CENTENE CORPORATION REPORTS THIRD QUARTER 2025 RESULTS

-- GAAP Diluted Loss Per Share of $(13.50); Adjusted Diluted Earnings Per Share of $0.50 --

ST. LOUIS, Oct. 29, 2025 /PRNewswire/ -- Centene Corporation (NYSE: CNC) (the Company) announced today its financial results for the third quarter ended September 30, 2025. In summary, the 2025 third quarter results were as follows:

Total revenues (in millions)

$ 49,690

Premium and service revenues (in millions)

$ 44,898

Health benefits ratio

92.7 %

SG&A expense ratio

7.0 %

Adjusted SG&A expense ratio (1)

7.0 %

GAAP diluted loss per share

$ (13.50)

Adjusted diluted earnings per share (1)

$ 0.50

Total cash flow provided by operations (in millions)

$ 1,356

(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.

"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. London. "While much work remains ahead, our organization remains focused on driving margin improvement, delivering outcomes for our members, and positioning the business for long-term success."

Awards & Community Engagement

Membership

The following table sets forth membership by line of business:

September 30,

2025

2024

Traditional Medicaid (1)

11,115,400

11,478,600

High Acuity Medicaid (2)

1,591,000

1,590,200

Total Medicaid

12,706,400

13,068,800

Marketplace

5,828,100

4,501,300

Individual and Commercial Group (3)

447,900

426,600

Total Commercial

6,276,000

4,927,900

Medicare (4)

1,013,200

1,129,900

Medicare Prescription Drug Plan (PDP)

7,972,500

6,766,400

Total at-risk membership

27,968,100

25,893,000

TRICARE eligibles

—

2,747,000

Total

27,968,100

28,640,000

(1)

Membership includes Temporary Assistance for Needy Families (TANF), Medicaid Expansion, Children's Health Insurance Program (CHIP), Foster Care and Behavioral Health.

(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.

(3)

Membership includes Commercial Group, Individual Coverage Health Reimbursement Arrangement (ICHRA) and Other Off-Exchange Individual.

(4)

Membership includes Medicare Advantage and Medicare Supplement.

Premium and Service Revenues

The following table sets forth supplemental revenue information ($ in millions):

Three Months Ended September 30,

2025

2024

% Change

Medicaid

$ 23,171

$ 21,316

9 %

Commercial

10,992

8,693

26 %

Medicare (1)

9,391

5,643

66 %

Other

1,344

1,247

8 %

Total premium and service revenues

$ 44,898

$ 36,899

22 %

(1)

Medicare includes Medicare Advantage, Medicare Supplement and Medicare PDP.

Statement of Operations: Three Months Ended September 30, 2025

Balance Sheet

At September 30, 2025, the Company had cash, investments and restricted deposits of $38.8 billion and maintained $357 million of cash and cash equivalents in its unregulated entities. Medical claims liabilities totaled $21.5 billion. The Company's days in claims payable (DCP) was 48 days, an increase of one day as compared to the second quarter of 2025. Total debt was $17.6 billion, which included no borrowings on the $4.0 billion Revolving Credit Facility at quarter end.

Outlook

The Company is updating its full year 2025 GAAP forecast to a diluted loss per share not to exceed $(12.85). The Company is updating its full year 2025 adjusted diluted EPS forecast to at least $2.00, an increase of $0.25 from the $1.75 forecast discussed on the July earnings call.

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 U.S. and Canada; +1-412-902-6506 from abroad, including the following Elite Entry Number: 0266211 to expedite caller registration; or via a live, audio webcast on the Company's website at www.centene.com, under the Investors section.

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 U.S., 1-855-669-9658 in Canada, or +1-412-317-0088 from abroad, and entering access code 1579386.

