# EDGAR Filing Document

**Accession Number:** 0001801170
**File Stem:** 0001801170-25-000196
**Filing Date:** 2025-8
**Character Count:** 46488
**Document Hash:** 5efbc0a10e83574aaaf342b869e05e4a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001801170-25-000196.hdr.sgml**: 20250805

**ACCESSION NUMBER**: 0001801170-25-000196

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250805

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250805

**DATE AS OF CHANGE**: 20250805

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CLOVER HEALTH INVESTMENTS, CORP. /DE
- **CENTRAL INDEX KEY:** 0001801170
- **STANDARD INDUSTRIAL CLASSIFICATION:** HOSPITAL & MEDICAL SERVICE PLANS [6324]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 981515192
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39252
- **FILM NUMBER:** 251184954

**BUSINESS ADDRESS:**
- **STREET 1:** 30 MONTGOMERY STREET
- **CITY:** JERSEY CITY
- **STATE:** NJ
- **ZIP:** 07302
- **BUSINESS PHONE:** (201) 432-2133

**MAIL ADDRESS:**
- **STREET 1:** C/O THE CORPORATION TRUST COMPANY
- **STREET 2:** 1209 ORANGE STREET
- **CITY:** WILMINGTON
- **STATE:** DE
- **ZIP:** 19801

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CLOVER HEALTH INVESTMENTS, CORP.
- **DATE OF NAME CHANGE:** 20210107

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Social Capital Hedosophia Holdings Corp. III
- **DATE OF NAME CHANGE:** 20200124

?xml version='1.0' encoding='ASCII'? clov-20250805

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**<u>WASHINGTON, D.C. 20549</u>**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): August 5, 2025**

**CLOVER HEALTH INVESTMENTS, CORP.**

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Delaware** | **001-39252** | **98-1515192** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(State or Other Jurisdiction | (Commission File Number) | (IRS Employer |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of Incorporation) | | Identification No.) |

---

---

| | |
|:---|:---|
| **Not Applicable**<sup>(1)</sup> | **Not Applicable**<sup>(1)</sup> |
| (Address of Principal Executive Offices) | (Zip Code) |

---

**Not Applicable**<sup>(1)</sup>

(Registrant's Telephone Number, Including Area Code)

**Not Applicable**

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
|<br>**Title of each class** | **Trading**<br>**Symbol(s)** |<br>**Name of each exchange on which registered** |
| **Class A Common Stock, par value $0.0001 per share** | **CLOV** | **The NASDAQ Stock Market LLC** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

<sup>(1)</sup> We are a remote-first company. Accordingly, we do not maintain a headquarters. For purposes of compliance with applicable requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, stockholder communications required to be sent to our principal executive offices may be directed to the email address: secretary@cloverhealth.com, or to our agent for service of process at The Corporation Trust Company, 1209 Orange Street, Wilmington, Delaware 19801.

------

**Item 2.02 Results of Operations and Financial Condition.**

On August 5, 2025, Clover Health Investments, Corp. (the "Company") issued a press release announcing its financial results for the second quarter ended June 30, 2025. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information set forth in this Item 2.02 (including Exhibit 99.1) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

**Item 9.01. Financial Statements and Exhibits.**

(d) List of Exhibits

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | <u>[Press release dated August 5, 2025](ax2q25exx991xearningsrelea.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | **Clover Health Investments, Corp.** | **Clover Health Investments, Corp.** |
| Date: | August 5, 2025 | By: | <u>/s/ Peter Kuipers</u> |
|  |  | Name: | Peter Kuipers |
|  |  | Title: | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |

---

## Exhibit 99.1

**Clover Health Reports Second Quarter 2025 Results; Delivering Strong Sustainable Growth**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Second quarter 2025 Medicare Advantage membership of 106,323, up 32% year-over-year*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Second quarter 2025 Total revenues of $478 million, up 34% year-over-year*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Second quarter 2025 profitability metrics with GAAP Net loss of $11 million, Adjusted EBITDA of $17 million, and Adjusted Net income of $17 million*

