Clover Health

Revenue hit 759 million dollars this quarter, up 53 percent from a year ago, and Clover now covers 45 percent more seniors. It also made a 6 million dollar profit, after losing 24 million dollars in the same quarter last year. Management raised its full year targets and now expects about 3 billion dollars in sales and the first full year of profit in the company's history.

About 98 percent of Clover's members are in its main plan, which just earned Medicare's top 5 Star rating for 2028. Top ratings usually bring extra bonus money from the government and make a plan easier to sell. Clover gives credit to its Clover Assistant software, and it has led the nation on quality of care scores three years in a row.

Clover has already earned 62 million dollars this year, but its target for the full year is only 25 to 35 million dollars in profit. That math means the company expects to lose roughly 27 to 37 million dollars in the last three months of 2026, a stretch when medical bills and spending to sign up new members usually run higher. A profit story that slips back into losses, even briefly, can rattle the stock.

This quarter Clover spent about 91 cents of every insurance dollar on members' medical care, which left less than a penny of profit per dollar of revenue. With so little cushion, a small rise in medical costs can wipe out earnings. The stock also tends to swing about two and a half times as hard as the overall market, in both directions.