Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40537 NEUEHEALTH, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 47-4991296 | | Trading | ...

Exhibit 99.1 As previously announced, NeueHealth will discuss the Company's results, strategy, and outlook on a conference call with investors at 8:00 a.m. Eastern Time today. NeueHealth will host a live webcast of this conference call which can be accessed from the Investor Relations page of the Company's website (investors.neuethealth.com). Following the call, a webcast replay will be available on the same site. This earnings release and the Form 8-K filed May 8, 2025 can be accessed on the Investor Relat ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | | Trading | Name of each exchange | | --- | --- | --- | | Title of each class | Symbol(s) | on which registered | | Common Stock, $0.0001 par v ...

Financial Performance - NeueHealth reported revenue of $232,638,000 for Q4 2024, a decrease from $292,871,000 in Q4 2023, and full-year revenue of $936,657,000, down from $1,160,802,000 in 2023[3]. - The company achieved a net income of $2,523,000 in Q4 2024, compared to a net loss of $460,572,000 in Q4 2023, and a full-year net loss of $99,717,000, improved from a loss of $1,265,808,000 in 2023[3]. - Adjusted EBITDA for Q4 2024 was $5,482,000, a significant improvement from a loss of $10,356,000 in Q4 2023, with full-year adjusted EBITDA at $22,496,000, compared to a loss of $8,480,000 in 2023[3]. - Total revenue for the year ended December 31, 2024, was $936.657 million, a decrease of 19.3% from $1,160.802 million in 2023[17]. - Capitated revenue increased to $259.881 million for the year ended December 31, 2024, up 18.3% from $219.774 million in 2023[17]. - ACO REACH revenue decreased significantly to $625.339 million in 2024, down 30.3% from $896.504 million in 2023[17]. - Operating loss for the year ended December 31, 2024, was $107.410 million, compared to a loss of $576.996 million in 2023, showing improvement[17]. - Net loss attributable to common shareholders for the year ended December 31, 2024, was $186.330 million, a reduction from $1,200.599 million in 2023[17]. - The company reported a net cash used in operating activities of $123.217 million for the year ended December 31, 2024, compared to $2,726.546 million in 2023, reflecting a significant reduction in cash burn[19]. - Total assets decreased to $544.383 million in 2024 from $1,225.480 million in 2023, indicating a substantial reduction in the asset base[17]. Consumer Growth and Market Strategy - The number of value-based consumers served increased to 360,000 in 2024, up from 355,000 in 2023, while enablement services lives rose to 123,000 from 106,000[3]. - The company is experiencing significant growth in 2025, serving 717,000 consumers, representing a 48% increase compared to 2024[5]. - NeueHealth is focused on strategic growth in 2025, aiming to serve more consumers in new and existing markets and strengthen relationships with payors and providers[2]. - NeueHealth's value-driven, consumer-centric care model is expected to continue transforming the healthcare experience and maximizing value across the healthcare system[7]. Operational Efficiency - Total current liabilities decreased to $710.228 million in 2024, down from $1,391.257 million in 2023, indicating improved liquidity[17]. - Medical costs for the year ended December 31, 2024, were $742.140 million, a decrease of 25.6% from $996.582 million in 2023[17]. - Operating income for Q4 2024 was $3,104,000, a significant improvement compared to a loss of $14,632,000 in Q4 2023[22]. - Total operating expenses decreased to $153,968,000 in Q4 2024 from $235,494,000 in Q4 2023, a reduction of 34.6%[22]. - Medical costs for Q4 2024 were $149,926,000, down from $231,095,000 in Q4 2023, a decrease of 35%[22]. - The Operating Cost Ratio increased to 31.3% in Q4 2024 from 22.3% in Q4 2023[27]. - Adjusted Operating Cost Ratio improved to 18.4% in Q4 2024 from 11.1% in Q4 2023[27]. Merger and Acquisition Activity - The company entered into a Merger Agreement with NH Holdings 2025, Inc., which will make NeueHealth a wholly owned subsidiary of Parent, controlled by private investment funds affiliated with New Enterprise Associates, Inc.[8]. - The company has filed a preliminary proxy statement with the SEC regarding the merger transaction, urging investors to read the relevant documents carefully[9]. - The company incurred $16,122,000 in transaction-related costs in Q4 2024, compared to $4,363,000 in Q4 2023[26].