***Updates Full Year 2025 Guidance:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Increases Average Medicare Advantage membership to 104,000 - 108,000, representing 32% growth year-over-year at the midpoint*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Maintains Insurance revenue between $1.800 billion and $1.875 billion, representing 37% growth year-over-year at the midpoint*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Improves Adjusted SG&A to between $335 million and $345 million, representing Adjusted SG&A as a percentage of Total revenues between 18% - 19%*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Maintains Adjusted EBITDA profitability between $50 million and $70 million*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Maintains Adjusted Net income between $50 million and $70 million*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Expects Insurance BER now between 88.5% - 89.5%*

WILMINGTON, Del. – August 5, 2025 – Clover Health Investments, Corp. (Nasdaq: CLOV) ("Clover," "Clover Health" or the "Company"), today reported financial results for the second quarter 2025. Management will host a conference call today at 5:00 p.m. ET to discuss its operating results and other business highlights.

"Our performance further demonstrates how our technology-first model drives better care management, above-market growth, and sustained profitability," said Clover Health CEO Andrew Toy. "By leading with affordability, choice, and AI-driven clinical recommendations, we have achieved strong Medicare Advantage results this year to date, and importantly, better health outcomes for our members. Our recently published clinical whitepaper on chronic obstructive pulmonary disease (COPD) shows that a relationship with a provider using Clover Assistant technology was correlated with fewer hospitalizations (15% lower) and readmissions (18% lower)."

"Our second quarter 2025 results reflect significant membership and revenue growth, along with sustained Adjusted Net income and Adjusted EBITDA profitability," said Clover Health CFO Peter Kuipers. "We are executing our growth strategy well, and have generated significant momentum in our business this year during a 3.5 Star payment year. We believe this positions us well to achieve our updated 2025 guidance and expect it to further accelerate our growth and profitability in 2026, which is a 4 Star payment year."

Key Company highlights are as follows:

---

| | | | |
|:---|:---|:---|:---|
| ***Dollars in Millions*** | **2Q25** | **2Q24** | **Change (%)** |
| Insurance revenue | $469.8 | $349.9 | 34.3% |
| Total revenues | 477.6 | 356.3 | 34.0% |
| Insurance net medical claims incurred | 394.2 | 249.4 | 58.1% |
| Salaries and benefits plus General and administrative expenses ("SG&A") | 109.8 | 99.9 | 9.9% |
| Adjusted Salaries and benefits plus General and administrative expenses ("Adjusted SG&A")<sup>(1)</sup> | 82.5 | 71.7 | 15.1% |
| Adjusted SG&A as a % of Total revenues | 17.3% | 20.1% | (280 bps) |
| Net (loss) income from continuing operations | $(10.6) | $7.2 | N/A\* |
| Adjusted Net income from continuing operations<sup>(1)(2)</sup> | 16.7 | 35.9 | (53.5)% |
| Adjusted EBITDA<sup>(1)</sup> | 17.1 | 36.2 | (52.8)% |
| Average Medicare Advantage membership<sup>(5)</sup> | 105494 | 80016 | 31.8% |
| Insurance BER<sup>(3)</sup> | 88.4% | 76.1% | (1,230 bps) |
| Total cash, cash equivalents, and investments | $389.3 | $482.8 | (19.4)% |

---

------

<sup>1,2,3,4,5</sup>

**<u>Financial Guidance</u>**

For full-year 2025, Clover Health is updating its guidance as follows:

---

| | | |
|:---|:---|:---|
| | **Current 2025 Guidance** | **Previous 2025 Guidance** |
| Insurance revenue | $1.800 billion - $1.875 billion | $1.800 billion - $1.875 billion |
| Adjusted SG&A<sup>(4)</sup> | $335 million - $345 million | $355 million - $365 million |
| Adjusted SG&A as a % of Total revenues | 18% - 19% | 19% - 20% |
| Adjusted EBITDA<sup>(4)</sup> | $50 million - $70 million | $50 million - $70 million |
| Adjusted Net income<sup>(2)(4)</sup> | $50 million - $70 million | $50 million - $70 million |
| Average Medicare Advantage membership | 104000 - 108000 | 103000 - 107000 |
| Insurance BER<sup>(4)</sup> | 88.5% - 89.5% | 87% - 88% |

---

**<u>Lives under Clover Management</u>**

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2024** |
| Insurance members | 106,323 | 80,261 |

---

<sup>\*</sup>Not presented as a % change because the current or prior period amount is zero or the amount for the line item changed from a gain to a loss (or vice versa) and thus yields a result that is not meaningful.

