Slides
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Investor Presentation May 2025 LGTMs: Date: Peter K. LGTM 5.13.25 via Zoom Legal LGTM (PJR) 5.13.25 via Slack
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2 Disclaimer This presentation and the accompanying oral presentation include forward-looking statements, including, without limitation, statements regarding future events and Clover Health Investments, Corp.’s (“Clover Health,” “we,” “our,” or “us”) expectations regarding Adjusted EBITDA, Adjusted Net income from continuing operations, Adjusted SG&A, Adjusted SG&A as a percentage of revenue, Insurance BER (non-GAAP measures, as defined herein), targeted revenues, future unregulated pro forma liquidity and cash, future results of operations, financial condition, guidance, market size and opportunity, business strategy and plans and the factors affecting our performance and our objectives for future operations. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described under Item 1A. “Risk Factors” in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), filed with the SEC on March 3, 2025, as such risk factors may be updated in our subsequent filings with the SEC. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation and the accompanying oral presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Forward-looking statements are not guarantees of future performance and you are cautioned not to place undue reliance on such statements. The forward-looking statements included in this presentation and the accompanying oral presentation are made as of the date hereof. Except as required by law, Clover Health undertakes no obligation to update any of these forward-looking statements after the date hereof or to conform these statements to actual results or revised expectations. In addition to U.S. Generally Accepted Accounting Principles (“GAAP”) financial measures, this presentation includes certain non-GAAP financial measures including Adjusted EBITDA, Adjusted Net income from continuing operations, Adjusted SG&A and Insurance BER. These non-GAAP financial measures are provided to enhance the reader’s understanding of Clover Health’s past financial performance and our prospects for the future. Non-GAAP financial measures are supplemental to and should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of historical non-GAAP measures to historical GAAP measures is included in the Appendix of this presentation.
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3 1Q25 Results: Strong Start to FY25 Medicare Advantage Membership Up 30% YoY Total Revenues: $462 Million Up 33% YoY Adjusted EBITDA: $26 Million Up 279% YoY Adjusted Net Income: $25 Million Up 322% YoY Use of Non-GAAP Measures: Use of non-GAAP (Generally Accepted Accounting Principles) financial metrics, which should not be considered as a substitute for financial measures computed in accordance with GAAP. Please see Clover Health Investments, Corp.’s (“Clover Health,” the “Company,” “we,” “us” and “our”) first quarter 2025 earnings results, which includes our full results as well as reconciliations to comparable GAAP financial metrics, and which is available at investors.cloverhealth.com.
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4 Our Vision & Differentiated Approach Empower Every Physician with Technology to Identify, Manage & Treat Chronic Diseases Earlier Earlier Diagnosis & Treatment Earlier Disease Management Higher Quality Clinical Care Affordable & Accessible Care
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Care Platform: Clover Assistant is the Leader in Clinical AI Millions of clinical documents, collected & reconciled Synthesis of 100+ Data Sources Robust IP and patent portfolio(1) Insights from >100 Proprietary Models Surfacing relevant clinical suggestions at time of encounter Clinical Orientation, Dynamic Actions Claims Data PCP & Specialist Charts Pharmacy Data EHR Data Lab Data Evidence-Based Protocols Early Diagnosis & Treatment Patient-Specific Insights & Next Steps Care Gaps: Preventative + Chronic Care Medication Adherence Transitional Care & ADT Population Health Management Data Deduplication / Normalization Enriched Clinical Data Repository Post-Discharge Encounter Mappings Machine Learning (ML) Models for Diagnosis Suspecting (1) Including patents for Machine learning models for diagnosis suspecting and Prospective medication fillings management, among many more that can be found here. Empowering physicians to practice medicine using their clinical judgement 5
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Designed to improve quality of care Having Supported Clinical Decision-Making for Thousands of Practitioners 6 Novel clinical insights at point-of-care Enhanced care coordination 100+ AI / ML models powering treatment recommendations Captures & synthesizes data from 100+ sources powered by AI / ML Generating millions of clinically oriented and personalized insights
