Clover Health Corp (CLOV) shares tumbled 12.28% in pre-market trading on Wednesday, following the release of its second-quarter 2025 financial results. The significant drop came despite the company beating revenue expectations, as ongoing losses and a lack of substantial improvement in profitability disappointed investors.
For the quarter ended June 30, Clover Health reported revenue of $478 million, surpassing the analyst estimate of $468.3 million and representing a 34.1% increase from the same quarter last year. The company also posted an adjusted EBITDA of $17 million, slightly above the expected $16.3 million. However, the health insurer recorded a net loss of $11 million for the quarter, which likely contributed to the sharp stock decline. On a per-share basis, the company reported a loss of 2 cents, which was better than the analysts' expectations of a 3-cent loss but still in negative territory.
Despite the mixed results, Clover Health maintained its full-year 2025 insurance revenue guidance between $1.800 billion and $1.875 billion. This consistency in outlook, however, failed to assuage investor concerns about the company's path to profitability. The significant pre-market drop suggests that market participants were hoping for more robust signs of financial improvement, particularly in terms of bottom-line performance. As Clover Health continues to navigate the competitive healthcare landscape, investors appear to be growing impatient with the company's progress towards sustainable profitability.