Centene Q1 2025 Earnings: Strong Revenue Growth and Expanded Membership
Centene Corporation released its financial results for the first quarter ended March 31, 2025, highlighting a diluted earnings per share (EPS) of $2.63 and an adjusted diluted EPS of $2.90. Total revenues reached $46.62 billion, with premium and service revenues at $42.49 billion.
The health benefits ratio was reported at 87.5%, while the selling, general, and administrative (SG&A) expense ratio stood at 7.9%. The company's operating cash flow was $1.51 billion for the quarter. Centene maintains a significant membership base, with total at-risk membership increasing to approximately 27.94 million, up from 25.65 million the previous year. Medicaid membership slightly declined to approximately 12.96 million members, while Individual Marketplace and Commercial membership showed growth.
Premium and service revenues saw a 17% year-over-year increase, driven by Medicaid, Commercial, Medicare, and other revenues. Centene's balance sheet showed total assets of $87 billion and total liabilities of $59 billion, with total debt at $18.3 billion. Medical claims liabilities increased to nearly $20 billion, with days in claims payable reduced to 49 days, reflecting operational efficiencies. The company increased its 2025 premium and service revenue guidance to a range of $164 billion to $166 billion and maintained its adjusted diluted EPS forecast above $7.25.
Centene's expense ratios and effective tax rates are projected within specific ranges, with SG&A and health benefit ratios managed carefully. The report underscores Centene's operational focus on sustainable growth across government-sponsored and commercial healthcare programs, emphasizing efficient cost management and expanding membership sectors. Forward-looking statements acknowledge the dynamic regulatory environment and market uncertainties, factoring in Medicaid redeterminations, CMS quality rating influences, and other industry risks.
Centene continues to use non-GAAP financial measures for internal performance evaluation and investor transparency, disclosing detailed reconciliations in the report. The company also highlighted its commitment to delivering healthcare locally with cultural sensitivity and emphasized corporate sustainability initiatives tied to environmental and governance responsibilities. Centene plans continued engagement with investors through conference calls and detailed filings accessible on its investor relations website.