Clover Health’s second quarter was marked by solid revenue growth and increased membership, but the market reacted negatively, likely due to higher-than-expected non-GAAP losses and operating margin declines. Management pointed to strong execution in its Medicare Advantage business and continued progress with its technology-first care model, notably through the expanded use of the Clover Assistant platform. CEO Andrew Toy acknowledged elevated cost trends in supplemental benefits and Part D expenses, stating the company is closely monitoring these areas, particularly as this is the first year of new IRA-driven changes.

Is now the time to buy CLOV? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Clover Health’s Q2 Earnings Call

• Jonathan Wong (UBS) asked about the elevated benefit expense ratio and how much conservatism was included in guidance. CFO Peter Kuipers replied that higher costs were mainly in Part D and supplemental benefits, and initiatives are underway to monitor these areas.
• Matthew Hewitt (Craig-Hallum Capital Group) questioned the drivers behind SG&A improvements. Kuipers highlighted company-wide cost initiatives and renegotiated contracts with partners as key factors.
• Hewitt (Craig-Hallum) also inquired about the impact and replicability of clinical white papers. CEO Andrew Toy explained that such publications validate Clover Assistant’s effectiveness and will continue to support business development and external partnerships.
• John Pinney (Canaccord Genuity) probed whether elevated cost trends were concentrated among newer members or broader. Kuipers clarified that both new and returning member cohorts performed as expected, with no significant geographic differences.
• Pinney (Canaccord Genuity) asked about competitive dynamics and the upcoming enrollment period. Toy noted that national competitors are pulling back from PPO offerings, potentially positioning Clover Health well in its core markets.

Catalysts in Upcoming Quarters

In the coming quarters, our team will be tracking (1) the impact of broader Clover Assistant adoption on clinical outcomes and member retention, (2) evidence that cost containment strategies can offset IRA-related pressures on prescription and supplemental benefits, and (3) signs that the upcoming 4-star payment year translates into improved profitability and competitive positioning. We also see the development of new external partnerships as an important marker of strategic progress.

Clover Health currently trades at $2.49, down from $2.84 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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