CENTENE CORPORATION REPORTS THIRD QUARTER 2025 RESULTS
Centene (NYSE: CNC) reported third quarter 2025 results for the period ended September 30, 2025: total revenues $49.69B and premium and service revenues $44.90B (up 22% YoY). GAAP diluted loss per share was $(13.50) driven by a $6.7B non-cash goodwill impairment; adjusted diluted EPS was $0.50. Health benefits ratio was 92.7% (vs. 89.2% a year ago). Cash, investments and restricted deposits were $38.8B; total debt was $17.6B and debt-to-capital was 45.5% after retained earnings reduction. The company raised full-year 2025 adjusted diluted EPS guidance to at least $2.00. Cash flow from operations was $1.4B.
Centene (NYSE: CNC) ha riportato i risultati del terzo trimestre 2025 per il periodo terminato il 30 settembre 2025: ricavi totali 49,69 miliardi di dollari e ricavi da premi e servizi 44,90 miliardi di dollari (in crescita del 22% anno su anno). La perdita diluita GAAP per azione è stata $(13,50) guidata da una impairment non monetario del goodwill di 6,7 miliardi; l’EPS diluito rettificato è stato $0,50. Il rapporto di benefici sanitari è stato 92,7% (rispetto al 89,2% dell’anno precedente). Le disponibilità liquide, investimenti e depositi ristretti sono stati 38,8 miliardi di dollari; il debito totale era 17,6 miliardi di dollari e il debito sul capitale era 45,5% dopo la riduzione degli utili non distribuiti. L’azienda ha aumentato le previsioni per l’EPS diluito rettificato per l’intero 2025 a almeno 2,00 dollari. Il flusso di cassa operativo è stato 1,4 miliardi di dollari.
Centene (NYSE: CNC) informó los resultados del tercer trimestre de 2025 para el periodo terminó el 30 de septiembre de 2025: los ingresos totales de 49,69 mil millones de dólares y los ingresos por primas y servicios de 44,90 mil millones de dólares (con un aumento del 22% interanual). La pérdida diluida GAAP por acción fue $(13.50) impulsada por una impairment no en efectivo del goodwill de 6,7 mil millones; el EPS diluido ajustado fue de $0,50. La relación de beneficios de salud fue del 92,7% (frente al 89,2% del año anterior). Efectivo, inversiones y depósitos restringidos totalizaban $38,8 mil millones; la deuda total fue de $17,6 mil millones y la relación deuda-capital fue del 45,5% tras la reducción de las utilidades retenidas. La empresa elevó la guía de EPS diluido ajustado para todo 2025 a al menos $2.00. El flujo de caja de las operaciones fue de $1.4 mil millones.
센트네(CNC, 뉴욕증권거래소)는 2025년 9월 30일로 종료된 기간에 대한 2025년 3분기 실적을 발표했습니다: 총수익 496.9억 달러와 보험료 및 서비스 수익 449.0억 달러 (전년 동기 대비 22% 증가). GAAP 희석 주당손실은 $(13.50)였고, 이는 무형자산의 67억 달러 비현금적 차손에 의해 좌우되었습니다; 조정된 희석 주당순이익은 $0.50. 건강 혜택 비율은 92.7%로, 작년 같은 기간의 89.2%와 비교됩니다. 현금, 투자 및 제한 예치금은 $38.8B; 총 부채는 $17.6B, 부채-자본비율은 45.5%로 유보 이익 감소 후 반영되었습니다. 회사는 2025년 연간 조정된 희석 주당순이익 가이드를 최소 $2.00로 상향했습니다. 영업활동 현금흐름은 $1.4B였습니다.
Centene (NYSE: CNC) a publié les résultats du troisième trimestre 2025 pour la période se terminant le 30 septembre 2025: des revenus totaux de 49,69 Md$ et des revenus de primes et services de 44,90 Md$ (en hausse de 22% sur un an). La perte diluée GAAP par action était $(13,50) due à une amorissement non monétaire du goodwill de 6,7 Md$; l’EPS dilué ajusté était de $0,50. Le ratio prestations de santé était de 92,7% (contre 89,2% il y a un an). Trésorerie, investissements et dépôts restreints s’étaient élevés à $38,8 Md; la dette totale était de $17,6 Md et le ratio dette-capital était de 45,5% après réduction des résultats non distribués. L’entreprise a relevé l’orientation annuelle de l’EPS dilué ajusté pour 2025 à au moins 2,00 $. Le flux de trésorerie opérationnel était de $1,4 Md.
