MOH 8-K
Molina Healthcare, Inc. (MOH)
8-K
2025-07-23
For: 2025-07-23
View Original
Added on
April 10, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
FORM 8-K
______________
Current Report
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 23, 2025
______________
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
______________
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code: (562 ) 435-3666
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act. | |||||
☐ | |||||
Item 2.02. Results of Operations and Financial Condition.
On July 23, 2025, Molina Healthcare, Inc. (the “Company”) issued a press release reporting its financial results for the second quarter ended June 30, 2025 and updating the Company’s full-year 2025 earnings guidance. The full text of the press release is included as Exhibit 99.1 to this report. The information contained in the Company’s website cited in the press release is not part of this report.
Note: The information in this Form 8-K and the exhibits attached hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
| Exhibit No. | Description | ||||
| 99.1 | |||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MOLINA HEALTHCARE, INC. | |||||||||||
Date: | July 23, 2025 | By: | /s/ Jeff D. Barlow | ||||||||
| Jeff D. Barlow | |||||||||||
| Chief Legal Officer and Secretary | |||||||||||
News Release
Investor Contact: Jeffrey Geyer, [email protected], 305-317-3012
Media Contact: Caroline Zubieta, [email protected], 562-951-1588
Molina Healthcare Reports Second Quarter 2025 Financial Results
Revises Full Year 2025 Guidance
Long Beach, Calif, July 23, 2025 – Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today reported second quarter 2025 GAAP earnings per diluted share of $4.75 and adjusted earnings per diluted share of $5.48. Financial results are summarized below:
| Three months ended | Six months ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (In millions, except per-share results) | |||||||||||||||||||||||
| Premium Revenue | $10,868 | $9,446 | $21,496 | $18,950 | |||||||||||||||||||
| Total Revenue | $11,427 | $9,880 | $22,574 | $19,811 | |||||||||||||||||||
| GAAP: | |||||||||||||||||||||||
| Net Income | $255 | $301 | $553 | $602 | |||||||||||||||||||
| EPS – Diluted | $4.75 | $5.17 | $10.19 | $10.33 | |||||||||||||||||||
| Medical Care Ratio (MCR) | 90.4 | % | 88.6 | % | 89.8 | % | 88.6 | % | |||||||||||||||
| G&A Ratio | 6.2 | % | 7.0 | % | 6.6 | % | 7.1 | % | |||||||||||||||
| After-tax Margin | 2.2 | % | 3.0 | % | 2.4 | % | 3.0 | % | |||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Net Income | $294 | $341 | $627 | $675 | |||||||||||||||||||
| EPS – Diluted | $5.48 | $5.86 | $11.56 | $11.59 | |||||||||||||||||||
| G&A Ratio | 6.1 | % | 6.9 | % | 6.4 | % | 7.0 | % | |||||||||||||||
| After-tax Margin | 2.6 | % | 3.5 | % | 2.8 | % | 3.4 | % | |||||||||||||||
| See the Reconciliation of Unaudited Non-GAAP Financial Measures at the end of this release. | |||||||||||||||||||||||
Quarter Highlights
•As of June 30, 2025, the Company served approximately 5.7 million members, an increase of 167,000 members compared to June 30, 2024.
•Premium revenue was approximately $10.9 billion for the second quarter of 2025, an increase of 15% year over year.
•GAAP net income was $4.75 per diluted share for the second quarter of 2025, a decrease of 8% year over year.
•Adjusted net income was $5.48 per diluted share for the second quarter of 2025, a decrease of 6% year over year.
•The Company now expects its full year 2025 adjusted earnings to be no less than $19.00 per diluted share and reaffirms its premium revenue guidance of approximately $42 billion.
•New store embedded earnings remain at $8.65 per diluted share.
