Molina Healthcare Inc (MOH, Financial) released its 8-K filing on April 23, 2025, detailing its financial performance for the first quarter of 2025. The company reported a GAAP earnings per diluted share of $5.45, which fell short of the analyst estimate of $5.66. However, the adjusted earnings per diluted share stood at $6.08, exceeding expectations. Total revenue for the quarter was $11,147 million, surpassing the estimated $10,805.80 million.
Company Overview
Molina Healthcare Inc offers healthcare plans primarily focused on Medicaid-related solutions for low-income families and individuals. The company operates through a network of subsidiaries licensed as health maintenance organizations (HMOs) and is divided into four segments: Medicaid, Medicare, Marketplace, and Others. The majority of its revenue is generated from the Medicaid segment.
Performance and Challenges
In the first quarter of 2025, Molina Healthcare Inc reported a 12% year-over-year increase in premium revenue, reaching approximately $10.6 billion. This growth was driven by new contract wins, acquisitions, and rate increases, although partially offset by the impact of Medicaid redeterminations in 2024. The company's GAAP net income per diluted share increased by 5% year-over-year, while adjusted net income per diluted share rose by 6%.
Financial Achievements
Molina Healthcare Inc's financial achievements are significant in the healthcare plans industry, where managing medical costs and maintaining profitability are crucial. The company's Medical Care Ratio (MCR) for the quarter was 89.2%, reflecting strong medical cost management. The General and Administrative (G&A) expense ratio was 6.9%, indicating disciplined cost management and operating leverage benefits.
Income Statement Highlights
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Premium Revenue | $10,628 million | $9,504 million |
| Total Revenue | $11,147 million | $9,931 million |
| Net Income | $298 million | $301 million |
| EPS Diluted | $5.45 | $5.17 |
Balance Sheet and Cash Flow
As of March 31, 2025, Molina Healthcare Inc reported cash and investments at the parent company totaling $191 million, down from $445 million at the end of 2024. The company repurchased approximately 1.7 million shares for $500 million during the quarter. Operating cash flow for the quarter was $190 million, compared to $214 million in the same period last year.
Analysis and Outlook
Molina Healthcare Inc's performance in the first quarter of 2025 demonstrates its ability to manage medical costs effectively while navigating challenges such as Medicaid redeterminations. The company's reaffirmation of its full-year 2025 guidance, with expected premium revenue of approximately $42 billion and adjusted earnings of at least $24.50 per diluted share, underscores its confidence in achieving long-term growth targets.
“Our first quarter results reflect our team’s disciplined approach to medical cost management in an improving rate environment,” said Joseph Zubretsky, President and Chief Executive Officer. “Our 2025 earnings and growth profiles are solid, and we remain confident in our ability to achieve our 13% to 15% long-term adjusted EPS growth target.”
Overall, Molina Healthcare Inc's financial results for the first quarter of 2025 highlight its strategic focus on growth and cost management, positioning it well within the healthcare plans industry.
Explore the complete 8-K earnings release (here) from Molina Healthcare Inc for further details.
