Clover Health Investments, Corp. (CLOV)

Price$4.26Cached quoteAs of 2026-09-05 00:39 UTC

AI: Fair-priced

Price checkThe valuation already assumes continued growth and a meaningful second step-up in profitability.

At about $2.28 billion of equity value, Clover trades near 0.8 times the midpoint of 2026 revenue guidance, but current earnings make the stock look much fuller: the equity value is roughly 29 times midpoint Adjusted EBITDA and more than 80 times midpoint GAAP net income. Those are demanding levels for a regulated insurer with thin margins, even after strong growth. The gap says investors are paying for 2027 margin expansion rather than just 2026 results, making the valuation reasonable but not obviously cheap.

Big pictureGrowth is exceptional, but Medicare Advantage seasonality makes first-half profit look stronger than full-year economics.

Clover Health Investments, Corp. is listed on Nasdaq under CLOV and is primarily a Medicare Advantage insurer powered by Clover Assistant. Second-quarter revenue grew 56% year over year, average membership rose about 49%, and the company produced GAAP profit. Yet first-half net income already exceeded the full-year guidance range because medical costs typically build later in the year. That seasonal pattern is normal for the model, so annual margins matter more than first-half headline profit.

Business strengthCash is solid, borrowings are absent from the balance sheet, and operating leverage is becoming visible.

At June 30, Clover reported $443 million of consolidated cash, cash equivalents, and investments, with no separate borrowing balance on the balance sheet. Only $128.5 million sat at the parent and unregulated subsidiaries, so not all liquidity is freely deployable. First-half operating cash flow was $133.1 million, although a $97.6 million increase in unpaid claims helped that cash result. No common-stock repurchases occurred in the first half, while reported Class A and Class B shares outstanding increased by roughly 2% from year-end, keeping dilution relevant.

What could change the storyThe bull case needs mature cohorts and Star benefits; the bear case is cost pressure and dilution.

Bull case: the 2025 and 2026 member cohorts keep improving, the 4.5-Star payment year adds room for better benefits or margins, and Counterpart begins contributing externally, pushing 2027 earnings well above 2026. Bear case: medical utilization or drug costs rise faster than premiums, Star-rating litigation or regulation reduces expected economics, growth slows before fixed costs are absorbed, and stock compensation keeps expanding the share count. With the current valuation, merely meeting 2026 guidance is probably not enough; visible 2027 margin expansion is the key swing factor.

AI: News

Guidance raised after Q2Strong second-quarter growth led management to lift every major 2026 financial guidance range.

On August 5, Clover reported second-quarter net income of $28 million, revenue of $743 million, and 157,309 Medicare Advantage members. Management raised 2026 guidance to $2.92-$3.00 billion of revenue, $70-$85 million of Adjusted EBITDA, and $20-$35 million of GAAP net income. The update confirms strong execution, but the company still expects normal second-half Medicare Advantage seasonality, so the full-year profit range remains below first-half net income.

Cohort economics quantifiedManagement disclosed stronger economics for mature members and a large remaining cohort-maturation runway.

On August 20, management said year-three members generate about $155 per member per month more insurance gross profit than year-one members, while Clover Assistant-managed year-three members show an MCR roughly 18% better than the non-Clover-Assistant group. MCR means medical-cost ratio: the share of premiums consumed by medical costs. The company also said roughly 49% of membership remains in years one and two, supporting its 2027 margin-expansion thesis.

Cyber incident and lawsuitsA July cyber intrusion was contained, but related class-action litigation followed within weeks.

On July 17, Clover disclosed that social engineering gave an attacker access to three non-managerial employee accounts with some personal and protected health information, but not corporate financial or claims systems. The company said it did not expect a material business impact. Its August 10-Q later disclosed four putative class actions filed July 22-24 over the incident; Clover said the potential loss could not yet be reasonably estimated.

Star ratings improve, appeal continuesCMS recalculations lifted both major contracts to 4.5 Stars, while the legal dispute remains active.