Centene (NYSE: CNC) berichtete die Ergebnisse des dritten Quartals 2025 für den Zeitraum zum 30. September 2025: Gesamtumsatz 49,69 Mrd. USD und Prämien- und Serviceumsatz 44,90 Mrd. USD (YoY-Anstieg von 22%). GAAP verschuldete verwässerte Verlust pro Aktie betrug $(13,50) bedingt durch eine nicht zahlungswirksame Impairment des Goodwill in Höhe von 6,7 Mrd. USD; bereinigter verwässerter EPS betrug $0,50. Health Benefits Ratio war 92,7% (im Vergleich zu 89,2% vor einem Jahr). Barmittel, Investitionen und eingeschränkte Einlagen betrugen $38,8 Mrd.; Gesamtschulden $17,6 Mrd. und Debt-to-Capital 45,5% nach Reduktion der Retained Earnings. Das Unternehmen hob die Jahresprognose für den bereinigten verwässerten EPS 2025 auf mindestens $2,00 an. Cash Flow aus operativer Tätigkeit war $1,4 Mrd.
سينتيني (بورصة نيويورك: CNC) أعلنت عن نتائج الربع الثالث من عام 2025 للفترة المنتهية في 30 سبتمبر 2025: إجمالي الإيرادات 49.69 مليار دولار وإيرادات الأقساط والخدمات 44.90 مليار دولار (ارتفاع 22% على أساس سنوي). الخسارة المخفضة وفق معيار GAAP للسهم الواحد كانت $(13.50) مُسببة عن شطب غير نقدي لِ goodwill بقيمة 6.7 مليار دولار; وكان EPS المزيل المعدل $0.50. نسبة خدمات الصحة كانت 92.7% (مقارنة بـ 89.2% قبل عام). النقد، الاستثمارات والودائع المقيدة كانت $38.8 مليار؛ الدين الكلي كان $17.6 مليار ونسبة الدين إلى رأس المال كانت 45.5% بعد تقليل الأرباح المحتجزة. رفعت الشركة توجيهات EPS المخصوم المعدل للسنة الكاملة 2025 إلى على الأقل 2.00 دولار. بلغ التدفق النقدي من التشغيل $1.4 مليار.
Centene (NYSE: CNC) 公布了2025年第三季度的业绩，期间截止至2025年9月30日：总收入 496.9亿美元 和 保费及服务收入 449.0亿美元（同比增长 22%）。GAAP 摊薄每股亏损为 $(13.50)，由 6.7亿美元的商誉减值非现金性 推动；调整后摊薄每股收益为 $0.50。健康福利比率为 92.7%（比去年同期的 89.2% 高）。现金、投资与受限存款总额为 $38.8B；总债务为 $17.6B，债务对资本比率为 45.5%，在留存收益减少后。公司将 2025 年全年调整后摊薄每股收益指引提高至 至少 $2.00。经营活动现金流为 $1.4B。
- Premium revenue +22% to $44.9B
- Adjusted diluted EPS upgraded to at least $2.00 for 2025
- Cash and investments of $38.8B
- Cash flow from operations of $1.4B
- Marketplace membership +29% YoY to 5.828M
- Non-cash goodwill impairment of $6.7B
- GAAP diluted loss per share of $(13.50)
- Health benefits ratio increased to 92.7% (from 89.2%)
- Debt-to-capital 45.5% after retained earnings reduction
- Medicare membership down ~10.4% YoY to 1.013M
Insights
Centene posts a large non‑cash goodwill charge but reports positive adjusted EPS and raises adjusted full‑year guidance.
In plain terms, Centene recorded a $6.7 billion non‑cash goodwill impairment that produced a GAAP diluted loss per share of
The business drivers are mixed. The company shows durable top‑line growth—premium and service revenues rose
Dependencies and risks include the permanence of adjusted operating performance and near‑term cash dynamics. Monitor the sustainability of the lower adjusted SG&A ratio (
-- GAAP Diluted Loss Per Share of
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Adjusted diluted EPS of
$0.50 $0.10 -21% . -
$6.7 billion 45.5% at September 30, 2025. -
Medicaid HBR of
93.4% in the third quarter, including an approximate 40 basis point benefit from a retroactive revenue adjustment attributed to the first and second quarters of 2025 from a large state. - Commercial and Medicare segment results in line with expectations.
-
Increases 2025 full year adjusted diluted EPS forecast by
$0.25 $2.00
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Total revenues (in millions) |
$ 49,690 |
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Premium and service revenues (in millions) |
$ 44,898 |
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Health benefits ratio |
92.7 % |
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SG&A expense ratio |
7.0 % |
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Adjusted SG&A expense ratio (1) |
7.0 % |
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GAAP diluted loss per share |
$ (13.50) |
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Adjusted diluted earnings per share (1) |
$ 0.50 |
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Total cash flow provided by operations (in millions) |
$ 1,356 |
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(1) |
Represents a non-GAAP financial measure. A full reconciliation of the adjusted diluted earnings per share (EPS) and adjusted selling, general and administrative (SG&A) expenses is shown in the Non-GAAP Financial Presentation section of this release. |
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"Our third quarter results and increased full year outlook demonstrate tangible progress against the near-term milestones we laid out for investors in July," said Chief Executive Officer of Centene, Sarah M.
