Strong Membership Growth
Medicare Advantage membership grew ~51% year-over-year to approximately 156,000 members (an increase of over 52,000 lives), driven by a strong AEP and best-in-class retention.
Clover Health Investments
· CLOV
May 6th, 2026
Summary
- Earnings Call Date:
- 2026-05-06
- Change Since:
- +94.40%
- Next Earnings Date:
- 2026-08-10
Earnings Call Sentiment
PositiveThe call presented a strong set of operational and financial positives: rapid membership growth (~51% YoY), significant revenue growth (+62% YoY), improved gross profit (+47% YoY), GAAP profitability ($27M) and expanding clinical engagement (Clover Assistant reach and Clover Care enrollment up ~90%). Management acknowledged elevated outpatient utilization, Part D and prior-period reserve variability and one-time SG&A items, but described concrete actions (AI/data, dental cost controls, targeted remediation) and emphasized disciplined monitoring. Given the magnitude and breadth of the favorable metrics and the balance of challenges being described as manageable or being actively addressed, the overall tone is optimistic and confidence-driven while cautious on cohort maturation risks.
Company Guidance
Clover reiterated it expects to meet or exceed its full‑year 2026 outlook across all metrics (and to deliver full‑year GAAP net income profitability), but will revisit guidance after Q2; Q1 results underpinning that view included ~156,000 MA members (over +52k YoY / ~51% growth), $749M revenue (+62% YoY), $160M consolidated gross profit (+47% YoY), insurance BER of 86.5%, GAAP net income of $27M (up $29M YoY), adjusted EBITDA of $40M (+56% YoY), adjusted SG&A of $119M (16% of revenue, ~200 bps YoY improvement versus a 100–150 bps target), $418M cash and investments with no debt, $108M operating cash flow, >1/3 of members receiving Clover Assistant care, Clover Care enrollment +~90% YoY, and noted inpatient utilization drove ~25–30 bps of margin favorability while they continue to monitor outpatient and Part D trends.
Revenue and Profitability Expansion
Total revenues were $749 million, up 62% year-over-year. The company generated GAAP net income of $27 million (improving by $29 million YoY) and adjusted EBITDA of $40 million, up 56% YoY.
Improving Gross Profit and Cohort Economics
Consolidated gross profit was $160 million, up 47% year-over-year. Management emphasized improving cohort economics as new members mature under Clover's care model.
Operational and Clinical Engagement Momentum
Over one-third of members received Clover Assistant-powered care in Q1, and enrollment in Clover Care Services (home care) rose ~90% year-over-year, supporting higher-acuity management and better outcomes.
SG&A Efficiency Gains and Scale Benefits
Adjusted SG&A was $119 million (16% of revenue), improving roughly 200 basis points year-over-year due to scale, vendor optimization and early impact from automation/AI-driven workflows; company remains committed to 100–150 bps improvement for 2026 and delivered 200 bps in Q1.
Strong Balance Sheet and Cash Generation
Ended the quarter with $418 million in cash and investments, no debt, and operating cash flow of $108 million in the quarter, supporting self-funded growth.
Data/AI and Regulatory Positioning
Expanded capabilities onto new CMS-aligned networks to access earlier data for AI-driven insights; CMS did not finalize proposed risk model changes (creating stability) and adopted a switcher exception that management says benefits plans like Clover that rely on encounter-linked documentation.
Market Leadership in Core Geography
Clover is now the largest PPO in New Jersey (excluding special needs and employer retiree plans), enabling concentrated clinical integration and reinforcing unit economics in core markets.
Operator
Hello, and welcome to Clover Health's First Quarter 2026 Earnings Call. [Operator Instructions] Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Ryan, you may begin.
Ryan Schmidt
Good afternoon, everyone. Joining me on our call today to discuss the company's first quarter 2026 results are Andrew Toy, Clover Health's Chief Executive Officer; and Clay Thornton, the company's Interim Chief Financial Officer. You can find today's press release and the accompanying supplemental slides as well as the company's most recent investor deck in the Investor Events and Presentations section of our website at investors.cloverhealth.com. This webcast is being recorded, and a replay will be available in the Investor Relations section of the Clover Health website. I'd also like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties, including expectations about future performance. Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings, including in the Risk Factors section of our most recent annual report on Form 10-K and other SEC filings. Information about non-GAAP financial measures referenced, including a reconciliation of those measures to GAAP measures, can be found in the earnings materials available on our website. With that, I'll now turn the call over to Andrew.
Andrew Toy
Thank you, Ryan, and thank you, everyone, for joining us today. Entering 2026, our first quarter results demonstrate how market-leading growth,...
Subscribe to unlock transcripts
Get The Fly Pro 7 days for free