- Molina Healthcare (MOH, Financial) reports a 12% increase in premium revenue for Q1 2025, totaling $10.6 billion.
- GAAP earnings per share rose to $5.45, a 5% increase from the previous year.
- The company reaffirms its 2025 earnings guidance with projected premium revenue of $42 billion and adjusted earnings of at least $24.50 per diluted share.
Molina Healthcare, Inc. (MOH) has announced its financial results for the first quarter of 2025, highlighting a significant boost in performance across various metrics. The health services company reported a 12% year-over-year increase in premium revenue, reaching approximately $10.6 billion for the quarter ended March 31, 2025. This growth was driven by new contract wins, acquisitions, and rate increases, although partially offset by the impact of Medicaid redeterminations.
GAAP net income per diluted share increased by 5% year-over-year to $5.45, while adjusted net income per diluted share rose by 6% to $6.08. The company served approximately 5.8 million members as of March 31, 2025, marking an increase of 25,000 members compared to the previous year.
The medical care ratio for the first quarter stood at 89.2%, indicating robust medical cost management. The general and administrative (G&A) expense ratio improved, with a reduction to 6.8%, reflecting Molina's focus on disciplined cost management and operating leverage.
Despite a decrease in cash and investments at the parent company to $191 million from $445 million at the end of 2024, the company managed to repurchase approximately 1.7 million shares for $500 million in the first quarter of 2025.
Looking forward, Molina Healthcare has reaffirmed its full-year 2025 guidance, expecting premium revenue to reach approximately $42 billion, representing an increase of 9% compared to the full year 2024. Adjusted earnings per share are anticipated to be at least $24.50, indicating 8% growth over 2024.
