— Diluted Loss Per Share of $(0.51); Adjusted Diluted Loss Per Share of $(0.16) —
ST. LOUIS, July 25, 2025 /PRNewswire/ — Centene Corporation (NYSE:CNC) (the Company) announced today its financial results for the second quarter ended June 30, 2025. In summary, the 2025 second quarter results were as follows:
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Total revenues (in millions) |
$ 48,742 |
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Premium and service revenues (in millions) |
$ 42,467 |
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Health benefits ratio |
93.0 % |
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SG&A expense ratio |
7.1 % |
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Adjusted SG&A expense ratio (1) |
7.1 % |
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GAAP diluted loss per share |
$ (0.51) |
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Adjusted diluted loss per share (1) |
$ (0.16) |
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Total cash flow provided by operations (in millions) |
$ 1,785 |
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(1) |
Represents a non-GAAP financial measure. A full reconciliation of the adjusted diluted loss per share and adjusted selling, general and administrative (SG&A) expenses is shown in the Non-GAAP Financial Presentation section of this release. |
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“We are disappointed by our second quarter results, but we have a clear understanding of the trends that have impacted our performance, and are working with urgency and focus to restore our earnings trajectory,” said Chief Executive Officer of Centene, Sarah M. London. “Despite the shifting landscape, we believe that the staying power of Medicaid, Medicare and the Individual Marketplace is as strong as it has ever been. Centene has significantly fortified our platform in service of these programs over the last three years, and as we move forward, we are focused on continuing to adapt with the market to deliver meaningful value to our members, our stakeholders and our shareholders over the long term.”
Awards & Community Engagement
- Since May, Centene and its Missouri subsidiary, Home State Health, have been supporting the St. Louis community impacted by tornadoes through donations as well as volunteer hours. In June, WellCare of Kentucky announced relief efforts to support communities impacted by the tornadoes in Eastern Kentucky. WellCare, with additional funding from the Centene Foundation, will support housing and rebuilding, disperse financial assistance, and provide basic supplies to help people recover.
- In June, Centene was named one of Newsweek‘s America’s Greatest Workplaces for the third consecutive year. The recognition is based on employee feedback about company culture, leadership, integrity, compensation, work-life balance, and more. In May, the Company was also named to Becker’s 150 Top Places to Work in Healthcare and to Newsweek‘s America’s Greatest Workplaces for Gen Z 2025, for the second consecutive year.
- In May, Health Net and the Centene Foundation announced grants to expand healthcare services to underserved Californians through mobile health clinics. The investment is part of Health Net’s new Mobile Outreach for Value, Equity and Sustainability (MOVES) program that targets rural or resource-limited areas and will help deliver preventative care, health education, and social services directly to neighborhoods facing barriers to traditional healthcare access.
Membership
The following table sets forth membership by line of business:
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June 30, |
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2025 |
2024 |
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Traditional Medicaid (1) |
11,227,400 |
11,640,900 |
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High Acuity Medicaid (2) |
1,592,300 |
1,499,000 |
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Total Medicaid |
12,819,700 |
13,139,900 |
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Marketplace |
5,862,800 |
4,401,300 |
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Individual and Commercial Group (3) |
449,700 |
426,400 |
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Total Commercial |
6,312,500 |
4,827,700 |
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Medicare (4) |
1,026,900 |
1,138,400 |
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Medicare Prescription Drug Plan (PDP) |
7,845,800 |
6,603,600 |
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Total at-risk membership |
28,004,900 |
25,709,600 |
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TRICARE eligibles |
— |
2,768,000 |
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Total |
28,004,900 |
28,477,600 |
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(1) |
Membership includes Temporary Assistance for Needy Families (TANF), Medicaid Expansion, Children’s Health Insurance Program (CHIP), Foster Care and Behavioral Health. |
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(2) |
Membership includes Aged, Blind, or Disabled (ABD), Intellectual and Developmental Disabilities (IDD), Long-Term Services and Supports (LTSS) and Medicare-Medicaid Plans (MMP) Duals. |
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(3) |
Membership includes Commercial Group, Individual Coverage Health Reimbursement Arrangement (ICHRA) and Other Off-Exchange Individual. |
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(4) |
Membership includes Medicare Advantage and Medicare Supplement. |
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Premium and Service Revenues
The following table sets forth supplemental revenue information ($ in millions):
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Three Months Ended June 30, |
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2025 |
2024 |
% Change |
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Medicaid |
$ 21,723 |
$ 20,250 |
7 % |
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Commercial |
10,070 |
8,535 |
18 % |
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Medicare (1) |
9,450 |
5,978 |
58 % |
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Other |
1,224 |
1,210 |
1 % |
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Total premium and service revenues |
$ 42,467 |
$ 35,973 |
18 % |
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(1) |
Medicare includes Medicare Advantage, Medicare Supplement and Medicare PDP. |
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Statement of Operations: Three Months Ended June 30, 2025
- For the second quarter of 2025, premium and service revenues increased 18% to $42.5 billion from $36.0 billion in the comparable period of 2024. The increase was primarily driven by premium and membership growth in the PDP business along with overall market growth in the Marketplace business, and rate increases in the Medicaid business, partially offset by lower Medicaid membership as a result of redeterminations and lower Marketplace net risk adjustment revenue. The three months ended June 30, 2024, benefited from outperformance in Marketplace risk adjustment for the 2023 benefit year.
