Clover Health Reports Strong Q3 Growth Amid Challenges in Medicare Advantage Market

Clover Health, a Medicare Advantage-focused insurtech company, has announced significant revenue growth in its third-quarter earnings report, while also facing increased losses and utilization challenges. The company's performance reflects broader trends in the Medicare Advantage market and highlights the evolving landscape of health insurance technology.

Revenue Surge and Membership Growth

Clover Health reported a substantial 50% year-over-year increase in revenue for the third quarter of 2025, reaching $496.6 million compared to $331 million in Q3 2024. The company's total revenue for the first nine months of 2025 climbed to $1.4 billion, up from $1 billion in the same period last year. This growth was accompanied by a 35% increase in Medicare Advantage membership, with Clover now serving 109,226 members.

CEO Andrew Toy attributed the company's growth to its technology-driven care model, stating, "Our model of care continues to perform well as we bring our technology-powered care to more Medicare Advantage seniors." Toy expressed confidence in Clover's ability to maintain above-market growth and strong member retention in 2026.

Challenges and Financial Performance

Despite the impressive revenue growth, Clover Health faced increased losses in Q3. The company reported a net loss of $24.4 million for the quarter, up from $9.2 million in the prior-year quarter. Losses for the first nine months of 2025 totaled $36.2 million, compared to $20.9 million in the same period of 2024.

Clover's medical loss ratio (MLR) rose to 93.5% in Q3 2025, up from 82.8% in Q3 2024. This increase aligns with industry-wide trends in Medicare Advantage, which has seen rising utilization rates across both large and small insurers. The company adjusted its full-year MLR projection to between 90% and 91%, up from previous estimates of 88.5% to 89.5%.

Outlook and Market Response

In response to its Q3 performance, Clover Health has revised its financial guidance for the year. The company increased its total revenue outlook to between $1.85 billion and $1.88 billion, up from the previous range of $1.8 billion to $1.875 billion. However, Clover reduced its EBITDA expectations to between $15 million and $30 million, down from the earlier projection of $50 million to $70 million.

Looking ahead to 2026, Clover Health expressed optimism about achieving GAAP net income, citing factors such as improved performance in the Medicare Advantage star ratings program, a focus on member retention, and a favorable rate update for Medicare Advantage.

The market reacted cautiously to Clover's Q3 results, with shares falling by nearly 4% following the earnings release. This response reflects ongoing concerns about profitability in the competitive Medicare Advantage market, despite the company's strong revenue growth.