Clover Health’s third quarter was marked by robust revenue growth, yet a negative market reaction reflected investor concerns around profitability and cost trends. Management attributed the strong top-line performance to accelerated membership gains, especially as competitors retrenched. However, CEO Andrew Toy acknowledged that the company "missed our targets on both overall adjusted EBITDA and stars," citing higher-than-expected utilization and challenges managing a surge of new members, which diluted near-term margins and pressured overall results.

Is now the time to buy CLOV? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Clover Health’s Q3 Earnings Call

• Jonathan Yong (UBS) asked about the risk of mispricing for 2026 given the surge in new members and utilization trends. CFO Peter Kuipers replied that cost trends are factored into bids, with tailwinds from payment updates and targeted growth in priority markets mitigating risk.
• Jonathan Yong (UBS) questioned the trajectory of benefit expense ratio (BER) from Q3 to Q4, noting apparent step-down in core medical cost ratios. Kuipers clarified that intra-year claims development impacted Q3, and averaging the first three quarters offers a better baseline for Q4 expectations.
• Jonathan Yong (UBS) also sought clarification on how the 4% underlying incurred cost trend (excluding pharmacy) is expected to translate into future profitability. Kuipers noted that this trend is considered solid given current conditions and is incorporated into next year’s bids.
• Jonathan Yong (UBS) inquired whether the company is focused on expanding in markets with existing strengths or broadly across geographies. Kuipers confirmed the strategy is to focus growth in priority markets where Clover Assistant and home care are established, to better manage cost and outcomes.
• Jonathan Yong (UBS) asked how Clover’s retention rates compare to industry averages and how they might impact 2026 profitability. Management stated that current retention is above 90% and is expected to support a larger base of profitable returning members next year.

Catalysts in Upcoming Quarters

Looking ahead, our analysts will watch (1) the rate at which new members transition to profitable returning cohorts under Clover Assistant management, (2) progress in improving pharmacy and supplemental benefit cost controls, and (3) the impact of technology upgrades and Counterpart Health partnerships on provider adoption. Execution on star rating improvement initiatives and maintaining high retention will also be critical markers of success.

Clover Health currently trades at $2.62, down from $3.52 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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