Q1 2025 NeueHealth Inc Earnings Call

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 NeueHealth's chief executive officer, Mike Mikan. Good morning, everyone, and thank you for joining NeueHealth's first quarter 2025

NeueHealth is pleased to report another solid quarter of financial results.

This year, we are continuing to see our Valley-driven consumer-centric care model resonate with the market.

In the first quarter, we served over 709,000 consumers, which represents growth of approximately 51% over Q1 2024. This growth is substantial and is attributable to a few key factors.

first.

We believe that our care model is driving value for all stakeholders.

It tightly aligns the interests of consumers, providers, and payers to deliver differentiated results and create a care experience that is seamless and more coordinated for all. We believe this is unique and represents a clear shift from traditional, fragmented approaches to care.

Aligning interest is core to what we do and our continued success as a leader in value-based care.

Second, we are focused on forming strong relationships with consumers, providers, and payers across the industry.

These relationships are ongoing and rooted in trust, and they provide a strong platform to drive continued growth. We see our relationship-based approach as a key reason we have been able to successfully advance our care model.

And finally, we attribute our success to our commitment to delivering personalized care to all populations across the ACA marketplace, Medicare and Medicaid.

By serving a diverse population base, we can mitigate risk associated with high concentration in any one product area, and we can work easily brought in our reach with a proven set of capabilities built to serve all populations no matter their need or circumstance.

Serving a diverse population base is a key component of our model and critical to our continued growth in 2025 and beyond.

Overall, 2025 is off to a great start. We're selecting the value we are driving for consumers, providers and payers across the industry.

This gives us confidence that we are in a strong position to continue to advance our model, broaden our scope of capabilities, expand our footprint, and deepen our partnerships with providers and payers in 2025 and beyond.

As I mentioned on our last call in December 2024, we announced

that we entered into a definitive agreement to go private.

Led by a affiliate of one of our largest investors, NEA.

We anticipate the transaction closing in mid 2025 pending satisfaction of the necessary closing conditions.

For additional information regarding the proposed transaction, please consult our filings with the FEC.

I'll now hand it over to Jay to provide additional details on our first quarter financial performance.

Jay: Thank you, Mike, and good morning, everyone. I'll now discuss our first quarter performance for our continuing consolidated new health business, as well as each of our continuing new care and new solution segments, and I will review our balance sheet.

Jay: GAT financials are included in our press release in 10Q in Contain Results that include our discontinued operation.

Jay: NeueHealth consolidated revenue for the first quarter was 215.89 million.

Jay: slightly lower than prior year due to a shift in membership makes away from a few reach to other lines of business. First quarter gross margin was $54.9 million.

Jay: For the fifth consecutive quarter, we achieved adjusted EBITDA profitability, driving 13.5 million of adjusted EBITDA in the first quarter.

Jay: I'd like to mention, to start the year, we generated significant growth in the number of consumers we serve across our new care and new solution segments.

Jay: We're in 709,000 consumers across the ACA marketplace, Medicare and Medicaid, and we continue to see opportunities to expand the populations we serve across product categories. In our new care segment, revenue was 90.5 million in the first quarter, and new care operating income was 23 million.

Through our clinics, we served 530,000 value-based consumers.

Jay: Representing an increase of a profit of 67% over 2024 This growth was made possible by the ongoing personalized relationships we have formed with our consumers.

Jay: and their trust in our ability to deliver high-quality, affordable care. Starting now to our new solution segment, which consists of our provider-enableant business as well as our participation in the ASEAL REACH and MSSP.

Jay: In the first quarter, New Solutions revenue was 127.6 million, with operating loss of 3 million

Jay: In the first quarter, we drove strong growth in our provider enablement business, continuing to expand the Medicaid consumers we are serving and building on the relationships we have established and provided groups across the country to serve 138,000 consumers.

Jay: In 2025, we are leveraging our experience in innovative government programs, participating in the MSSP as well as ACO Reach. For these programs, we are serving approximately 41,000 consumers in 2025.

Jay: I'll now review our balance sheet. As of March 31st, 2025, we had 239.4 million in total cash and investments.

Jay: including amounts in our regulated entities. Our non-regulated cash and short term investments were 145.1 million at the end of the first quarter, including 31.8 million of restricted cash and investments.

Jay: Mike, I'll now turn it back over to you for some closing comments.

Mike Mikan: Thank you, Jay. As you heard today, we delivered strong results in the first quarter, significantly growing the consumers we served to $709,000 in driving $13.5 million of adjusted EBITDA.

Mike Mikan: Our solid first court of performance provides a strong foundation to continue to advance our valued-driven consumer-centric care model in 2025 and beyond.

Mike Mikan: As we mentioned on our last call, we are focused on a few key growth areas in 2025.

First.

Mike Mikan: leveraging our ability to serve a diverse population base, we intend to continue to capitalize on the opportunities to bring high-quality, affordable health care to more consumers across product categories, delivering personalized care to all populations across the continuum of need.

Mike Mikan: Second, we will look to expand our footprint in our existing markets, leveraging our strong local presence and deep relationships we have developed in the communities we serve.

Mike Mikan: In addition, we will evaluate opportunities to grow in new geographies with attractive market conditions.

Mike Mikan: In third, we will look to grow alongside our existing pair partners as well as prioritize forming relationships with new pair groups.

Mike Mikan: And finally, we expect to build upon the relationships we've established with providers across the country, continuing to partner with them on our path to participating in performance-based arrangements.

Mike Mikan: I'm looking forward to building on the strong momentum we've established to start 2025. We are well positioned to continue to align the interests of consumers, providers, and payers, drive strategic growth, and create a seamless, more coordinated care experience for all.

Mike Mikan: We have a strong team in place, and I'm excited about all we will accomplish together this year and beyond.

Mike Mikan: That concludes today's call. Thank you for joining and for your interest in NeueHealth.