Sign in

You're signed outSign in or to get full access.

NI

NeueHealth, Inc. (NEUE)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered continued operational improvement: revenue $209.08M, operating income $14.26M, and sixth consecutive quarter of Adjusted EBITDA profitability ($19.02M), with gross margin expanding to ~$62.7M as medical cost ratio improved versus prior periods .
  • Results were mixed versus estimates: revenue materially missed Wall Street consensus ($209.08M vs $249.50M*), while EBITDA significantly beat ($17.81M S&P EBITDA actual vs $7.50M* consensus); EPS was better than expected (S&P Primary EPS actual -2.42 vs -4.30* consensus) .
  • Consumer reach remained large but down sequentially: served ~694k consumers in Q2 (vs ~709k in Q1), reflecting mix shifts away from ACO REACH; value-based consumers were 546k and enablement lives 148k at quarter-end .
  • Strategic emphasis: ramp of NewPulse (value-based enablement platform), Walgreens clinic collaboration in Florida, strong ACA performance and sustained profitability position ahead of pending take-private with NEA (timing mid-to-late 2025) .
  • Key near-term catalyst: clarity on take-private closing and regulatory approvals; internally, continued margin expansion and segment execution (NeueCare operating income $23.21M; NeueSolutions $2.55M) remain drivers .

What Went Well and What Went Wrong

What Went Well

  • Sixth consecutive quarter of Adjusted EBITDA profitability ($19.02M), demonstrating discipline and improved operating cost control .
  • Gross margin expansion to ~$62.7M as medical costs declined vs prior year, with ACA Marketplace performance “meaningfully better than the market” on medical loss ratio .
  • Strategic execution: launch of NewPulse platform integrating clinical pathways and admin functions; Walgreens in-store clinics opened in Central Florida to expand access and convenience .
  • Management quote: “We delivered our sixth consecutive quarter of Adjusted EBITDA profitability… we are focused on advancing our end-to-end, value-based care enablement platform…” — Mike Mikan (CEO) .

What Went Wrong

  • Top-line pressure continued YoY due to ACO REACH revenue decline ($115.34M vs $149.80M in Q2’24), driving consolidated revenue down 7.5% YoY to $209.08M .
  • Sequential total consumers served fell to ~694k (from ~709k in Q1), pointing to near-term membership/mix headwinds (notably REACH and MSSP exposure) .
  • GAAP diluted EPS remained negative (-2.62), with continued preferred dividends and discontinued operations losses weighing on common shareholders’ EPS despite continuing operations profitability .

Financial Results

Consolidated Performance vs Prior Periods

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$232.64 $215.79 $209.08
Operating Income ($USD Millions)$(29.42) $2.66 $14.26
Net Income (Loss) from Continuing Operations ($USD Millions)$(42.48) $(1.44) $6.84
Net Loss (GAAP) ($USD Millions)$2.52 $(10.85) $(1.55)
Adjusted EBITDA ($USD Millions, non-GAAP)$5.48 $13.48 $19.02
Diluted EPS (Total) ($)$(1.94) $(2.90) $(2.62)
Diluted EPS – Continuing Ops ($)$(7.41) $(1.80) $(1.68)

Margin Evolution (Derived from reported figures)

MetricQ4 2024Q1 2025Q2 2025
Medical Costs ($USD Millions)$184.89 $160.89 $146.41
Gross Margin ($USD Millions)~$47.75 (Rev–Med) ~$54.89 ~$62.67
Gross Margin (%)~20.5% ~25.4% ~30.0%
Operating Income Margin (%)~-12.6% ~1.2% ~6.8%
Adjusted Operating Cost Ratio (%)18.4% 19.3% 21.0%

Segment Breakdown

SegmentQ4 2024 Revenue ($M)Q4 2024 Op Inc ($M)Q1 2025 Revenue ($M)Q1 2025 Op Inc ($M)Q2 2025 Revenue ($M)Q2 2025 Op Inc ($M)
NeueCare$79.25 $9.23 $90.52 $23.01 $91.63 $23.21
NeueSolutions$157.07 $3.10 $127.61 $(2.99) $120.01 $2.55

KPI Trends

KPIQ4 2024Q1 2025Q2 2025
Value-Based Consumers Served360,000 571,000 546,000
Enablement Services Lives123,000 138,000 148,000
Total Consumers Served (All)—~709,000 ~694,000

Q2 2025 Actual vs Wall Street Consensus (S&P Global)

MetricConsensus*Actual
Revenue ($USD)$249.50M*$209.08M
Primary EPS ($)-4.30*-2.42047 (S&P Primary EPS actual)
EBITDA ($USD)$7.50M*$17.81M (S&P EBITDA actual)

