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Jun 30, 2025
Centene Q2 2025 Earnings Report
Centene reported higher revenue but a net loss in Q2 2025 due to increased medical costs and reduced Marketplace risk adjustment revenue.
Key Takeaways
Centene achieved significant revenue growth in Q2 2025 driven by PDP and Marketplace membership gains, but reported a net loss as rising medical costs and unfavorable risk adjustment changes pressured margins.
Revenue reached $48.7B, supported by strong PDP and Marketplace growth
Net loss of $253M primarily due to higher medical costs and risk adjustment changes
Health benefits ratio increased to 93.0%, reflecting elevated medical expenses
Operating cash flow was $1.8B, aided by improved pharmacy rebate remittance timing
Revenue by Segment
Forward Guidance
Centene plans to share full-year 2025 earnings expectations in its conference call, focusing on restoring profitability and adapting to market shifts.
Positive Outlook
- Strong Medicaid, Medicare, and Marketplace demand supports growth
- Platform strengthened to deliver value in government-sponsored programs
- PDP and Marketplace segments continue to drive revenue
- Improved cash flow from better pharmacy rebate timing
- SG&A ratio benefits from operating leverage
Challenges Ahead
- Higher medical and behavioral health costs weigh on margins
- Marketplace risk adjustment revenue estimate was reduced
- Increased Medicare Advantage premium deficiency reserve
- Medicaid membership decline due to redeterminations
Historical Earnings Impact
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Avg. Return Before/After Earnings
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