GICS Sector : Healthcare
NeueHealth, Inc., a healthcare company, provides various healthcare services for health consumers, providers, and payors in the United States.It operates through two segments: NeueCare and NeueSolutions.The NeueCare segment delivers healthcare services to ACA marketplace, medicare, and medicaid through owned and affiliated clinics.
NeueHealth reported $209.1 million in revenue and $19 million in adjusted EBITDA for the second quarter of 2025, contributing to $32.5 million in the first half of the year. The company's EPS came in at -$1.68, beating analysts' estimates of -$4.77. This strong financial performance was driven by a 45% increase in consumers served, reaching 694,000. The company's revenue growth was accompanied by a significant increase in consumers served across various segments, including the ACA Marketplace, senior care business, and Medicaid.
Publication Date: Aug -20
NeueHealth's segments, NeueCare and NeueSolutions, reported revenue of $91.6 million and $120 million, respectively. Operating income for NeueCare was $23.2 million, and NeueSolutions was $2.6 million. The company's senior care business grew, serving 65,000 consumers across Medicare Advantage, ACO REACH, and MSSP. Medicaid served 144,000 consumers, primarily through the provider enablement business, which focuses on partnerships with provider groups to drive performance-based arrangements.
With a P/S ratio of 0.07 and an EV/EBITDA ratio of 1.38, the company's valuation appears relatively low. Analysts estimate next year's revenue growth at 7.0%, which could potentially drive a re-rating of the stock. According to a staff report, "the company's data and analytics capabilities are being evolved into an end-to-end value-based care enablement platform called NeuePulse," which could be a key growth driver. The company's ROIC and ROE are 18.89% and 14.26%, respectively, indicating a strong ability to generate returns on investment.
NeueHealth has a strong balance sheet with $234.4 million in total cash and investments. The company anticipates a transaction to go private led by an affiliate of one of its largest investors, NEA, to close in mid-to-late 2025. The net debt to EBITDA ratio is 2.52, which is relatively manageable. However, the free cash flow yield is -125.28%, indicating that the company is currently generating negative free cash flow.
NeueHealth Announces Closing of Take-Private Transaction
Oct -02
NeueHealth, Inc. (NEUE) Q2 2025 Earnings Call Transcript
Aug -08
Transcript : NeueHealth, Inc., Q2 2025 Earnings Call, Aug 07, 2025
Aug -07
NeueHealth Reports Second Quarter 2025 Results
Aug -07
NeueHealth to Host Second Quarter 2025 Earnings Conference Call on August 7, 2025
Jul -17
NeueHealth, Inc (NEUE) Q1 2025 Earnings Call Transcript
May -11
NeueHealth Reports First Quarter 2025 Results
May -08
NeueHealth to Host First Quarter 2025 Earnings Conference Call on May 8, 2025
Apr -23
NeueSolutions' 1.0 growth driven by increasing adoption of value-based care, rising demand for healthcare analytics, and strategic partnerships. NeueHealth's focus on population health management, care coordination, and patient engagement also contributes to growth. Additionally, the platform's ability to integrate with existing healthcare systems and provide actionable insights fuels expansion.
NeueCare's 1.0 growth driven by increasing adoption of value-based care, rising demand for Medicare Advantage, and NeueHealth's strategic partnerships with healthcare providers, enabling better patient outcomes and cost savings.
NeueHealth, Inc.'s Corporate & Eliminations segment growth of 1.0 is driven by strategic cost management, efficient allocation of resources, and effective capital structure management. Additionally, the company's focus on value-based care and population health management initiatives contributes to this growth.
A comprehensive healthcare platform that integrates care delivery, payment, and analytics to provide a seamless experience for patients, providers, and payers.
A suite of solutions that enable healthcare providers to transition from fee-for-service to value-based care models, improving patient outcomes and reducing costs.
A range of services that facilitate care coordination, including care management, care transitions, and patient engagement.
A data analytics platform that provides insights into patient populations, enabling healthcare providers to identify trends, track outcomes, and optimize care delivery.
A comprehensive revenue cycle management solution that optimizes claims processing, billing, and payment posting.
NeueHealth, Inc. operates in a niche market with limited substitutes, reducing the threat of substitutes.
Customers have some bargaining power due to the availability of alternative healthcare providers, but NeueHealth's unique value proposition and strong customer relationships mitigate this power.
NeueHealth, Inc. has a diversified supplier base, reducing the bargaining power of individual suppliers.
The healthcare industry is highly regulated, and new entrants face significant barriers to entry, but NeueHealth, Inc. still faces a high threat from new entrants due to the growing demand for healthcare services.
The healthcare industry is highly competitive, but NeueHealth, Inc.'s focus on value-based care and its strong market position reduce the intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 1380.81% |
| Debt Cost | 7.88% |
| Equity Weight | -1280.81% |
| Equity Cost | 7.88% |
| WACC | 7.88% |
| Leverage | -107.81% |
Value: 9.8
Growth: 3.6
Quality: 4.6
Yield: 0.0
Momentum: 7.5
Volatility: 3.7
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Value: 4.8
Growth: 4.4
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Volatility: 4.7
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Growth: 5.8
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Yield: 0.0
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Volatility: 2.0
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Value: 6.4
Growth: 4.6
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Value: 7.8
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Value: 6.4
Growth: 0.3
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Volatility: 1.0
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