<sup>1</sup> Adjusted SG&A (Non-GAAP), Adjusted EBITDA (Non-GAAP), and Adjusted Net income from continuing operations (Non-GAAP) are Non-GAAP financial measures. Reconciliations of Adjusted SG&A (Non-GAAP) to SG&A, Adjusted EBITDA (Non-GAAP) to Net (loss) income from continuing operations, and Adjusted Net income from continuing operations (Non-GAAP) to Net loss from continuing operations, respectively, the most directly comparable GAAP measures, are provided in the tables immediately following the consolidated financial statements below. Additional information about the Company's Non-GAAP financial measures can be found under the caption "About Non-GAAP Financial Measures" below and in Appendix A.

<sup>2</sup> Adjusted Net income from continuing operations is a Non-GAAP financial measure. A reconciliation of Adjusted Net income from continuing operations to Net (loss) income from continuing operations, the most directly comparable GAAP measure, is provided in a table immediately following the consolidated financial statements below. Additional information about the Company's Non-GAAP financial measures can be found under the caption "About Non-GAAP Financial Measures" below and in Appendix A. In the fourth quarter of 2024, the Company began presenting Adjusted Net income from continuing operations. Management believes that Adjusted Net income from continuing operations is helpful to investors in understanding and evaluating our operating performance and trends, as well as in assessing the Company's financial performance in the same manner as our management and our board of directors.

<sup>3</sup> Insurance Benefits Expense Ratio ("BER") is a Non-GAAP financial measure. A reconciliation of Insurance BER to Insurance Net medical claims incurred, net, the most directly comparable GAAP measure, is provided in a table immediately following the consolidated financial statements below. Additional information about the Company's Non-GAAP financial measures can be found under the caption "About Non-GAAP Financial Measures" below and in Appendix A. In the second quarter of 2024, the Company began presenting Insurance BER. Management believes that by adding quality improvement expenses into the Insurance BER calculation, it offers a clearer and more accurate representation of our investment in healthcare quality and member engagement, and more fully captures the cost of maintaining and enhancing the quality of care for our members.

<sup>4</sup> Reconciliations of projected Adjusted SG&A (Non-GAAP) to projected SG&A, projected Adjusted EBITDA (Non-GAAP) to Net income, and projected Adjusted Net income (Non-GAAP) to Net income, the most directly comparable GAAP measures, are not provided because Stock-based compensation, which is excluded from Adjusted SG&A (Non-GAAP), Adjusted EBITDA (Non-GAAP), and Adjusted Net income (Non-GAAP), cannot be reasonably calculated or predicted at this time without unreasonable efforts. A reconciliation of projected Insurance BER (Non-GAAP) to projected Net medical claims incurred, net, the most directly comparable GAAP measure, is not provided because quality improvements, which are included in Insurance BER (Non-GAAP), cannot be reasonably calculated or predicted at this time without unreasonable efforts. Additional information about the Company's Non-GAAP financial measures can be found under the caption "About Non-GAAP Financial Measures" below and in Appendix A.

<sup>5</sup> Average Medicare Advantage membership represents the average membership during the three months included in the second quarter of 2025.

------

<u>Earnings Conference Call Details</u>

Clover Health's management will host a conference call to discuss its financial results on Tuesday, August 5, 2025, at 5:00 PM Eastern Time. To access the call via telephone, please dial 800-245-3047 (for U.S. callers) or 203-518-9765 (for callers outside the U.S.) and enter the conference ID: CLOVQ225. A live audio webcast will also be available online at: https://event.on24.com/wcc/r/5004864/5729A47D06B46D779C215395F221D12A and related presentation materials will be available at Clover Health's Investor Relations website at investors.cloverhealth.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link and at Clover Health's Investor Relations website at investors.cloverhealth.com, and will remain available for approximately 12 months.

<u>Upcoming Investor Events & Conferences</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2025 Canaccord Genuity 45th Annual Growth Conference at 11:00 a.m. Eastern Time, Tuesday, August 12, 2025

Any live and archived webcasts and presentations associated with the conferences listed above may be accessed on Clover Health's Investor Relations website at: investors.cloverhealth.com/news-and-events/investor-events-presentations.