Awards & Community Engagement
- In September, Centene was named in the inaugural 2025 Forbes® America's Best Employers for Company Culture™ list, which recognizes organizations with high-ranking levels of employee satisfaction based on fairness, opportunity and other company culture-related topics.
- In September, the Centene Foundation and Carolina Complete Health, a Centene subsidiary, announced a multi-year investment in the North Carolina Clinician and Physician Retention and Well-being Consortium to strengthen the mental health and well-being of physicians, nurses and other healthcare professionals across
North Carolina . - In August, Managed Health Services, a Centene subsidiary, announced the list of organizations in
Indiana selected to receive funding and programmatic support through MHS Serves' Youth Mental Health Empowerment Program, a partnership aimed at supporting the expansion and enhancement of programs, services and resources that directly address youth access to mental healthcare. - In July, the Centene Foundation and Superior HealthPlan, a Centene subsidiary, announced the grand opening of a multi-purpose community health center in
Uvalde, Texas . The space provides primary, behavioral and dental health services, community support and outreach programs, and educational and workforce development resources.
Membership
The following table sets forth membership by line of business:
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September 30, |
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2025 |
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2024 |
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Traditional Medicaid (1) |
11,115,400 |
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11,478,600 |
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High Acuity Medicaid (2) |
1,591,000 |
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1,590,200 |
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Total Medicaid |
12,706,400 |
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13,068,800 |
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Marketplace |
5,828,100 |
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4,501,300 |
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Individual and Commercial Group (3) |
447,900 |
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426,600 |
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Total Commercial |
6,276,000 |
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4,927,900 |
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Medicare (4) |
1,013,200 |
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1,129,900 |
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Medicare Prescription Drug Plan (PDP) |
7,972,500 |
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6,766,400 |
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Total at-risk membership |
27,968,100 |
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25,893,000 |
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TRICARE eligibles |
— |
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2,747,000 |
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Total |
27,968,100 |
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28,640,000 |
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(1) |
Membership includes Temporary Assistance for Needy Families (TANF), Medicaid Expansion, Children's Health Insurance Program (CHIP), Foster Care and Behavioral Health. |
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(2) |
Membership includes Aged, Blind, or Disabled (ABD), Intellectual and Developmental Disabilities (IDD), Long-Term Services and Supports (LTSS) and Medicare-Medicaid Plans (MMP) Duals. |
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(3) |
Membership includes Commercial Group, Individual Coverage Health Reimbursement Arrangement (ICHRA) and Other Off-Exchange Individual. |
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(4) |
Membership includes Medicare Advantage and Medicare Supplement. |
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Premium and Service Revenues
The following table sets forth supplemental revenue information ($ in millions):
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Three Months Ended September 30, |
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2025 |
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2024 |
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% Change |
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Medicaid |
$ 23,171 |
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$ 21,316 |
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9 % |
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Commercial |
10,992 |
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8,693 |
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26 % |
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Medicare (1) |
9,391 |
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5,643 |
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66 % |
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Other |
1,344 |
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1,247 |
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8 % |
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Total premium and service revenues |
$ 44,898 |
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$ 36,899 |
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22 % |
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(1) |
Medicare includes Medicare Advantage, Medicare Supplement and Medicare PDP. |
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Statement of Operations: Three Months Ended September 30, 2025
- For the third quarter of 2025, premium and service revenues increased
22% to$44.9 billion $36.9 billion - Health benefits ratio (HBR) of
92.7% for the third quarter of 2025 represents an increase from89.2% in the comparable period in 2024. The increase was primarily driven by increased Marketplace medical costs, lower Marketplace estimated risk adjustment revenue and program changes in the PDP business as a result of the Inflation Reduction Act (IRA) compared to the third quarter of 2024. The increase was also driven by higher medical costs in Medicaid driven primarily by behavioral health and home health, partially offset by Medicaid rate and revenue increases. - The SG&A expense ratio was
7.0% for the third quarter of 2025, compared to8.3% in the third quarter of 2024. The adjusted SG&A expense ratio was7.0% for the third quarter of 2025, compared to8.3% in the third quarter of 2024. The decreases were primarily driven by continued leveraging of expenses over higher revenues and growth in the PDP business, which operates at a meaningfully lower SG&A expense ratio as compared to the overall company. The decreases were partially offset by growth in the Marketplace business, which operates at a meaningfully higher SG&A expense ratio. - As a result of market conditions in July 2025, including the One Big Beautiful Bill Act and the decline in the Company's stock price, we performed a quantitative impairment analysis during the third quarter to determine whether goodwill was impaired. In October 2025, we completed our quantitative goodwill impairment analysis and recorded a non-cash goodwill impairment of
$6.7 billion - The effective tax rate was
0.6% for the third quarter of 2025, compared to22.9% in the third quarter of 2024. The effective tax rate for the third quarter of 2025 reflects the non-deductible nature of the goodwill impairment and the impact of estimating interim period taxes on the year-to-date tax method. For the third quarter of 2025, our effective tax rate on adjusted earnings was2.5% , compared to23.3% in the third quarter of 2024. The adjusted effective tax rate for the third quarter of 2025 reflects the impact of estimating interim period taxes on the year-to-date tax method. - GAAP diluted loss per share was
$(13.50) - Adjusted diluted EPS of
$0.50 - Cash flow provided by operations for the third quarter of 2025 was
$1.4 billion
Balance Sheet
At September 30, 2025, the Company had cash, investments and restricted deposits of
Outlook
The Company is updating its full year 2025 GAAP forecast to a diluted loss per share not to exceed
Conference Call
As previously announced, the Company will host a conference call Wednesday, October 29, 2025, at 9:00 a.m. ET to review the financial results for the third quarter and year-to-date ended September 30, 2025.
