Executive Summary

Q4 2024 revenue was $232.64M, essentially flat sequentially (vs $232.93M in Q3) and down year over year (vs $292.87M), while Adjusted EBITDA remained positive at $5.48M for the fourth straight quarter; diluted EPS improved to $(1.94) from $(8.51) in Q3 and $(30.47) in Q4 2023 .
Segment mix improved: NeueCare delivered $79.25M revenue and $9.23M operating income, while NeueSolutions posted $157.07M revenue and $3.10M operating income, a notable turn from a loss in Q3 and Q4 2023 .
For FY 2024, revenue was $936.66M (vs prior guidance of ~$950M), and Adjusted EBITDA was $22.50M, near the high end of the $15–$25M guidance range; management highlighted continued momentum with 717,000 consumers served to start 2025 .
Strategic overlay: the company agreed on Dec 23, 2024 to be acquired by an NEA affiliate; closing targeted for Q2 2025, with external legal PRs citing $7.33 per share in cash—deal timing and closing risk likely drive near-term stock reaction more than fundamentals .

What Went Well and What Went Wrong

What Went Well
- Four consecutive quarters of positive Adjusted EBITDA in 2024, with Q4 Adjusted EBITDA of $5.48M and FY 2024 at $22.50M; management called 2024 “our strongest financial performance to date” .
- Segment profitability improvement: NeueSolutions swung to $3.10M operating income in Q4 from losses in Q3 and prior-year, while NeueCare delivered $9.23M operating income in Q4 .
- Strong demand signals into 2025: consumers served reached 717,000 to start 2025; management emphasized payer/provider relationships and expanding into MSSP as growth vectors (“We are building on this momentum... serving 717,000 consumers.” — CEO Mike Mikan) .
What Went Wrong
- ACO REACH revenue remained a headwind year over year: Q4 ACO REACH revenue of $154.25M vs $219.66M in Q4 2023, pressuring consolidated revenue YoY .
- GAAP profitability still negative on continuing operations: Q4 net loss from continuing operations was $(42.48)M despite improvements, reflecting ongoing interest expense and operating costs .
- Operating cost intensity remained elevated on a GAAP basis: Q4 Operating Cost Ratio was 31.3% (Adjusted Operating Cost Ratio 18.4%), indicating continued need for cost discipline, even as Adjusted metrics improved .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($USD Millions)	$292.87	$232.93	$232.64
Net Income (Loss) ($USD Millions)	$(460.57)	$(40.37)	$2.52
Net Loss from Continuing Operations ($USD Millions)	$(62.83)	$(26.01)	$(42.48)
Adjusted EBITDA ($USD Millions)	$(10.36)	$9.40	$5.48
Diluted EPS ($)	$(30.47)	$(8.51)	$(1.94)
Gross Margin ($USD Millions)	—	$50.2	$47.7

Segment breakdown (revenue and operating income/loss):

Segment	Q4 2023 Revenue ($M)	Q4 2023 Op Inc (Loss) ($M)	Q3 2024 Revenue ($M)	Q3 2024 Op Inc (Loss) ($M)	Q4 2024 Revenue ($M)	Q4 2024 Op Inc (Loss) ($M)
NeueCare	$71.33	$3.75	$83.87	$16.43	$79.25	$9.23
NeueSolutions	$220.86	$(14.63)	$152.04	$(5.83)	$157.07	$3.10

KPIs – consumers served:

KPI	Dec 31, 2023	Sep 30, 2024	Dec 31, 2024
Value-Based Consumers served	355,000	390,000	360,000
Enablement Services Lives	106,000	119,000	123,000

Aggregate consumers served:

Metric	FY 2024	Start 2025
Total consumers served	483,000	717,000

Non-GAAP metrics: Adjusted Operating Cost Ratio

Metric	Q4 2023	Q3 2024	Q4 2024	FY 2023	FY 2024
Operating Cost Ratio	22.3%	27.5%	31.3%	24.7%	29.2%
Adjusted Operating Cost Ratio	11.1%	18.2%	18.4%	13.1%	17.5%

Notes: Adjusted EBITDA and Adjusted Operating Cost Ratio definitions and reconciliations provided in the press release; adjustments include SBC, transaction-related costs, held-for-sale operations, impairments, and other specified items .

Guidance Changes

Metric	Period	Previous Guidance (as of Q3 2024)	Current Guidance (Q4 2024)	Change
Revenue	FY 2024	~ $950M	No update provided at Q4; Actual $936.66M	N/A; delivered slightly below prior guidance
NeueCare Revenue	FY 2024	~ $320M	No update; Actual $313.73M	N/A; delivered slightly below prior guidance
NeueSolutions Revenue	FY 2024	~ $640M	No update; Actual $635.09M	N/A; delivered slightly below prior guidance
Adjusted EBITDA	FY 2024	$15M–$25M	No update; Actual $22.50M	N/A; delivered near high end
Adjusted Operating Cost Ratio (incl. corporate per Q3 disclosure)	FY 2024	19%–20% (incl. corporate)	No directly comparable update; company reported 17.5% Adjusted Operating Cost Ratio (per definition in Q4 release)	N/A; definitions differ; not directly comparable

