How are energy investors positioned?
NeueHealth Inc. reported its financial results for the first quarter of 2025, highlighting a robust increase in the number of consumers served and continued profitability in its adjusted EBITDA. The company’s revenue showed a 19.3% decline compared to last year, with trailing twelve-month revenue at $936.7 million. The stock, which has gained over 35% in the past six months according to InvestingPro data, experienced a minor decrease in aftermarket trading.
Key Takeaways
- Total consumers served increased by 51% year-over-year.
- Adjusted EBITDA marked its fifth consecutive profitable quarter.
- The company anticipates going private by mid-2025.
- Participation in innovative government programs continues to expand.
Company Performance
NeueHealth demonstrated strong performance in serving a diverse consumer base, with a significant 51% increase in the total number of consumers served, reaching 709,000. Despite a slight year-over-year decline in revenue, the company maintained profitability with an adjusted EBITDA of $13.5 million. The New Care segment contributed significantly with $90.5 million in revenue and $23 million in operating income, while the New Solutions segment faced a $3 million operating loss.
Financial Highlights
- Revenue: $215.8 million (slight decrease from the previous year)
- Gross Margin: $54.9 million
- Adjusted EBITDA: $13.5 million (profitable for the fifth consecutive quarter)
- Total Consumers Served: 709,000 (51% growth year-over-year)
- New Care Segment Revenue: $90.5 million
- New Solutions Segment Revenue: $127.6 million
Outlook & Guidance
Looking forward, NeueHealth plans to expand its consumer base across various product categories and explore growth in both existing and new geographical markets. The company is also focused on deepening relationships with payer groups and enhancing performance-based care arrangements. EPS and revenue forecasts for the upcoming quarters and years suggest continued investment in growth and innovation.
Executive Commentary
CEO Mike Mikan expressed confidence in the company’s care model, stating, "We believe our care model is driving value for all stakeholders." He further noted, "2025 is off to a great start, reflecting the value we are driving for consumers, providers, and payers."
Risks and Challenges
- Potential challenges in maintaining growth momentum amid market competition.
- Possible regulatory changes affecting healthcare programs.
- Economic pressures that could impact consumer spending and healthcare budgets.
- Execution risks associated with going private and strategic transitions.
- Dependence on government programs and policy stability.
NeueHealth remains committed to its value-driven, consumer-centric care model, and its strategic focus on expanding provider and payer partnerships positions it well for future growth. As the company navigates market dynamics and prepares for its transition to a private entity, its ability to adapt and innovate will be crucial in sustaining its competitive edge.
Full transcript - NeueHealth Inc (NEUE) Q1 2025:
Conference Moderator, New Health: Good morning, and welcome to New Health’s First 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 Matuszak. 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 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 non GAAP to GAAP measures is available in the company’s first 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 in our Form eight ks dated 05/08/2025, and in the related presentation, 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 Chief Executive Officer, Mike Mikan.
Mike Mikan, President and CEO, New Health: Good morning, everyone, and thank you for joining New Health’s first quarter twenty twenty five earnings call. New Health is pleased to report another solid quarter of financial results. This year, we are continuing to see our value driven consumer centric care model resonate with the market. In the first quarter, we served over 709,000 consumers, which represents growth of approximately 51% over Q1 twenty twenty four. This growth is substantial and is attributable to a few key factors.
First, we believe that our care model is driving value for all stakeholders. It tightly aligns the interests of consumers, providers, and payers to deliver differentiated results and create a care experience that is seamless and more coordinated for all. We believe this is unique and represents a clear shift from traditional fragmented approaches to care. Aligning interest is core to what we do and our continued success as a leader in value based care. Second, we are focused on forming strong relationships with consumers, providers and payers across the industry.
These relationships are ongoing and rooted in trust and they provide a strong platform to drive continued growth. We see our relationship based approach as a key reason we have been able to successfully advance our care model. And finally, we attribute our success to our commitment to delivering personalized care to all populations across the ACA marketplace, Medicare, and Medicaid. By serving a diverse population base, we can mitigate risk associated with high concentration in any one product area, and we can more easily broaden our reach with a proven set of capabilities built to serve all populations no matter their need or circumstance. Serving a diverse population base is a key component of our model and critical to our continued growth in 2025 and beyond.
Overall, 2025 is off to a great start, reflecting the value we are driving for consumers, providers and payers across the industry. This gives us confidence that we are in a strong position to continue to advance our model, broaden our scope of capabilities, expand our footprint, and deepen our partnerships with providers and payers in 2025 and beyond. As I mentioned on our last call, in December 2024, 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-twenty twenty five, pending satisfaction of the 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 first quarter financial performance.
Jay Matuszak, CFO, New Health: Thank you, Mike, and good morning, everyone. I’ll now discuss our first 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 and contain results that include our discontinued operations. New Health consolidated revenue for the first quarter was $215,800,000 slightly lower than prior year due to a shift in membership mix away from ACO reach to other lines of business. First quarter gross margin was $54,900,000 For the fifth consecutive quarter, we achieved adjusted EBITDA profitability, driving $13,500,000 of adjusted EBITDA in the first quarter.
As Mike mentioned, to start the year, we generated significant growth in the number of consumers we served across our new care and new solutions segments, serving 709,000 consumers across the ACA marketplace, Medicare and Medicaid, and we continue to see opportunities to expand the populations we serve across product categories. In our New Care segment, revenue was $90,500,000 in the first quarter and New Care operating income was $23,000,000 Through our clinics, we served 530,000 value based consumers, representing an increase of approximately 67% over 2024. This growth was made possible by the ongoing personalized relationships we have formed with our consumers and their trust in our ability to deliver high quality, affordable care. Turning now to our new solutions segment, which consists of our provider enablement business as well as our participation in ACO REACH and MSSP. In the first quarter, new solutions revenue was 127,600,000.0 with operating loss of $3,000,000 In the first quarter, we drove strong growth in our provider enablement business, continuing to expand the Medicaid consumers we are serving and building on the relationships we have established and provider groups across the country to serve 138,000 consumers.
In 2025, we are leveraging our experience in innovative government programs, participating in MSSP as well as ACO REACH. For these programs, we are serving approximately 41,000 consumers in 2025. I’ll now review our balance sheet. As of 03/31/2025, we had $239,400,000 in total cash and investments, including amounts in our regulated entities. Our non regulated cash and short term investments were $145,100,000 at the end of the first quarter, including $31,800,000 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 first quarter, significantly growing the consumers we serve to $709,000 and driving $13,500,000 of adjusted EBITDA. Our solid first quarter performance provides a strong foundation to continue to advance our value driven consumer centric care model in 2025 and beyond. As we mentioned on our last call, we are focused on a few key growth areas in 2025. First, leveraging our ability to serve a diverse population base, we intend to continue to capitalize on the opportunities to bring high quality affordable healthcare to more consumers across product categories, delivering personalized care to all populations across the continuum of need.
Second, we will look to expand our footprint in our existing markets, leveraging our strong local presence and deep relationships we have developed in the communities we serve. In addition, we will evaluate opportunities to grow in new geographies with attractive market conditions. And third, we will look to grow alongside our existing payer partners as well as prioritize forming relationships with new payer groups. And finally, we expect to build upon the relationships we have established with providers across the country, continuing to partner with them on our path to participating in performance based arrangements. I’m looking forward to building on the strong momentum we have established to start 2025.
We are well positioned to continue to align the interests of consumers, providers and payers, drive strategic growth and create a seamless, more coordinated care experience for all. We have a strong team in place, and I’m excited about all we will accomplish together this year and beyond. That concludes today’s call. Thank you for joining and for your interest in New Health.
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