Investors and other interested parties are invited to listen to the conference call by dialing 1-877-883-0383 in the
A webcast replay will be available for on-demand listening shortly following the completion of the call for the next 12 months or until 11:59 p.m. ET on Wednesday, October 28, 2026, at the aforementioned URL. In addition, a digital audio playback will be available until 9 a.m. ET on Wednesday, November 5, 2025, by dialing 1-877-344-7529 in the
Non-GAAP Financial Presentation
The Company is providing certain non-GAAP financial measures in this release as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently across periods. The Company uses the presented non-GAAP financial measures internally in evaluating the Company's performance and for planning purposes, by allowing management to focus on period-to-period changes in the Company's core business operations, and in determining employee incentive compensation. Therefore, the Company believes that this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The Company strongly encourages investors to review its consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP financial measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Specifically, the Company believes the presentation of non-GAAP financial measures that excludes amortization of acquired intangible assets, acquisition and divestiture related expenses, as well as other items, allows investors to develop a more meaningful understanding of the Company's core performance over time.
The tables below provide reconciliations of non-GAAP items ($ in millions, except per share data):
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Three Months Ended |
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Nine Months Ended |
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2025 |
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2024 |
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2025 |
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2024 |
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GAAP net earnings (loss) attributable to Centene |
$ (6,631) |
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$ 713 |
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$ (5,573) |
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$ 3,022 |
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Amortization of acquired intangible assets |
170 |
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173 |
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516 |
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519 |
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Acquisition and divestiture related expenses |
— |
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8 |
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1 |
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75 |
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Other adjustments (1) |
6,754 |
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— |
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6,815 |
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(97) |
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Income tax effects of adjustments (2) |
(48) |
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(45) |
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(148) |
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(171) |
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Adjusted net earnings |
$ 245 |
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$ 849 |
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$ 1,611 |
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$ 3,348 |
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(1) |
Other adjustments include the following pre-tax items: |
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2025: |
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(a) |
for the three months ended September 30, 2025: goodwill impairment of |
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(b) |
for the nine months ended September 30, 2025: goodwill impairment of |
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2024: |
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(a) |
for the nine months ended September 30, 2024: net gain on the previously reported divestiture of Magellan Specialty Health due to the achievement of contingent consideration and finalization of working capital adjustments of |
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(2) |
The income tax effects of adjustments are based on the effective income tax rates applicable to each adjustment. The three and nine months ended September 30, 2025, include a tax benefit of |
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Three Months Ended |
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Nine Months Ended |
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2025 |
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2024 |
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2025 |
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2024 |
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GAAP diluted earnings (loss) per share attributable to Centene |
$ (13.50) |
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$ 1.36 |
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$ (11.29) |
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$ 5.69 |
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Amortization of acquired intangible assets |
0.35 |
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0.33 |
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1.05 |
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0.98 |
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Acquisition and divestiture related expenses |
— |
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0.02 |
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— |
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0.14 |
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Other adjustments (3) |
13.75 |
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— |
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13.81 |
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(0.18) |
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Income tax effects of adjustments (4) |
(0.10) |
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(0.09) |
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(0.30) |
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(0.32) |
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Effect of basic to diluted shares (5) |
— |
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— |
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(0.01) |
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— |
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Adjusted diluted EPS |
$ 0.50 |
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$ 1.62 |
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$ 3.26 |
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$ 6.31 |
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(3) |
Other adjustments include the following pre-tax items: |
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2025: |
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(a) |
for the three months ended September 30, 2025: goodwill impairment of |
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(b) |
for the nine months ended September 30, 2025: goodwill impairment of |
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2024: |
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(a) |
for the nine months ended September 30, 2024: net gain on the previously reported divestiture of Magellan Specialty Health due to the achievement of contingent consideration and finalization of working capital adjustments of |
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(4) |
The income tax effects of adjustments are based on the effective income tax rates applicable to each adjustment. The three and nine months ended September 30, 2025, include a tax benefit of |
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(5) |
Reflects the |
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Three Months Ended |
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Nine Months Ended |
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2025 |
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2024 |
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2025 |
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2024 |
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GAAP selling, general and administrative expenses |
$ 3,145 |
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$ 3,057 |
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$ 9,534 |
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$ 9,169 |
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Less: |
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Acquisition and divestiture related expenses |
— |
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8 |
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1 |
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75 |
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Restructuring costs |
9 |
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— |
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9 |
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13 |
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Real estate transaction costs |
2 |
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— |
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2 |
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— |
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Adjusted selling, general and administrative |
$ 3,134 |
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$ 3,049 |
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$ 9,522 |
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$ 9,081 |
To provide clarity on the way management defines certain key metrics and ratios, the Company is providing a description of how the metric or ratio is calculated as follows:
- Health Benefits Ratio (HBR) (GAAP) = Medical costs divided by premium revenues.
