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NeueHealth Inc. reported its second-quarter earnings for 2025, highlighting steady revenue growth and strategic expansions in healthcare services. Despite a slight dip in stock price post-announcement, the company continues to focus on long-term growth through innovative platforms and partnerships. According to InvestingPro data, the company currently maintains a Fair financial health rating, though it faces challenges with cash burn and short-term liquidity.
Key Takeaways
- NeueHealth reported a Q2 revenue of $209.1 million.
- The company achieved a sixth consecutive quarter of profitability with an adjusted EBITDA of $19 million.
- Strategic partnerships and innovations, such as the NewPulse platform, are central to growth.
- The company is preparing for a potential going private transaction in mid-to-late 2025.
- The stock showed a minor decrease of 0.14% following the earnings report.
Company Performance
NeueHealth continues to demonstrate strong performance in a competitive healthcare landscape, particularly in the ACA marketplace. The company serves a diverse consumer base, including ACA, Medicare, and Medicaid markets, with a 45% year-over-year increase in consumers. This growth is bolstered by the launch of the NewPulse platform, which integrates care delivery and administrative functions, positioning NeueHealth as a leader in value-based care.
Financial Highlights
- Revenue: $209.1 million, marking continued growth.
- Adjusted EBITDA: $19 million for Q2; $32.5 million for the first half of 2025.
- Total cash and investments: $234.4 million.
- Non-regulated cash and short-term investments: $145.5 million.
Outlook & Guidance
NeueHealth is focused on expanding its mobile mammogram screenings and growing its provider enablement services. The company is exploring partnerships with federally qualified health centers and anticipates a going private transaction by mid-to-late 2025. Future guidance suggests continued revenue growth, with forecasts of $256.8 million for Q3 and $285 million for Q4 2025.
Executive Commentary
CEO Mike Mikan emphasized the company’s strategic direction: "We believe our model places us in a strong position to continue to deliver value to consumers, payers, and providers across the healthcare industry for years to come." He also highlighted the role of NewPulse in transforming care delivery: "NewPulse will uniquely align the financing and delivery of care, eliminating the need for pre-authorizations."
Risks and Challenges
- Market competition in the ACA space remains intense.
- Regulatory changes in healthcare could impact operations.
- Economic fluctuations may affect consumer spending on healthcare services.
- The transition to a private company may present operational challenges.
- Dependence on strategic partnerships for growth could pose risks if partnerships falter.
NeueHealth’s Q2 2025 earnings call underscores its commitment to innovation and strategic growth, positioning the company as a prominent player in the evolving healthcare industry. With a market capitalization of $60.08 million and current Fair Value assessment available on InvestingPro, investors can access comprehensive analysis including detailed Pro Research Reports, which transform complex financial data into actionable intelligence for smarter investment decisions.
Full transcript - NeueHealth Inc (NEUE) Q2 2025:
Jerry, Conference Moderator: Good morning. Thank you for attending today’s conference call. My name is Jerry, and I will be your moderator today. All lines will be muted during the presentation portion of the call. I would now like to pass the conference over to our host, Emily Long.
Emily Long, Investor Relations, New Health: Good morning, and welcome to Health’s Second Quarter twenty twenty five Earnings Conference Call. As a reminder, this call is being recorded. Leading the call today are New Health’s President and CEO, Mike Mikan and CFO, Jay Mitushak. Before we begin, we want to remind you that this call may contain forward looking statements under U. S.
Federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. A description of some of the risks and uncertainties can be found in the reports that we file with the Securities and Exchange Commission, including the risk factors in our current and periodic reports we file with the SEC. Except as required by law, we undertake no obligation to revise or update any forward looking statements or information. This call will also reference non GAAP amounts and measures.
A reconciliation of the non GAAP to GAAP measures is available in the company’s second quarter press release available on the company’s Investor Relations page at investors.nuhealth.com. Information presented on this call is contained in the earnings release we issued this morning and in our Form eight ks dated 08/07/2025, each of which may be accessed from the Investor Relations page of the company’s website. With that, I will now turn the conference over to New Health President and Chief Executive Officer, Mike Mikken.