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Molina Healthcare, Inc. Reports Second Quarter 2025 Financial Results
Page 2
July 23, 2025
“Our second quarter results and revised full year outlook reflect a challenging medical cost trend environment,” said Joseph Zubretsky, President and Chief Executive Officer. “The current earnings pressure we are experiencing results from what we believe to be a temporary dislocation between premium rates and medical cost trend which has recently accelerated. We are still performing near our long-term target ranges, and nothing has changed our outlook for the long-term performance of the business.”
Premium Revenue
Premium revenue was approximately $10.9 billion for the second quarter of 2025, an increase of 15% year over year. The higher premium revenue reflects new contract wins, acquisitions, growth in the Company’s current footprint, and rate increases, partially offset by the impact of Medicaid redetermination in 2024.
Net Income
GAAP net income for the second quarter of 2025 was $4.75 per diluted share, a decrease of 8% year over year. Adjusted net income for the second quarter of 2025 was $5.48 per diluted share, a decrease of 6% year over year.
Medical Care Ratio (MCR)
•The consolidated MCR for the second quarter of 2025 was 90.4%.
•The Medicaid MCR for the second quarter of 2025 was 91.3%. The Company experienced medical cost pressure due to continued utilization of behavioral health, pharmacy, and inpatient and outpatient services. These medical costs were partially offset by the rate updates that went into effect in the first and second quarters.
•The Medicare MCR for the second quarter of 2025 was 90.0% and reflects higher utilization among high-acuity members, particularly for long-term services and supports and pharmacy.
•The Marketplace MCR for the second quarter of 2025 was 85.4%. Within that result, approximately 300 basis points was due to prior year member reconciliations and a higher “new store” MCR related to the ConnectiCare acquisition. Excluding these items, the Marketplace MCR was approximately 82.4% and above expectations due to higher utilization relative to risk adjustment.
General and Administrative Expense Ratio
The G&A ratio and the adjusted G&A ratio for the second quarter of 2025 were 6.2% and 6.1%, respectively, reflecting the benefit of one-time items and continued operating discipline.
Balance Sheet
Cash and investments at the parent company were approximately $100 million as of June 30, 2025, compared to $445 million as of December 31, 2024.
Days in claims payable at June 30, 2025, was 43 and primarily reflects faster claims processing and adjudication, as well as higher volumes of pass-through payments and several provider claim settlements.
Cash Flow
Operating cash flow for the six months ended June 30, 2025, was an outflow of $112 million, compared to an outflow of $5 million for the six months ended June 30, 2024. The decrease in cash flow for the period year-over-year was driven mainly by the net impact of timing differences in government receivables and payables and risk corridor settlement activity.
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Molina Healthcare, Inc. Reports Second Quarter 2025 Financial Results
Page 3
July 23, 2025
2025 Guidance
Premium revenue guidance for the full year is unchanged and expected to be approximately $42 billion, an increase of approximately 9% from the full year 2024.
The Company now expects its full year 2025 GAAP earnings to be no less than $16.90 per diluted share and its full year 2025 adjusted earnings to be no less than $19.00 per diluted share. The updated guidance, which is disproportionately attributed to Marketplace, reflects new information gained in the quarterly closing process and implications for medical cost trend assumptions for the second half of the year.
Guidance metrics are summarized below:
| Full Year 2025 Guidance | |||||||||||
| Premium Revenue | $42.0B | ||||||||||
| Total Revenue | $44.0B | ||||||||||
| GAAP Net Income | $912M | ||||||||||
| Adjusted Net Income | $1,028M | ||||||||||
| GAAP EPS – Diluted | ≥ $16.90 | ||||||||||
| Adjusted EPS – Diluted | ≥ $19.00 | ||||||||||
| Diluted weighted average shares | 54.1M | ||||||||||
| MCR | 90.2% | ||||||||||
| Medicaid | 90.9% | ||||||||||
| Medicare | 90.0% | ||||||||||
| Marketplace | 85.1% | ||||||||||
| GAAP G&A Ratio | 6.7% | ||||||||||
| Adjusted G&A Ratio | 6.6% | ||||||||||
| Effective Tax Rate | 25.3% | ||||||||||
| GAAP Pre-tax Margin | 2.8% | ||||||||||
| Adjusted Pre-tax Margin | 3.1% | ||||||||||
| See the Reconciliations of Unaudited Non-GAAP Financial Measures at the end of this release. | |||||||||||
Conference Call
Management will host a conference call and webcast to discuss Molina Healthcare’s second quarter results for the period ended June 30, 2025, at 8:00 a.m. Eastern Time on Thursday, July 24, 2025. The number to call for the interactive teleconference is (877) 883-0383 and the confirmation number is 4784585. A telephonic replay of the conference call will be available through Thursday, July 31, 2025, by dialing (877) 344-7529 and entering confirmation number 9484867. A live audio broadcast of this conference call will be available on Molina Healthcare’s investor relations website, investors.molinahealthcare.com. A 30-day online replay will be available approximately an hour following the conclusion of the live broadcast.