On June 18, Clover said CMS's recalculation showed both its PPO and HMO Medicare Advantage contracts at 4.5 Stars for the 2027 payment year, improving potential quality-bonus economics and bid flexibility. Clover's August 10-Q also disclosed that CMS appealed the underlying district-court ruling on July 21. Management continues to operate on the 4.5-Star payment basis while defending its position, so the rating is a real financial tailwind with an unresolved legal overlay.

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Revenue

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2021

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2024

2025

Net income

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Free cash flow

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Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$1.92B	$1.37B	$1.26B	$1.10B	$1.47B	$672.9M	$462.3M
Gross profit	$355.9M	$364.8M	$257.3M	$22.7M	−$79.2M	—	—
Gross margin	18.50%	26.61%	20.41%	2.07%	−5.38%	—	—
Operating expenses	$2.01B	$1.42B	$1.47B	$1.38B	$2.11B	$765.6M	$645.5M
Operating income	−$85.5M	−$45.7M	−$205.3M	−$286.7M	−$637.0M	−$92.7M	−$183.2M
Operating margin	−4.44%	−3.34%	−16.29%	−26.14%	−43.27%	−13.78%	−39.63%
EBITDA	−$83.8M	−$44.4M	−$202.8M	−$285.5M	−$636.8M	−$92.2M	−$182.6M
EBITDA margin	−4.36%	−3.24%	−16.09%	−26.03%	−43.26%	−13.69%	−39.51%
Net income	−$85.5M	−$43.0M	−$213.4M	−$339.6M	−$587.8M	−$136.4M	−$363.7M
Net profit margin	−4.45%	−3.14%	−16.93%	−30.97%	−39.93%	−20.27%	−78.69%
Basic EPSper basic share	-$0.17	-$0.08	-$0.44	-$0.71	-$1.42	-$1.54	-$4.14
Diluted EPSper diluted share	-$0.17	-$0.08	-$0.44	-$0.71	-$1.42	-$1.54	-$4.14

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of CLOV
Holder	Shares held
BlackRock, Inc.	35.11M
VANGUARD CAPITAL MANAGEMENT LLC	18.04M
GEODE CAPITAL MANAGEMENT, LLC	10.85M
STATE STREET CORP	10.18M
Toy Andrew	9.92M
Nuveen, LLC	6.29M
Kuipers Peter J.	5.76M
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	5.52M
VANGUARD PORTFOLIO MANAGEMENT LLC	4.47M
NORTHERN TRUST CORP	3.77M
PNC Financial Services Group, Inc.	3.56M
DIMENSIONAL FUND ADVISORS LP	3.15M
VANGUARD FIDUCIARY TRUST CO	2.92M
Reynoso Jamie L.	2.84M
RENAISSANCE TECHNOLOGIES LLC	2.81M
Wai Conrad	2.56M
MORGAN STANLEY	2.29M
CITADEL ADVISORS LLC	2.16M
Sharp Aric R	2.1M
Priest Brady Patrick	2.04M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys5$2.07M disclosed value

Sells (SEC code S)27$4.28M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 17, 2026Form 4 · 10b5-1	Reynoso Jamie L.CEO, Medicare Advantage	SellClass A Common Stock	2.4K	$4.78	$11.3K	2.84M
Jun 16, 2026Form 4 · 10b5-1	OLDAKOWSKI JOSEPH FRANKVP OF FINANCE AND CONTROLLER	SellClass A Common Stock	12.1K	$4.86	$58.8K	299.1K
Jun 15, 2026Form 4 · 10b5-1	Reynoso Jamie L.CEO, Medicare Advantage	SellClass A Common Stock	6.3K	$4.61	$29.3K	2.84M
Jun 15, 2026Form 4 · 10b5-1	Soares KarenChief Legal Officer	SellClass A Common Stock	4.7K	$4.61	$21.6K	1.57M
Jun 11, 2026Form 4 · 10b5-1	Reynoso Jamie L.CEO, Medicare Advantage	SellClass A Common Stock	7.3K	$4.91	$35.8K	2.85M