Clover Health Investments, Corp. Q1 FY2026 earnings call

• Entering 2026, first quarter results show market-leading growth, GAAP net income profitability, and full risk scaling in Medicare Advantage. Grew membership 51% y/y and generated gap net income of $27 million. • Core New Jersey markets: largest PPO, growth drives deeper clinical integration. • Business model: wide network PPO structure, upfront investments in new members with long-term profitability tailwind. • Clover Assistant and Clover Care Services driving clinical engagement; over one-third of members received Clover Assistant-powered care; home care division enrolling record number of patients. • 2027 bids: CMS rate notice stable, model built on clinical engagement, minimal impact from unlinked chart reviews change, support STARS program alignment with outcomes. • Counterpart health: growing provider adoption, near-term focus on expanding total lives on platform.

Medicare Advantage membership grew 51% year over year to approximately 156,000 members, driving $749 million in total revenues up 62% year over year. Consolidated gross profit was $160 million, up 47% year over year. Inpatient utilization was lower year over year; outpatient utilization and costs were elevated but in line with expectations. SG&A was $119 million, or 16% of revenue, improving ~200 basis points year over year. Generated $27 million of gap net income with adjusted EBITDA of $40 million, increasing 56% year-over-year.

• Expect to meet or exceed full year 2026 outlook across all metrics; will revisit guidance after second quarter. • Strengths: strong retention, growth in clinical engagement, expansion of Clover Assistant reach, favorable inpatient trends, progress in dental cost management, Part D performance developing in line. • 2027: benefit positioning provides flexibility, model allows earnings power to compound, 2025 cohort entering year three to be tailwind, expected efficiency gains in SG&A.

Q: Richard Close asked about what attracted Clay to Clover and differences in the model.

A: Clay said Clover takes full risk on population economics, unique in MA industry; uses Clover Assistant platform to engage wide network on PPO uniquely.

Q: Richard Close asked about SG&A variability.

A: Clay said there were one-time non-recurring expenses like claims adjustment expense in first quarter.

Q: Jonathan Young asked about new vs existing cohorts' RAF scores and trending.

A: Jonathan said new members' leading indicators tracking well, inpatient and dental tracking in line or better; RAF scores tracking in line with expectations.

Q: Jonathan Young asked about prior period development and GNA.

A: Clay said modest unfavorability in first quarter related to restatements, reserves, and revenue; committed to 100 - 150 basis points of SG&A improvement in 2026, delivered 200 basis points in first quarter.