<u>Forward-Looking Statements</u>

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding future events and Clover Health's future results of operations, financial condition, market size and opportunity, business strategy and plans, and the factors affecting our performance and our objectives for future operations. Forward-looking statements are not guarantees of future performance and you are cautioned not to place undue reliance on such statements. In some cases, you can identify forward looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "can," "could," "should," "would," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "outlook," "forecast," "guidance," "objective," "plan," "seek," "grow," "if," "continue" or the negative of these words or other similar terms or expressions that concern Clover Health's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this press release include, but are not limited to, the following: statements under "Financial Guidance" and statements regarding expectations relating to potential improvements in revenues, operating expenses, Adjusted SG&A, Insurance BER, and the number of Clover Health's Insurance members, as well as the statements contained in the quotations of our executive officers, and other expectations as to future performance, operations and results (including our guidance for full year 2025). Statements regarding our Adjusted EBITDA profitability and Adjusted Net income profitability are also forward-looking, and are based on our current targets which are preliminary and are derived from our 2025 financial guidance. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by forward-looking statements in this press release. Forward-looking statements involve a number of judgments, risks and uncertainties, including, without limitation, risks related to: our expectations regarding results of operations, financial condition, and cash flows; our expectations regarding the development and management of our business; any current, pending, or future legislation, regulations or policies that could have a negative effect on our revenue, profit margins, cash flows and business, including rules, regulations and policies relating to healthcare, Medicare generally and medical loss ratios; our ability to successfully enter new service markets and manage our operations; anticipated trends and challenges in our business and in the markets in which we operate; our ability to effectively manage our beneficiary base and provider network; our ability to maintain and increase adoption and use of Clover Assistant, including the expansion of Clover Assistant for external payors and providers under the brand name Counterpart Assistant; the anticipated benefits associated with the use of Clover Assistant, including our ability to utilize the platform to manage our medical expenses; our ability to maintain or improve our Star Ratings or otherwise continue to improve the financial performance of our business; our ability to develop new features and functionality that meet market needs and achieve market acceptance; our ability to retain and hire necessary employees and staff our operations appropriately; the timing and amount of certain investments in growth; the outcome of any known and unknown litigation and regulatory proceedings; our ability to maintain, protect, and enhance our intellectual property; general economic conditions and uncertainty; persistent high inflation and fluctuating interest rates; and geopolitical uncertainty and instability. Additional information concerning these and other risk factors is contained under Item 1A. "Risk Factors" in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 3, 2025, as such risks may be updated in our subsequent filings with the SEC. The forward-looking statements included in this press release are made as of the date hereof. Except as required by law, Clover Health undertakes no obligation to update any of these forward-looking statements after the date of this press release or to conform these statements to actual results or revised expectations.

------

<u>About Non-GAAP Financial Measures</u>

We use Non-GAAP measures in this release, including Insurance BER, Adjusted EBITDA, Adjusted Net income from continuing operations, Adjusted SG&A and Adjusted SG&A as a percentage of Total revenues. These Non-GAAP financial measures are provided to enhance the reader's understanding of Clover Health's past financial performance and our prospects for the future. Clover Health's management team uses these Non-GAAP financial measures in assessing Clover Health's performance, as well as in planning and forecasting future periods. These Non-GAAP financial measures are not computed according to GAAP, and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental to and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles in the United States ("GAAP") and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Readers are encouraged to review the reconciliations of these Non-GAAP financial measures to the comparable GAAP measures, which are attached to this release, together with other important financial information, including our filings with the SEC, on the Investor Relations page of our website at investors.cloverhealth.com.

For a description of these Non-GAAP financial measures, including the reasons management uses each measure, please see Appendix A: "Explanation of Non-GAAP Financial Measures."