About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. For more information about Molina Healthcare, please visit molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This earnings release and the Company’s accompanying oral remarks contain forward-looking statements. The Company intends such forward-looking statements to be covered under the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities
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Molina Healthcare, Inc. Reports Second Quarter 2025 Financial Results
Page 4
July 23, 2025
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements provide current expectations of future events based on certain assumptions, and all statements other than statements of historical fact contained in this earnings release and the Company’s accompanying oral remarks may be forward-looking statements. In some cases, you can identify forward-looking statements by words such as “guidance,” “future,” “anticipates,” “believes,” “embedded,” “estimates,” “expects,” “growth,” “intends,” “plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,” “may,” or the negative of these terms or other similar expressions. Forward-looking statements contained in this earnings release include, but are not limited to, statements regarding the Company’s 2025 guidance and long-term performance outlook, trends with respect to rates, utilization and medical costs, and our management’s plans and objectives for future operations and business strategy.
Actual results could differ materially due to numerous known and unknown risks and uncertainties. These risks and uncertainties are discussed under the headings “Forward-Looking Statements,” and “Risk Factors,” in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2024, which is on file with the U.S. Securities and Exchange Commission (the “SEC”), and in the Company’s other filings with the SEC, including its Quarterly Reports on Form 10-Q for the period ended March 31, 2025 filed with the SEC and Quarterly Report on Form 10-Q for the period ended June 30, 2025, to be filed with the SEC.
These reports can be accessed under the investor relations tab of the Company’s website or on the SEC’s website at sec.gov. Given these risks and uncertainties, the Company can give no assurances that its forward-looking statements will prove to be accurate, or that any other results or developments projected or contemplated by its forward-looking statements will in fact occur, and the Company cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Company’s judgment as of July 23, 2025, and, except as otherwise required by law, the Company disclaims any obligation to update any forward-looking statement to conform the statement to actual results or changes in its expectations.
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Molina Healthcare, Inc. Reports Second Quarter 2025 Financial Results
Page 5
July 23, 2025
MOLINA HEALTHCARE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (In millions, except per-share amounts) | |||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Premium revenue | $ | 10,868 | $ | 9,446 | $ | 21,496 | $ | 18,950 | |||||||||||||||
| Premium tax revenue | 431 | 298 | 819 | 595 | |||||||||||||||||||
| Investment income | 106 | 115 | 214 | 223 | |||||||||||||||||||
| Other revenue | 22 | 21 | 45 | 43 | |||||||||||||||||||
| Total revenue | 11,427 | 9,880 | 22,574 | 19,811 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Medical care costs | 9,829 | 8,368 | 19,308 | 16,782 | |||||||||||||||||||
| General and administrative expenses | 711 | 691 | 1,485 | 1,402 | |||||||||||||||||||
| Premium tax expenses | 431 | 298 | 819 | 595 | |||||||||||||||||||
| Depreciation and amortization | 58 | 46 | 106 | 91 | |||||||||||||||||||
| Other | 25 | 43 | 50 | 81 | |||||||||||||||||||
| Total operating expenses | 11,054 | 9,446 | 21,768 | 18,951 | |||||||||||||||||||
| Operating income | 373 | 434 | 806 | 860 | |||||||||||||||||||
| Interest expense | 48 | 28 | 91 | 55 | |||||||||||||||||||
Income before income tax expense | 325 | 406 | 715 | 805 | |||||||||||||||||||
| Income tax expense | 70 | 105 | 162 | 203 | |||||||||||||||||||
| Net income | $ | 255 | $ | 301 | $ | 553 | $ | 602 | |||||||||||||||
| Net income per share – Diluted | $ | 4.75 | $ | 5.17 | $ | 10.19 | $ | 10.33 | |||||||||||||||
Diluted weighted average shares outstanding | 53.7 | 58.2 | 54.3 | 58.3 | |||||||||||||||||||
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Molina Healthcare, Inc. Reports Second Quarter 2025 Financial Results
Page 6
July 23, 2025
MOLINA HEALTHCARE, INC.
