Adjusted G&A ratio was 6.1%, reflecting lower incentive compensation and productivity enhancements.
Balance sheet remains strong with $100 million parent company cash, $260 million subsidiary dividends harvested, and debt reduced by $200 million to 1.9x trailing EBITDA.
Marketplace segment MCR was 85.4%, higher than expected, including impacts from ConnectiCare acquisition and member reconciliations.
Medicaid segment MCR was 91.3%, above the long-term target range, with pressures from behavioral health, pharmacy, inpatient and outpatient care.
Medicare segment MCR was 90%, above target, driven by higher utilization in acute populations, especially long-term services and supports and high-cost drugs.
Molina Healthcare reported adjusted earnings per share of $5.48 on $10.9 billion of premium revenue for Q2 2025.
The consolidated Medical Cost Ratio (MCR) was 90.4%, reflecting a challenging medical cost trend environment.
Year-to-date consolidated MCR is 89.8% with an adjusted pretax margin of 3.6%.
Adjusted EBITDA was $82 million in Q2, negatively impacted by $7 million in severance and sign-on bonuses.
Cash and short-term investments ended Q2 at over $1.1 billion; free cash flow was negative $69 million due to investments in new capabilities and working capital.
G&A costs improved 1 point year-over-year but deleveraged 4 points quarter-over-quarter due to new executives and organizational restructuring.
Gross margins expanded 3 points quarter-over-quarter to 76%, driven by growth outside weight loss specialty.
Marketing spend was 40% of revenue, with slowed investment due to volatility in marketing efficiency.
Monthly average revenue per subscriber declined quarter-over-quarter to $74 from $84, primarily due to offboarding GLP-1 subscribers.
Revenue grew 73% year-over-year to $545 million in Q2 2025, with an adjusted EBITDA margin north of 15%.
Subscribers increased by 73,000 quarter-over-quarter to over 2.4 million, reflecting 31% year-over-year growth.
Technology and development costs increased to 7% of revenue, reflecting investment in technology talent.
Cash and equivalents stood at $462 million as of June 30, 2025.
Drug discovery revenue increased 19% year-over-year to $14.2 million, reflecting recognition of a $150 million upfront payment from the Novartis collaboration.
Net loss narrowed to $43 million ($0.59 per share) from $54 million ($0.74 per share) in Q2 2024.
R&D expenses decreased over 15% to $43.1 million, driven by expense shifts and cost reduction initiatives.
Sales and marketing expenses increased 11% to $10.7 million, while G&A expenses rose 7% to $25.2 million.
Software gross margin declined to 68% from 80% in Q2 2024 due to revenue mix changes and investments in the predictive toxicology initiative.
Software revenue grew 15% year-over-year to $40.5 million, driven by hosted contracts and Gates Foundation grant contributions.
Total operating expenses decreased 6% to $79 million compared to Q2 2024.
Total revenue for Q2 2025 was $54.8 million, a 16% increase year-over-year.
Adjusted SG&A as a percentage of revenue improved by 280 basis points year-over-year to 17%, demonstrating operating leverage despite growth investments.
Clover Health reported 32% year-over-year Medicare Advantage membership growth to over 106,000 members in Q2 2025.
Days in claims payable decreased by 5 days sequentially to 32 days, indicating normalization of claims processing.
GAAP net loss improved by $4 million year-to-date to $12 million, with adjusted EBITDA and adjusted net income steady at $43 million and $42 million respectively.
Insurance Benefit Expense Ratio (BER) increased to 88.4% in Q2 2025 from 76.1% in Q2 2024, reflecting elevated Part D and supplemental benefit utilization.
Insurance revenue increased 34% year-over-year to $470 million in Q2 and 34% year-to-date to $927 million.
Adjusted EPS was $0.45, at the top of guidance but down 29% year-over-year, reflecting strong revenue execution and OpEx management offset by higher remediation costs.
Codman Specialty Surgical segment revenue was $304 million, up 0.7% reported but down 0.3% organic, with neurosurgery up 0.3% organically and ENT growth below expectations due to reimbursement pressures.
GAAP goodwill impairment charge of approximately $511 million was recorded due to macroeconomic uncertainties and supply recovery risks; this is a noncash charge with no impact on liquidity or operations.
Gross margin declined 450 basis points to 60.7%, primarily due to higher operational costs from shipholds remediation; adjusted EBITDA margin was 17.1%, down 290 basis points.
Integra LifeSciences delivered global revenue of $415.6 million in Q2 2025, slightly down 0.6% reported and 1.4% organic versus prior year, impacted by shipholds but offset by mid-single digit portfolio growth.
Operating cash flow was $9 million; free cash flow was negative $11.2 million due to capital investments.
Tissue Technology segment revenue was $111.6 million, down about 4% reported and organic, with strong growth in Integra Skin and DuraSorb offset by shipholds impacting MediHoney and private label declines.
Cash, cash equivalents, and investments totaled approximately $892 million at quarter-end, providing runway into mid-2027.
Net cash consumed in Q2 2025 was approximately $127.7 million, including $50.5 million in milestone payments related to ECLIPSE 1 first patient dosed; excluding milestones, net cash consumed was about $77.2 million.
Net loss for Q2 2025 was $111 million, improved from a net loss of $138.4 million in Q2 2024.
R&D expenses for Q2 2025 were $97.5 million, down from $105.1 million in Q2 2024, driven by restructuring cost savings partially offset by clinical and oncology program expenses.
SG&A expenses for Q2 2025 were $22.3 million, down from $30.3 million in Q2 2024, due to headcount reductions and restructuring.
Total operating expenses for Q2 2025 were $119.6 million, a $42.1 million decrease from Q2 2024, reflecting lower R&D, SG&A, and absence of prior restructuring charges.
Cash and equivalents declined to $52 million from $109.1 million at year-end 2024.
Gross to net provisions improved to 26.8% in Q2 2025 from 45% in Q1 2025 and 29.3% in Q2 2024, driven by mix and lower 340B discounts.
Interest expense increased to $11.2 million from $8.9 million due to refinancing impacts.
Net loss was $37.3 million or $4.32 per share, including $11.2 million interest expense and $2 million noncash losses from warrant and derivative remeasurement.
R&D expenses decreased 15% to $32.8 million due to headcount reductions and lower clinical trial costs.
SG&A expenses decreased 8% to $28.5 million reflecting cost reduction initiatives.
Total revenue for Q2 2025 was $37.9 million, down from $42.8 million in Q2 2024, primarily due to $6 million of nonrecurring license revenue in 2024.
U.S. XPOVIO net product revenue increased 6% year-over-year to $29.7 million in Q2 2025.
Dafinchi