- SG&A Expense Ratio (GAAP) = Selling, general and administrative expenses divided by premium and service revenues.
- Adjusted SG&A Expense Ratio (non-GAAP) = Adjusted selling, general and administrative expenses divided by premium and service revenues.
- Adjusted Effective Tax Rate (non-GAAP) = GAAP income tax expense (benefit) excluding the income tax effects of adjustments to net earnings divided by adjusted earnings (loss) before income tax expense.
- Adjusted Net Earnings (non-GAAP) = Net earnings less amortization of acquired intangible assets, less acquisition and divestiture related expenses, as well as adjustments for other items, net of the income tax effect of the adjustments.
- Adjusted Diluted EPS (non-GAAP) = Adjusted net earnings divided by weighted average common shares outstanding on a fully diluted basis.
- Debt to Capitalization Ratio (GAAP) = Total debt, divided by total debt plus total stockholder's equity.
- Average Medical Claims Expense (GAAP) = Medical costs for the period divided by number of days in such period. Average medical claims expense is most often calculated for the quarterly reporting period.
- Days in Claims Payable (GAAP) = Medical claims liabilities divided by average medical claims expense. Days in claims payable is most often calculated for the quarterly reporting period.
In addition, the following terms are defined as follows:
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State-directed Payments: Payments directed by a state that have minimal risk but are administered as a premium adjustment. These payments are recorded as premium revenue and medical costs at close to a
100% HBR. In many instances, the Company has little visibility to the timing of these payments until they are paid by a state. - Pass-through Payments: Non-risk supplemental payments from a state that the Company is required to pass through to designated contracted providers. These payments are recorded as premium tax revenue and premium tax expense.
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach – with local brands and local teams – to provide fully integrated, high-quality, and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Centene offers affordable and high-quality products to more than 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace.
Centene uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible on Centene's investor relations website, https://investors.centene.com.
Forward-Looking Statements
All statements, other than statements of current or historical fact, contained in this
press release are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as "believe," "anticipate," "plan," "expect," "estimate," "predict," "intend," "seek," "target," "goal," "potential," "may," "will," "would," "could," "should," "can," "continue," and other similar words or expressions (and the negative thereof).
Also, our full year 2025 GAAP diluted loss per share and adjusted diluted EPS forecasts contained in this release are forward-looking statements.
Centene Corporation and its subsidiaries (Centene, the Company, our or we) intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions.