CONSOLIDATED BALANCE SHEETS
| June 30, | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| Unaudited | |||||||||||
| (Dollars in millions, except per-share amounts) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 4,499 | $ | 4,662 | |||||||
| Investments | 4,310 | 4,325 | |||||||||
| Receivables | 3,865 | 3,299 | |||||||||
| Prepaid expenses and other current assets | 438 | 487 | |||||||||
| Total current assets | 13,112 | 12,773 | |||||||||
| Property, equipment, and capitalized software, net | 305 | 288 | |||||||||
| Goodwill and intangible assets, net | 2,168 | 1,938 | |||||||||
| Restricted investments | 291 | 286 | |||||||||
| Deferred income taxes, net | 185 | 207 | |||||||||
| Other assets | 148 | 138 | |||||||||
| Total assets | $ | 16,209 | $ | 15,630 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Medical claims and benefits payable | $ | 4,885 | $ | 4,640 | |||||||
| Amounts due government agencies | 1,821 | 1,874 | |||||||||
| Accounts payable, accrued liabilities and other | 1,113 | 1,331 | |||||||||
| Deferred revenue | 57 | 51 | |||||||||
| Total current liabilities | 7,876 | 7,896 | |||||||||
| Long-term debt | 3,375 | 2,923 | |||||||||
| Finance lease liabilities | 188 | 195 | |||||||||
| Other long-term liabilities | 167 | 120 | |||||||||
| Total liabilities | 11,606 | 11,134 | |||||||||
| Stockholders’ equity: | |||||||||||
Common stock, $0.001 par value, 150 million shares authorized; outstanding: 54 million shares at June 30, 2025, and 56 million at December 31, 2024 | — | — | |||||||||
Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding | — | — | |||||||||
| Additional paid-in capital | 454 | 462 | |||||||||
| Accumulated other comprehensive loss | (10) | (57) | |||||||||
| Retained earnings | 4,159 | 4,091 | |||||||||
| Total stockholders’ equity | 4,603 | 4,496 | |||||||||
| Total liabilities and stockholders’ equity | $ | 16,209 | $ | 15,630 | |||||||
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Molina Healthcare, Inc. Reports Second Quarter 2025 Financial Results
Page 7
July 23, 2025
MOLINA HEALTHCARE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended | |||||||||||
| June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In millions) | |||||||||||
| Operating activities: | |||||||||||
| Net income | $ | 553 | $ | 602 | |||||||
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
| Depreciation and amortization | 106 | 91 | |||||||||
| Deferred income taxes | 22 | 21 | |||||||||
Share-based compensation | 30 | 68 | |||||||||
Other, net | — | 4 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Receivables | (466) | (5) | |||||||||
| Prepaid expenses and other current assets | 10 | 16 | |||||||||
| Medical claims and benefits payable | (50) | (48) | |||||||||
| Amounts due government agencies | (81) | (43) | |||||||||
| Accounts payable, accrued liabilities and other | (301) | (307) | |||||||||
| Deferred revenue | (59) | (405) | |||||||||
| Income taxes | 124 | 1 | |||||||||
| Net cash used in operating activities | (112) | (5) | |||||||||
| Investing activities: | |||||||||||
| Purchases of investments | (421) | (594) | |||||||||
Proceeds from sales and maturities of investments | 717 | 506 | |||||||||
