Revises Full Year 2025 Guidance

Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today reported third quarter 2025 GAAP earnings per diluted share of $1.51 and adjusted earnings per diluted share of $1.84. Financial results are summarized below:

Quarter Highlights

• As of September 30, 2025, the Company served approximately 5.6 million members, an increase of 30,000 members compared to September 30, 2024.
• Premium revenue was approximately $10.8 billion for the third quarter of 2025, an increase of 12% year over year.
• GAAP net income was $1.51 per diluted share for the third quarter of 2025.
• Adjusted net income was $1.84 per diluted share for the third quarter of 2025.
• The Company raised its premium revenue guidance to approximately $42.5 billion and now expects its full year 2025 adjusted earnings to be approximately $14.00 per diluted share.
• New store embedded earnings remain at $8.65 per diluted share.

“Our Medicaid business continues to perform well in a challenging medical cost trend environment,” said Joseph Zubretsky, President and Chief Executive Officer. “The headline for the quarter is that approximately half of our underperformance is driven by the Marketplace business, and that Medicaid, while experiencing some pressure, is producing strong margins. We continue to grow, we believe the margin challenges will not persist, and we are encouraged by the margin improvement potential in 2026.”

Premium Revenue

Premium revenue was approximately $10.8 billion for the third quarter of 2025, an increase of 12% year over year. The higher premium revenue reflects recent acquisitions, rate increases, and growth in the Company’s current footprint.

Net Income

GAAP net income for the third quarter of 2025 was $1.51 per diluted share, a decrease of 73% year over year. Adjusted net income for the third quarter of 2025 was $1.84 per diluted share, a decrease of 69% year over year. Within that result, Medicaid contributed a gain to adjusted earnings of $3.52 per diluted share but was offset by a loss of $1.68 per diluted share due to performance in Medicare and Marketplace.

Medical Care Ratio (MCR)

• The consolidated MCR for the third quarter of 2025 was 92.6%.
• The Medicaid MCR for the third quarter of 2025 was 92.0%. The Company experienced medical cost pressure due to continued high levels of utilization. These medical costs were partially offset by the rate updates that went into effect in the quarter.
• The Medicare MCR for the third quarter of 2025 was 93.6% and reflects higher utilization among high-acuity members, particularly for long-term services and supports and pharmacy.
• The Marketplace MCR for the third quarter of 2025 was 95.6%. The Company continued to experience much higher levels of utilization relative to risk adjustment revenue.

General and Administrative Expense Ratio

The G&A ratio and the adjusted G&A ratio for the third quarter of 2025 were 6.4% and 6.3%, respectively, reflecting continued operating discipline.

Balance Sheet

Cash and investments at the parent company were approximately $108 million as of September 30, 2025, compared to $445 million as of December 31, 2024.

Days in claims payable at September 30, 2025, was 46.

Cash Flow

Operating cash flow for the nine months ended September 30, 2025, was an outflow of $237 million, compared to an inflow of $868 million for the nine months ended September 30, 2024. The decrease in cash flow for the period year-over-year was driven by Medicaid risk corridor and Marketplace risk transfer settlement activity and the net impact of timing differences in government receivables and payables.

2025 Guidance

Premium revenue guidance for the full year is now expected to be approximately $42.5 billion, an increase of approximately 10% from the full year 2024.

The Company now expects its full year 2025 GAAP earnings to be approximately $11.90 per diluted share and its full year 2025 adjusted earnings to be approximately $14.00 per diluted share. The updated guidance is driven by higher medical cost trend in all segments and, disproportionately, by the unprecedented medical cost trend in Marketplace, which is expected to continue through the end of the year. The higher medical cost trend is partially offset by operating leverage, a lower effective favorable tax rate, and the benefit of share repurchases completed in the third quarter of 2025.

As a result of the Company’s revised full year outlook, the implied fourth quarter 2025 adjusted earnings are expected to be approximately $0.35 per diluted share. Within that guidance, the Company expects Medicaid to contribute a gain of approximately $3.00 per diluted share, but is expected to be offset by a loss of approximately $2.65 per diluted share due to anticipated performance in Medicare and Marketplace.

Guidance metrics are summarized below:

2026 Outlook

While the Company expects to provide formal 2026 guidance on its fourth quarter and fiscal year 2025 earnings call, the preliminary 2026 outlook for adjusted earnings per share is expected to approximate the full year 2025 guidance. This initial outlook includes reduced exposure to Marketplace, with segment earnings at least break even.

Conference Call

Management will host a conference call and webcast to discuss Molina Healthcare’s third quarter results for the period ended September 30, 2025, at 8:00 a.m. Eastern Time on Thursday, October 23, 2025. The number to call for the interactive teleconference is (877) 883-0383 and the confirmation number is 2660919. A telephonic replay of the conference call will be available through Thursday, October 30, 2025, by dialing (877) 344-7529 and entering confirmation number 1905016. A live audio broadcast of this conference call will be available on Molina Healthcare’s investor relations website, investors.molinahealthcare.com. A 30-day online replay will be available approximately an hour following the conclusion of the live broadcast.