*The statements contained in this document are solely those of the authors and do not necessarily reflect the views or policies of CMS. The authors assume responsibility for the accuracy and completeness of the information contained in this document.*

**About Clover Health:**

Visit: www.cloverhealth.com

**Investor Relations Contact:**

Ryan Schmidt

investors@cloverhealth.com

**Press Inquiries:**

press@cloverhealth.com

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| | | |
|:---|:---|:---|
| CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. |
| CONDENSED CONSOLIDATED BALANCE SHEETS | CONDENSED CONSOLIDATED BALANCE SHEETS | CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Dollars in thousands, except share amounts) | (Dollars in thousands, except share amounts) | (Dollars in thousands, except share amounts) |
| (unaudited) | (unaudited) | (unaudited) |
|  | **June 30, 2025** | **December 31, 2024** |
| **Assets** |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $188648 | $194543 |
| &nbsp;&nbsp;Investment securities, available-for-sale (Amortized cost: 2025: $11,161; 2024: $27,153) | 10856 | 26997 |
| &nbsp;&nbsp;Investment securities, held-to-maturity (Fair value: 2025: $1,766; 2024: $15) | 1768 | 15 |
| &nbsp;&nbsp;Accrued retrospective premiums | 84454 | 41253 |
| &nbsp;&nbsp;Healthcare receivables | 46893 | 51539 |
| &nbsp;&nbsp;Prepaid expenses | 15252 | 13174 |
| &nbsp;&nbsp;Other assets, current | 15068 | 15603 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 362939 | 343124 |
| &nbsp;&nbsp;Investment securities, available-for-sale (Amortized cost: 2025: $174,988; 2024: $203,147) | 175470 | 201719 |
| &nbsp;&nbsp;Investment securities, held-to-maturity (Fair value: 2025: $12,370; 2024: $13,913) | 12526 | 14343 |
| &nbsp;&nbsp;Property and equipment, net | 5201 | 5307 |
| &nbsp;&nbsp;Other intangible assets | 2990 | 2990 |
| &nbsp;&nbsp;Other assets, non-current | 15861 | 13259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $574987 | $580742 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;Unpaid claims | $139660 | $156396 |
| &nbsp;&nbsp;Accounts payable and accrued expenses | 33951 | 34564 |
| &nbsp;&nbsp;Accrued salaries and benefits | 25184 | 19090 |
| &nbsp;&nbsp;Other liabilities, current | 3153 | 3466 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 201948 | 213516 |
| &nbsp;&nbsp;Other liabilities, non-current | 28860 | 26083 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 230808 | 239599 |
| Commitments and Contingencies |  |  |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;Class A Common Stock, $0.0001 par value; 2,500,000,000 shares authorized at June 30, 2025 and December 31, 2024; 418,386,775 and 414,493,051 issued and outstanding at June 30, 2025 and December 31, 2024, respectively | 42 | 41 |
| &nbsp;&nbsp;Class B Common Stock, $0.0001 par value; 500,000,000 shares authorized at June 30, 2025 and December 31, 2024; 92,375,003 and 89,032,305 issued and outstanding at June 30, 2025 and December 31, 2024, respectively | 9 | 9 |
| &nbsp;&nbsp;Additional paid-in capital | 2630021 | 2576471 |
| &nbsp;&nbsp;Accumulated other comprehensive income (loss) | 177 | (1584) |
| &nbsp;&nbsp;Accumulated deficit | (2214655) | (2202803) |
| &nbsp;&nbsp;Less: Treasury stock, at cost; 28,132,383 and 18,752,947 shares held at June 30, 2025 and December 31, 2024, respectively | (71415) | (30991) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 344179 | 341143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $574987 | $580742 |