In particular, these statements include, without limitation, statements about our expected future operating or financial performance, changes in laws and regulations, market opportunity, expectations concerning pricing actions, competition, expected contract start dates and terms, expected activities in connection with completed and future acquisitions and dispositions, our investments, and the adequacy of our available cash resources. These forward-looking statements reflect our current views with respect to future events and are based on numerous assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, business strategies, operating environments, future developments, and other factors we believe appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend on circumstances that will occur in the future, including economic, regulatory, competitive, and other factors that may cause our or our industry's actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions. All forward-looking statements included in this press release are based on information available to us on the date hereof. Except as may be otherwise required by law, we undertake no obligation to update or revise the forward-looking statements included in this press release, whether as a result of new information, future events, or otherwise, after the date hereof. You should not place undue reliance on any forward-looking statements, as actual results may differ materially from projections, estimates, or other forward-looking statements due to a variety of important factors, variables, and events including, but not limited to: our ability to design and price products that are competitive and/or actuarially sound; our ability to accurately predict and effectively manage health benefits and other operating expenses and reserves, including fluctuations in medical costs; rate cuts, insufficient rate changes or other payment reductions or delays by government payors affecting our government businesses; the effect of social, economic, and political conditions, geopolitical events and state and federal policies, including the amount and terms of state and federal funding for government-sponsored healthcare programs, including as a result of changes in
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CENTENE CORPORATION AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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(In millions, except shares in thousands and per share data in dollars) |
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September 30, |
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December 31, |
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(Unaudited) |
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ASSETS |
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Current assets: |
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|
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Cash and cash equivalents |
$ 17,058 |
|
$ 14,063 |
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Premium and trade receivables |
23,109 |
|
19,713 |
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Short-term investments |
2,179 |
|
2,622 |
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Other current assets |
1,716 |
|
1,601 |
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Total current assets |
44,062 |
|
37,999 |
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Long-term investments |
18,180 |
|
17,429 |
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Restricted deposits |
1,416 |
|
1,390 |
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Property, software and equipment, net |
2,161 |
|
2,067 |
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Goodwill |
10,835 |
|
17,558 |
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Intangible assets, net |
4,840 |
|
5,409 |
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Other long-term assets |
593 |
|
593 |
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Total assets |
$ 82,087 |
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$ 82,445 |
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LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND |
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Current liabilities: |
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Medical claims liability |
$ 21,493 |
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$ 18,308 |
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Accounts payable and accrued expenses |
16,875 |
|
13,174 |
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Return of premium payable |
1,568 |
|
2,008 |
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Unearned revenue |
656 |
|
661 |
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Current portion of long-term debt |
38 |
|
110 |
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Total current liabilities |
40,630 |
|
34,261 |
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Long-term debt |
17,545 |
|
18,423 |
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Deferred tax liability |
810 |
|
684 |
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Other long-term liabilities |
2,047 |
|
2,567 |
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Total liabilities |
61,032 |
|
55,935 |
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Commitments and contingencies |
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Redeemable noncontrolling interests |
23 |
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10 |
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Stockholders' equity: |
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|
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Preferred stock, |
— |
|
— |
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Common stock, |
1 |
|
1 |
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Additional paid-in capital |
20,713 |
|
20,562 |
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Accumulated other comprehensive (loss) |
(100) |
|
(504) |
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Retained earnings |
9,775 |
|
15,348 |
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Treasury stock, at cost (131,706 and 124,288 shares, respectively) |
(9,441) |
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(8,997) |
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Total Centene stockholders' equity |
20,948 |
|
26,410 |
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Nonredeemable noncontrolling interest |
84 |
|
90 |
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Total stockholders' equity |
21,032 |
|
26,500 |
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Total liabilities, redeemable noncontrolling interests and stockholders' equity |
$ 82,087 |
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$ 82,445 |
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CENTENE CORPORATION AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(In millions, except shares in thousands and per share data in dollars) |
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(Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenues: |
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Premium |
$ 44,126 |
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$ 36,115 |
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$ 127,578 |
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$ 106,784 |
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Service |
772 |
|
784 |
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2,276 |
|
2,425 |
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Premium and service revenues |
44,898 |
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36,899 |
|
129,854 |
|
109,209 |
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Premium tax |
4,792 |
|
5,124 |
|
15,198 |
|
13,057 |
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Total revenues |
49,690 |
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42,023 |
|
145,052 |
|
122,266 |
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Expenses: |
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Medical costs |
40,902 |
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32,201 |
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116,213 |
|
93,898 |
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Cost of services |
651 |
|
692 |
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1,990 |
|
2,041 |
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Selling, general and administrative expenses |
3,145 |
|
3,057 |
|
9,534 |
|
9,169 |
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Depreciation expense |
147 |
|
140 |
|
430 |
|
408 |
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Amortization of acquired intangible assets |
170 |
|
173 |
|
516 |
|
519 |
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Premium tax expense |
4,886 |
|
5,095 |
|
15,449 |
|
13,218 |
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Impairment |
6,743 |
|
— |
|
6,798 |
|
13 |
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Total operating expenses |
