CLOVER HEALTH INVESTMENTS, CORP. /DE (CLOV): Results of Operations and Financial Condition
CLOVER HEALTH INVESTMENTS, CORP. /DE (CLOV) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Clover Health Reports Second Quarter 2026 Results Business Highlights: • Delivered strong second quarter 2026 GAAP Net Income alongside continued market-leading Medicare Advantage membership growth • Improved Full Year 2026 guidance across all metrics • Increasing co
How this was made
The 30-second read
Why it matters
The key tradable items are the raised 2026 guidance ranges and the reported YoY improvements in Medicare Advantage membership, revenues, gross profit, and Adjusted EBITDA, which together can shift valuation expectations and near-term estimates.
Market read
Raised guidance and strong Q2 operating metrics provide a fresh catalyst for estimate revisions and positioning ahead of the earnings call.
What to watch
BER is slightly down but still near prior levels; traders may focus on whether improved cohort economics persist and how much of the profitability is driven by timing versus sustainable medical cost performance.
Clover Health Reports Second Quarter 2026 Results
Second-quarter revenue, membership, Consolidated Gross profit, Adjusted EBITDA, and GAAP net income all increased year-over-year, while the company increased full-year 2026 guidance across reported metrics.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Total revenues | $2.81 billion - $2.92 billion | Second quarter 2026: $743.2 million | n/a |
| Consolidated Gross profit | $470 million - $510 million | Second quarter 2026: $153.0 million | n/a |
| Adjusted EBITDA | $50 million - $70 million | Second quarter 2026: $40.9 million | n/a |
| GAAP Net income | $0 million - $20 million | Second quarter 2026: $28.0 million | n/a |
| Average Medicare Advantage membership | 154,000 - 158,000 | Second quarter 2026: 156,840 | n/a |
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $743.2 million | – | 55.6% |
| Consolidated Gross profitnon-GAAP | $153.0 million | – | 53.6% |
| Salaries and benefits plus General and administrative expenses (SG&A)GAAP | $124.4 million | – | 13.3% |
| Adjusted Salaries and benefits plus General and administrative expenses (Adjusted SG&A)non-GAAP | $112.1 million | – | 35.9% |
| Adjusted SG&A as a % of Total revenuesnon-GAAP | 15.1% | – | (220 bps) |
| Net incomeGAAP | $28.0 million | – | N/A* |
| Adjusted EBITDAnon-GAAP | $40.9 million | – | 139.2% |
| Adjusted Net incomenon-GAAP | $40.4 million | – | 141.9% |
| Average Medicare Advantage membershipother | 156,840 | – | 48.7% |
| Insurance net medical claims incurredGAAP | $615.4 million | – | 56.1% |
| Insurance BERnon-GAAP | 87.6% | – | (80 bps) |
| Total revenues, six months ended June 30GAAP | $1,492.4 million | – | 58.8% |
| Consolidated Gross profit, six months ended June 30non-GAAP | $312.5 million | – | 49.9% |
| Salaries and benefits plus General and administrative expenses (SG&A), six months ended June 30GAAP | $256.1 million | – | 16.7% |
| Adjusted Salaries and benefits plus General and administrative expenses (Adjusted SG&A), six months ended June 30non-GAAP | $231.4 million | – | 39.7% |
| Adjusted SG&A as a % of Total revenues, six months ended June 30non-GAAP | 15.5% | – | (210 bps) |
| Net income, six months ended June 30GAAP | $55.3 million | – | N/A* |
| Adjusted EBITDA, six months ended June 30non-GAAP | $81.2 million | – | 89.3% |
| Adjusted Net income, six months ended June 30non-GAAP | $80.1 million | – | 90.7% |
| Average Medicare Advantage membership, six months ended June 30other | 155,723 | – | 50.1% |
| Insurance net medical claims incurred, six months ended June 30GAAP | $1,225.4 million | – | 60.8% |
| Insurance BER, six months ended June 30non-GAAP | 87.1% | – | (20 bps) |
| Insurance membersother | 157,309 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Insurance SegmentAverage Medicare Advantage membership was 156,840, up 48.7% year-over-year. | $737.8 million | – | 57.0% |
| Insurance Segment, six months ended June 30Average Medicare Advantage membership was 155,723, up 50.1% year-over-year. | $1,482.0 million | – | 59.9% |
Full Year 2026 outlook
- Revenue$2.92 billion - $3.00 billion
- Gross margin$525 million - $555 million
- NoteAdjusted EBITDA profitability between $70 million and $85 million
- NoteGAAP Net income between $20 million and $35 million
- NoteAverage Medicare Advantage membership of 156,000 - 158,000
What drove it
- Second-quarter average Medicare Advantage membership was 156,840, up 48.7% year-over-year.
- Insurance revenue was $737.8 million, up 57.0% year-over-year.
- Insurance BER was 87.6%, compared with 88.4%, a change of (80 bps).
- Adjusted SG&A as a percentage of Total revenues was 15.1%, compared with 17.3%, a change of (220 bps).
- Management cited strong cohort development, continued clinical engagement, and the added flexibility of a 4.5 Star payment year in discussing confidence for 2027.
Concerns
- Insurance net medical claims incurred increased 56.1% year-over-year to $615.4 million.
- The company operates at full risk, according to Interim CFO Clay Thornton.
- Full-year projected Consolidated Gross profit and Adjusted EBITDA reconciliations to GAAP measures were not provided because certain items were described as inherently uncertain and difficult to predict or not reasonably calculable without unreasonable efforts.