---

------

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| | | | | |
|:---|:---|:---|:---|:---|
| CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
| (Dollars in thousands, except per share and share amounts) | (Dollars in thousands, except per share and share amounts) | (Dollars in thousands, except per share and share amounts) | (Dollars in thousands, except per share and share amounts) | (Dollars in thousands, except per share and share amounts) |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenues: |  |  |  |  |
| Premiums earned, net (Net of ceded premiums of $96 and $102 for the three months ended June 30, 2025 and 2024 respectively, and $192 and $203 for the six months ended June 30, 2025 and 2024, respectively.) | $469826 | $349900 | $926732 | $691622 |
| &nbsp;&nbsp;Other income | 7794 | 6360 | 13219 | 11560 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 477620 | 356260 | 939951 | 703182 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;Net medical claims incurred | 377992 | 248347 | 731434 | 513509 |
| &nbsp;&nbsp;Salaries and benefits | 61309 | 55499 | 120331 | 114722 |
| &nbsp;&nbsp;General and administrative expenses | 48484 | 44424 | 99159 | 88993 |
| &nbsp;&nbsp;Depreciation and amortization | 394 | 330 | 860 | 648 |
| &nbsp;&nbsp;Restructuring costs |  | 473 |  | 826 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 488179 | 349073 | 951784 | 718698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) income from continuing operations | (10559) | 7187 | (11833) | (15516) |
| Change in fair value of warrants | 19 | 17 | 19 | 17 |
| Loss on investment |  |  |  | 467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (loss) income from continuing operations | (10578) | 7170 | (11852) | (16000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income from discontinued operations |  | 238 |  | 4238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (loss) income | $(10578) | $7408 | $(11852) | $(11762) |
| Per share data: |  |  |  |  |
| &nbsp;&nbsp;Basic weighted average number of class A and class B common shares and common share equivalents outstanding | 509043210 | 487483087 | 508893753 | 487575520 |
| &nbsp;&nbsp;Diluted weighted average number of class A and class B common shares and common share equivalents outstanding | 509043210 | 495179955 | 508893753 | 487575520 |
| &nbsp;&nbsp;Continuing operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic (loss) earnings per share | $(0.02) | $0.01 | $(0.02) | $(0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted (loss) earnings per share | $(0.02) | $0.01 | $(0.02) | $(0.03) |
| &nbsp;&nbsp;Discontinued operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per share | $— | $— | $— | $0.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings per share | $— | $— | $— | $0.01 |
| Net unrealized gain on available-for-sale investments | 251 | 301 | 1761 | 111 |
| &nbsp;&nbsp;Comprehensive (loss) income | $(10327) | $7709 | $(10091) | $(11651) |

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| | | |
|:---|:---|:---|
| CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| (unaudited) | (unaudited) | (unaudited) |
|  | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| Net loss | $(11852) | $(11762) |
| &nbsp;&nbsp;Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 860 | 648 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 52632 | 56698 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrants and amortization of warrants | 19 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accretion, net of amortization | (946) | (1618) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in accrued interest earned | 347 | (463) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gains on investment securities | (437) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on investment |  | 467 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued retrospective premiums | (43201) | (31816) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (2078) | (99) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (2084) | (6690) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Healthcare receivables | 4646 | (2575) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unpaid claims | (16736) | 63450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (613) | 3257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued salaries and benefits | 6094 | 11449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 2464 | (1261) |
| Net cash (used in) provided by operating activities from continuing operations | (10885) | 79697 |
| Net cash used in operating activities from discontinued operations |  | (9005) |
| Net cash (used in) provided by operating activities | (10885) | 70692 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;Purchases of short-term investments, available-for-sale, and held-to-maturity securities | (59864) | (51670) |
| &nbsp;&nbsp;Proceeds from sales of short-term investments and available-for-sale securities | 79313 |  |
| &nbsp;&nbsp;Proceeds from maturities of short-term investments and available-for-sale securities | 25801 | 66651 |
| &nbsp;&nbsp;Purchases of property and equipment | (754) | (842) |
| Net cash provided by investing activities | 44496 | 14139 |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;Issuance of common stock, net of early exercise liability | 363 | 23 |
| &nbsp;&nbsp;Issuance of common stock under employee stock purchase plan, net of stock issuance costs | 555 |  |
| &nbsp;&nbsp;Cash paid for shares withheld related to stock-based compensation | (22127) | (4805) |
| &nbsp;&nbsp;Repurchases of common stock | (18297) | (1772) |
| Net cash used in financing activities | (39506) | (6554) |
| Net (decrease) increase in cash and cash equivalents | (5895) | 78277 |
| Cash and cash equivalents, beginning of period | 194543 | 176494 |
| Cash and cash equivalents, end of period | $188648 | $254771 |

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| | | | | |
|:---|:---|:---|:---|:---|
| CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. |
| OPERATING SEGMENTS | OPERATING SEGMENTS | OPERATING SEGMENTS | OPERATING SEGMENTS | OPERATING SEGMENTS |
| (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| **Insurance Segment** | **2025** | **2024** | **2025** | **2024** |
| Premiums earned, net (net of ceded premiums) | $469826 | $349900 | $926732 | $691622 |
| Less: |  |  |  |  |
| &nbsp;&nbsp;Net medical claims incurred | 394212 | 249406 | 762100 | 515482 |
| &nbsp;&nbsp;Salaries and benefits | 60309 | 54508 | 118639 | 112836 |
| &nbsp;&nbsp;General and administrative expenses | 47693 | 43631 | 97764 | 87530 |
| Segment net (loss) income | $(32388) | $2355 | $(51771) | $(24226) |