Values retrieved from S&P Global*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated RevenueFY 2025Not providedNot providedMaintained (no formal guidance)
Adjusted EBITDAFY 2025Not providedNot providedMaintained (no formal guidance)
Operating Cost RatioFY 2025Not providedNot providedMaintained (no formal guidance)
Other (OpEx, OI&E, Tax Rate, Dividend)FY 2025Not providedNot providedMaintained

No quantitative guidance ranges were issued or updated in the Q2 2025 materials; management focused commentary on execution, platform development and pending take-private transaction .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Value-based platform/technologyEmphasis on value-driven care model; strong foundation for 2025 Introduction of NewPulse end-to-end enablement platform integrating population health, clinical pathways, and admin; goal to eliminate pre-authorizations Increasing focus and specificity on platform capabilities
ACA Marketplace performanceStrength highlighted; VB consumers growth into 2025 “Meaningfully better than the market” MLR performance; 485k ACA consumers in clinics Solid execution; continued scale
Provider enablement/MedicaidEnablement lives growing; partnerships emphasized 144k Medicaid consumers; focus on FQHC partnerships; 148k enablement lives Expansion continuing
ACO REACH/MSSP exposureSignificant revenue contributor; bankruptcy-related adjustments disclosed historically REACH revenue down YoY; ~42k served via REACH/MSSP; mix shift impacting top line Headwind vs YoY
Access expansion/retail collaborationNot highlightedWalgreens clinics opened in Davenport and Orlando; convenience and chronic care management New growth channel
Corporate actionsDefinitive take-private agreement announced Dec 2024 Anticipate closing mid-to-late 2025, subject to approvals and conditions Ongoing; key catalyst

Management Commentary

  • CEO strategic message: “We delivered our sixth consecutive quarter of Adjusted EBITDA profitability… focused on advancing our end-to-end, value-based care enablement platform that will power the future of our company…” .
  • Platform vision: NewPulse to “present guideline-directed value-based clinical pathways at the point of care… uniquely align the financing and delivery of care eliminating the need for pre-authorizations” .
  • ACA execution: “Performing meaningfully better than the market with regards to medical loss ratio,” underscoring preventative care and community engagement (e.g., mobile mammography) .
  • CFO highlights: Consolidated revenue $209.1M; gross margin $62.7M; Adjusted EBITDA $19.0M; cash and investments $234.4M (incl. regulated), with $145.5M non-regulated cash and short-term investments (incl. $38.2M restricted) .

Q&A Highlights

  • The transcript provided prepared remarks only; a Q&A section was not included in the published transcript. No additional guidance clarifications or tone shifts beyond prepared commentary were observable .

Estimates Context

  • Revenue: Missed consensus by ~$40.4M ($209.08M vs $249.50M*), driven primarily by YoY decline in ACO REACH revenue (down $34.46M YoY) and membership mix shift away from REACH .
  • EPS: Beat consensus (S&P Primary EPS actual -2.42 vs -4.30*), aided by improved operating income and lower medical costs; note GAAP diluted EPS reported at -2.62, reflecting preferred dividends/discontinued ops .
  • EBITDA: Significant beat (S&P EBITDA actual $17.81M vs $7.50M*), consistent with non-GAAP Adjusted EBITDA of $19.02M and lower operating costs .

Values retrieved from S&P Global*

Key Takeaways for Investors

  • Sustained profitability and margin expansion: medical cost ratio improved and operating margin reached ~6.8% with Adjusted EBITDA rising to $19.02M, supporting a credible path to durable profitability .
  • Top-line headwinds tied to REACH: YoY revenue decline (-7.5%) reflects reduced ACO REACH contribution; watch REACH/MSSP volumes and risk adjustments for revenue trajectory in 2H25 .
  • Segment resilience: NeueCare continues to generate strong operating income ($23.21M), while NeueSolutions remained modestly profitable ($2.55M); continued cost discipline is key .
  • Platform and access expansion: NewPulse and Walgreens collaboration enhance care delivery, patient engagement, and could support future margin and growth as they scale .
  • Balance sheet: $234.4M cash and investments provide flexibility amid transaction and execution priorities; monitor restricted vs non-regulated cash mix .
  • Near-term trading lens: Expect stock narrative to center on take-private timeline, regulatory approvals, and continued EBITDA/margin beats versus consensus; revenue sensitivity to REACH remains the swing factor .
  • Medium-term thesis: Value-based care enablement at scale across ACA, Medicare, and Medicaid with improving unit economics positions NEUE for private-market execution and potential future re-rating on growth + profitability .