NeueHealth (NEUE) Q1 2025 earnings summary

Executive summary

• Served 709,000 consumers in Q1 2025, a 51% increase year-over-year, reflecting strong adoption of the value-driven, consumer-centric care model.

• Achieved positive Adjusted EBITDA for the fifth consecutive quarter, with Q1 2025 Adjusted EBITDA at $13.5 million.

• Reported a net loss of $10.8 million for Q1 2025, compared to a net loss of $4.2 million in Q1 2024.

• Announced a definitive agreement to go private via merger with NH Holdings 2025, Inc., with closing expected mid-2025, pending regulatory and other conditions.

• Focused on long-term, sustainable growth, expanding value-based care, and deepening payer and provider partnerships.

Financial highlights

• Q1 2025 revenue was $215.8 million, down from $245.1 million in Q1 2024, primarily due to a decrease in ACO REACH revenue.

• Gross margin reached $54.9 million, with gross margin percentage improving to 25.4% from 19.7% year-over-year.

• Adjusted EBITDA was $13.5 million, up from $3.7 million in Q1 2024.

• Operating costs decreased by $18.1 million (27.1%) year-over-year, mainly due to lower compensation costs.

• Net cash used in operating activities was $21.0 million, an improvement from $48.7 million used in Q1 2024.

Segment performance

• NeueCare segment revenue was $90.5 million, with operating income of $23.0 million, serving 530,000 value-based consumers, up 67% year-over-year.

• NeueSolutions segment revenue was $127.6 million, with an operating loss of $3.0 million, serving 138,000 enablement and 41,000 government program consumers.

• Discontinued operations (Bright HealthCare - Commercial) reported a net loss of $9.4 million, with ongoing runout of claims and risk adjustment payments.