Clover Health Investments, Corp.

Second-quarter 2026 revenue was $743 million, up 56% year over year, with consolidated gross profit of $153 million, up 54%, adjusted EBITDA of $41 million, and GAAP net income of $28 million. Average Medicare Advantage membership was 157,000, up 48% year over year; adjusted SG&A was $112 million, or 15% of revenue, about 220 basis points better than Q2 2025. For the first half, Clover generated $1.5 billion of revenue, $81 million of adjusted EBITDA, $55 million of GAAP net income, and $133 million of cash flow from operations. Full-year 2026 guidance was raised to average MA membership of 156,000 to 158,000, revenue of $2.92 billion to $3 billion, consolidated gross profit of $525 million to $555 million, adjusted EBITDA of $70 million to $85 million, and GAAP net income of $20 million to $35 million. Management said Q3 gross profit should be stronger than Q4, Q3 adjusted EBITDA should stay positive, and Q4 should return to a more typical seasonal loss due to AEP-related spending.

Andrew Toy framed the quarter as evidence that Clover’s AI-driven care model is working at scale: better clinical decisions, stronger membership growth, and higher profitability. He emphasized that the court-led recalculation gives all MA members a 4.5-star plan for payment year 2027, but said the real economic engine is cohort maturation under Clover Assistant. He also said Clover is beginning to apply AI to back-office insurance operations to improve claims processing and lower administrative expense, which he expects to add to margin opportunity over time.

Clay Thornton said the quarter showed a “differentiated combination of growth and profitability,” with $41 million of adjusted EBITDA and $28 million of GAAP net income in Q2. He pointed to better-than-expected medical cost trends, including favorable inpatient utilization, moderated outpatient trends, improved dental cost performance, and better-than-expected Part D results in the second year of IRA implementation. He also noted strong balance sheet flexibility, ending Q2 with $443 million of cash and investments and no debt, plus $133 million of operating cash flow in the first half. On capital allocation, he said Clover is making deliberate investments in Clover Assistant, Counterpart Health go-to-market, and health plan operations while still improving SG&A leverage.

Analysts focused on how much of the 2025 and 2026 cohorts are already covered by Clover Assistant, with management saying coverage is in the low 60s for those newer cohorts and generally rises over time. They also asked about the cohort mix for 2027 modeling; Clay said roughly 21% of current-year membership is from the 2025 cohort and about 28% from the 2026 cohort, implying more members will move from year one to year two than from year two to year three. Questions on 2027 bids centered on cost trend assumptions, competitive disruption, and whether the 4.5-star ruling was baked in; management said bids were built similarly to prior years, assumed continued disruption in New Jersey and Georgia, and were aligned to a 4.5-star payment year even though CMS has appealed the court ruling.