About Molina Healthcare

Molina Healthcare, Inc., a FORTUNE 500 company, provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. For more information about Molina Healthcare, please visit molinahealthcare.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This earnings release and the Company’s accompanying oral remarks contain forward-looking statements. The Company intends such forward-looking statements to be covered under the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements provide current expectations of future events based on certain assumptions, and all statements other than statements of historical fact contained in this earnings release and the Company’s accompanying oral remarks may be forward-looking statements. In some cases, you can identify forward-looking statements by words such as “guidance,” “future,” “anticipates,” “believes,” “embedded,” “estimates,” “expects,” “growth,” “intends,” “plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,” “may,” or the negative of these terms or other similar expressions. Forward-looking statements contained in this earnings release include, but are not limited to, statements regarding the Company’s 2025 and preliminary 2026 guidance and long-term performance outlook, trends with respect to rates, utilization, and medical costs, including the timing thereof and the anticipated impact on the Company’s business, and our management’s plans and objectives for future operations and business strategy.

Actual results could differ materially due to numerous known and unknown risks and uncertainties. These risks and uncertainties are discussed under the headings “Forward-Looking Statements,” and “Risk Factors,” in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2024, which is on file with the U.S. Securities and Exchange Commission (the “SEC”), and in the Company’s other filings with the SEC, including its Quarterly Reports on Form 10-Q for the period ended March 31, 2025 and June 30, 2025 filed with the SEC and Quarterly Report on Form 10-Q for the period ended September 30, 2025, to be filed with the SEC.

These reports can be accessed under the investor relations tab of the Company’s website or on the SEC’s website at sec.gov. Given these risks and uncertainties, the Company can give no assurances that its forward-looking statements will prove to be accurate, or that any other results or developments projected or contemplated by its forward-looking statements will in fact occur, and the Company cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Company’s judgment as of October 22, 2025, and, except as otherwise required by law, the Company disclaims any obligation to update any forward-looking statement to conform the statement to actual results or changes in its expectations.

MOLINA HEALTHCARE, INC.

CHANGE IN MEDICAL CLAIMS AND BENEFITS PAYABLE

(Dollars in millions)

The Company’s claims liabilities include additional reserves to account for moderately adverse conditions based on historical experience and other factors including, but not limited to, variations in claims payment patterns, changes in utilization and cost trends, known outbreaks of disease, and large claims. The Company’s reserving methodology is consistently applied across all periods presented. The amounts displayed for “Components of medical care costs related to: Prior year” represent the amounts by which the original estimates of claims and benefits payable at the beginning of the year were more than the actual liabilities based on information (principally the payment of claims) developed since those liabilities were first reported. The following table presents the components of the change in medical claims and benefits payable for the periods indicated:

MOLINA HEALTHCARE, INC.

RECONCILIATION OF UNAUDITED NON-GAAP FINANCIAL MEASURES

(In millions, except per diluted share amounts)

The Company believes that certain non-GAAP (generally accepted accounting principles) financial measures are useful supplemental measures to investors in comparing the Company’s performance to the performance of other public companies in the health care industry. The non-GAAP financial measures are also used internally to enable management to assess the Company’s performance consistently over time. These non-GAAP financial measures, presented below, should be considered as supplements to, and not as substitutes for or superior to, GAAP measures.

Adjustments represent additions and deductions to GAAP net income as indicated in the table below, which include the non-cash impact of amortization of acquired intangible assets, acquisition-related expenses, and the impact of certain expenses and other items that management believes are not indicative of longer-term business trends and operations.

Adjusted G&A Ratio represents the GAAP G&A ratio, recognizing adjustments.

Adjusted net income represents GAAP net income recognizing the adjustments, net of tax. The Company believes that adjusted net income is helpful to investors in assessing the Company’s financial performance.

Adjusted net income per diluted share represents adjusted net income divided by weighted average common shares outstanding on a fully diluted basis.

Adjusted after-tax margin represents adjusted net income, divided by total revenue.

Non-GAAP Financial Measures

The Company includes in this release the financial measure, “new store embedded earnings,” which is a non-GAAP measure. The term is defined as the incremental diluted earnings per share impact that we expect to achieve between 2026 and 2028 related to newly awarded but not yet commenced state Medicaid contracts, and recently closed and announced acquisitions. The incremental impact reflects the expected full-year earnings for the newly awarded California, Iowa, Nebraska, New Mexico, Texas, and Georgia Medicaid contracts, the newly awarded Idaho, Illinois, Massachusetts, Michigan, and Ohio Medicare Duals contracts, and the California Medicare Health Plans and ConnectiCare acquisitions, not yet included in the 2025 full-year guidance issued by the Company. This measure excludes amortization of intangible assets and non-recurring costs associated with acquisitions, including various transaction and integration costs. The Company and management believe this measure is useful to investors in assessing the Company’s expected performance related to new contracts and acquisitions, and is used internally to enable management to assess the Company’s performance consistently over time. New store embedded earnings should be considered as a supplement to, and not as a substitute for or superior to, GAAP measures. Management is unable to reconcile this measure to the growth in GAAP earnings per share, the most directly comparable GAAP measure, without unreasonable effort due to the unknown impact from the amortization of intangible assets related to recently announced acquisitions, which cannot be determined until purchase accounting valuations are completed. Non-recurring costs associated with the recently announced acquisitions are estimated at approximately $46 million.

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