Clover Health Swings to Profit in Q2, Raises Full-Year Outlook on Membership Surge
CLOV has more than doubled off its 52-week low of $1.58.
Summary
Clover Health swung to a $28.0M net profit in Q2 2026 from a $10.6M loss last year, as membership surged 49%. The filing also disclosed CEO and subsidiary CEO 10b5-1 trading plans and new class action lawsuits.
Key Events · Earnings and Guidance · CLOV
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Q2 2026 GAAP Net Income of $28.0M
Driven by a 56% jump in total revenues to $743.2 million, net income came in at $28.0 million for Q2 2026, compared with a net loss of $10.6 million in the same period last year.
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Membership Surge Drives Revenue Growth
Average Medicare Advantage membership expanded 49% year-over-year to 156,840, while per-member premiums rose 6%, reflecting higher CMS rates and improved Star Ratings.
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Strong Cash Position and Improved Profitability
Cash, cash equivalents, and investments stood at $443.0 million as of June 30, 2026. For the first half, adjusted EBITDA reached $81.2 million, more than double the $42.9 million reported in the prior-year period.
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CEO and Subsidiary CEO Adopt 10b5-1 Trading Plans
CEO Andrew Toy adopted a plan to sell up to 3,786,201 shares starting August 13, 2026. Separately, Counterpart Health CEO Conrad Wai adopted a plan to sell up to 1,470,056 shares beginning September 15, 2026.
Analysis · CLOV · Finance
A dramatic turnaround took hold in the second quarter, as Clover Health posted its second consecutive period of GAAP profitability. Net income reached $28.0 million, a sharp reversal from the $10.6 million loss recorded a year earlier. Driving the improvement, revenue surged 56% to $743.2 million, fueled by a 49% jump in average Medicare Advantage membership and higher per-member premiums. The balance sheet also strengthened, with cash, equivalents, and investments climbing to $443.0 million, while adjusted EBITDA more than doubled to $81.2 million for the first half. These results underscore the traction of the company's technology-enabled care model. Yet the filing also reveals that the CEO and a subsidiary CEO adopted 10b5-1 trading plans, allowing potential sales of up to 3.8 million and 1.5 million shares, respectively. Adding to the complexity, four putative class action lawsuits have been filed in connection with a July cybersecurity incident. The combination of robust operating momentum and insider selling plans sends a mixed signal to the market.
At the time of this filing, CLOV was trading at $4.69 on NASDAQ in the Finance sector, with a market capitalization of approximately $2.5B. The 52-week trading range was $1.58 to $5.59. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.