NeueHealth posts $242M in revenue, turns small adjusted EBITDA profit

NeueHealth (formerly known as Bright Health), eked out a positive net income from continuing operations and adjusted EBITDA during the first quarter, a reversal of its performance back in early 2023.

The oft-embattled company recorded $5.6 million in net income after removing discontinued operations as well as $2.5 million in adjusted EBITDA.

However, total net income for the quarter was a loss of $28.5 million. NeueHealth racked up $242 million in revenue, a 18% decrease year over year. The company also announced a loss per share of $3.53, an improvement from the $23.68 loss in the first quarter of 2023.

CEO G. Mike Mikan used the earnings call—which had only one analyst in attendance to ask questions—to emphasize the company is in better capital position than it was a year ago. He noted NeueHealth expanded operations in central Florida this year and serves 41,000 additional Affordable Care Act (ACA) marketplace consumers.

“We continually evaluate strategic opportunities to expand our value-based footprint, not only in Florida, but throughout the country,” he said, adding that the company serves approximately 40% of ACA marketplace customers in the surrounding Miami-Dade market.

NeueHealth is reaffirming its full-year guidance. It now expects to make $1 billion in revenue, about 70% of which will come from its NeueSolutions business. Its adjusted operating cost ratio will be between 19% and 20%, including corporate costs.

Revenue came in below expectations because of lower-than-anticipated volume in its NeueCare business and the impact of its ACO REACH business. The company is expecting increased growth in the second half of the year, said Chief Financial Officer Jay Matushak.

NeueHealth sees between $15 million and $25 million as the full-year adjusted EBITDA range.

In April, the company increased the loan commitment on its amended credit facility by $30 million from its primary investor, New Enterprise Associates. Matushak did not expand further on why, or how the funds would be used, only to say the company is “pleased to have the continued support” of the group.