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Average Number in 2024 Clover Assistant Supports Better Clinical Outcomes Example: Congestive Heart Failure (“CHF”) 7 Clover Assistant PCP relationship associated with better clinical outcomes, including a 18% lower average number of all-cause hospitalizations and 25% reduction in 30-day readmissions for members with CHF(1) (25%) (18%) CA CHF Cohort Non-CA CHF Cohort Hospitalization & Readmissions for CHF Patients Note: Case study outlines how CA supports provider management of patients with Congestive Heart Failure (CHF) in the Clover Health MA plans, and its association with improved clinical care and outcomes in 2024. (1) “Driving Clinical Excellence in Chronic Disease: Counterpart Assistant's Role in Heart Failure Care” www.counterparthealth.com/results
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Rank Quality: Clover Leads the Nation on HEDIS Measures(1) 8 (1) Clover Health’s Medicare Advantage PPO plans received a score of 4.94 on HEDIS for the Plan Year 2025, Payment Year 2026 Star ratings. For plans with over 2,000 members, Clover’s PPO received the highest score in the entire country on core HEDIS measures. The Company achieved an overall 4.0 Star Rating for financial Payment Year 2026 for its PPO plans. (2) Including plans with publicly available reported data on at least 10 HEDIS measures. (3) Combined HEDIS rates alone are not an official CMS domain score. Calculations for overall number use MY23 HEDIS measure rates and assigned measure Star and weight. Data and Methodology. Represents weighted average of HEDIS Weighted Raw Score across all PPO/HMO plans under parent company of public peers. Plan(2) Contract Plan Type HEDIS Weighted Raw Score Life-Weighted Average HEDIS Raw Score(3) Clover Health rated 4.94 / 5 Stars on HEDIS Measures for Star Rating Year 2025(1) Top 10 HEDIS-Scoring Plans
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Longitudinal care to most at-risk; via CA-powered Physician-led pods Clover’s Approach Clinical, physician enablement, AI-Powered technology Earlier disease identification & management & subsequent care treatment Not focused on Risk Delegation Wide network PPO; Focused on affordability / accessibility Home Care Technology Differentiated, Tech-Centric Model Focused on Improving Clinical Care Outcomes via Software 9 Risk Delegation / Capitation Care Strategy (1) Represents first quarter 2025 Insurance BER ratio for Clover Health, as well as most recent results of other public companies with “Traditional MA Plan” approaches that have reported results as of the time of this slide deck publication. Insurance Benefits expense ratio (“BER”) is a non-GAAP financial measure. We calculate our Insurance BER by taking the total of Insurance net medical expenses incurred and quality improvements, and dividing that total by premiums earned on a net basis, in a given period. Please refer to Non-GAAP Financial Measures provided in Appendix A in the May 6, 2025 earnings press release for a reconciliation of BER to Insurance Net medical claims incurred, net, the most directly comparable GAAP measure. Network Construct Outsourced one-time visits; Primarily rely on nurses & nursing assistants Traditional MA Approaches InsurTech, back-office & administrative Delayed / reactive healthcare, and/or downstream risk delegation Large focus / reliance Majority HMO approach; Narrow choice 1Q25 Performance(1) Mid to high 80% loss ratios; with industry average MA membership growth +4% YoY BER of 86.1% with MA membership growth +30% YoY
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10 Average Medicare Advantage Membership(1) (1) Average Medicare Advantage (MA) Membership as of the the first quarter 2024 and 2025, and the expected year ended 2025 at the midpoint of our guidance. (2) Clover Health cohort information represents incurred membership data from dates of service including 2021 through 2024. Within any given performance year, MCR differential represents the member weighted average difference between Year 2 and Year 1 cohorts, as well as Year 3 and Year 1 cohort differentials. Average MCR Differential by Cohort Year(2) +29% Positioned to Succeed +30% YoY Robust new member growth via MA switchers & core market focus, coupled with compelling cohort management, establishes foundation for long-term Medicare Advantage success
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New Revenue Opportunity: Counterpart Health Brings Clover’s Care Model to More Plans & Providers (1) For returning Clover MA members whose PCPs use CA as compared to those whose PCPs do not. Focused on increasing total lives covered by Counterpart via strong product market fit with compelling pipeline Complementary offering to growth & profitability beyond Clover’s core MA markets Health outcomes improved via earlier identification, management, & treatment of disease More clinicians empowered with AI-powered proven technology New SaaS & Tech-Enabled Services revenue streams with low startup costs Improving Clinical Quality Improving MCR by 1,000+ bps(1) 11
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Our Opportunity