56,644 |
|
41,358 |
|
150,930 |
|
119,266 |
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Earnings (loss) from operations |
(6,954) |
|
665 |
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(5,878) |
|
3,000 |
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Other income (expense): |
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Investment and other income |
450 |
|
432 |
|
1,203 |
|
1,440 |
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Interest expense |
(170) |
|
(176) |
|
(510) |
|
(530) |
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Earnings (loss) before income tax |
(6,674) |
|
921 |
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(5,185) |
|
3,910 |
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Income tax (benefit) expense |
(42) |
|
211 |
|
392 |
|
896 |
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Net earnings (loss) |
(6,632) |
|
710 |
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(5,577) |
|
3,014 |
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Loss attributable to noncontrolling interests |
1 |
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3 |
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4 |
|
8 |
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Net earnings (loss) attributable to Centene Corporation |
$ (6,631) |
|
$ 713 |
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$ (5,573) |
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$ 3,022 |
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Net earnings (loss) per common share attributable to Centene Corporation: |
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Basic earnings (loss) per common share |
$ (13.50) |
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$ 1.37 |
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$ (11.29) |
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$ 5.71 |
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Diluted earnings (loss) per common share |
$ (13.50) |
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$ 1.36 |
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$ (11.29) |
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$ 5.69 |
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Weighted average number of common shares outstanding: |
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Basic |
491,141 |
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521,965 |
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493,644 |
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528,912 |
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Diluted |
491,141 |
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523,542 |
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493,644 |
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530,915 |
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CENTENE CORPORATION AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(In millions, unaudited) |
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Nine Months Ended |
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2025 |
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2024 |
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Cash flows from operating activities: |
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Net earnings (loss) |
$ (5,577) |
|
$ 3,014 |
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Adjustments to reconcile net earnings (loss) to net cash provided by operating activities |
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Depreciation and amortization |
946 |
|
927 |
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Stock compensation expense |
146 |
|
181 |
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Impairment |
6,798 |
|
13 |
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Deferred income taxes |
13 |
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14 |
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(Gain) loss on divestitures, net |
10 |
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(103) |
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Changes in assets and liabilities |
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Premium and trade receivables |
(3,338) |
|
(2,737) |
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Other assets |
(245) |
|
78 |
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Medical claims liabilities |
3,176 |
|
(5) |
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Unearned revenue |
(5) |
|
(58) |
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Accounts payable and accrued expenses |
2,681 |
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(503) |
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Other long-term liabilities |
38 |
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(84) |
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Other operating activities, net |
8 |
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4 |
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Net cash provided by operating activities |
4,651 |
|
741 |
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Cash flows from investing activities: |
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Capital expenditures |
(554) |
|
(490) |
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Purchases of investments |
(3,765) |
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(5,770) |
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Sales and maturities of investments |
4,131 |
|
4,147 |
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Divestiture proceeds, net of divested cash |
— |
|
959 |
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Net cash (used in) investing activities |
(188) |
|
(1,154) |
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Cash flows from financing activities: |
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|
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Proceeds from long-term debt |
750 |
|
350 |
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Payments and repurchases of long-term debt |
(1,708) |
|
(594) |
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Common stock repurchases |
(473) |
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(2,181) |
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Proceeds from common stock issuances |
29 |
|
37 |
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Purchase of noncontrolling interest |
(19) |
|
— |
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Other financing activities, net |
(13) |
|
(5) |
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Net cash (used in) financing activities |
(1,434) |
|
(2,393) |
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Effect of exchange rate changes on cash, cash equivalents and restricted cash |
— |
|
7 |
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Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents |
3,029 |
|
(2,799) |
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Cash and cash equivalents reclassified (to) from held for sale |
— |
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(3) |
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Cash, cash equivalents and restricted cash and cash equivalents, beginning of period |
14,156 |
|
17,452 |
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Cash, cash equivalents and restricted cash and cash equivalents, end of period |
$ 17,185 |
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$ 14,650 |
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Supplemental disclosures of cash flow information: |
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Interest paid |
$ 458 |
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$ 495 |
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Income taxes paid, net |
$ 540 |
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$ 821 |
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The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents reported within the Consolidated |
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September 30, |
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2025 |
|
2024 |
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Cash and cash equivalents |
$ 17,058 |
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$ 14,577 |
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Restricted cash and cash equivalents, included in restricted deposits |
127 |
|
73 |
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Total cash, cash equivalents and restricted cash and cash equivalents |
$ 17,185 |
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$ 14,650 |
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CENTENE CORPORATION |
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SUPPLEMENTAL FINANCIAL DATA |
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Q3 |
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Q2 |
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Q1 |
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Q4 |
