Clover Health Investments (7QD) Q2 2026 Earnings Report

The call emphasized strong top-line and membership growth (48% MA growth, +56% revenue YoY in Q2), improving profitability (Q2 adjusted EBITDA $41M, GAAP net income $28M), expanded operating leverage, improved cash balance, and a favorable 4.5-star recalculation — all supported by visible cohort maturation dynamics (~$70 PMPM improvement year-over-year between vintages). Manageable lowlights include seasonal Q4 headwinds, a large share of early-stage members that will pressure near-term margins until cohorts mature, ongoing CMS appeal litigation risk, and elevated outpatient trends that require monitoring. Overall, the positive operational and financial momentum, upgraded guidance, and stronger star positioning outweigh the remaining risks and seasonal uncertainties.

Clover raised full‑year 2026 guidance, now targeting average Medicare Advantage membership of 156,000–158,000, total revenue of $2.92–3.00 billion, consolidated gross profit of $525–555 million, adjusted EBITDA of $70–85 million, and GAAP net income of $20–35 million. The raise was supported by strong H1 and Q2 results — average MA membership of 157,000 in Q2 (48% YoY growth), Q2 revenue $743 million (+56% YoY), Q2 consolidated gross profit $153 million (+54% YoY), H1 revenue ~$1.5 billion (up >$550 million YoY), H1 adjusted EBITDA $81 million and H1 GAAP net income $55 million — plus $443 million of cash and investments, $133 million of operating cash flow YTD, and no debt. Management highlighted improving unit economics from cohort maturation (historically ~$70 PMPM gross profit improvement year‑one to year‑two), two‑thirds of members covered by Clover Assistant (low‑60s for the 2025/2026 cohorts), cohort mix (~21% from 2025, ~28% from 2026), SG&A of $112 million in Q2 (15% of revenue, ~220 bps improvement YoY), and expected seasonality with stronger gross profit in Q3, positive adjusted EBITDA in Q3, and a typical seasonal loss in Q4.