| Net cash paid in business combinations | (245) | (295) | |||||||||
Purchases of property, equipment, and capitalized software | (64) | (54) | |||||||||
| Other, net | 18 | 2 | |||||||||
| Net cash provided by (used in) investing activities | 5 | (435) | |||||||||
| Financing activities: | |||||||||||
| Proceeds from borrowings under credit facility and term loan | 650 | — | |||||||||
Common stock purchases | (500) | — | |||||||||
| Repayment of credit facility and term loan | (200) | — | |||||||||
| Common stock withheld to settle employee tax obligations | (36) | (56) | |||||||||
| Other, net | 44 | 6 | |||||||||
| Net cash used in financing activities | (42) | (50) | |||||||||
| Net decrease in cash, cash equivalents, and restricted cash and cash equivalents | (149) | (490) | |||||||||
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period | 4,741 | 4,908 | |||||||||
Cash, cash equivalents, and restricted cash and cash equivalents at end of period | $ | 4,592 | $ | 4,418 | |||||||
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Molina Healthcare, Inc. Reports Second Quarter 2025 Financial Results
Page 8
July 23, 2025
MOLINA HEALTHCARE, INC.
UNAUDITED SEGMENT DATA
(Dollars in millions)
| June 30, | December 31, | June 30, | ||||||||||||||||||
| 2025 | 2024 | 2024 | ||||||||||||||||||
| Ending Membership by Segment: | ||||||||||||||||||||
| Medicaid | 4,774,000 | 4,890,000 | 4,942,000 | |||||||||||||||||
| Medicare | 267,000 | 242,000 | 251,000 | |||||||||||||||||
| Marketplace | 690,000 | 403,000 | 386,000 | |||||||||||||||||
| Other | 15,000 | — | — | |||||||||||||||||
| Total | 5,746,000 | 5,535,000 | 5,579,000 | |||||||||||||||||
| Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Premium Revenue | Medical Margin | MCR (1) | Premium Revenue | Medical Margin | MCR (1) | ||||||||||||||||||||||||||||||
| Medicaid | $ | 8,029 | $ | 697 | 91.3 | % | $ | 7,378 | $ | 683 | 90.8 | % | |||||||||||||||||||||||
| Medicare | 1,608 | 161 | 90.0 | 1,441 | 217 | 84.9 | |||||||||||||||||||||||||||||
| Marketplace | 1,200 | 175 | 85.4 | 627 | 178 | 71.6 | |||||||||||||||||||||||||||||
| Other | 31 | 6 | 82.7 | — | — | — | |||||||||||||||||||||||||||||
| Consolidated | $ | 10,868 | $ | 1,039 | 90.4 | % | $ | 9,446 | $ | 1,078 | 88.6 | % | |||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Premium Revenue | Medical Margin | MCR (1) | Premium Revenue | Medical Margin | MCR (1) | ||||||||||||||||||||||||||||||
| Medicaid | $ | 16,159 | $ | 1,488 | 90.8 | % | $ | 14,870 | $ | 1,458 | 90.2 | % | |||||||||||||||||||||||
| Medicare | 3,076 | 333 | 89.2 | 2,883 | 380 | 86.8 | |||||||||||||||||||||||||||||
| Marketplace | 2,204 | 358 | 83.7 | 1,197 | 330 | 72.4 | |||||||||||||||||||||||||||||
| Other | 57 | 9 | 85.0 | — | — | — | |||||||||||||||||||||||||||||
| Consolidated | $ | 21,496 | $ | 2,188 | 89.8 | % | $ | 18,950 | $ | 2,168 | 88.6 | % | |||||||||||||||||||||||
(1)The MCR represents medical costs as a percentage of premium revenue. | |||||||||||||||||||||||||||||||||||
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Molina Healthcare, Inc. Reports Second Quarter 2025 Financial Results
Page 9
July 23, 2025
MOLINA HEALTHCARE, INC.