Mike Mikan, President and CEO, New Health: Good morning, everyone, and thank you for joining New Health’s second quarter twenty twenty five earnings call. New Health is pleased to report another strong quarter of financial results as we continue to build on the momentum we’ve established across our business this year. We continue to drive adjusted EBITDA profitability achieving $19,000,000 in the second quarter contributing to a total of $32,500,000 of adjusted EBITDA for the first half of the year. We believe these results demonstrate the continued success of our focused business, our strong fundamental execution and our disciplined approach to driving long term profitable growth. New Health was founded on the belief that all consumers deserve high quality coordinated healthcare and we continue to expand and enhance our value driven consumer centric care model to fulfill this mission.
Our care model is built to serve a diverse set of consumers across the ACA marketplace, Medicare and Medicaid. It is grounded in the power of ongoing trusted relationships and it prioritizes aligning the interests of consumers, payers and providers to create a seamless, more coordinated care experience for all. We believe our model aligns with where the healthcare industry is moving, supporting the continued shift to value based care and focus on creating a better consumer experience. Overall, we believe our model places us in a strong position to continue to deliver value to consumers, payers and providers across the health care industry for years to come. We believe one of our core capabilities, our ability to serve a diverse population base agnostic of product category, individual need or circumstance helps to protect us from the challenges and the uncertainty that may arise from market trends impacting any given product area and provides multiple avenues for the company to drive future growth.
Through the second quarter this year, we have seen strong results in all key product categories we serve, leading to 45% aggregate growth in the number of consumers served over second quarter last year. Starting with the ACA marketplace, as of the end of the second quarter we were serving 485,000 ACA marketplace consumers in our own clinics. This year, we have driven differentiated results for this population performing meaningfully better than the market with regards to medical loss ratio. With a strong focus on placing the consumer at the center of everything we do, we are committed to empowering our ACA marketplace consumers to take an active role in their health by forming strong trusted relationships and emphasizing the importance of preventative and proactive care. As an example, in June, we partnered with Florida Mobile Mammography to offer convenient on-site mammogram screenings to consumers in surrounding neighborhoods.
By bringing care directly to the community, we met consumers where they were, educating them on the importance of preventative screenings, and proactively managing their health on ongoing basis. We are planning to build on the success of this event by offering more on-site mobile mammogram screens later this year. And we look forward to expanding even further in 2026. This is just one example of our local consumer centric approach and our commitment to empowering everyone to take an active role in their health. Our Senior Care business continues to grow and drive strong performance serving 65,000 consumers across Medicare Advantage, ACO REACH and MSSP at the end of the second quarter.
As a part of this growth, beginning this summer, our Central Florida clinics are collaborating with Walgreens to expand access to care in the community. Specifically, we have begun operating clinics inside select Walgreens locations, starting with two sites opening in Davenport and Orlando, Florida. These in store clinics offer a range of services including primary care, chronic condition management and dermatology. This is an exciting collaboration making it easier for consumers to access the healthcare services they need and reinforcing our commitment to making high quality care convenient for all. Turning to Medicaid, we are currently serving 144,000 Medicaid consumers with the majority in our provider enablement business.
In this business, we are focused on forming strong partnerships with provider groups to drive differentiated results in performance based arrangements. We believe our Provider Enablement business provides a solid foundation for our company to continue to grow, and we see strong opportunities to partner with federally qualified health centers and other provider groups to expand the Medicaid population we serve in the future. Our data and analytics capabilities underlie our strong performance across product categories and we are focused on evolving and advancing these capabilities into an end to end value based care enablement platform called NewPulse. Created on the front lines of care delivery by our own physicians, NewPulse is powering our business into the future, integrating population health tools, care delivery solutions and administrative functions into one comprehensive platform. Through streamlined data and insights, NewPulse enables smart patient engagement and gap closure as well as managing administrative tasks by streamlining workflows and minimizing manual functions.
