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NeueHealth First Quarter 2025 - Earnings Presentation Privileged & Confidential | © 2024 May 8, 2025
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Disclaimer Statements made in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies, as well as statements regarding timing, completion, and effects of the transaction contemplated by the Agreement and Plan of Merger (the “Merger Agreement”) with NH Holdings 2025, Inc. (“Parent”), pursuant to which, if all applicable conditions are satisfied or waived, the Company will become a wholly owned subsidiary of Parent (the “Transaction”). These statements often include words such as “anticipate,” “expect,” “plan,” “believe,” “intend,” “project,” “forecast,” “estimates,” “projections,” “outlook,” “ensure,” and other similar expressions. These forward-looking statements include any statements regarding our plans and expectations. Such forward-looking statements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Factors that might materially affect such forward-looking statements include: our ability to continue as a going concern; the failure to complete the Transaction on the anticipated terms and within the anticipated timeframe, including as a result of failure to obtain required stockholder or regulatory approvals or to satisfy other closing conditions; potential litigation relating to the Transaction that could be instituted against NEA, the Company or their respective affiliates, directors, managers, officers or employees, and the effects of any outcomes related thereto; potential adverse reactions or changes to our business relationships or operating results resulting from the announcement, pendency or completion of the Transaction; the risk that our stock price may decline significantly if the Transaction is not consummated; certain restrictions during the pendency of the Transaction that may impact our ability to pursue certain business opportunities or strategic transactions; costs associated with the Transaction, which may be significant; the occurrence of events, changes or other circumstances that could give rise to the termination of the Merger Agreement, including in circumstances requiring us to pay a termination fee; our ability to continue as a going concern; expectations and outcomes related to the NEA Merger Agreement; our ability to comply with the terms of our credit facility or any credit facility into which we enter in the future; our ability to receive the remaining proceeds from the sale of our Medicare Advantage (“MA”) business in California in a timely manner; our ability to obtain any short or long term debt or equity financing needed to operate our business; our ability to quickly and efficiently complete the wind down of our remaining Individual and Family Plan (“IFP”) businesses and MA businesses outside of California, including by satisfying liabilities of those businesses when due and payable; potential disruptions to our business due to the Transaction or corporate restructuring and any resulting headcount reduction; our ability to accurately estimate and effectively manage the costs relating to changes in our business offerings and models; a delay or inability to withdraw regulated capital from our subsidiaries; a lack of acceptance or slow adoption of our business model; our ability to retain existing consumers and expand consumer enrollment; our and our Care Partner’s abilities to obtain and accurately assess, code, and report risk adjustment factor scores; our ability to contract with care providers and arrange for the provision of quality care; our ability to accurately estimate medical expenses; our ability to obtain claims information timely and accurately; the impact of any pandemic or epidemic on our business and results of operations; the risks associated with our reliance on third-party providers to operate our business; the impact of modifications or changes to the U.S. health insurance markets; the impact of changes to federal funding for government healthcare programs; our ability to manage any growth of our business; our ability to operate, update or implement our technology platform and other information technology systems; our ability to retain key executives; our ability to successfully pursue acquisitions and integrate acquired businesses and divest businesses as needed; the occurrence of severe weather events, catastrophic health events, natural or man-made disasters, and social and political conditions or civil unrest; our ability to prevent and contain data security incidents and the impact of data security incidents on our members, patients, employees and financial results; our ability to comply with requirements to maintain effective internal controls; the outcome of threatened or pending litigation and risks of future legal disputes; the impacts resulting from new (or change to existing) laws, regulations and executive actions; our ability to mitigate risks associated with our ACO REACH and related businesses, including any unanticipated market or regulatory developments; and the other factors set forth under the heading “Risk Factors” in the Company’s reports on Form 10-K, Form 10-Q, and Form 8-K (including all amendments to those reports) and our other filings with the SEC. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or changes in our expectations. 2
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Comprehensive community-based care delivery with wrap around care management and care coordination NeueCare NeueHealth: A Value-Driven Healthcare Company 3 NeueHealth Value-driven care delivery and provider enablement business partnering with leading health plans, government programs, and medical groups to deliver high-quality, affordable care to all consumers Provider enablement tools and services and REACH ACOs and MSSP NeueSolutions Driving Value in Healthcare for All We believe that all health consumers are entitled to high-quality, coordinated healthcare. By uniquely aligning the interests of health consumers, providers, and payors, we are making high-quality healthcare accessible and affordable to all populations across the ACA Marketplace, Medicare, and Medicaid.
