Centene Corp's Q2 2025 Financial Results

By Greg Peters • Friday, July 25 12:07 • Permanent Link

Centene Corporation (NYSE: CNC) reported its financial results for the second quarter ended June 30, 2025. The company's total revenues stood at $48,742 million, with premium and service revenues reaching $42,467 million. The health benefits ratio (HBR) for the period was 93.0%, while the SG&A expense ratio was 7.1%, reflecting a decrease from the second quarter of 2024. The adjusted SG&A expense ratio also decreased to 7.1% from the same period in 2024.

The company's membership figures for the second quarter of 2025 showed that total Medicaid membership decreased to 12,819,700 from 13,139,900 in 2024. However, there was an increase in total marketplace membership to 5,862,800 from 4,401,300 in 2024. The total commercial membership also saw an increase to 6,312,500 from 4,827,700 in the previous year. Additionally, Medicare membership decreased to 1,026,900 from 1,138,400 in 2024.

The premium and service revenues for the second quarter of 2025 increased by 18% to $42.5 billion from $36.0 billion in the same period of 2024. This growth 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.

The company recorded a diluted loss per share of $(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. However, the adjusted diluted loss per share for the same period was $(0.16).

Centene's cash flow provided by operations for the second quarter of 2025 was $1.8 billion, primarily driven by improved pharmacy rebate remittance timing. At the end of June 30, 2025, the company had cash, investments, and restricted deposits totaling $37.5 billion, and medical claims liabilities amounted to $20.1 billion.

The company will provide its 2025 earnings expectations on the conference call. It also encourages investors to review its consolidated financial statements and publicly filed reports in their entirety. Furthermore, the tables in the press release provide reconciliations of non-GAAP items for the second quarter and six months ended June 30, 2025 and 2024.

The market has reacted to these announcements by moving the company's shares -9.04% to a price of $26.76. For the full picture, make sure to review CENTENE CORP's 8-K report.

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