Clover Health Investments (CLOV) Bank of America 2025 Healthcare Conference summary

Strategic transformation, technology, and growth initiatives

• Focus on scale and density in home care, serving over 80,000 patients daily across 340+ locations in 34 states, expanding to 36 states with the Thrive Skilled Pediatric Care acquisition.

• Five core strategies for 2025: enhancing partnerships, identifying cost efficiencies, modernizing medical solutions, managing capital structure, and engaging employees.

• Demand for home and community-based care remains strong, with state and federal governments seeking solutions that expand capacity and reduce costs.

• Technology-driven approaches, including AI/ML-powered tools like Clover Assistant, synthesize data from 100+ sources to improve clinical outcomes and reduce total cost of care.

• Value-based agreements and legislative advocacy are key to improving reimbursement rates and clinical outcomes, with value-based agreements growing from 3 in 2022 to 8 in 2024, aiming for 12 by year-end.

Financial performance and guidance

• Q1 revenue rose 14% year over year, with all divisions contributing to growth; PDS led with 16.5% organic growth.

• Total revenues reached $462 million in 1Q25, up 33% year-over-year, with Medicare Advantage membership increasing 30% YoY.

• Adjusted EBITDA reached $67.4 million, up 93.1% year over year, and $26 million for another segment, up 279% YoY.

• 2025 guidance raised to over $2.15 billion in revenue and adjusted EBITDA to over $207 million; insurance revenue projected at $1.8B–$1.875B, adjusted EBITDA of $50M–$70M.

• Strong liquidity position with over $260 million and a hedged variable rate debt structure of $1.47 billion, with continued free cash flow generation and significant deleveraging.

Operational highlights and market position

• Acquisition of Thrive Skilled Pediatric Care expands pediatric footprint and densifies presence in key states.

• Preferred payer agreements in private duty services increased from 7 to 22 over three years, targeting 30 by 2025.

• Home health and hospice segment maintains over 70% episodic payer mix, with 45 preferred payer agreements and strong growth momentum.

• Clover Health's PPO plans achieved a 4.94/5 HEDIS score for 2025, the highest among large plans nationally, and a 4.0 Star Rating for Payment Year 2026.

• New SaaS and tech-enabled services via Counterpart Health expand revenue streams and market reach.