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):

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

GAAP net earnings (loss) attributable to Centene

$ (6,631)

$ 713

$ (5,573)

$ 3,022

Amortization of acquired intangible assets

170

173

516

519

Acquisition and divestiture related expenses

—

Other adjustments (1)

6,754

—

6,815

(97)

Income tax effects of adjustments (2)

(48)

(45)

(148)

(171)

Adjusted net earnings

$ 245

$ 849

$ 1,611

$ 3,348

(1)

Other adjustments include the following pre-tax items:

2025:

(a)

for the three months ended September 30, 2025: goodwill impairment of $6,723 million, real estate impairment of $22 million and exit costs related to the wind-down of certain contracts in the Other segment of $9 million;

(b)

for the nine months ended September 30, 2025: goodwill impairment of $6,723 million, intangible asset impairment related to the wind-down of certain contracts in the Other segment of $55 million, a net loss on real estate transactions of $18 million, a reduction to the previously reported gain on the sale of Magellan Rx of $10 million and exit costs related to the wind-down of certain contracts in the Other segment of $9 million.

2024:

(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 $83 million, net gain on the sale of property of $21 million, gain on the previously reported divestiture of Circle Health Group (Circle Health) of $20 million, Health Net Federal Services asset impairment due to the 2024 final ruling on the TRICARE Managed Care Support Contract of $14 million, severance costs due to a restructuring of $13 million, an additional loss on the divestiture of our Spanish and Central European businesses of $7 million and gain on the previously reported divestiture of HealthSmart due to the finalization of working capital adjustments of $7 million.

(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 $4 million related to tax adjustments on previously reported divestitures and impacts of the One Big Beautiful Bill Act (OBBBA). The three and nine months ended September 30, 2024, include a tax benefit of $2 million related to tax adjustments on previously reported divestitures.

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

GAAP diluted earnings (loss) per share attributable to Centene

$ (13.50)

$ 1.36

$ (11.29)

$ 5.69

Amortization of acquired intangible assets

0.35

0.33

1.05

0.98

Acquisition and divestiture related expenses

—

0.02

—

0.14

Other adjustments (3)

13.75

—

13.81

(0.18)

Income tax effects of adjustments (4)

(0.10)

(0.09)

(0.30)

(0.32)

Effect of basic to diluted shares (5)

—

(0.01)

—

Adjusted diluted EPS

$ 0.50

$ 1.62

$ 3.26

$ 6.31

(3)

Other adjustments include the following pre-tax items:

2025:

(a)

for the three months ended September 30, 2025: goodwill impairment of $13.69 per share ($13.67 after-tax), real estate impairment of $0.04 per share ($0.04 after-tax) and exit costs related to the wind-down of certain contracts in the Other segment of $0.02 per share ($0.02 after-tax);

(b)

for the nine months ended September 30, 2025: goodwill impairment of $13.62 per share ($13.61 after-tax), intangible asset impairment related to the wind-down of certain contracts in the Other segment of $0.11 per share ($0.08 after-tax), a net loss on real estate transactions of $0.04 ($0.03 after-tax), a reduction to the previously reported gain on the sale of Magellan Rx of $0.02 ($0.02 after-tax) and exit costs related to the wind-down of certain contracts in the Other segment of $0.02 per share ($0.01 after-tax);

2024:

(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 $0.15 ($0.11 after-tax), net gain on the sale of property of $0.04 ($0.03 after-tax), gain on the previously reported divestiture of Circle Health of $0.04 ($0.12 after-tax), Health Net Federal Services asset impairment due to the 2024 final ruling on the TRICARE Managed Care Support Contract of $0.03 ($0.02 after-tax), severance costs due to a restructuring of $0.02 ($0.01 after-tax), an additional loss on the divestiture of our Spanish and Central European businesses of $0.01 ($0.01 after-tax) and gain on the previously reported divestiture of HealthSmart due to the finalization of working capital adjustments of $0.01 ($0.01 after-tax).

(4)

(5)

Reflects the $0.00 and $0.01 impact of using 491,636 thousand and 494,763 thousand shares in the calculation of adjusted diluted EPS for the three and nine months ended September 30, 2025, respectively. The additional 495 thousand and 1,119 thousand shares for the three and nine months ended September 30, 2025, respectively, were excluded from the calculation of the GAAP net loss per share and related adjustments due to their anti-dilutive effect.