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| | | | | |
|:---|:---|:---|:---|:---|
| CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. |
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
| ADJUSTED SG&A (NON-GAAP) RECONCILIATION | ADJUSTED SG&A (NON-GAAP) RECONCILIATION | ADJUSTED SG&A (NON-GAAP) RECONCILIATION | ADJUSTED SG&A (NON-GAAP) RECONCILIATION | ADJUSTED SG&A (NON-GAAP) RECONCILIATION |
| (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Salaries and benefits | $61309 | $55499 | $120331 | $114722 |
| General and administrative expenses | 48484 | 44424 | 99159 | 88993 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total SG&A (GAAP) | 109793 | 99923 | 219490 | 203715 |
| Adjustments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | (26195) | (27900) | (52632) | (56698) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring legal expenses and settlements | (1105) | (319) | (1258) | (373) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted SG&A (Non-GAAP) | $82493 | $71704 | $165600 | $146644 |
| Total revenues (GAAP) | $477620 | $356260 | $939951 | $703182 |
| Adjusted SG&A (Non-GAAP) as a percentage of Total revenues | 17.3% | 20.1% | 17.6% | 20.9% |

---

<sup>(1)</sup> The table above includes Non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these Non-GAAP measures, see Appendix A.

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| | | | | |
|:---|:---|:---|:---|:---|
| CLOVER HEALTH INVESTMENTS, CORP.  | CLOVER HEALTH INVESTMENTS, CORP.  | CLOVER HEALTH INVESTMENTS, CORP.  | CLOVER HEALTH INVESTMENTS, CORP.  | CLOVER HEALTH INVESTMENTS, CORP.  |
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
| ADJUSTED EBITDA (NON-GAAP) RECONCILIATION | ADJUSTED EBITDA (NON-GAAP) RECONCILIATION | ADJUSTED EBITDA (NON-GAAP) RECONCILIATION | ADJUSTED EBITDA (NON-GAAP) RECONCILIATION | ADJUSTED EBITDA (NON-GAAP) RECONCILIATION |
| (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net (loss) income from continuing operations (GAAP): | $(10578) | $7170 | $(11852) | $(16000) |
| Adjustments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 394 | 330 | 860 | 648 |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrants | 19 | 17 | 19 | 17 |
| &nbsp;&nbsp;&nbsp;Loss on investment |  |  |  | 467 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 26195 | 27900 | 52632 | 56698 |
| &nbsp;&nbsp;&nbsp;Restructuring costs |  | 473 |  | 826 |
| &nbsp;&nbsp;&nbsp;Non-recurring legal expenses and settlements | 1105 | 319 | 1258 | 373 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA (non-GAAP) | $17135 | $36209 | $42917 | $43029 |

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<sup>(1)</sup> The table above includes Non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these Non-GAAP measures, see Appendix A.

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| | | | | |
|:---|:---|:---|:---|:---|
| CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. | CLOVER HEALTH INVESTMENTS, CORP. |
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
| ADJUSTED NET INCOME FROM CONTINUING OPERATIONS (NON-GAAP) RECONCILIATION | ADJUSTED NET INCOME FROM CONTINUING OPERATIONS (NON-GAAP) RECONCILIATION | ADJUSTED NET INCOME FROM CONTINUING OPERATIONS (NON-GAAP) RECONCILIATION | ADJUSTED NET INCOME FROM CONTINUING OPERATIONS (NON-GAAP) RECONCILIATION | ADJUSTED NET INCOME FROM CONTINUING OPERATIONS (NON-GAAP) RECONCILIATION |
| (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net (loss) income from continuing operations (GAAP) | $(10578) | $7170 | $(11852) | $(16000) |
| Adjustments |  |  |  |  |
| &nbsp;&nbsp;Stock-based compensation | 26195 | 27900 | 52632 | 56698 |
| &nbsp;&nbsp;Restructuring costs |  | 473 |  | 826 |
| &nbsp;&nbsp;Non-recurring legal expenses and settlements | 1105 | 319 | 1258 | 373 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted Net income from continuing operations (non-GAAP) | $16722 | $35862 | $42038 | $41897 |

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<sup>(1)</sup> The table above includes Non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these Non-GAAP measures, see Appendix A.

