Coming off a recent debt financing round, NeueHealth reported a net loss but small adjusted EBITDA profit during its second-quarter earnings results.
The company recorded a net loss of $39 million but posted a small adjusted EBITDA balance of $3.96 million this quarter, similar to last quarter’s results. Its diluted loss per share was reported as $8.65, more than $5.00 worse than last quarter.
“We continued to build momentum in the second quarter, driving solid results in both our NeueCare and NeueSolutions segments as we deliver a seamless, more coordinated care experience to all populations,” said Mike Mikan, president and CEO of NeueHealth, in a news release. “We have built strong, ongoing relationships with consumers, providers, and payers across the healthcare industry, and this is a testament to our ability to align interests and create a better care experience for all. We believe we are well-positioned for the future with a strong pipeline in place to drive capital-efficient, sustainable growth in 2024 and beyond.”
NeueHealth still expects to achieve between $15 million and $25 million positive adjusted EBITDA. It also anticipates $950 million in revenue, with $640 million from its NeueSolutions segment and $320 million from its NeueCare segment.
During the call, Mikan stressed the importance of its newest debt financing round, having received $150 million from Hercules Capital in June.
“This significantly strengthens our capital position and underscores our ability to deliver high-quality, affordable health care to all populations,” he said.
After factoring in corporate costs, the company is projecting an operating cost ratio between 19% and 20%.
NeueHealth saw a 26.8% decrease in total assets from the end of 2023 to present day. Revenue at the year’s halfway point is down 21.3% compared to the same point in 2023.
However, its net loss this year is almost $100,000, an improvement of more than $200,000 year over year. Cash from continuing and discontinued operations has decreased 80.8% over the same time period.
NeueHealth served more than 477,000 members across the individual marketplace and federal health programs during the quarter, the company said.
“This is a moderate increase in consumers served over the first quarter, and we continue to expect to generate increased growth in the second half of the year,” said Chief Financial Officer Jay Matushak. “Starting in the third quarter, we have contracts in place with payer partners that are expected to increase our clinic volume.”