📊 CLOV Key Takeaways
Is Clover Health Investments, Corp.. /de (CLOV) a Good Investment?
Clover Health demonstrates strong top-line growth (+40.3% YoY) and maintains a fortress balance sheet with zero debt and $173.3M cash, supported by healthy free cash flow of $107M. However, the dramatic 98.9% collapse in net income coupled with razor-thin operating margins of 3.6% and weak capital returns (ROE 8.1%, ROA 3.9%) signal severe operational challenges that contradict growth momentum and warrant caution.
Clover Health is growing revenue quickly, but that growth is not yet translating into sustainable profitability, with negative operating margins, negative free cash flow, and net losses still intact. The balance sheet is cleaner than many loss-making peers because it carries no long-term debt and maintains adequate liquidity, but the current cash balance is not especially large relative to ongoing cash burn. Fundamentally, this remains a turnaround story that needs clear evidence of margin expansion and cash flow improvement.
Clover Health Investments, Corp.. /de Key Strengths (CLOV)
- Strong revenue growth of 40.3% YoY demonstrating market traction
- Zero long-term debt with $173.3M cash position providing financial flexibility
- Robust free cash flow generation of $107M (14.3% FCF margin) despite low profitability
- Low capital requirements ($854K capex) reducing reinvestment burden
- Revenue growth is strong at 40.3% year over year, showing continued top-line momentum
- The company has no long-term debt, which limits financial leverage risk
- Liquidity is still reasonable, with a 1.47x current ratio and positive shareholder equity
CLOV Stock Risks: Clover Health Investments, Corp.. /de Investment Risks
- Net income collapsed 98.9% YoY despite strong revenue growth, indicating severe operational deterioration
- Net margin of only 3.6% is critically thin for a healthcare services business with 36.2% gross margins
- Weak return on equity (8.1%) and return on assets (3.9%) reflect poor capital deployment efficiency
- Operating expense structure appears unsustainable relative to revenue base
- Profitability remains weak, with negative operating and net margins despite higher revenue
- Operating cash flow and free cash flow are negative, indicating the business is still consuming cash
- Gross margin of 14.1% leaves limited room for execution mistakes or medical cost pressure
Key Metrics to Watch
- Quarterly net income trend and operating margin expansion path
- Operating expense ratio to revenue and cost structure breakdown
- Medical loss ratio and claims performance by segment
- Year-over-year profitability recovery indicators and management guidance
- Operating margin improvement and sustained net loss reduction
- Operating cash flow and free cash flow trend relative to the $78.3M cash balance
Clover Health Investments, Corp.. /de (CLOV) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Clover Health Investments, Corp.. /de presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CLOV Profit Margin, ROE & Profitability Analysis
CLOV vs Healthcare Sector: How Clover Health Investments, Corp.. /de Compares
How Clover Health Investments, Corp.. /de compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Clover Health Investments, Corp.. /de Stock Overvalued? CLOV Valuation Analysis 2026
Based on fundamental analysis, Clover Health Investments, Corp.. /de has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Clover Health Investments, Corp.. /de Balance Sheet: CLOV Debt, Cash & Liquidity
CLOV Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Clover Health Investments, Corp.. /de's revenue has grown significantly by 31% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.42 indicates the company is currently unprofitable.
CLOV Revenue Growth, EPS Growth & YoY Performance
CLOV Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $462.3M | -$1.3M | $0.00 |
| Q3 2025 | $331.0M | -$1.3M | N/A |
| Q2 2025 | $356.3M | -$1.3M | N/A |
| Q1 2025 | $346.9M | -$1.3M | N/A |
| Q3 2024 | $306.0M | $7.4M | N/A |
| Q2 2024 | $320.1M | $7.4M | N/A |
| Q1 2024 | $322.0M | -$19.2M | N/A |
| Q3 2023 | $482.1M | -$28.8M | $-0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Clover Health Investments, Corp.. /de Dividends, Buybacks & Capital Allocation
CLOV SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Clover Health Investments, Corp.. /de (CIK: 0001801170)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CLOV
What is the AI rating for CLOV?
Clover Health Investments, Corp.. /de (CLOV) has a Combined AI Grade of C from Claude (B) and ChatGPT (C) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CLOV's key strengths?
Claude: Strong revenue growth of 40.3% YoY demonstrating market traction. Zero long-term debt with $173.3M cash position providing financial flexibility. ChatGPT: Revenue growth is strong at 40.3% year over year, showing continued top-line momentum. The company has no long-term debt, which limits financial leverage risk.
What are the risks of investing in CLOV?
Claude: Net income collapsed 98.9% YoY despite strong revenue growth, indicating severe operational deterioration. Net margin of only 3.6% is critically thin for a healthcare services business with 36.2% gross margins. ChatGPT: Profitability remains weak, with negative operating and net margins despite higher revenue. Operating cash flow and free cash flow are negative, indicating the business is still consuming cash.
What is CLOV's revenue and growth?
Clover Health Investments, Corp.. /de reported revenue of $749.2M.
Does CLOV pay dividends?
Clover Health Investments, Corp.. /de does not currently pay dividends.
Where can I find CLOV SEC filings?
Official SEC filings for Clover Health Investments, Corp.. /de (CIK: 0001801170) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CLOV's EPS?
Clover Health Investments, Corp.. /de has a diluted EPS of $0.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CLOV's fundamental grade?
Based on our AI fundamental analysis in June 2026, Clover Health Investments, Corp.. /de has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CLOV stock overvalued or undervalued?
Valuation metrics for CLOV: ROE of 8.1% (sector avg: 15%), net margin of 3.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is CLOV's AI grade for 2026?
Our dual AI analysis gives Clover Health Investments, Corp.. /de a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CLOV's free cash flow?
Clover Health Investments, Corp.. /de's operating cash flow is $107.9M, with capital expenditures of $854.0K. FCF margin is 14.3%.
How does CLOV compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 3.6% (avg: 12%), ROE 8.1% (avg: 15%), current ratio 1.33 (avg: 2).