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Balance Profitability & Reinvestments Maintain strong Adjusted EBITDA(1) profitability, with strategic investments in growth, Clover Assistant technology & reach, and Home Care services Membership & Revenue Growth Take advantage of MA market opportunity & strong member retention Ongoing Operational & Clinical AI Initiatives Beyond CA, using AI to boost efficiency & increase operating leverage company-wide Our Focus for 2025 Counterpart Health Expansion Equip more clinicians, in more markets, with CA technology (1) Adjusted EBITDA is a non-GAAP financial measure. Please refer to Non-GAAP Financial Measures provided in the Appendix for a reconciliation of Adjusted EBITDA to Net Loss from continuing operations, the most directly comparable GAAP measure. 2025 Guidance is based on guidance provided in the Company’s May 6, 2025 earnings press release. (2) Clover Health is currently paid on 3.5 Stars for Payment Year 2024 and 2025. Clover Health will be paid on 4.0 Stars for its flagship PPO plans in Payment Year 2026. The Company achieved a 4.0 Star Rating for Payment Year 2026 for its PPO plans. 13 Better Clinical Quality & Outcomes Maintain 4 Stars(2) and increase beneficiaries receiving CA powered care
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Positioned for strong membership growth 4.0 Star payment year(3) Compounding favorable impact from the CMS final rate notice Continued improvement to member cohort economics & management Ongoing cost efficiency initiatives (1) Adjusted EBITDA and Adjusted Net income from continuing operations are non-GAAP financial measures. Please refer to Non-GAAP Financial Measures provided in the Appendix for a reconciliation of Adjusted EBITDA to Net loss from continuing operations, and Adjusted Net income from continuing operations to Net income from continuing operations, the most directly comparable GAAP measures. As outlined in the Company’s May 6, 2025 press release, Clover Health does not provide a reconciliation of the forward-looking Adjusted EBITDA, Adjusted Net income, and Insurance BER guidance to the most directly comparable GAAP measure, as this cannot be reasonably calculated or predicted at this time without unreasonable efforts. Clover Health's 2025 Financial Guidance constitutes forward-looking statements and is subject to the risks and uncertainties described in the Company's May 6, 2025 press release and under Item 1A. “Risk Factors” in the Company's most recent Annual Report on Form 10-K filed with the SEC. Improved 2025 Guidance is based on guidance provided in the Company’s May 6, 2025 earnings press release. (2) Average Medicare Advantage (MA) Membership as of the year ended 2024 and the expected year ended 2025 at the midpoint of our full year 2025 guidance, as provided in the Company’s May 6, 2025 earnings press release. (3) Clover Health achieved a 4.0 Star Rating for Payment Year 2026 for its PPO plans. ~97% of members in PPO Plans during 1Q25. MA membership +30% YoY(2) Insurance Revenue $1.8B - $1.875B Adj. EBITDA $50M - $70M Adj. Net Income $50M - $70M Insurance BER 87% - 88% 14 Clover’s Next Phase: Continued Growth Improved 2025 Guidance(1) 2026 Tailwinds Balancing Growth & Profitability Poised for Accelerated Profitability $ $
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15 Our Technology-Driven Approach is Working 2 1 34 5 Grow Membership & Clover Assistant Usage Deliver Better AI Driven Clinical Recommendations Improve Health Outcomes & Quality of Life Reduce the Total Cost of Care Reinvest in Member Benefits
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Appendix
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Well-Rounded Management Team of Technology Experts & Seasoned Managed Care Professionals Vivek Garipalli Executive Chairman ______________________________________________________________________________________________ >20 years of healthcare & financial leadership Andrew Toy Chief Executive Officer __________________________________________________________________________________________________________________________________ >20 years of technology & healthcare leadership Peter Kuipers Chief Financial Officer _____________________________________________________________________________ >25 years of financial & technology leadership Jamie Reynoso Divisional CEO of Medicare Advantage _____________________________________________________________________________ >30 years of healthcare leadership Brady Priest Divisional CEO of Home Care _____________________________________________________________________________ >20 years in industry Aric Sharp Divisional CEO of Value Based Care _____________________________________________________________________________ >25 years in industry Conrad Wai CEO of Counterpart Health _____________________________________________________________________________ >15 years of technology experience Rachel Fish Chief People Officer _____________________________________________________________________________ >15 years in industry Wendy Richey Chief Compliance Officer _____________________________________________________________________________ >40 years in industry Karen Soares General Counsel _____________________________________________________________________________ >20 years of legal experience Theresa Mirell SVP, Business Enablement _____________________________________________________________________________ >15 years in industry 17
