Health insurance company Clover Health (NASDAQ: CLOV) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 62% year on year to $749.2 million. The company expects the full year’s revenue to be around $2.87 billion, close to analysts’ estimates. Its GAAP profit of $0.05 per share was $0.02 above analysts’ consensus estimates.
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Clover Health (CLOV) Q1 CY2026 Highlights:
- Revenue: $749.2 million vs analyst estimates of $714.9 million (62% year-on-year growth, 4.8% beat)
- EPS (GAAP): $0.05 vs analyst estimates of $0.03 ($0.02 beat)
- Adjusted EBITDA: $40.26 million vs analyst estimates of $32.87 million (5.4% margin, 22.5% beat)
- EBITDA guidance for the full year is $60 million at the midpoint, above analyst estimates of $56.02 million
- Operating Margin: 3.6%, up from -0.3% in the same quarter last year
- Free Cash Flow was $107 million, up from -$16.48 million in the same quarter last year
- Customers: 155,773, up from 113,803 in the previous quarter
- Market Capitalization: $1.37 billion
“Our results demonstrate the differentiated model we have built to drive growth and profitability while expanding access to high-quality, affordable care through a wide-network PPO,” said Clover Health CEO Andrew Toy.
Company Overview
Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ: CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Clover Health’s 25.6% annualized revenue growth over the last five years was exceptional. Its growth beat the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Clover Health’s annualized revenue growth of 31.2% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, Clover Health reported magnificent year-on-year revenue growth of 62%, and its $749.2 million of revenue beat Wall Street’s estimates by 4.8%.
Looking ahead, sell-side analysts expect revenue to grow 35.3% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and implies its newer products and services will fuel better top-line performance.
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Adjusted Operating Margin
Although Clover Health was profitable this quarter from an operational perspective, it’s generally struggled over a longer time period. Its expensive cost structure has contributed to an average adjusted operating margin of negative 11.8% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.
On the plus side, Clover Health’s adjusted operating margin rose by 26.2 percentage points over the last five years, as its sales growth gave it operating leverage. Zooming in on its more recent performance, we can see the company’s trajectory is intact as its margin has also increased by 9.5 percentage points on a two-year basis. These data points are very encouraging and show momentum is on its side.
In Q1, Clover Health generated an adjusted operating margin profit margin of 5.3%, up 5.6 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Although Clover Health’s full-year earnings are still negative, it reduced its losses and improved its EPS by 28.7% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. We hope to see an inflection point soon.
In Q1, Clover Health reported EPS of $0.05, up from negative $0 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast Clover Health’s full-year EPS of negative $0.11 will flip to positive $0.03.
Key Takeaways from Clover Health’s Q1 Results
It was good to see Clover Health beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its full-year revenue guidance was in line. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $2.67 immediately following the results.
So do we think Clover Health is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