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| | | | | |
|:---|:---|:---|:---|:---|
| CLOVER HEALTH INVESTMENTS, CORP.  | CLOVER HEALTH INVESTMENTS, CORP.  | CLOVER HEALTH INVESTMENTS, CORP.  | CLOVER HEALTH INVESTMENTS, CORP.  | CLOVER HEALTH INVESTMENTS, CORP.  |
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
| INSURANCE BENEFITS EXPENSE RATIO (NON-GAAP) RECONCILIATION | INSURANCE BENEFITS EXPENSE RATIO (NON-GAAP) RECONCILIATION | INSURANCE BENEFITS EXPENSE RATIO (NON-GAAP) RECONCILIATION | INSURANCE BENEFITS EXPENSE RATIO (NON-GAAP) RECONCILIATION | INSURANCE BENEFITS EXPENSE RATIO (NON-GAAP) RECONCILIATION |
| (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> | (in thousands)<sup>(1)</sup> |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net medical claims incurred, net (GAAP): | $394212 | $249406 | $762100 | $515482 |
| Adjustments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Quality improvements | 21191 | 16733 | 46903 | 34938 |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance benefits expense, net (Non-GAAP) | $415403 | $266139 | $809003 | $550420 |
| Premiums earned, net (GAAP) | $469826 | $349900 | $926732 | $691622 |
| Insurance BER, net (Non-GAAP) | 88.4% | 76.1% | 87.3% | 79.6% |

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<sup>(1)</sup> The table above includes Non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these Non-GAAP measures, see Appendix A.

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CLOVER HEALTH INVESTMENTS, CORP.

Appendix A

Explanation of Non-GAAP Financial Measures

***<u>Non-GAAP Definitions</u>***

<u>Adjusted SG&A</u> - A Non-GAAP financial measure defined by us as total SG&A less stock-based compensation and non-recurring legal expenses and settlements. We believe that Adjusted SG&A provides management, investors, and others a useful view of our operating spend as it excludes non-cash, stock-based compensation and expenses related to investments that management believes do not reflect the Company's core operating expenses. We believe that Adjusted SG&A as a percentage of Total revenues is useful to management, investors, and others because it allows us to measure our operational leverage as revenue scales.

<u>Adjusted EBITDA</u> - A Non-GAAP financial measure defined by us as net (loss) income from continuing operations before depreciation and amortization, interest expense, change in fair value of warrants, loss on investment, stock-based compensation, premium deficiency reserve benefit, restructuring costs, impairment of goodwill and other intangible assets, and non-recurring legal expenses and settlements. Adjusted EBITDA is a key measure used by our management team and the board of directors to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operating plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA provides investors and others useful information to understand and evaluate our operating results in the same manner as our management and our board of directors.

<u>Adjusted Net income from continuing operations</u> *-* A Non-GAAP financial measure defined by us as net (loss) income from continuing operations before stock-based compensation, premium deficiency reserve benefit, restructuring costs, impairment of goodwill and other intangible assets, and non-recurring legal expenses and settlements. Adjusted Net income from continuing operations is a key measure used by our management team and the board of directors to understand and evaluate our operating performance and trends. We believe that Adjusted Net income from continuing operations is helpful to investors in assessing the Company's financial performance in the same manner as our management and our board of directors.

<u>Insurance Benefits Expense Ratio</u> - A Non-GAAP financial measure defined by us as Benefits Expense Ratio ("BER"). We calculate our Insurance BER by taking the total of Insurance net medical expenses incurred and quality improvements, and dividing that total by premiums earned on a net basis, in a given period. Quality improvements include expenses associated with activities that improve health outcomes, as defined by the U.S. Department of Health and Human Services ("HHS"), as well as those directly tied to enhancing healthcare quality, such as the Company's spend on health information technology, wellness and prevention programs, initiatives to reduce hospital readmissions, and our clinically focused Member Rewards program. We believe our Insurance BER is useful to management, investors, and others because it offers a clearer and more accurate representation of our investment in healthcare quality and member engagement, and gives a comprehensive view of costs related to maintaining and improving the quality of care of our members, which is crucial for sustaining member satisfaction and adherence to treatment regimens.

<br>