Clover Health Investments (CLOV) investor relations material

Financial performance and medical trends

• YTD 2026 adjusted EBITDA was $97 million and net income was $62 million, alongside membership growth of ~50%.

• Medical trends were favorable to beginning-of-year expectations; inpatient utilization was especially favorable, including among new members versus the prior year’s year-one cohort.

• Part D trends were lighter than expected, with easing in the non-low-income population; lower inpatient use was accompanied by higher outpatient surgery, observation, and ER utilization.

• Management expects two large cohorts to mature in 2027, supporting earnings expansion; three could mature in 2028 if membership growth remains strong in 2027.

• No long-term margin target was set during the high-growth period; continued cohort maturation is expected to expand margins.

2027 growth and enrollment

• 2027 growth reflects both competitive product positioning and a New Jersey plan exit affecting ~40,000 MA members; benefits are expected to be at or slightly above 2026 competitiveness.

• About 85% of new members after the 2026 AEP switched from another MA plan; management expects the share to remain similar or possibly rise in the 2027 AEP.

• National plans’ third consecutive year of retreat from $0 PPO offerings is widening the PPO product advantage and contributing to strong AEP growth so far.

• Five-star status is supporting incremental direct-channel AEP enrollments; the April–December 2027 special enrollment period could add growth, depending on AEP results and membership goals.

• Following AEP, membership, cash flow, and regulatory capital needs will inform 2027 investment choices, including Clover Assistant, AI capabilities, or further growth.

Products and market expansion

• No near-term plan to become a Medicaid MCO, limiting D-SNP opportunities in fully integrated states such as New Jersey; C-SNP is under consideration for 2028 and beyond.

• Expansion decisions will focus on replicating successful market conditions, especially Clover Assistant coverage through network physicians and employed clinicians; Counterpart Health adds intelligence on potential markets.

• Employed clinicians can extend Clover Assistant into new markets; network physician adoption depends on member density and provider willingness to change workflows.

• Clover Assistant development is extending beyond the clinical visit to help complete next steps such as specialist referrals and medication fills.

• Counterpart Health is progressing toward managing as many third-party lives as Clover Assistant serves in the MA plan; near-term priorities are engagement and scale, with economics to follow.