This meeting discussed the financial performance of the company for the second quarter of 2025 and analyzed the expectations for future performance. The meeting reminded participants that forward-looking statements may be involved, which are subject to various risks and uncertainties. Relevant financial data and risk factors can be found in filings with the U.S. Securities and Exchange Commission. The meeting also emphasized the use of non-GAAP financial indicators and provided information on the conversion between these indicators and GAAP indicators.

The report indicates that the company achieved significant growth in members and revenue in the first half of 2025, while maintaining adjusted EBITDA profitability, laying a solid foundation for accelerated growth in 2026. It is expected in the next quarter, with the arrival of the fourth star payment year, the company will continue to expand the coverage of its flagship wide network PPO plan, while significantly increasing adjusted EBITDA.

Clover Health achieved steady growth in members and revenue in the second quarter through its technology-driven care model, while maintaining profitability in adjusted EBITDA. Its Medicare Advantage business continued to increase membership, especially with significant success in early care management through the Clover Assistant technology, such as reducing hospitalizations and readmissions for patients with chronic obstructive pulmonary disease. By focusing on Medicare Advantage rather than participating in Medicaid or ACA markets, Clover Health believes its business model can effectively withstand industry pressures.

In the face of rising healthcare costs and changes to the Part D subsidy policy, the industry is closely monitoring the impact of new policies on business, especially in the absence of historical data for reference. Despite facing unknowns and pressures, the company believes it can effectively manage and mitigate cost trends by adopting a technology-driven care model, particularly through early disease identification and management, as well as providing support services when members need it most, bending the cost curve for members. Although uncertainty still looms for Part D in 2025, the anticipated increase in subsidy rates in 2026 suggests possible relief.

The conversation focused on the development of the health technology ecosystem in 2026, emphasizing the importance of accelerating data acquisition and applying AI technology. The plan is to expand the coverage of Clover Assistant, strengthen insurance products, achieve profit growth, and enhance market competitiveness and customer retention. Looking ahead, the company is confident in its ability to respond to market competition, achieve more efficient growth, consolidate its insurance business further with the financial benefits brought by rating upgrades.

Since announcing the opening of the CA technology platform to other risk-bearing entities last year, we have received widespread interest and adoption. This platform focuses on improving patient health outcomes and overall healthcare costs, and is applicable to various participants in the healthcare ecosystem, including primary care physicians, risk-bearing ACOs, pharmacies, large hospitals, and health insurance companies. We are actively collaborating with health plans that need to improve star ratings, quality scores, and manage PPO network costs, and have made significant progress, including transactions with large health systems and pilot projects with independent pharmacies. We believe that Counterpart Assistance has the capability to drive advantage plans for healthcare insurance in any managed care environment nationwide, and we are moving towards achieving this goal while maintaining growth, profitability, and technological innovation. Looking ahead, we are laying the foundation for 2026 to solidify our leadership position in the healthcare insurance advantage field.

Highlighted the company's strong performance in the medical insurance advantage field, achieving a membership growth of over 30% while maintaining profitability. Detailed review of the second quarter financial results, including significant growth in memberships and revenue, as well as a decrease in GAAP net loss. Confirmed confidence in the company's financial health and future growth due to the technology-driven medical model, with expectations of faster growth and substantial profit increase by 2026.

A health insurance company achieved significant growth in the second quarter of 2025, with its insurance business increasing from 30% to $927 million, compared to the previous year. Despite facing a general trend of rising costs in the health insurance industry, the company remains confident in its management capabilities and differentiated, technology-driven healthcare service model, which helps in early disease detection and cost control. The company has observed an increase in the utilization of supplemental benefits and some category B services, so it has slightly raised its guidance expectations for the full year insurance business. Additionally, the company has continued to make progress in operational leverage, efficiency improvement, strategic investments, and technology-driven healthcare service platforms, while maintaining a strong profit position, reflecting its unique growth model and operational strength. The company has also made progress in improving care coordination and enhancing health outcomes, while maintaining good cash reserves and financial health through effective management.

In its latest business update, Clover Health reiterated and adjusted its performance guidance for 2025, showing strong performance in Medicare Advantage membership growth, insurance revenue growth, and adjusted profit indicators. The company expects its Medicare Advantage membership to achieve a 32% year-on-year growth, with insurance revenue expected to increase by 37%. At the same time, Clover Health emphasized its continued efforts to reduce costs and improve operational efficiency, as well as its positive outlook for growth and profit potential for 2026 and beyond. The company plans to further drive profit growth by optimizing cost structures, increasing member retention rates, and leveraging the financial advantages of a four-star payment year. Clover Health is confident in its unique technology-driven care model and believes that this will help the company to capture a favorable position in future market competition.

In the discussion, the company mentioned that the performance of NCR Br exceeded expectations, especially in regards to Part B and supplemental medical insurance Part C and dental insurance. The company stated that measures have been implemented to address this trend and expects the pressure from IRA to ease by 2026. It was noted in the discussion that the onset of this pressure primarily occurred earlier in the quarter, and the increased costs, especially for Part D, have been taken into consideration in the bidding for the next fiscal year. The company also mentioned that this is the first year of IRA policy implementation, and it is widely expected within the industry that costs for Part D will increase, therefore this trend has been factored into future modeling and adjustments.

The company achieved improvements in sales, general, and administrative (SG&A) expenses through cost efficiency measures and renegotiation of partner contracts. At the same time, the company continued to release white papers, such as papers on chronic obstructive pulmonary disease (COPD), to demonstrate the advantages and benefits of its products and services in the medical field, further driving business growth.

The conversation revolves around the cost trends and market competition in the healthcare insurance industry. The discussion points out that although the cost performance of new and old members is consistent, the industry is currently experiencing a period of rising costs, and it is expected that this will be addressed through reasonable pricing in the future. At the same time, adjustments in the strategies of competitors in the healthcare insurance market show a different competitive landscape from last year, and the industry as a whole is actively responding to challenges.

In the conversation, it was mentioned that despite current uncertainties, a good performance is expected in the upcoming growth season based on confidence in the core market. 2026 is marked as the Four-Star Payment Year, which will provide financial support for the company and promote business growth.

This meeting is the earnings report meeting for the second quarter of 2025 for Clover Health. After the Q&A session, Andrew Toy gave a concluding speech, thanking all participants for their attention and support, and announced that they will communicate with everyone again soon. The meeting is now concluded, and we wish everyone a wonderful day.