Medical costs decreased by 17.6% to $146.4 million, while operating costs fell by 36.3% to $44.9 million, driven by a decrease in compensation-related expenses following workforce reductions. The company achieved an operating income of $14.3 million, a significant turnaround from an operating loss of $37.5 million in the same quarter of 2024.

Strategically, NeueHealth has continued to focus on its core segments, NeueCare and NeueSolutions, which serve a combined total of approximately 547,000 consumers. The company has also made strides in its participation in the Medicare Shared Savings Program (MSSP), recognizing $1.1 million in MSSP revenue for the first time in the current quarter. Additionally, NeueHealth is in the process of completing the NEA Merger Agreement, which, if finalized, will result in the company becoming a wholly owned subsidiary of NH Holdings 2025, Inc.

As of June 30, 2025, NeueHealth reported total assets of $743.7 million, up from $544.4 million at the end of 2024. The company’s cash and cash equivalents increased to $131.6 million, compared to $83.3 million at the end of the previous year. However, the company continues to face challenges, including a substantial risk adjustment obligation of $271.8 million related to its discontinued commercial insurance business. Management has expressed concerns regarding the company's ability to meet its cash requirements over the next twelve months, raising doubts about its ability to continue as a going concern.

Looking ahead, NeueHealth aims to enhance its operational efficiency and expand its consumer base while navigating the complexities of its ongoing restructuring efforts. The company remains committed to improving its financial performance and achieving long-term growth through strategic partnerships and a focus on value-based care delivery.