Drug CostsA concern came from higher utilization in Part D drug spend, with member out-of-pocket costs capped at $2,000 per year, potentially increasing liability for the plans.
Insurance ExpensesThe insurance benefit expense ratio came in higher than estimates, causing some concern and a pullback in shares.
Stock-Based CompensationClover discussed how its stock-based compensation will be drastically reduced beginning in 2026 with the final vesting of two founders grants, which accounted for more than half of the stock-based compensation expense in 2024 and expected in 2025.