NeueHealth, Inc. Financial Report Summary and Analysis

Business Overview

NeueHealth, Inc. was founded in 2015 to transform healthcare. The company consists of two reportable segments within its continuing operations: NeueCare and NeueSolutions. Additionally, it has one reportable segment in its discontinued operations: Bright HealthCare - Commercial.

NeueCare is NeueHealth’s value-driven care delivery business that manages risk in partnership with external payors and serves all populations across the ACA Marketplace, Medicare, and Medicaid. As of March 31, 2025, NeueCare delivered high-quality in-person and virtual clinical care through its 66 owned primary care clinics.

NeueSolutions is NeueHealth’s provider enablement business that includes a suite of technology, services, and clinical care solutions that empower providers to thrive in performance-based arrangements. As of March 31, 2025, NeueSolutions had approximately 33,000 value-based care consumers attributed to its REACH ACOs, 8,000 value-based care consumers attributed to participation in the Medicare Shared Savings Program (MSSP), and 138,000 enablement services lives.

Bright HealthCare - Commercial was NeueHealth’s commercial healthcare financing and distribution business, which the company announced it would no longer offer effective at the end of 2022.

Business Update

NeueHealth delivered strong performance to start the year, generating significant growth in consumers served, securing new payor partnerships, and expanding into new product verticals, including MSSP. The company is focused on continuing to create a better healthcare experience for all by diversifying the populations it serves, deepening its presence in local communities, growing alongside its payor partners, and building on its strong partnerships with providers.

Key Metrics and Non-GAAP Financial Measures

As of March 31, 2025, NeueHealth served 571,000 value-based consumers and had 138,000 enablement services lives. The company reported a loss from continuing operations before income taxes of $1.3 million and Adjusted EBITDA of $13.5 million for the three months ended March 31, 2025.

Results of Operations

Total revenues decreased by $29.3 million, or 12.0%, for the three months ended March 31, 2025 compared to the same period in 2024, primarily driven by a decrease in ACO REACH revenue. Medical costs decreased by $36.0 million, or 18.3%, and operating costs decreased by $18.1 million, or 27.1%, over the same period.

The NeueCare segment saw a 31.8% increase in capitated revenue and a 27.1% decrease in operating costs, while the NeueSolutions segment experienced a 27.8% decrease in ACO REACH revenue and a 27.1% decrease in medical costs.

Liquidity and Capital Resources

NeueHealth believes the existing cash and investments will not be sufficient to satisfy its anticipated cash requirements for the next twelve months. The company has concluded that management’s plans do not alleviate substantial doubt about its ability to continue as a going concern.

NeueHealth has various debt financing arrangements, including the 2023 Credit Agreement with NEA, the Hercules Credit Agreement, and the Centrum Promissory Note. As of March 31, 2025, the company had $96.4 million of long-term borrowings under the Amended 2023 Credit Agreement and no available borrowings.

As of March 31, 2025, NeueHealth had $224.8 million in cash and cash equivalents and $14.5 million in short-term investments across its continuing and discontinued operations. The company’s net cash used in operating activities decreased by $27.7 million for the three months ended March 31, 2025 compared to the same period in 2024.

Conclusion

NeueHealth delivered strong operational performance in the first quarter of 2025, with growth in value-based consumers and enablement services lives. However, the company faces liquidity challenges and has concluded that substantial doubt exists about its ability to continue as a going concern. Management is implementing plans to drive positive operating cash flow and access additional liquidity, but the company’s future remains uncertain.