CHANGE IN MEDICAL CLAIMS AND BENEFITS PAYABLE
(Dollars in millions)
The Company’s claims liabilities include additional reserves to account for moderately adverse conditions based on historical experience and other factors including, but not limited to, variations in claims payment patterns, changes in utilization and cost trends, known outbreaks of disease, and large claims. The Company’s reserving methodology is consistently applied across all periods presented. The amounts displayed for “Components of medical care costs related to: Prior year” represent the amounts by which the original estimates of claims and benefits payable at the beginning of the year were more than the actual liabilities based on information (principally the payment of claims) developed since those liabilities were first reported. The following table presents the components of the change in medical claims and benefits payable for the periods indicated:
| Six Months Ended | |||||||||||
| June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Unaudited | |||||||||||
Medical claims and benefits payable, beginning balance | $ | 4,640 | $ | 4,204 | |||||||
| Components of medical care costs related to: | |||||||||||
| Current year | 19,509 | 17,301 | |||||||||
| Prior year | (201) | (519) | |||||||||
| Total medical care costs | 19,308 | 16,782 | |||||||||
| Payments for medical care costs related to: | |||||||||||
| Current year | 15,700 | 13,429 | |||||||||
| Prior year | 3,918 | 3,161 | |||||||||
| Total paid | 19,618 | 16,590 | |||||||||
| Acquired balances, net of post-acquisition adjustments | 295 | 421 | |||||||||
| Change in non-risk and other payables | 260 | (240) | |||||||||
Medical claims and benefits payable, ending balance | $ | 4,885 | $ | 4,577 | |||||||
Days in Claims Payable (1) | 43 | 50 | |||||||||
__________________
(1)The Company calculates Days in Claims Payable using claims incurred but not paid, or IBNP, and other fee-for-service payables included in medical claims and benefits payable, and quarterly fee-for-service related costs included in medical care costs within the Company’s consolidated financial statements.
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Molina Healthcare, Inc. Reports Second Quarter 2025 Financial Results
Page 10
July 23, 2025
MOLINA HEALTHCARE, INC.
RECONCILIATION OF UNAUDITED NON-GAAP FINANCIAL MEASURES
(In millions, except per diluted share amounts)
The Company believes that certain non-GAAP (generally accepted accounting principles) financial measures are useful supplemental measures to investors in comparing the Company’s performance to the performance of other public companies in the health care industry. The non-GAAP financial measures are also used internally to enable management to assess the Company’s performance consistently over time. These non-GAAP financial measures, presented below, should be considered as supplements to, and not as substitutes for or superior to, GAAP measures.
Adjustments represent additions and deductions to GAAP net income as indicated in the table below, which include the non-cash impact of amortization of acquired intangible assets, acquisition-related expenses, and the impact of certain expenses and other items that management believes are not indicative of longer-term business trends and operations.
Adjusted G&A Ratio represents the GAAP G&A ratio, recognizing adjustments.
Adjusted net income represents GAAP net income recognizing the adjustments, net of tax. The Company believes that adjusted net income is helpful to investors in assessing the Company’s financial performance.
Adjusted net income per diluted share represents adjusted net income divided by weighted average common shares outstanding on a fully diluted basis.