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Loss Ratio Impact from Strong Returning Member Cohort Economics Management Volume Impact to Growth / Variable SG&A from +30% New Member Growth 18 Full Year 2025 Profitability Drivers: Adjusted EBITDA(1) (1) Adjusted EBITDA is a non-GAAP financial measures. We define Adjusted EBITDA as net loss from continuing operations before depreciation and amortization, interest expense, change in fair value of warrants, loss on investment, stock-based compensation, premium deficiency reserve benefit, restructuring costs, impairment of goodwill and other intangible assets, and non-recurring legal expenses and settlements. Please refer to the Appendix for a reconciliation of historical Adjusted EBITDA to Net Income (Loss) from continuing operations, the most directly comparable GAAP measure. As outlined in the Company’s May 6, 2025 press release, Clover Health does not provide a reconciliation of forward-looking Adjusted EBITDA guidance to the most directly comparable GAAP measure, as this cannot be reasonably calculated or predicted at this time without unreasonable efforts. Clover Health's 2025 Financial Guidance, including Projected Adjusted EBITDA, constitutes forward-looking statements and is subject to the risks and uncertainties described in the Company's May 6, 2025 press release and under Item 1A. “Risk Factors” in the Company's most recent Annual Report on Form 10-K filed with the SEC. FY24 Adj. EBITDA(1) Results Illustrative – Not to Scale $70M FY25 Adj. EBITDA(1) Guidance $50M - $70M Non-Recurring Favorable PPD Affecting FY24 Strategic Quality / Clover Assistant Investments Fixed / Growth / Variable SG&A Optimization via Cost Efficiency Program Loss Ratio Cohort Economics Impact from +30% New Member Growth Gross Profit Impact SG&A Impact
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Note: Kidney Function measured via GFR (Glomerular Filtration Rate). (1) “Clover Assistant Use and Diagnosis and Progression of Chronic Kidney Disease” www.cloverhealth.com/clinicalcare/ckd Earlier Diagnosis Leads to Earlier Treatment Example: Chronic Kidney Disease ~1.5 years CA Patients Non-CA Patients Diagnosed CKD Stage 3 Diagnosed CKD Stage 3 Time (Years) CKD is diagnosed earlier and disease trajectory improves in patients seen by providers using Clover Assistant(1) Kidney Function (GFR) 19
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Note: This slide reflects our examination of data from Clover Health members who had no previously recorded diagnosis of diabetes, were flagged by the ‘at-risk’ algorithm in Clover Assistant, and where the clinician had a visit informed by Clover Assistant data (2018 - 2022) and the clinician confirmed diabetes. (1) Represents percentage (%) of pre-existing diagnoses similar in the two groups. (2) “Clover Assistant Use and Diagnosis, Treatment, and Progression of Diabetes” www.cloverhealth.com/clinicalcare/diabetes Days Since Clover Assistant Visit Members Newly Diagnosed with Diabetes (1) Earlier Diagnosis Leads to Earlier Treatment Example: Diabetes Patients started on oral diabetic medications after Clover Assistant raised potential diabetes diagnosis for physician consideration(2) Diabetes Medication Fills 20
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Earlier Diabetes Treatment Leads to: Note: This slide reflects our examination of data from Clover Health members who had no previously recorded diagnosis of diabetes, were flagged by the ‘at-risk’ algorithm in Clover Assistant, and where the clinician had a visit informed by Clover Assistant data (2018 - 2022) and the clinician confirmed diabetes. (1) “Clover Assistant Use and Diagnosis, Treatment, and Progression of Diabetes” www.cloverhealth.com/clinicalcare/diabetes Lower Use of Insulin(1) Lower Instances of Hypoglycemia(1) Oral Meds Started Oral Meds Started Non-CA Patients CA Patients Time (Years) Blood Sugar Indicator (HbA1c) Non-CA Patients CA Patients Percentage Taking Insulin Days Since Oral Meds Started Non-CA Patients CA Patients Percentage with Hypoglycemia Event Days Since Oral Meds Started 21 Diabetes Diagnosed & Managed ~3 Years Earlier(1)
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Medication fills increased by ~5% on the day of the Clover Assistant visit and remained ~3% higher 90 days post-visit among patients previously non-adherent to their medications for diabetes, high blood pressure, and high cholesterol(1) Days Since Visit Note: Analyses examined data from Clover Health Medicare Advantage plan members from 2018, 2019, 2022, and 2023. We intentionally excluded data from 2020 and 2021 to minimize the impact of the COVID-19 pandemic’s disruption of the healthcare system, including medication-related behaviors. (1) “Clover Assistant Use and Medication Adherence for Common Chronic Conditions” www.cloverhealth.com/clinicalcare/medadherence Percent with Medication Fill Clover Assistant Correlated with Improved Medication Adherence CA with Medication Adherence Feature CA without Medication Adherence Feature 22