Management did not issue new 2025 quantitative guidance in Q4 materials; they highlighted entry into MSSP, continued payer/provider growth, and the pending NEA acquisition closing targeted for Q2 2025 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Value-based model, consumer growth	Q2: Positive Adj. EBITDA 2nd straight quarter; reaffirmed 2024 outlook; enablement lives 113k; focus on ACA/Medicare/Medicaid . Q3: 3rd straight positive Adj. EBITDA; ~509k consumers served; strong payer relationships; Central FL expansion .	717k consumers to start 2025; 483k served in 2024; emphasis on deepening local presence and payer/provider partnerships .	Improving scale and diversified growth channels
Segment performance	Q2: Mixed—NeueCare softness from impairments; NeueSolutions modest results . Q3: NeueCare $16.4M op income; NeueSolutions $(5.8)M op loss, ACO REACH stable ops .	Q4: NeueCare $9.23M op income; NeueSolutions $3.10M op income; improved mix QoQ .	Improving profitability, especially in NeueSolutions
ACO REACH/MSSP	Q2: ACO REACH revenue down YoY; program participation ongoing . Q3: ACO REACH ~45k beneficiaries; prepare for MSSP .	MSSP participation in 2025; ongoing ACO REACH with care management focus .	Stable programs; expanding CMS participation
Wind-down of ACA insurance	Q2/Q3: Steady liability decline; capital retrieval ongoing .	Continues as part of strategic focus on care delivery and enablement; no adverse update in Q4 materials .	De-risking legacy exposure over time
M&A/Going private	—	NEA affiliate to acquire NEUE; closing targeted Q2 2025 ; external PR cites $7.33/share cash terms .	New corporate structure likely post-close

Management Commentary

Strategic positioning: “In 2024, we delivered our strongest financial performance to date... We have established a strong foundation to drive strategic growth in 2025” — Mike Mikan, CEO .
Scale and growth vectors: “We have already generated significant growth to start 2025, serving 717,000 consumers… secured new payer partnerships and expanded into new product verticals, including MSSP” — CEO .
Segment outlook: “In our provider enablement business, we grew the consumers we serve to 123,000 in 2024… In 2025, … in addition to ACO REACH, we will also be participating in MSSP” — CFO .
Balance sheet context: “As of December 31, 2024, we had $202.8 million in total cash and investments… nonregulated cash and short-term investments were $93.2 million, including $36.3 million of restricted cash and investments” — CFO .
Transaction: “We anticipate the [NEA acquisition] closing in the second quarter of 2025” — CEO .

Q&A Highlights

The published Q4 transcript contains prepared remarks and closing comments only; Q&A content was not included in the document set reviewed, so no Q&A themes were available to summarize .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 could not be retrieved due to API rate limits at the time of analysis; as a result, we cannot quantify beats/misses versus consensus for revenue, EPS, or EBITDA. Values from S&P Global were unavailable at query time.
Given the absence of consensus data, we anchor to management’s prior FY 2024 guidance: revenue actual of $936.66M versus prior ~$950M, and Adjusted EBITDA actual of $22.50M near the high end of the $15–$25M range .

Key Takeaways for Investors

Operational momentum continued: four straight quarters of positive Adjusted EBITDA in 2024; Q4 delivered $5.48M and FY 2024 $22.50M, highlighting improved core performance even as GAAP continuing losses persist .
Segment quality mix improving: NeueSolutions posted positive operating income in Q4, a meaningful turn versus prior periods; NeueCare remained profitable, underpinning the consolidated margin path .
Revenue headwind remains ACO REACH YoY comp; lower ACO REACH revenue vs Q4 2023 is the primary driver of consolidated revenue decline YoY despite sequential stability .
2025 demand setup looks strong: 717k consumers to start the year and MSSP participation support continued scale; watch execution in new geographies and payer expansions .
Near-term stock driver is the go-private transaction: targeted Q2 2025 close with reported $7.33/share cash terms; trading likely reflects deal spread and closing risk rather than quarterly fundamentals .
Cost discipline and cash: Adjusted Operating Cost Ratio improved vs FY 2023; total cash and investments of ~$202.8M at year-end, with ~$93.2M nonregulated (partially restricted) — monitor liquidity versus growth investments and restructuring needs .
Legacy risk continues to recede with the ACA insurance wind-down; continued focus on care delivery and enablement should reduce volatility tied to discontinued operations over time .

Additional Reference Materials

Q4 2024 8-K and press release, including full GAAP and non-GAAP reconciliations .
Q4 2024 earnings call prepared remarks .
Q3 2024 8-K and transcript for trend context and prior guidance .
Q2 2024 8-K highlights for earlier-year trend context .

Merger/Go-Private

Company disclosure (merger with NEA affiliate; closing targeted Q2 2025) .
External legal press release indicating $7.33 per share cash consideration .

NeueHealth, Inc. (NEUE)·Q4 2024 Earnings Summary