Clover Health Q2 2026 earnings: Revenue rises 56% as GAAP profit turns positive

Clover Health (NASDAQ: CLOV) reported Q2 2026 revenue of $743.2 million, up 55.6% from $477.6 million a year earlier, while diluted EPS improved to $0.05 from a loss of $0.02. For the quarter ended June 30, GAAP net income reached $28.0 million as Medicare Advantage membership expanded, insurance cost performance improved, and expenses grew more slowly than revenue on a GAAP basis. The company also raised every metric in its full-year 2026 guidance.

Core earnings data

Revenue growth translated into a $38.6 million year-over-year improvement in GAAP net income. Adjusted EBITDA more than doubled, while adjusted SG&A fell as a percentage of revenue despite increasing in absolute terms.

Clover’s company-defined consolidated gross profit rose slightly more slowly than revenue. Its implied ratio to revenue was approximately 20.6%, compared with 20.9% a year earlier; this is a non-GAAP measure rather than a conventional GAAP gross margin.

Medicare Advantage membership drove the insurance business

Average Medicare Advantage membership increased 48.7% to 156,840. Quarter-end insurance membership was 157,309, up from 106,323 on June 30, 2025.

Insurance revenue grew 57.0% to $737.8 million and accounted for nearly all consolidated revenue. Insurance net medical claims incurred increased 56.1% to $615.4 million, slightly slower than insurance revenue, while segment gross profit rose approximately 61.8% to $122.3 million.

The non-GAAP insurance benefits expense ratio, or BER, improved to 87.6% from 88.4%, a reduction of 80 basis points. Because this measure includes both net medical claims and specified quality-improvement spending, the decline indicates that those costs consumed a smaller share of premium revenue despite rapid membership growth.

Profitability, cash flow, and the balance sheet

GAAP salaries and general and administrative expenses totaled $124.4 million, up 13.3%, well below the 55.6% increase in revenue. Salaries and benefits declined to $54.1 million from $61.3 million, but general and administrative expenses rose to $70.3 million from $48.5 million.

Adjusted SG&A increased 35.9% to $112.1 million. The difference between the GAAP and adjusted growth rates partly reflects stock-based compensation, which fell to $9.1 million from $26.2 million. Non-recurring legal expenses and settlements, meanwhile, increased to $3.3 million from $1.1 million. The reduction in stock-based compensation, partly offset by higher legal items, also helps explain why GAAP net income improved more than adjusted net income.

Cash-flow figures were reported for the first six months rather than Q2 alone. First-half operating cash flow was $133.1 million, compared with an operating cash outflow of $10.9 million a year earlier. Working-capital movements were material: unpaid claims added $97.6 million to operating cash flow, while accrued retrospective premiums used $65.7 million.

Cash, cash equivalents, and investments totaled $443.0 million at June 30, up from $389.3 million a year earlier. Cash and cash equivalents alone increased to $198.8 million from $78.3 million at the end of 2025.

Full-year 2026 guidance

Clover raised both ends of its revenue, consolidated gross profit, adjusted EBITDA, and GAAP net income ranges. For membership, it increased the lower end while leaving the upper end unchanged.

At the current midpoints, the company expects full-year revenue growth of 54%, consolidated gross profit growth of 52%, and average Medicare Advantage membership growth of 47%.

Raised guidance still points to lower second-half profitability

Clover generated $81.2 million of adjusted EBITDA and $55.3 million of GAAP net income during the first half. Compared with the updated full-year ranges, that implies second-half adjusted EBITDA of approximately negative $11.2 million to positive $3.8 million and a GAAP net loss of approximately $20.3 million to $35.3 million.

The revenue outlook implies second-half revenue of roughly $1.43 billion to $1.51 billion, close to the first half’s $1.49 billion. However, implied second-half consolidated gross profit is only about $212.5 million to $242.5 million, versus $312.5 million in the first half. The release did not provide a detailed bridge explaining this expected profitability compression, so investors should not assume that Q2’s earnings run rate will continue through year-end.

Management’s view

CEO Andrew Toy attributed Clover’s performance to its wide-network, full-risk Medicare Advantage model and continued deployment of the Clover Assistant platform. Management believes earlier clinical intervention and more personalized care can improve member outcomes and support long-term earnings.

Interim CFO Clay Thornton said cohort economics improved year over year during the first half, supporting the higher 2026 outlook. Management also linked its confidence entering 2027 to member cohort development, clinical engagement, and the additional flexibility associated with a 4.5 Star payment year.

Recent insider transactions

Reported insider data for the six months ended August 5, 2026 showed 1,957,240 shares purchased and 1,093,062 shares sold, resulting in net purchases of 864,178 shares. Total insider holdings were listed at approximately 22.67 million shares, with net purchases equal to 4.00% of holdings.

The latest 10 reported individual transactions were all direct sales between July 1 and July 20. The supplied data does not specify transaction-plan details, so the disclosures alone do not establish insiders’ views about Clover’s outlook.

Risks investors should monitor

• Second-half earnings pressure: The full-year guidance implies substantially lower profitability in the second half even after the company raised its annual outlook.
• Medical-cost sensitivity: The insurance BER improved by only 80 basis points and remained at 87.6%. A reversal could pressure gross profit as the membership base expands.
• Expense control: Adjusted SG&A grew 35.9%, general and administrative expenses increased to $70.3 million, and non-recurring legal costs also rose. Continued operating leverage depends on keeping these expenses below revenue growth.
• Working-capital effects on cash flow: First-half operating cash flow benefited materially from a $97.6 million increase in unpaid claims, meaning reported cash generation was not driven by net income alone.

Summary

Clover Health’s Q2 2026 results combined rapid Medicare Advantage membership growth with modestly better insurance cost performance and improved expense leverage, producing positive GAAP earnings and a higher full-year outlook. The central issue for the remainder of 2026 is whether Clover can manage medical costs and operating expenses as its guidance implies a sharp step-down in second-half profitability despite broadly similar first- and second-half revenue levels.