NeueHealth Surpasses 45% Growth in Consumer Reach with NeuePulse Expansion

Key Highlights from NeueHealth's Q2 2025 Earnings Call

NeueHealth, Inc. (NEUE) delivered a strong performance in the second quarter of 2025, with continued profitability and significant growth in consumer reach. The company reported $19 million in adjusted EBITDA for the quarter, contributing to a total of $32.5 million in the first half of the year. CEO George Lawrence Mikan emphasized that the company is outperforming the market in terms of medical loss ratio and highlighted the expansion of its services through new partnerships and innovative platforms.

Mikan noted a 45% increase in the number of consumers served compared to the same period last year, with the ACA Marketplace reaching 485,000 consumers by the end of the quarter. He also announced the launch of the NeuePulse platform, an end-to-end value-based care enablement solution designed to improve data management, patient engagement, and provider decision-making.

CFO Jay Stephen Matushak shared that consolidated revenue for Q2 was $209.1 million, slightly lower than the previous year due to a shift in membership mix away from ACO REACH to other business lines. However, the company maintained a gross margin of $62.7 million and achieved adjusted EBITDA profitability for the sixth consecutive quarter. The NeueCare segment generated $91.6 million in revenue with an operating income of $23.2 million, while the NeueSolutions segment reported $120 million in revenue and $2.6 million in operating income.

Strategic Growth and Future Outlook

Management expressed confidence in the company’s trajectory, emphasizing the importance of expanding consumer reach, deepening partnerships, and advancing the NeuePulse platform. Mikan reiterated that NeueHealth has laid a solid foundation for future growth, focusing on high-quality coordinated care and evolving data and analytics capabilities to meet industry demands.

The company is currently in the process of going private, with an anticipated closing in mid to late 2025, pending necessary conditions. This transition reflects the company’s long-term vision and commitment to strengthening its position in the healthcare market.

Financial Performance Overview

For the second quarter, NeueHealth served 694,000 consumers, marking a 45% year-over-year increase. Total cash and investments as of June 30, 2025, reached $234.4 million, with $145.5 million in nonregulated cash and short-term investments. This financial strength positions the company to continue investing in innovation and strategic initiatives.

In comparison to the first quarter, adjusted EBITDA rose from $13.5 million to $19 million. Consumer growth slowed slightly to 45% year over year from 51% in Q1, but the company remained focused on long-term growth and operational efficiency. The NeueSolutions segment showed improvement, moving from an operating loss of $3 million in Q1 to $2.6 million in operating income in Q2.

Expansion Through Partnerships

NeueHealth continues to strengthen its presence in the healthcare market through key collaborations. The company expanded its senior care clinic offerings within select Walgreens locations in Central Florida and formed a partnership with Florida Mobile Mammography. These initiatives are expected to enhance access to care and support the company’s mission of delivering high-quality, coordinated health services.

Addressing Risks and Market Challenges

While the company remains optimistic, management acknowledged potential risks related to market trends and shifts in membership mix. Mikan noted that serving a diverse population helps mitigate some of these challenges, providing multiple growth opportunities. The shift away from ACO REACH has impacted revenue, but the company is leveraging new partnerships and segments to offset this risk.

Final Thoughts

NeueHealth’s Q2 2025 results reflect a strong financial performance, driven by profitability, consumer growth, and strategic innovation. The rollout of the NeuePulse platform and expansion of partnerships with Walgreens and Florida Mobile Mammography demonstrate the company’s commitment to improving healthcare delivery and operational efficiency.

With a clear focus on future growth, technological advancement, and community engagement, NeueHealth is well-positioned to navigate market challenges and capitalize on emerging opportunities. The ongoing transition to private ownership further underscores the company’s long-term vision and dedication to transforming the healthcare experience for consumers.