- Health benefits ratio (HBR) of 93.0% for the second quarter of 2025 represents an increase from 87.6% in the comparable period in 2024. The increase was primarily driven by a reduction in the Company’s net 2025 Marketplace risk adjustment revenue transfer estimate, increased Marketplace medical costs, higher medical costs in Medicaid driven primarily by behavioral health, home health and high-cost drugs, and an increase to the 2025 Medicare Advantage premium deficiency reserve based on the progression of earnings during the year (with higher earnings at the beginning of the year and lower at the end of the year, given cost sharing progression).
- The SG&A expense ratio was 7.1% for the second quarter of 2025, compared to 8.0% in the second quarter of 2024. The adjusted SG&A expense ratio was 7.1% for the second quarter of 2025, compared to 8.0% in the second quarter of 2024. The decreases were primarily driven by continued leveraging of expenses over higher revenues and growth in the PDP business. The decreases were partially offset by growth in the Marketplace business, which operates at a meaningfully higher SG&A expense ratio as compared to the overall company.
- The income tax expense recorded in the second quarter of 2025 reflects the year-to-date impact of a lower estimated full year 2025 effective tax rate.
- Diluted loss per share was $(0.51) for the second quarter of 2025 driven primarily by a reduction in the Company’s net 2025 Marketplace risk adjustment revenue transfer estimate.
- Cash flow provided by operations for the second quarter of 2025 was $1.8 billion, primarily driven by improved pharmacy rebate remittance timing.
Balance Sheet
At June 30, 2025, the Company had cash, investments and restricted deposits of $37.5 billion and maintained $234 million of cash and cash equivalents in its unregulated entities. Medical claims liabilities totaled $20.1 billion. The Company’s days in claims payable (DCP) was 47 days, a decrease of two days as compared to the first quarter of 2025 driven by the timing and types of claims, as well as the impact of state-directed payments. Total debt was $17.6 billion, which included no borrowings on the $4.0 billion Revolving Credit Facility at quarter end.
Outlook
The Company will provide 2025 earnings expectations on the conference call.
Conference Call
As previously announced, the Company will host a conference call Friday, July 25, 2025, at 8:00 a.m. ET to review the financial results for the second quarter ended June 30, 2025.
Investors and other interested parties are invited to listen to the conference call by dialing 1-877-883-0383 in the U.S. and Canada; +1-412-902-6506 from abroad, including the following Elite Entry Number: 7878291 to expedite caller registration; or via a live, audio webcast on the Company’s website at www.centene.com, under the Investors section.
A webcast replay will be available for on-demand listening shortly following the completion of the call for the next 12 months or until 11:59 p.m. ET on Friday, July 24, 2026, at the aforementioned URL. In addition, a digital audio playback will be available until 9 a.m. ET on Friday, August 1, 2025, by dialing 1-877-344-7529 in the U.S., 1-855-669-9658 in Canada, or +1-412-317-0088 from abroad, and entering access code 7322068.
