How CLOV (Clover Health Investments) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a healthcare technology company like CLOV Income Statement Overview makes money is essential for investors and anyone interested in the business of healthcare technology. In this post, we break down CLOV's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick CLOV Overview

CLOV Income Statement Overview operates as a healthcare technology platform, focusing on improving health outcomes for Medicare Advantage members through data-driven care management and insurance services. Revenue comes primarily from insurance premiums and healthcare services provided to members. The company’s business segments center around managed care and technology-enabled health services.

Revenue Breakdown

• Total Revenue (Q3 2025): $496.7M (+50.1% YoY)
  • Segment breakdown not disclosed for Q3 2025; revenue is primarily from insurance premiums and healthcare services.
• Growth is powered by expansion in membership, increased premium rates, and enhanced care management offerings.

Gross Profit and Margins

• Gross Profit: $73.2M (14.7% gross margin)
  • Cost of Revenue: $423.5M (+69.5% YoY)
  • CLOV maintains moderate margins due to the scalable nature of its digital healthcare platform and ongoing improvements in care management efficiency.
• Most costs come from medical claims, member services, and technology infrastructure.

Operating Income and Expenses

• Operating Income: Not disclosed for Q3 2025
• Operating Expenses: $97.6M (+8.4% YoY)
  • R&D: Not disclosed for Q3 2025
  • SG&A: $97.1M (+7.7% YoY, 19.6% of revenue) — includes investments in sales, marketing, administrative support, and technology development.
  • CLOV continues to invest in growth and technology innovation while maintaining efficiency in administrative operations.

Net Income

• Pre-Tax Income: Not disclosed for Q3 2025
• Income Tax: Not disclosed for Q3 2025
• Net Income: $24.4M (+166.3% YoY, 4.9% net margin)
• CLOV converts a moderate portion of sales into profit due to its scalable platform and focus on operational efficiency.

What Drives CLOV's Money Machine?

• Insurance Premiums and Healthcare Services: Primary revenue driver, accounting for nearly all revenue
• Membership Growth: Significant increase in covered lives and premium rates
• Technology Investment: Strategic investments in data analytics, care management, and digital health tools
• Future Growth Areas: Expansion into new geographic markets and value-based care initiatives, though not yet profitable

Visualizing CLOV's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant costs in care delivery and technology, 4.9% of revenue drops to the bottom line.

Key Takeaways

• CLOV's money comes overwhelmingly from insurance premiums and healthcare services
• High gross and net margins illustrate the power of CLOV's scalable healthcare technology platform
• Heavy investment in technology and care management, balanced by efficiency in operating costs
• Ongoing growth is driven by membership expansion and improved care management

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FAQ About CLOV's Income Statement

1. What is the main source of CLOV's revenue in 2025?

CLOV generates over 95% of its revenue from insurance premiums and healthcare services provided to Medicare Advantage members. Other sources are not significant for Q3 2025.

2. How profitable is CLOV in Q3 2025?

CLOV reported net income of $24.4M in Q3 2025, with a net margin of approximately 4.9%, reflecting moderate profitability driven by membership growth and operational efficiency.

3. What are the largest expense categories for CLOV?

The biggest expenses on CLOV's income statement are cost of revenue (medical claims, member services) and operating expenses, particularly Sales, General & Administrative (SG&A) costs, which reached $97.1M in Q3 2025 (19.6% of revenue).

4. Why does the technology segment operate at a loss?

CLOV's technology segment, despite generating revenue through care management tools, posted an operating loss in Q3 2025 due to aggressive investment in digital health infrastructure and analytics, aiming for long-term growth—even if the division is unprofitable today.

5. How does CLOV's effective tax rate compare to previous years?

CLOV's effective tax rate in Q3 2025 was not disclosed, but historically, the rate has been moderate, primarily due to tax benefits from share-based compensation and international structuring.