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Clover Home Care Cohort has Significantly Improved MCR from 2021 to 2024(1) Care Platform: Differentiated Home Care at Critical Moments Higher Disease Acuity Lower Disease Acuity Clover Assistant Powered Network PCPs Care Intensity (1) Our data shows that since 2021, MCRs for members enrolled in our In-Home Care program (highest acuity population) have decreased over a 3 year period. Longitudinal, MD-led, primary care in the home for highest acuity population Readmission prevention and post-acute Assessment visits for unknown / emerging risk Clover Home Care 23
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24 (1) “Clover Assistant Use and Diagnosis and Progression of Chronic Kidney Disease” www.cloverhealth.com/clinicalcare/ckd; “Clover Assistant Use and Diagnosis, Treatment, and Progression of Diabetes” www.cloverhealth.com/clinicalcare/diabetes; “Clover Assistant Use and Medication Adherence for Common Chronic Conditions” www.cloverhealth.com/clinicalcare/medadherence; “Driving Clinical Excellence in Chronic Disease: Counterpart Assistant’s Role in Heart Failure Care” https://cdn.counterparthealth.com/whitepapers/2025_05_chf_whitepaper.pdf (2) Clover Health’s Medicare Advantage PPO plans received a score of 4.94 on HEDIS for the Plan Year 2025, Payment Year 2026 Star ratings. For plans with over 2,000 members, Clover’s PPO received the highest score in the entire country on core HEDIS measures. The Company achieved an overall 4.0 Star Rating for financial Payment Year 2026 for its PPO plans. A Different Approach to Empowering Accessible & Affordable Healthcare Technology-Centric Care Platform Better Chronic Disease Management Built for an aging population & the future of Medicare, we enable value-based outcomes for fee-for-service physicians Physician enablement technology, powered by AI Longitudinal care for highest risk via Clover Assistant powered, MD-led teams Clinical outcomes improved, reducing total cost of care, nation-leading HEDIS measures(2) Better care for chronic diseases. Demonstrated by CA white papers on CHF, CKD, Diabetes, and Medication Adherence(1)
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25 Non-GAAP Financial Measures (1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these non-GAAP measures, see Appendix A in the accompanying earnings press release. CLOVER HEALTH INVESTMENTS, CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED SG&A (NON-GAAP) RECONCILIATION (in thousands)(1) (unaudited)
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26 Non-GAAP Financial Measures (continued) (1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these non-GAAP measures, see Appendix A in the accompanying earnings press release. CLOVER HEALTH INVESTMENTS, CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA (NON-GAAP) RECONCILIATION (in thousands)(1) (unaudited)
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27 Non-GAAP Financial Measures (continued) (1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these non-GAAP measures, see Appendix A in the accompanying earnings press release. CLOVER HEALTH INVESTMENTS, CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED NET INCOME FROM CONTINUING OPERATIONS (NON-GAAP) RECONCILIATION (in thousands)(1) (unaudited)
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28(1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these non-GAAP measures, see Appendix A in the accompanying earnings press release. CLOVER HEALTH INVESTMENTS, CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INSURANCE BENEFITS EXPENSE RATIO (NON-GAAP) RECONCILIATION (in thousands)(1) (unaudited) Non-GAAP Financial Measures (continued)
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29 About Non-GAAP Financial Measures We use non-GAAP measures in this presentation, including Adjusted EBITDA, Adjusted Net income from continuing operations, Adjusted SG&A, and Insurance BER. These non-GAAP financial measures are provided to enhance the reader’s understanding of Clover Health’s past financial performance and our prospects for the future. Clover Health’s management team uses these non-GAAP financial measures in assessing Clover Health’s performance, as well as in planning and forecasting future periods. These non-GAAP financial measures are not computed according to GAAP, and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental to and should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Readers are encouraged to review the reconciliations of these non-GAAP financial measures to the comparable GAAP measures, which are included in the Appendix of this presentation, together with other important financial information included in our filings with the SEC and on the Investor Relations page of our website at investors.cloverhealth.com. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see Appendix A in the accompanying earnings press release: "Explanation of Non-GAAP Financial Measures."