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Overview of Q1 2025 Results Strong Results Through Q1 Position NeueHealth to Drive Long-Term, Sustainable Growth in 2025 and Beyond 4 Revenue Adjusted EBITDA(2) Enterprise Metrics ($M) Key Considerations (1) GAAP Operating Cost Ratio for Q1’25 was 22.6%, and for Q1’24 was 27.2%. A reconciliation of Adjusted Operating Cost Ratio to Operating Costs for applicable periods is contained in the appendix to this presentation (2) GAAP Net Loss for Q1’25 was ($10.8) million and GAAP Net Loss for Q1‘24 was ($4.2) million. A reconciliation of Adjusted EBITDA to Net Loss for applicable periods is contained in the appendix to this presentation Gross Margin Adj. Operating Cost Ratio(1) • Q1 ‘25 Revenue of $215.8 million, in-line with expectations • Q1 ‘25 Gross Margin improvement over Q1 ’24, primarily due to focused business driving long-term, profitable growth • NeueHealth Adjusted EBITDA of $13.5 million for Q1 ’25 represents fifth consecutive quarter of Adjusted EBITDA profitability, setting a solid foundation for continued growth and success
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Balance Sheet and Liquidity Highlights 5 • $239.4 million in total cash and investments, including $94.3 million in our regulated entities. • Non-regulated cash and short-term investments were $145.1 million at the end of the first quarter, including $31.8 million of restricted cash and investments. Summary Balance Sheet Q1’25 Key Considerations March 31, March 31, ($ in thousands) 2025 2024 Assets Cash and Cash Equivalents $138,101 $83,295 Current Assets of Discontinued Operations 94,467 173,006 Other Current Assets 555,638 178,347 Total Current Assets $788,206 $434,648 Property, equipment and capitalized software, net 11,108 11,240 Intangibles Assets, Net 68,576 71,064 Other Non-Current Assets 27,790 27,431 Total Other Assets 107,474 109,735 Total Assets $895,680 $544,383 Liabilities and Other Current Liabilities Discontinued Operations $335,181 $344,651 Total Liabilities Continuing Operations 953,471 585,840 Redeemable Noncontrolling Interests 47,769 48,580 Redeemable Preferred Stock 920,417 920,417 Total Shareholders' (Deficit) Equity (1,361,158) (1,355,105) Total Liabilities and Other $895,680 $544,383
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Appendix
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Non-GAAP Reconciliation: Adjusted EBITDA 7 ($ in thousands) Three Months Ended March 31, 2025 March 31, 2024 Net Loss $ (10,848) $ (4,177) Loss from discontinued operations 9,410 9,865 EBITDA adjustments from continuing operations Interest expense 6,637 2,930 Income tax expense 111 663 Depreciation and amortization 3,559 4,067 Transaction costs 1,614 1,121 Share-based and other long-term incentive compensation expense 5,644 18,627 Gain on troubled debt restructuring — (30,311) Change in fair value of warrant liability (2,649) (2,072) Restructuring and contract termination costs — (58) Held-for-sale operations — 1,623 ACO REACH care partner bankruptcy — 1,248 Impairment of goodwill and long-lived assets — 131 EBITDA adjustments from continuing operations $ 14,916 $ (2,031) Adjusted EBITDA – continuing operations $ 13,478 $ 3,657
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Non-GAAP Reconciliation: Adjusted Operating Cost Ratio 8 ($ in thousands) Three Months Ended March 31, 2025 March 31, 2024 GAAP Operating Cost Ratio 22.6% 27.2% Impact of share-based and other long-term incentive compensation expense (2.6)% (7.6)% Impact of held-for-sale operations 0.0% (2.4)% Impact of transaction related costs (0.7)% (0.5)% Adjusted Operating Cost Ratio 19.3% 16.7%