What to watch
- Execution against full-year 2026 Total revenues guidance of $2.92 billion - $3.00 billion.
- Execution against full-year 2026 Consolidated Gross profit guidance of $525 million - $555 million.
- Execution against full-year 2026 Adjusted EBITDA profitability guidance of $70 million - $85 million.
- Execution against full-year 2026 GAAP Net income guidance of $20 million - $35 million.
- Average Medicare Advantage membership relative to full-year guidance of 156,000 - 158,000.
- Insurance BER and cohort economics as members mature under the technology-powered care model.
Balance sheet and cash flow
- Total cash, cash equivalents, and investments: $443.0 million, compared with $389.3 million, up 13.8%.
- Operating cash flow was not reported in the provided filing text.
- Free cash flow was not reported in the provided filing text.
Analysis
Clover Health reported a strong second quarter, led by Medicare Advantage enrollment growth and revenue expansion. Total revenues were $743.2 million, up 55.6% year-over-year, while Insurance revenue was $737.8 million, up 57.0%. Average Medicare Advantage membership increased 48.7% to 156,840, and Insurance members as of June 30, 2026 were 157,309 compared with 106,323 as of June 30, 2025.
Profitability improved materially. GAAP net income was $28.0 million compared with a net loss of $(10.6) million, while Adjusted EBITDA increased 139.2% to $40.9 million and Adjusted Net income increased 141.9% to $40.4 million. Consolidated Gross profit, a non-GAAP measure, rose 53.6% to $153.0 million.
Expense leverage was evident in the reported SG&A metrics. GAAP SG&A rose 13.3% to $124.4 million, materially below the 55.6% increase in Total revenues. Adjusted SG&A as a percentage of Total revenues declined to 15.1% from 17.3%, a change of (220 bps). Insurance net medical claims incurred rose 56.1% to $615.4 million, while the non-GAAP Insurance BER improved to 87.6% from 88.4%.
The first-half figures also show continued expansion, with Total revenues of $1,492.4 million, Consolidated Gross profit of $312.5 million, GAAP net income of $55.3 million, and Adjusted EBITDA of $81.2 million. First-half average Medicare Advantage membership was 155,723, and first-half Insurance BER was 87.1%, compared with 87.3% in the prior-year period.
Management raised full-year 2026 guidance across the reported measures. The company now expects Total revenues of $2.92 billion - $3.00 billion, Consolidated Gross profit of $525 million - $555 million, Adjusted EBITDA profitability of $70 million - $85 million, GAAP Net income of $20 million - $35 million, and average Medicare Advantage membership of 156,000 - 158,000. The filing identifies strong cohort development, continued clinical engagement, and a 4.5 Star payment year as support for increased confidence in the 2027 outlook.
Management, verbatim
Our results demonstrate that a wide-network, full-risk Medicare Advantage model can deliver better health outcomes, meaningful growth, and increasing profitability at the same time,
Andrew Toy, CEO
We are continuing to bring our AI-powered Clover Assistant platform to more physicians and more members, empowering earlier intervention, more personalized care, and better health outcomes. We believe this differentiated approach is the foundation for our long-term earnings potential.
Andrew Toy, CEO
The underlying performance of our Medicare Advantage business continued to strengthen through the first half of the year, with cohort economics improving year-over-year as expected, giving us the confidence to raise our full-year 2026 outlook,
Clay Thornton, Interim CFO
Not in the filing
stated, not guessed- GAAP gross margin was not reported.
- GAAP operating income was not reported.
- GAAP and non-GAAP earnings per share were not reported.
- Quarter-over-quarter comparisons were not reported for the listed metrics.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Debt was not reported.
- Share repurchases, dividends, and other capital returns were not reported.
- Guidance for operating expenses was not reported.
- Guidance for tax rate was not reported.
- Full-year 2026 actual results are not reported; therefore, the prior full-year guidance ranges cannot be assessed against a same-period full-year actual.
- Revenue for segments other than the Insurance Segment was not reported in the provided filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Exhibit 99.1 reporting Clover Health’s Q2 2026 financial results and updated full-year 2026 guidance.
Ticker impact
Clover reported Q2 2026 results and raised full-year 2026 guidance, including higher revenue, gross profit, and Adjusted EBITDA ranges.
Moderately positive bias for the next session and into the following days as traders reprice 2026 profitability and 2027 confidence.
The filing is a primary earnings/guidance disclosure with specific updated ranges (revenue, gross profit, Adjusted EBITDA, GAAP net income) and large YoY improvements in membership, revenues, and Adjusted EBITDA.
Market effects
Reinforces the narrative that full-risk Medicare Advantage models with tech enablement can scale profitability, potentially supporting sentiment toward similar MA insurers/health-tech operators.
Primarily US-focused given Medicare Advantage exposure; limited direct regional spillover beyond US healthcare/insurer sentiment.
Low global relevance; impact is mostly confined to US managed care and healthcare growth/profitability expectations.
Counterpoint
Despite guidance increases, the company still frames 2027 confidence around cohort maturation and clinical engagement, which can be volatile if medical cost trends worsen.
Key entities
- companyClover Health Investments, Corp. /DE
Nasdaq-listed Medicare Advantage-focused insurer reporting Q2 2026 results and raising full-year 2026 guidance.
- executiveAndrew Toy
CEO quoted on the company’s full-risk Medicare Advantage model and AI-powered Clover Assistant.
- executiveClay Thornton
Interim CFO quoted on improving cohort economics and confidence in the 2027 outlook.
