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Jun 30
Molina Q2 2025 Earnings Report
Molina Healthcare, Inc. reported its second quarter 2025 earnings, showing a decrease in GAAP and adjusted earnings per diluted share compared to the previous year, while total revenue increased.
Key Takeaways
Molina Healthcare reported a challenging second quarter in 2025, with GAAP EPS at $4.75 and adjusted EPS at $5.48, both down year-over-year. Despite a 15% increase in premium revenue to $10.9 billion, net income decreased. The company attributed the earnings pressure to a temporary dislocation between premium rates and an accelerated medical cost trend, particularly in behavioral health, pharmacy, and inpatient/outpatient services. Full-year 2025 adjusted earnings guidance was revised downwards to no less than $19.00 per diluted share, though premium revenue guidance of approximately $42 billion was reaffirmed.
GAAP earnings per diluted share for Q2 2025 were $4.75, an 8% decrease year-over-year.
Adjusted earnings per diluted share for Q2 2025 were $5.48, a 6% decrease year-over-year.
Total revenue for Q2 2025 reached $11.427 billion, with premium revenue at $10.868 billion, up 15% year-over-year.
The company revised its full-year 2025 adjusted earnings guidance to no less than $19.00 per diluted share, citing accelerated medical cost trends.
Molina
Molina
Molina Revenue by Segment
Revenue by Segment
Medicaid Revenue
CapyFin.comMedicare Revenue
CapyFin.comMarketplace Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Molina Healthcare revised its full-year 2025 GAAP and adjusted earnings guidance downwards due to accelerated medical cost trends, particularly in the Marketplace segment, while reaffirming its premium revenue guidance.
Positive Outlook
- Reaffirmed full-year 2025 premium revenue guidance of approximately $42 billion, an increase of about 9% from 2024.
- New store embedded earnings remain strong at $8.65 per diluted share, indicating future growth potential from new contracts and acquisitions.
- The company believes the current earnings pressure is a temporary dislocation between premium rates and medical cost trends.
- Management expressed confidence in the long-term performance outlook of the business, stating nothing has changed their view.
- Operating discipline and one-time items contributed to favorable G&A ratios in Q2 2025.
Challenges Ahead
- Full-year 2025 GAAP EPS guidance revised downwards to no less than $16.90 per diluted share.
- Full-year 2025 adjusted EPS guidance revised downwards to no less than $19.00 per diluted share.
- The updated guidance is disproportionately attributed to the Marketplace segment, indicating specific challenges there.
- The revision reflects new information regarding medical cost trend assumptions for the second half of the year.
- The company is experiencing a challenging medical cost trend environment, driven by utilization of behavioral health, pharmacy, and inpatient/outpatient services.