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Sep 30
Molina Q3 2025 Earnings Report
Molina reported a sharp decline in earnings in Q3 2025 as Marketplace segment weakness offset strong Medicaid performance.
Key Takeaways
Molina Healthcare’s Q3 2025 earnings fell significantly due to elevated medical care costs, particularly in its Marketplace segment. Despite this, the company continued growing revenues and maintained profitability, driven by strength in the Medicaid business.
GAAP EPS fell to $1.51 and adjusted EPS to $1.84, driven by higher utilization in Medicare and Marketplace segments
Total revenue rose to $11.477 billion, up from $10.340 billion a year earlier
Marketplace medical care ratio deteriorated to 95.6%, significantly impacting margins
Cash and cash equivalents stood at $4.221 billion as of quarter end
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 revised full-year 2025 guidance downward due to persistent cost pressures, especially in Marketplace, but expects margin recovery and stability heading into 2026.
Positive Outlook
- Raised 2025 premium revenue guidance to $42.5 billion
- Full-year adjusted EPS expected at $14.00
- Medicaid expected to contribute $3.00 per share in Q4
- New store embedded earnings forecast remains strong at $8.65 per share
- Company expects 2026 EPS to match 2025 levels with improved segment mix
Challenges Ahead
- Marketplace MCR of 95.6% expected to stay elevated
- Q4 adjusted EPS implied to drop to ~$0.35
- GAAP EPS forecast lowered to $11.90 for full year
- Overall MCR projected to remain high at 91.3% for FY25
- Continued margin pressure across all segments cited