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

GAAP selling, general and administrative expenses

$ 3,145

$ 3,057

$ 9,534

$ 9,169

Less:

Acquisition and divestiture related expenses

—

Restructuring costs

—

Real estate transaction costs

—

Adjusted selling, general and administrative

expenses

$ 3,134

$ 3,049

$ 9,522

$ 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:

In addition, the following terms are defined as follows:

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 U.S. presidential administrations or Congress; changes in federal or state laws or regulations, including changes with respect to income tax reform or government healthcare programs as well as changes with respect to the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act (collectively referred to as the ACA) and any regulations enacted thereunder, including the timing and terms of renewal or modification of the enhanced advance premium tax credits or program integrity initiatives that could have the effect of reducing membership or profitability of our products; unanticipated increased healthcare costs, including due to changes in consumer and provider behaviors, inflation and tariffs; our ability to maintain or achieve improvement in the Centers for Medicare and Medicaid Services (CMS) Star ratings and maintain or achieve improvement in other quality scores in each case that could impact revenue and future growth; competition, including for providers, broker distribution networks, contract reprocurements and organic growth; our ability to adequately anticipate demand and timely provide for operational resources to maintain service level requirements in compliance with the terms of our contracts and state and federal regulations; our ability to comply with the terms of our contracts and state and federal regulations and our ability to effectively oversee our third-party vendors to comply with the terms of their contracts with us and state and federal regulations; our ability to manage our information systems effectively; disruption, unexpected costs, or similar risks from business transactions, including acquisitions, divestitures, and changes in our relationships with third-party vendors; impairments to real estate, investments, goodwill and intangible assets; changes in senior management, loss of one or more key personnel or an inability to attract, hire, integrate and retain skilled personnel; membership and revenue declines or unexpected trends; changes in healthcare practices, new technologies, and advances in medicine; our ability to effectively and ethically use artificial intelligence and machine learning in compliance with applicable laws; changes in macroeconomic conditions, including inflation, interest rates and volatility in the financial markets; negative public perception of the Company and the managed care industry; uncertainty concerning government shutdowns, debt ceilings or funding; tax matters; disasters, climate-related incidents, acts of war or aggression or major epidemics; changes in expected contract start dates and terms; changes in provider, broker, vendor, state, federal and other contracts and delays in the timing of regulatory approval of contracts, including due to protests and our ability to timely comply with any such changes to our contractual requirements or manage any unexpected delays in regulatory approval of contracts; the expiration, suspension, or termination of our contracts with federal or state governments (including, but not limited to, Medicaid, Medicare or other customers); the difficulty of predicting the timing or outcome of legal or regulatory audits, investigations, proceedings or matters including, but not limited to, our ability to resolve claims and/or allegations on acceptable terms, or at all, or whether additional claims, reviews or investigations will be brought; challenges to our contract awards; cyber-attacks or other data security incidents or our failure to comply with applicable privacy, data or security laws and regulations; the exertion of management's time and our resources, and other expenses incurred and business changes required in connection with complying with the terms of our contracts and the undertakings in connection with any regulatory, governmental, or third party consents or approvals for acquisitions or dispositions; any changes in expected closing dates, estimated purchase price, or accretion for acquisitions or dispositions; losses in our investment portfolio; restrictions and limitations in connection with our indebtedness; a downgrade of our corporate family rating, issuer rating or credit rating of our indebtedness; the availability of debt and equity financing on terms that are favorable to us and risks and uncertainties discussed in the reports that Centene has filed with the Securities and Exchange Commission (SEC). This list of important factors is not intended to be exhaustive. We discuss certain of these matters more fully, as well as certain other factors that may affect our business operations, financial condition, and results of operations, in our filings with the SEC, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Due to these important factors and risks, we cannot give assurances with respect to our future performance, including without limitation our ability to maintain adequate premium levels or our ability to control our future medical and selling, general and administrative costs.

CENTENE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except shares in thousands and per share data in dollars)

September 30,

2025

December 31,

2024

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$ 17,058

$ 14,063

Premium and trade receivables

23,109

19,713

Short-term investments

2,179

2,622

Other current assets

1,716

1,601

Total current assets

44,062

37,999

Long-term investments

18,180

17,429

Restricted deposits

1,416

1,390

Property, software and equipment, net

2,161

2,067

Goodwill

10,835

17,558

Intangible assets, net

4,840

5,409

Other long-term assets

593

Total assets

$ 82,087

$ 82,445

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND

STOCKHOLDERS' EQUITY

Current liabilities:

Medical claims liability

$ 21,493

$ 18,308

Accounts payable and accrued expenses

16,875

13,174

Return of premium payable

1,568

2,008

Unearned revenue

656

661

Current portion of long-term debt

110

Total current liabilities

40,630

34,261

Long-term debt

17,545

18,423

Deferred tax liability

810

684

Other long-term liabilities

2,047

2,567

Total liabilities

61,032

55,935

Commitments and contingencies

Redeemable noncontrolling interests

Stockholders' equity:

Preferred stock, $0.001 par value; authorized 10,000 shares; no shares issued or

outstanding at September 30, 2025 and December 31, 2024

—

Common stock, $0.001 par value; authorized 800,000 shares; 623,120 issued and

491,414 outstanding at September 30, 2025, and 620,195 issued and 495,907

outstanding at December 31, 2024

Additional paid-in capital

20,713

20,562

Accumulated other comprehensive (loss)

(100)

(504)

Retained earnings

9,775

15,348

Treasury stock, at cost (131,706 and 124,288 shares, respectively)

(9,441)

(8,997)

Total Centene stockholders' equity

20,948

26,410

Nonredeemable noncontrolling interest

Total stockholders' equity

21,032

26,500

Total liabilities, redeemable noncontrolling interests and stockholders' equity

$ 82,087

$ 82,445

CENTENE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except shares in thousands and per share data in dollars)

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Revenues:

Premium

$ 44,126

$ 36,115

$ 127,578

$ 106,784

Service

772

784

2,276

2,425

Premium and service revenues

44,898

36,899

129,854

109,209

Premium tax

4,792

5,124

15,198

13,057

Total revenues

49,690

42,023

145,052

122,266

Expenses:

Medical costs

40,902

32,201

116,213

93,898

Cost of services

651

692

1,990

2,041

Selling, general and administrative expenses

3,145

3,057

9,534

9,169

Depreciation expense

147

140

430

408

Amortization of acquired intangible assets

170

173

516

519

Premium tax expense

4,886

5,095

15,449

13,218

Impairment

6,743

—

6,798

Total operating expenses

56,644

41,358

150,930

119,266

Earnings (loss) from operations

(6,954)

665

(5,878)

3,000

Other income (expense):

Investment and other income

450

432

1,203

1,440

Interest expense

(170)

(176)

(510)

(530)

Earnings (loss) before income tax

(6,674)

921

(5,185)

3,910

Income tax (benefit) expense

(42)

211

392

896

Net earnings (loss)

(6,632)

710

(5,577)

3,014

Loss attributable to noncontrolling interests

Net earnings (loss) attributable to Centene Corporation

$ (6,631)

$ 713

$ (5,573)

$ 3,022

Net earnings (loss) per common share attributable to Centene Corporation:

Basic earnings (loss) per common share

$ (13.50)

$ 1.37

$ (11.29)

$ 5.71

Diluted earnings (loss) per common share

$ (13.50)

$ 1.36

$ (11.29)

$ 5.69

Weighted average number of common shares outstanding:

Basic

491,141

521,965

493,644

528,912

Diluted

491,141

523,542

493,644

530,915

CENTENE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions, unaudited)

Nine Months Ended

September 30,

2025

2024

Cash flows from operating activities:

Net earnings (loss)

$ (5,577)

$ 3,014

Adjustments to reconcile net earnings (loss) to net cash provided by operating activities

Depreciation and amortization

946

927

Stock compensation expense

146

181

Impairment

6,798

Deferred income taxes

(Gain) loss on divestitures, net

(103)

Changes in assets and liabilities

Premium and trade receivables

(3,338)

(2,737)

Other assets

(245)

Medical claims liabilities

3,176

(5)

Unearned revenue

(5)

(58)

Accounts payable and accrued expenses

2,681

(503)

Other long-term liabilities

(84)

Other operating activities, net

Net cash provided by operating activities

4,651

741

Cash flows from investing activities:

Capital expenditures

(554)

(490)

Purchases of investments

(3,765)

(5,770)

Sales and maturities of investments

4,131

4,147

Divestiture proceeds, net of divested cash

—

959

Net cash (used in) investing activities

(188)

(1,154)

Cash flows from financing activities:

