Clover Health Nears Underwriting Breakeven Amid Reserve Scrutiny
Clover Health's combined ratio improved from 110.1% in 2025Q4 to 99.2% in 2026Q3, and net income turned positive at $27.3M in 2026Q1 and $28.0M in 2026Q2, suggesting the company is approaching underwriting breakeven as premium volume expands with revenue of $759.3M in 2026Q3.
Clover Health demonstrates robust membership and revenue growth, turning GAAP profitable with improving cohort economics and operating leverage. CLOV maintains a Strong Buy rating, supported by raised 2026 guidance, a confirmed 5-star PPO rating, and a compelling risk-reward profile versus sector peers. Valuation remains attractive at a significant discount to sector medians on forward EV/sales and price-to-sales, despite rapid adjusted EBITDA growth and maturing cohorts.
Clover Health Investments NASDAQ: CLOV raised the lower end of its 2026 financial guidance after reporting a third-quarter profit, and said it expects to achieve its first full year of GAAP net income profitability.
Business Highlights: Strong third quarter performance brings year-to-date GAAP Net Income to $62 million alongside 49% year-over-year Medicare Advantage membership growth Improved Full Year 2026 guidance across all metrics 2027 AEP tracking well, with significant growth due to strong product positioning in core markets Clover's flagship PPO, representing ~98% of current membership, received a 5 Star rating for Payment Year 2028 Financial Results: Third quarter 2026 GAAP Net Income of $6 million, an improvement of $31 million year-over-year Third quarter 2026 Medicare Advantage membership of 158,907, up 45% year-over-year, and Total revenues of $759 million, up 53% year-over-year Third quarter 2026 Consolidated Gross Profit of $130 million, up 77% year-over-year, and Adjusted EBITDA of $16 million, up $14 million year-over-year Improved Full Year 2026 Guidance: Average Medicare Advantage membership of 157,000 - 158,000, representing 47% growth year-over-year at the midpoint Total revenues between $2.97 billion and $3.00 billion, representing 55% growth year-over-year at the midpoint GAAP Net Income between $25 million and $35 million Consolidated Gross Profit between $540 million and $555 million, representing 54% growth year-over-year at the midpoint Adjusted EBITDA profitability between $75 million and $85 million WILMINGTON, Del., Nov. 04, 2026 (GLOBE NEWSWIRE) -- Clover Health Investments, Corp. (Nasdaq: CLOV) (“Clover,” “Clover Health” or the “Company”), today reported financial results for the third quarter 2026.
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Peers Comparison
Key metrics vs top competitors for Clover Health Investments, Corp. (CLOV)
How fast is Clover Health Investments, Corp. growing?
Clover Health Investments, Corp. (CLOV) grew revenue by 54.5% over the trailing twelve months, compared with the twelve months before.
Is CLOV profitable?
Yes. Clover Health Investments, Corp. (CLOV) earned $12.4M in net income over the trailing twelve months (a 0.5% net margin).
Dividend & Returns
What is CLOV's return on equity?
Clover Health Investments, Corp. (CLOV) had a return on equity (ROE) of 3.5% over the trailing twelve months. That is below the market's typical 10-15%.
Industry Metrics
What is Clover Health Investments, Corp.'s combined ratio?
Clover Health Investments, Corp. (CLOV) has a combined ratio of 104.4%. A ratio above 100% means claims and expenses exceed premiums.
