📊 CLOV Key Takeaways
Investment Thesis
Clover Health is a rapidly growing insurance company with strong revenue growth of 40.3% YoY, but this growth masks severe operational deterioration. Despite $1.9B in revenue, the company is hemorrhaging cash with negative operating margins of -4.4%, negative free cash flow of -$69M, and persistent net losses, indicating the business model is fundamentally unprofitable at scale.
CLOV Strengths
- Strong revenue growth of 40.3% YoY demonstrating market demand and enrollment expansion
- Healthy balance sheet with no long-term debt and $78.3M in cash reducing financial distress risk
- Adequate liquidity with 1.47x current ratio providing short-term operational flexibility
- Meaningful gross profit of $270.9M suggesting some underlying operational capability before fixed costs
CLOV Risks
- Persistent operating losses of -$85.5M despite $1.9B in revenue indicate severe unit economics and inability to control operating expenses relative to revenue
- Negative free cash flow of -$69M signals the company is burning cash to fund operations, unsustainable without external funding
- Negative ROE of -27.7% and ROA of -15.8% demonstrate value destruction and extremely poor capital efficiency
- Low gross margin of 14.1% leaves minimal cushion to cover operating expenses, leaving the business vulnerable to any cost structure deterioration
- Negative operating cash flow of -$66.9M indicates cash burn from core operations, not just accounting losses
Key Metrics to Watch
- Path to operating profitability and timeline for positive operating margins
- Operating cash flow trajectory and free cash flow burn rate sustainability given current cash reserves
- Cost structure analysis - whether the company can achieve meaningful expense leverage as revenue scales
- Gross margin trends - whether margin expansion is possible or if 14% represents a structural ceiling
- Cash burn rate relative to cash reserves to determine runway before liquidity crisis
CLOV Financial Metrics
💡 AI Analyst Insight
CLOVER HEALTH INVESTMENTS, CORP. /DE presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CLOV Profitability Ratios
CLOV vs Healthcare Sector
How CLOVER HEALTH INVESTMENTS, CORP. /DE compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CLOV Balance Sheet & Liquidity
CLOV 5-Year Financial Trend
5-Year Trend Summary: CLOVER HEALTH INVESTMENTS, CORP. /DE's revenue has grown significantly by 31% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.42 indicates the company is currently unprofitable.
CLOV Growth Metrics (YoY)
CLOV Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $331.0M | -$1.3M | $-0.02 |
| Q2 2025 | $356.3M | -$1.3M | $0.01 |
| Q1 2025 | $346.9M | -$1.3M | $0.00 |
| Q3 2024 | $306.0M | $7.4M | $-0.02 |
| Q2 2024 | $320.1M | $7.4M | $0.01 |
| Q1 2024 | $322.0M | -$19.2M | $-0.05 |
| Q3 2023 | $482.1M | -$28.8M | $-0.09 |
| Q2 2023 | $513.6M | -$28.8M | $-0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CLOV Capital Allocation
CLOV SEC Filings
Access official SEC EDGAR filings for CLOVER HEALTH INVESTMENTS, CORP. /DE (CIK: 0001801170)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CLOV
What is the AI rating for CLOV?
CLOVER HEALTH INVESTMENTS, CORP. /DE (CLOV) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CLOV's key strengths?
Strong revenue growth of 40.3% YoY demonstrating market demand and enrollment expansion. Healthy balance sheet with no long-term debt and $78.3M in cash reducing financial distress risk.
What are the risks of investing in CLOV?
Persistent operating losses of -$85.5M despite $1.9B in revenue indicate severe unit economics and inability to control operating expenses relative to revenue. Negative free cash flow of -$69M signals the company is burning cash to fund operations, unsustainable without external funding.
What is CLOV's revenue and growth?
CLOVER HEALTH INVESTMENTS, CORP. /DE reported revenue of $1.9B.
Does CLOV pay dividends?
CLOVER HEALTH INVESTMENTS, CORP. /DE does not currently pay dividends.
Where can I find CLOV SEC filings?
Official SEC filings for CLOVER HEALTH INVESTMENTS, CORP. /DE (CIK: 0001801170) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CLOV's EPS?
CLOVER HEALTH INVESTMENTS, CORP. /DE has a diluted EPS of $-0.44.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.