Proceeds from long-term debt

750

350

Payments and repurchases of long-term debt

(1,708)

(594)

Common stock repurchases

(473)

(2,181)

Proceeds from common stock issuances

Purchase of noncontrolling interest

(19)

—

Other financing activities, net

(13)

(5)

Net cash (used in) financing activities

(1,434)

(2,393)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

—

Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

3,029

(2,799)

Cash and cash equivalents reclassified (to) from held for sale

—

(3)

Cash, cash equivalents and restricted cash and cash equivalents, beginning of period

14,156

17,452

Cash, cash equivalents and restricted cash and cash equivalents, end of period

$ 17,185

$ 14,650

Supplemental disclosures of cash flow information:

Interest paid

$ 458

$ 495

Income taxes paid, net

$ 540

$ 821

The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents reported within the Consolidated

Balance Sheets to the totals above:

September 30,

2025

2024

Cash and cash equivalents

$ 17,058

$ 14,577

Restricted cash and cash equivalents, included in restricted deposits

127

Total cash, cash equivalents and restricted cash and cash equivalents

$ 17,185

$ 14,650

CENTENE CORPORATION

SUPPLEMENTAL FINANCIAL DATA

2025

2024

MEMBERSHIP

Traditional Medicaid (1)

11,115,400

11,227,400

11,369,400

11,408,100

11,478,600

High Acuity Medicaid (2)

1,591,000

1,592,300

1,589,400

1,595,400

1,590,200

Total Medicaid

12,706,400

12,819,700

12,958,800

13,003,500

13,068,800

Marketplace

5,828,100

5,862,800

5,626,000

4,382,100

4,501,300

Individual and Commercial Group (3)

447,900

449,700

448,200

431,400

426,600

Total Commercial

6,276,000

6,312,500

6,074,200

4,813,500

4,927,900

Medicare (4)

1,013,200

1,026,900

1,043,200

1,110,900

1,129,900

Medicare PDP

7,972,500

7,845,800

7,867,800

6,925,700

6,766,400

Total at-risk membership

27,968,100

28,004,900

27,944,000

25,853,600

25,893,000

TRICARE eligibles

—

2,747,000

Total

27,968,100

28,004,900

27,944,000

28,600,600

28,640,000

(1) Membership includes TANF, Medicaid Expansion, CHIP, Foster Care and Behavioral Health.

(2) Membership includes ABD, IDD, LTSS and MMP Duals.

(3) Membership includes Commercial Group, ICHRA and Other Off-Exchange Individual.

(4) Membership includes Medicare Advantage and Medicare Supplement.

NUMBER OF EMPLOYEES

60,900

60,300

60,400

60,500

60,700

DAYS IN CLAIMS PAYABLE

CASH, INVESTMENTS AND RESTRICTED DEPOSITS (in millions)

Regulated

$ 37,574

$ 36,403

$ 35,922

$ 34,433

$ 35,558

Unregulated

1,259

1,086

1,042

1,071

1,154

Total

$ 38,833

$ 37,489

$ 36,964

$ 35,504

$ 36,712

DEBT TO CAPITALIZATION

45.5 %

39.0 %

39.5 %

41.2 %

39.1 %

OPERATING RATIOS

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

HBR

92.7 %

89.2 %

91.1 %

87.9 %

SG&A expense ratio

7.0 %

8.3 %

7.3 %

8.4 %

Adjusted SG&A expense ratio

7.0 %

8.3 %

7.3 %

8.3 %

HBR BY PRODUCT

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

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.

MEDICAL CLAIMS LIABILITY

The changes in medical claims liability are summarized as follows (in millions):

Balance, September 30, 2024

$ 17,995

Less: Reinsurance recoverables

Balance, September 30, 2024, net

17,933

Incurred related to:

Current period

150,533

Prior periods

(2,548)

Total incurred

147,985

Paid related to:

Current period

130,581

Prior periods

13,954

Total paid

144,535

Plus: Premium deficiency reserve

Balance, September 30, 2025, net

21,420

Plus: Reinsurance recoverables

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 $106 million was recorded as a reduction to premium revenues resulting from development within "Incurred related to: Prior periods" due to minimum HBR and other return of premium programs.

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.

SOURCE Centene Corporation