How are energy investors positioned?
NUHealth reported strong financial results for the fourth quarter of 2024, with significant growth in revenue and profitability. The company’s strategic initiatives in expanding product verticals and enhancing value-based care models have positioned it for continued growth. The stock of NeueHealth Inc., the parent company, showed a notable premarket rise of nearly 5% following the earnings call, though InvestingPro data shows the stock has declined about 27% in the past week. According to InvestingPro’s Fair Value analysis, the stock currently appears undervalued despite recent market volatility.
Key Takeaways
- NUHealth achieved a full year revenue of $936.7 million, with Q4 revenue at $232.6 million.
- The company maintained adjusted EBITDA profitability for the fourth consecutive quarter.
- NUHealth expanded into new product verticals, including MSSP, and grew its consumer base significantly.
- The stock of NeueHealth Inc. rose by 4.96% in premarket trading.
Company Performance
NUHealth demonstrated robust performance in Q4 2024, driven by its focus on value-based care and strategic expansion into new markets. The company served 717,000 consumers in 2025, a significant increase from 483,000 in 2024. This growth is attributed to a 31% increase in existing payer relationships and a 97% expansion in recently entered markets. NUHealth’s commitment to a consumer-centric care model and strong provider partnerships have differentiated it from traditional healthcare providers. The company maintains a moderate debt level with a total debt-to-capital ratio of 11%, though InvestingPro analysis indicates short-term obligations currently exceed liquid assets with a current ratio of 0.68.
Financial Highlights
- Full Year Revenue: $936.7 million
- Q4 Revenue: $232.6 million
- Full Year Gross Margin: $194.5 million
- Q4 Gross Margin: $47.7 million
- Adjusted EBITDA: $22.5 million (Full Year), $5.5 million (Q4)
Outlook & Guidance
NUHealth is focused on expanding affordable healthcare access and enhancing its local community presence. The company aims to deepen payer partnerships and grow its provider enablement business. With a strategic focus on value-based care, NUHealth is well-positioned for future growth, participating in programs like ACO REACH and MSSP.
Executive Commentary
CEO Mike Mikan emphasized the company’s alignment with industry trends towards value-based care, stating, "We have created and refined a care model that aligns with the industry’s continued shift towards value-based care." He expressed confidence in NUHealth’s strategic direction, noting, "I’ve never been more confident in our ability to drive change across the healthcare industry."
Risks and Challenges
- Market Competition: NUHealth faces competition from traditional and emerging healthcare providers.
- Regulatory Changes: Potential changes in healthcare regulations could impact operations.
- Economic Conditions: Macroeconomic pressures may affect consumer spending on healthcare.
- Integration Risks: As NUHealth expands, integrating new operations and technologies poses challenges.
- Supply Chain Disruptions: Ongoing global supply chain issues could affect service delivery.
NUHealth’s Q4 2024 performance highlights its strong strategic positioning and commitment to growth in the healthcare sector. The company’s focus on consumer-centric, value-based care and its expansion into new markets are expected to drive continued success.
Full transcript - NeueHealth Inc (NEUE) Q4 2024:
Carly, Call Coordinator, NUHealth: Good morning and thank you for joining us for the NUHealth Q4 twenty twenty four Earnings Conference Call. My name is Carly and I’ll be coordinating the call today. I’d like to hand over to your host, Emily Lombardi. The floor is yours.
Emily Lombardi, Investor Relations, NUHealth: Good morning, and welcome to NU Health’s fourth quarter twenty twenty four earnings conference call. As a reminder, this call is being recorded. Leading the call today are NU Health’s President and CEO, Mike Mikan and CFO, Jay Matushek. 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 fourth quarter earnings release available on the company’s Investor Relations page at investors.newhealth.com. Information presented on this call is contained in such earnings release that we issued this morning in our Form eight ks dated 03/20/2025, 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 NU Health’s Chief Executive Officer, Mike Mikan.
Mike Mikan, President and CEO, NUHealth: Good morning, everyone, and thank you for joining NU Health’s fourth quarter twenty twenty four earnings call. Today, we are pleased to report that we delivered our strongest year of financial performance to date in 2024, providing a solid foundation for NuHealth to continue to grow the consumers we serve, expand the relationships we’ve built with payer and provider partners, and advance our care model in 2025 and beyond. Since new health was founded in 2020, we have maintained a relentless focus on making high quality healthcare accessible and affordable for all populations. With this focus, we believe we have created and refined a care model that aligns with the industry’s continued shift towards value based care. Our model is compelling.
We believe it’s a strong alternative to episodic transactional care that has defined the healthcare industry for decades. In contrast, our model is grounded in the power of long standing, trusted relationships in the local communities we serve. Through our relationship based approach, we prioritize a few fundamental elements that we believe create a truly personalized and coordinated healthcare experience that serves consumers throughout their lifetime. First, we are committed to placing the consumer at the center of everything we do, developing a holistic and deep understanding of every person we serve and becoming their ongoing trusted partner in care throughout their lifetime. Second, we focus on proactively managing care through key consumer engagement and care management initiatives to drive better health outcomes and importantly, empower consumers to take an active role in their health.
