Clover Health Investments (7QD) Q3 2026 Earnings Report

The call was strongly positive, with substantial membership, revenue, gross profit, EBITDA and net income growth; improved full-year guidance; expected first full-year GAAP profitability; leading Star Ratings and HEDIS performance; favorable cohort economics; and encouraging early 2027 enrollment results. The company also identified meaningful earnings expansion opportunities from cohort maturation and operating leverage. Offsetting issues included elevated outpatient utilization, a planned seasonal fourth-quarter EBITDA loss, a near-term earnings drag from new members, a pending government appeal and management's criticism of the current Stars measurement framework.

For full year 2026, Clover expects average Medicare Advantage membership of 157,000 to 158,000 members, total revenue of $2.97 billion to $3 billion, consolidated gross profit of $540 million to $555 million, adjusted EBITDA of $75 million to $85 million and GAAP net income of $25 million to $35 million; for the full year, it expects adjusted SG&A ratio improvement at or above its original target of 100 basis points to 150 basis points, while the fourth quarter is expected to include lower consolidated gross profit from normal medical cost seasonality, higher SG&A as planned AEP investments increase and the seasonal adjusted EBITDA loss already contemplated in guidance. Clover is not providing formal guidance for 2027 or 2028, but expects another strong year of membership growth, meaningful earnings expansion in 2027 and momentum into 2028, with insurance gross profit per member per month approximately $70 higher in year 2 than in year 1 and approximately $85 higher in year 3 than in year 2; approximately half of current membership comprises the 2025 and 2026 cohorts, with 21% of members in their second year this year and 28% in year 1.