WEBULL

Clover Health (CLOV): A Fresh Look at Valuation After Q3 2025 Earnings Miss and Lower Income Outlook

Simply Wall St · 1d ago

Clover Health Investments (CLOV) just posted Q3 2025 results with break even adjusted earnings per share that fell short of expectations, along with a higher operating loss and a more cautious income outlook.

See our latest analysis for Clover Health Investments.

The mixed Q3 update lands after a choppy year, with a 1 year total shareholder return of minus 21.8% and a 3 year total shareholder return still up over 130%. This suggests long term optimism but fading recent momentum.

If Clover's volatile ride has you rethinking where to find steadier healthcare opportunities, it could be worth scanning healthcare stocks to spot other names with profiles that better match your risk tolerance.

With shares down this year but still trading about 25% below analyst targets, has Clover’s mix of fast revenue growth and lingering losses created a mispriced turnaround candidate, or is the market already factoring in the next leg of improvement?

Most Popular Narrative: 20.2% Undervalued

With Clover Health Investments last closing at $2.58 versus a narrative fair value of $3.23, the most followed view implies meaningful upside if its roadmap plays out.

The company's differentiated technology-driven care model, particularly the Clover Assistant platform, positions it to benefit from the healthcare industry's accelerated shift toward technology adoption and data-driven, value-based care, supporting lower medical costs and higher medical margins, with positive implications for both revenue growth and net margins.

Read the complete narrative.

Want to see why this valuation leans on aggressive growth, rising margins, and a lofty future profit multiple more typical of market darlings than insurers? The full narrative unpacks the bold assumptions, the pacing of the profitability shift, and how far sentiment must stretch to meet that target.

Result: Fair Value of $3.23 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, elevated medical and pharmacy costs, along with any Medicare Advantage reimbursement or policy shifts, could quickly squeeze margins and derail that optimistic trajectory.

Find out about the key risks to this Clover Health Investments narrative.

Build Your Own Clover Health Investments Narrative

If you see Clover's story differently or prefer to rely on your own research and assumptions, you can build a custom view in minutes. Do it your way

A great starting point for your Clover Health Investments research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Before you move on, you may wish to explore fresh stock ideas using the Simply Wall Street Screener so you are not leaving potential opportunities unexamined.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.