Adjusted after-tax margin represents adjusted net income, divided by total revenue.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Amount | Per Diluted Share | Amount | Per Diluted Share | Amount | Per Diluted Share | Amount | Per Diluted Share | ||||||||||||||||||||||||||||||||||||||||
GAAP Net income | $ | 255 | $ | 4.75 | $ | 301 | $ | 5.17 | $ | 553 | $ | 10.19 | $ | 602 | $ | 10.33 | |||||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets | $ | 32 | $ | 0.60 | $ | 21 | $ | 0.36 | $ | 53 | $ | 0.99 | $ | 41 | $ | 0.71 | |||||||||||||||||||||||||||||||
Acquisition-related expenses (1) | 19 | 0.37 | 18 | 0.31 | 42 | 0.78 | 35 | 0.60 | |||||||||||||||||||||||||||||||||||||||
Other (2) | — | — | 14 | 0.24 | 2 | 0.03 | 20 | 0.35 | |||||||||||||||||||||||||||||||||||||||
Subtotal, adjustments | 51 | 0.97 | 53 | 0.91 | 97 | 1.80 | 96 | 1.66 | |||||||||||||||||||||||||||||||||||||||
Income tax effect | (12) | (0.24) | (13) | (0.22) | (23) | (0.43) | (23) | (0.40) | |||||||||||||||||||||||||||||||||||||||
Adjustments, net of tax | 39 | 0.73 | 40 | 0.69 | 74 | 1.37 | 73 | 1.26 | |||||||||||||||||||||||||||||||||||||||
Adjusted net income | $ | 294 | $ | 5.48 | $ | 341 | $ | 5.86 | $ | 627 | $ | 11.56 | $ | 675 | $ | 11.59 | |||||||||||||||||||||||||||||||
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(1)Reflects non-recurring costs associated with acquisitions, including various transaction and certain integration costs.
(2)The six months ended June 30, 2025, includes non-recurring litigation costs. The six months ended June 30, 2024, includes non-recurring litigation costs and one-time termination benefits.
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Molina Healthcare, Inc. Reports Second Quarter 2025 Financial Results
Page 11
July 23, 2025
MOLINA HEALTHCARE, INC.
RECONCILIATION OF UNAUDITED NON-GAAP FINANCIAL MEASURES (CONTINUED)
2025 GUIDANCE
| Amount | Per Diluted Share (2) | ||||||||||
GAAP Net income | $ | 912 | $ | 16.90 | |||||||
Adjustments: | |||||||||||
| Amortization of intangible assets | 90 | 1.67 | |||||||||
Acquisition-related expenses | 60 | 1.10 | |||||||||
| Other | 2 | 0.03 | |||||||||
Subtotal, adjustments | 152 | 2.80 | |||||||||
Income tax effect (1) | (36) | (0.70) | |||||||||
Adjustments, net of tax | 116 | 2.10 | |||||||||
Adjusted net income | $ | 1,028 | $ | 19.00 | |||||||
__________________
(1)Income tax effect calculated at the statutory tax rate of approximately 23.9%.
(2)Computations assume approximately 54.1 million diluted weighted average shares outstanding.
Non-GAAP Financial Measures
The Company includes in this release the financial measure, “new store embedded earnings,” which is a non-GAAP measure. The term is defined as the incremental diluted earnings per share impact that we expect to achieve between 2026 and 2028 related to newly awarded but not yet commenced state Medicaid contracts, and recently closed and announced acquisitions. The incremental impact reflects the expected full-year earnings for the newly-awarded California, Iowa, Nebraska, New Mexico, Texas, and Georgia Medicaid contracts, the newly-awarded Idaho, Illinois, Massachusetts, Michigan, and Ohio Medicare Duals contracts, and the California Medicare Health Plans and ConnectiCare acquisitions, not yet included in the 2025 full-year guidance issued by the Company. This measure excludes amortization of intangible assets and non-recurring costs associated with acquisitions, including various transaction and integration costs. The Company and management believe this measure is useful to investors in assessing the Company’s expected performance related to new contracts and acquisitions, and is used internally to enable management to assess the Company’s performance consistently over time. New store embedded earnings should be considered as a supplement to, and not as a substitute for or superior to, GAAP measures. Management is unable to reconcile this measure to the growth in GAAP earnings per share, the most directly comparable GAAP measure, without unreasonable effort due to the unknown impact from the amortization of intangible assets related to recently announced acquisitions, which cannot be determined until purchase accounting valuations are completed. Non-recurring costs associated with the recently announced acquisitions are estimated at approximately $42 million.
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