Non-GAAP Financial Presentation
The Company is providing certain non-GAAP financial measures in this release as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company’s operations and measure the Company’s performance more consistently across periods. The Company uses the presented non-GAAP financial measures internally in evaluating the Company’s performance and for planning purposes, by allowing management to focus on period-to-period changes in the Company’s core business operations, and in determining employee incentive compensation. Therefore, the Company believes that this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The Company strongly encourages investors to review its consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP financial measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Specifically, the Company believes the presentation of non-GAAP financial measures that excludes amortization of acquired intangible assets, acquisition and divestiture related expenses, as well as other items, allows investors to develop a more meaningful understanding of the Company’s core performance over time.
The tables below provide reconciliations of non-GAAP items ($ in millions, except per share data):
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2025 |
2024 |
2025 |
2024 |
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GAAP net earnings (loss) attributable to Centene |
$ (253) |
$ 1,146 |
$ 1,058 |
$ 2,309 |
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Amortization of acquired intangible assets |
173 |
173 |
346 |
346 |
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Acquisition and divestiture related expenses |
1 |
6 |
1 |
67 |
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Other adjustments (1) |
58 |
2 |
61 |
(97) |
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Income tax effects of adjustments (2) |
(58) |
(44) |
(100) |
(126) |
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Adjusted net earnings (loss) |
$ (79) |
$ 1,283 |
$ 1,366 |
$ 2,499 |
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(1) |
Other adjustments include the following pre-tax items: |
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2025: |
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(a) |
for the three months ended June 30, 2025: intangible asset impairment related to the wind-down of certain contracts in the Other segment of $55 million and a reduction to the previously reported gain on real estate transactions of $3 million; |
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(b) |
for the six months ended June 30, 2025: intangible asset impairment related to the wind-down of certain contracts in the Other segment of $55 million, a reduction to the previously reported gain on the sale of Magellan Rx of $10 million and a net gain on real estate transactions of $4 million. |
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2024: |
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(a) |
for the three months ended June 30, 2024: gain on the previously reported divestiture of Circle Health of $10 million, an additional loss on the divestiture of our Spanish and Central European businesses of $7 million, severance costs due to a restructuring of $4 million, reduction to the net gain on the sale of property due to closing costs of $3 million and net gain on the finalization of working capital adjustments for the previously reported divestiture of Magellan Specialty Health of $2 million; |
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(b) |
for the six months ended June 30, 2024: net gain on the previously reported divestiture of Magellan Specialty Health due to the achievement of contingent consideration and finalization of working capital adjustments of $83 million, net gain on the sale of property of $21 million, gain on the previously reported divestiture of Circle Health of $20 million, Health Net Federal Services asset impairment due to the 2024 final ruling on the TRICARE Managed Care Support Contract of $14 million, severance costs due to a restructuring of $13 million, an additional loss on the divestiture of our Spanish and Central European businesses of $7 million and gain on the previously reported divestiture of HealthSmart due to the finalization of working capital adjustments of $7 million. |
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(2) |
The income tax effects of adjustments are based on the effective income tax rates applicable to each adjustment. |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2025 |
2024 |
2025 |
2024 |
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GAAP diluted earnings (loss) per share attributable to Centene |
$ (0.51) |
$ 2.16 |
$ 2.13 |
$ 4.32 |
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Amortization of acquired intangible assets |
0.35 |
0.33 |
0.70 |
0.65 |
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Acquisition and divestiture related expenses |
— |
0.01 |
— |
0.13 |
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Other adjustments (3) |
0.12 |
— |
0.12 |
(0.18) |
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Income tax effects of adjustments (4) |
(0.12) |
(0.08) |
(0.20) |
(0.24) |
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Adjusted diluted earnings (loss) per share |
$ (0.16) |
$ 2.42 |
$ 2.75 |
$ 4.68 |
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(3) |
Other adjustments include the following pre-tax items: |
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2025: |
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(a) |
for the three months ended June 30, 2025: intangible asset impairment related to the wind-down of certain contracts in the Other segment of $0.11 per share ($0.08 after-tax) and a reduction to the previously reported gain on real estate transactions of $0.01 per share ($0.01 after-tax); |
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(b) |
for the six months ended June 30, 2025: intangible asset impairment related to the wind-down of certain contracts in the Other segment of $0.11 per share ($0.08 after-tax), a reduction to the previously reported gain on the sale of Magellan Rx of $0.02 ($0.02 after-tax) and a net gain on real estate transactions of $0.01 ($0.01 after-tax); |
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2024: |
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