In addition, NewPulse will present guideline directed value based clinical pathways at the point of care to support providers in making timely data informed decisions and standardized care plans. Importantly, we believe New Pulse will uniquely align the financing and delivery of care eliminating the need for pre authorizations. We believe NewPulse unlocks exciting future opportunities for our company, and we look forward to continuing to advance this platform as a core component of our model, fueling our future performance, growth and success. Overall, I’m proud of how we are positioned entering the second half of the year. We have set a solid foundation to continue to evolve and advance our model, build on the payer and provider partnerships we’ve established, bring high quality coordinated care to more consumers and evolve our data and analytics capabilities to meet the industry’s changing needs.
As I’ve mentioned previously, in December 24, we announced that we entered into a definitive agreement to go private led by an affiliate of one of our largest investors NEA. We anticipate the transaction closing in mid to late twenty twenty five pending satisfaction of necessary closing conditions. For additional information regarding the proposed transaction, please consult our filings with the SEC. I’ll now hand it over to Jay to provide additional details on our second quarter financial performance.
Jay Mitushak, CFO, New Health: Thank you, Mike, and good morning, everyone. I’ll now discuss our second quarter performance for our continuing consolidated New Health business as well as each of our continuing New Care and New Solutions segments, then I will review our balance sheet. GAAP financials are included in our press release and 10 Q contain results that include our discontinued operations. New Health consolidated revenue for the second quarter was 209,100,000.0 slightly lower than prior year due to a shift in membership mixed away from ACO reach to other lines of business. Second quarter gross margin was $62,700,000 For the sixth consecutive quarter, we achieved adjusted EBITDA profitability, driving $19,000,000 of adjusted EBITDA in the second quarter.
We served 694,000 consumers across our business in the second quarter, an increase of approximately 45% compared to second quarter last year. This reflects the strong consumer satisfaction we continue to drive through our tailored and personalized approach to care. In our New Care segment, revenue was $91,600,000 in the second quarter and New Care operating income was 23,200,000.0 Through our clinics, we served 504,000 value based consumers as we continue to focus on forming ongoing relationships with each individual we serve and empowering them to take an active role in their health. Turning now to our new solutions segment, which consists of our provider enablement business as well as our participation in ACL REACH and MSSP. In the second quarter, new solutions revenue was $120,000,000 with operating income of 2,600,000.0 In our Provider Enablement business, we served 148,000 consumers in the second quarter and through our participation in ACO REACH and MSSP, are serving approximately 42,000 consumers in 2025.
We continue to focus on expanding and enhancing our scope of provider enablement tools, services and capabilities to position our owned and affiliated providers to succeed in value based arrangements. I’ll now review our balance sheet. As of 06/30/2025, we had $234,400,000 in total cash and investments, including amounts in our regulated entities. Our non regulated cash and short term investments were $145,500,000 at the end of the second quarter, including $38,200,000 of restricted cash and investments. Mike, I’ll now turn it back over to you for some closing comments.
Mike Mikan, President and CEO, New Health: Thank you, Jay. As you’ve heard today, we delivered strong results in the second quarter across all areas of our business, achieving adjusted EBITDA profitability for the sixth straight quarter. Our strong financial performance gives us confidence that we are well positioned in the market and most importantly delivering value to consumers, payers and providers across the industry by creating a seamless more coordinated care experience for all. Our company is on a positive trajectory and I’m excited by the steps we are taking to evolve and advance our capabilities as we continue to transform the healthcare experience. We have made tremendous progress over the past few years and I believe we are just getting started.
I’m looking forward to building on our successes and continuing our momentum for the remainder of 2025 and beyond. Thank you to our entire team for your contributions this quarter. I am excited for our future. That concludes today’s call. Thank you for joining and for your interest in New Health.
Jerry, Conference Moderator: Thank you. That concludes today’s call. Thank you for your participation. You may now disconnect your line.
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