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Q3 |
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2025 |
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2025 |
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2025 |
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2024 |
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2024 |
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MEMBERSHIP |
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Traditional Medicaid (1) |
11,115,400 |
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11,227,400 |
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11,369,400 |
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11,408,100 |
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11,478,600 |
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High Acuity Medicaid (2) |
1,591,000 |
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1,592,300 |
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1,589,400 |
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1,595,400 |
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1,590,200 |
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Total Medicaid |
12,706,400 |
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12,819,700 |
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12,958,800 |
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13,003,500 |
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13,068,800 |
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Marketplace |
5,828,100 |
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5,862,800 |
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5,626,000 |
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4,382,100 |
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4,501,300 |
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Individual and Commercial Group (3) |
447,900 |
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449,700 |
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448,200 |
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431,400 |
|
426,600 |
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Total Commercial |
6,276,000 |
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6,312,500 |
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6,074,200 |
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4,813,500 |
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4,927,900 |
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Medicare (4) |
1,013,200 |
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1,026,900 |
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1,043,200 |
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1,110,900 |
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1,129,900 |
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Medicare PDP |
7,972,500 |
|
7,845,800 |
|
7,867,800 |
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6,925,700 |
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6,766,400 |
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Total at-risk membership |
27,968,100 |
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28,004,900 |
|
27,944,000 |
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25,853,600 |
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25,893,000 |
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TRICARE eligibles |
— |
|
— |
|
— |
|
2,747,000 |
|
2,747,000 |
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Total |
27,968,100 |
|
28,004,900 |
|
27,944,000 |
|
28,600,600 |
|
28,640,000 |
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(1) Membership includes TANF, Medicaid Expansion, CHIP, Foster Care and Behavioral Health. |
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(2) Membership includes ABD, IDD, LTSS and MMP Duals. |
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(3) Membership includes Commercial Group, ICHRA and Other Off-Exchange Individual. |
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(4) Membership includes Medicare Advantage and Medicare Supplement. |
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NUMBER OF EMPLOYEES |
60,900 |
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60,300 |
|
60,400 |
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60,500 |
|
60,700 |
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DAYS IN CLAIMS PAYABLE |
48 |
|
47 |
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49 |
|
53 |
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51 |
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CASH, INVESTMENTS AND RESTRICTED DEPOSITS (in millions) |
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Regulated |
$ 37,574 |
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$ 36,403 |
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$ 35,922 |
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$ 34,433 |
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$ 35,558 |
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Unregulated |
1,259 |
|
1,086 |
|
1,042 |
|
1,071 |
|
1,154 |
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Total |
$ 38,833 |
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$ 37,489 |
|
$ 36,964 |
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$ 35,504 |
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$ 36,712 |
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DEBT TO CAPITALIZATION |
45.5 % |
|
39.0 % |
|
39.5 % |
|
41.2 % |
|
39.1 % |
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OPERATING RATIOS |
Three Months Ended September 30, |
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Nine Months Ended September 30, |
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|
2025 |
|
2024 |
|
2025 |
|
2024 |
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HBR |
92.7 % |
|
89.2 % |
|
91.1 % |
|
87.9 % |
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SG&A expense ratio |
7.0 % |
|
8.3 % |
|
7.3 % |
|
8.4 % |
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Adjusted SG&A expense ratio |
7.0 % |
|
8.3 % |
|
7.3 % |
|
8.3 % |
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HBR BY PRODUCT |
Three Months Ended September 30, |
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Nine Months Ended September 30, |
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|
2025 |
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2024 |
|
2025 |
|
2024 |
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Medicaid |
93.4 % |
|
93.1 % |
|
93.9 % |
|
92.3 % |
|
|
Commercial |
89.9 % |
|
80.0 % |
|
85.3 % |
|
75.7 % |
|
|
Medicare (5) |
94.3 % |
|
88.0 % |
|
90.6 % |
|
89.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
(5) |
Medicare includes Medicare Advantage, Medicare Supplement and Medicare PDP. |
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MEDICAL CLAIMS LIABILITY
The changes in medical claims liability are summarized as follows (in millions):
|
Balance, September 30, 2024 |
|
$ 17,995 |
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Less: Reinsurance recoverables |
|
62 |
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Balance, September 30, 2024, net |
|
17,933 |
|
Incurred related to: |
|
|
|
Current period |
|
150,533 |
|
Prior periods |
|
(2,548) |
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Total incurred |
|
147,985 |
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Paid related to: |
|
|
|
Current period |
|
130,581 |
|
Prior periods |
|
13,954 |
|
Total paid |
|
144,535 |
|
Plus: Premium deficiency reserve |
|
37 |
|
Balance, September 30, 2025, net |
|
21,420 |
|
Plus: Reinsurance recoverables |
|
73 |
|
Balance, September 30, 2025 |
|
$ 21,493 |
Centene's claims reserving process utilizes a consistent actuarial methodology to estimate Centene's ultimate liability. Any reduction in the "Incurred related to: Prior periods" amount may be offset as Centene actuarially determines the "Incurred related to: Current period." Additionally, approximately
The amount of the "Incurred related to: Prior periods" above represents favorable development and includes the effects of reserving under moderately adverse conditions, new markets where we use a conservative approach in setting reserves during the initial periods of operations, receipts from other third party payors related to coordination of benefits and lower medical utilization and cost trends for dates of service September 30, 2024, and prior.
View original content:https://www.prnewswire.com/news-releases/centene-corporation-reports-third-quarter-2025-results-302597821.html
SOURCE Centene Corporation
FAQ
What did Centene (CNC) report for Q3 2025 adjusted diluted EPS on Oct 29, 2025?
Why did Centene (CNC) record a GAAP loss of $(13.50) per share in Q3 2025?
How did Centene (CNC) update full-year 2025 guidance on Oct 29, 2025?
What were Centene's (CNC) Q3 2025 premium and service revenues and YoY change?
What material balance sheet items did Centene (CNC) report at Sept 30, 2025?
How did Centene's (CNC) health benefits ratio (HBR) change in Q3 2025?