Finally, through our relationship based approach, we developed strong partnerships with providers and payers across the industry with a focus on aligning interests to create a better healthcare experience for all. In 2024, we served 483,000 consumers, representing a compound annual growth rate of 123% in our new care and new solutions segments since 2020. We are building on this momentum and have already generated significant growth to start 2025, serving 717,000 consumers. Compared to 2024, we have grown the consumers we serve through our existing payer relationships by 31. And in our recently expanded markets, we have grown the consumers we serve by 97%.
In addition, to start the year, we have secured new payer partnerships and expanded into new product verticals, including MSSP. We believe that this growth demonstrates the momentum we are driving to start the year and positions us for continued success in 2025 and beyond. On 12/23/2024, we announced that we entered into a definitive agreement to be acquired by an affiliate of one of our largest investors, NEA. Upon completion of this transaction, New Health will become a privately held company. We believe that this transaction places New Health in a strong position for continued growth, providing the company with the flexibility and resources to build on our success as a leader in value based care.
We anticipate the transaction closing in the second quarter of twenty twenty five, assuming 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 fourth quarter and full year performance.
Jay Matushek, CFO, NUHealth: Thank you, Mike, and good morning, everyone. I’ll now discuss our fourth quarter performance and full year results 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 will be included in our 10 K once it is filed and contain results that include our discontinued operations. New Health consolidated revenue for the fourth quarter was $232,600,000 Full year consolidated revenue was $936,700,000 Our fourth quarter gross margin was $47,700,000 and $194,500,000 for the full year.
For the fourth consecutive quarter in 2024, we achieved adjusted EBITDA profitability, driving $5,500,000 of adjusted EBITDA in the fourth quarter and $22,500,000 of adjusted EBITDA for the full year. As Mike mentioned, in 2024, we continued to grow the number of consumers we serve across our new care and new solutions segments, serving 483,000 consumers across the ACA marketplace, Medicare and Medicaid, and we continue to see strong strategic growth opportunities in 2025. In our new care segment, revenue was $79,300,000 in the fourth quarter and $313,700,000 for the full year. Fourth quarter operating income was $9,200,000 with full year operating income of $29,600,000 Through our clinics in 2024, we served 318,000 value based consumers. As you recall, we expanded our operations in Central Florida earlier this year, leveraging existing relationships to grow our footprint and the consumers we serve.
We are continuing to evaluate similar market expansion opportunities in 2025 and beyond. Turning now to our new solutions segment. In 2024, we continue to drive growth through our provider enablement business, which includes our suite of population health tools and capabilities as well as our ACO Reach business. New solutions revenue was $157,100,000 in the fourth quarter and $635,100,000 for the full year. The new solutions segment operating income was $3,100,000 for the fourth quarter with operating loss of $5,300,000 for the full year.
In our provider enablement business, we grew the consumers we serve to $123,000 in 2024, reflecting the strong relationships we have established with provider groups and our ability to help them succeed in performance based arrangements. In 2025, we are building on our experience participating in innovative government programs. In addition to ACL REACH, we will also be participating in MSSP this year. Now looking at our balance sheet. As of 12/31/2024, we had $202,800,000 in total cash and investments, including amounts in our regulated entities.
Our non regulated cash and short term investments were $93,200,000 at the end of the fourth quarter, including $36,300,000 of restricted cash and investments. I’ll now turn it over to Mike for some closing comments.
Mike Mikan, President and CEO, NUHealth: Thank you, Jay. Twenty twenty four was a transformative year for new health. We devoted our full focus on where we have proven to have the greatest impact, our care delivery and provider enablement business segments. We advanced and grew our value driven consumer centric care model to serve 483,000 consumers and we delivered $22,500,000 of adjusted EBITDA, our strongest financial performance to date. In 2025, we are focused on continuing to create a better healthcare experience for all as we look to drive strategic growth across our business, prioritizing a few key areas.
First, we will look to continue to bring high quality affordable healthcare to more consumers with a focus on diversifying the populations we serve across product categories. Second, we expect to continue to deepen our presence in the local communities we serve as well as expand into new geographies, bringing our care model and local approach to more growing markets. Third, we will look to continue to grow alongside our payer partners through the strong trusted relationships we have built, in addition to prioritizing growth with new payer groups. And finally, we intend to continue to build on our strong partnerships with providers, meeting them where they are on their path to participating in performance based arrangements and enabling them to deliver the highest quality personalized care. Overall, we feel our relationship based approach and the trusted partnerships we have established with consumers, providers and payers across the industry gives us a strong platform to drive long term sustainable growth this year and beyond.
I’m excited for our future and I believe we are entering 2025 in a very strong position. I’ve never been more confident in our ability to drive change across the healthcare industry and create an experience that is seamless and more coordinated for consumers, providers, and payers alike. Thank you to the entire New Health team for your continued commitment to making the healthcare experience better for all. I am looking forward to all we will achieve together in 2025 and beyond. That concludes today’s call.
Thank you for joining and for your interest in new health.
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