Consumer Base - As of September 30, 2024, NeueCare maintained approximately 404,000 consumers, including 347,000 value-based consumers and 57,000 fee-for-service consumers[198] - NeueSolutions had approximately 43,000 value-based care consumers attributed to its REACH ACOs and 119,000 enablement services lives as of September 30, 2024[199] - Year-over-year, the number of value-based care consumers increased by approximately 35,000, driven by a rise of 55,000 through third-party payor relationships[208] - Enablement services lives increased to approximately 119,000 as of September 30, 2024, compared to 31,000 in the previous year[207] - The company aims to diversify and grow its consumer base across all product categories, including ACA Marketplace, Medicare, and Medicaid[202] Financial Performance - The company reported an Adjusted EBITDA of $9,396,000 for the three months ended September 30, 2024, compared to $3,431,000 for the same period in 2023, marking a significant increase[210] - The loss from continuing operations before income taxes for the three months ended September 30, 2024, was $23,214,000, a substantial improvement from $482,690,000 for the same period in 2023[210] - The net loss for the three months ended September 30, 2024, was $40,365,000, a significant reduction from $547,148,000 for the same period in 2023[214] - Total revenue decreased by $36.5 million, or 13.5%, for the three months ended September 30, 2024, and $163.9 million, or 18.9%, for the nine months ended September 30, 2024, compared to the same periods in 2023[219] - ACO REACH revenue decreased by $50.6 million and $205.8 million for the three and nine months ended September 30, 2024, respectively, primarily due to a decrease of approximately 20,000 beneficiaries aligned to the REACH ACOs[219] Costs and Expenses - Medical costs decreased by $43.7 million, or 19.3%, for the three months ended September 30, 2024, and $174.5 million, or 23.8%, for the nine months ended September 30, 2024, primarily due to a decrease in beneficiaries aligned to the REACH ACOs[220] - Operating costs decreased by $8.5 million, or 11.7%, for the three months ended September 30, 2024, and $20.6 million, or 9.3%, for the nine months ended September 30, 2024, primarily due to a reduction in professional fees[221] - The operating cost ratio increased to 27.5% and 28.6% for the three and nine months ended September 30, 2024, respectively, reflecting a decline in revenue that outweighed the decrease in operating costs[222] - Interest expense decreased by $4.6 million and $14.5 million for the three and nine months ended September 30, 2024, respectively, primarily due to the payoff of the 2021 Credit Agreement[225] - Loss from discontinued operations decreased by $53.5 million and $197.7 million for the three and nine months ended September 30, 2024, respectively, due to the sale of the California Medicare Advantage business[229] Investments and Financing - The company acquired full ownership of Centrum Health on October 30, 2024, to streamline operations and enhance its value-driven care model[203] - The company declared $28.2 million in dividends from regulated insurance entities during the nine months ended September 30, 2024, compared to no dividends in the same period of 2023[249] - As of September 30, 2024, the company was out of compliance with minimum risk-based capital and surplus levels for certain regulated insurance entities[250] - The company had $86.4 million in long-term borrowings under the Amended 2023 Credit Agreement as of September 30, 2024[260] - The Company has a term loan Tranche 2 of up to $25,000,000 available from November 10 to December 31, 2024, subject to achieving specific funding milestones[263] Cash Flow - As of September 30, 2024, the Company had $226.4 million in cash and cash equivalents and $15.8 million in short-term investments[273] - The net cash used in operating activities for the nine months ended September 30, 2024, was $(98,823) thousand, a decrease of $2.3 billion compared to the same period in 2023[278] - Net cash provided by investing activities for the nine months ended September 30, 2024, was $189,230 thousand, a decrease of $956.2 million compared to the prior year[279] - The Company had net cash used in financing activities of $(239,274) thousand for the nine months ended September 30, 2024, an increase of $280.3 million compared to the same period in 2023[280] - As of September 30, 2024, the Company had letters of credit of $16.5 million and surety bonds of $19.7 million[269] Stock and Assets - The Centrum Promissory Note issued on October 29, 2024, has a principal of $64.0 million and bears a cash interest rate of 6% per annum, due on October 29, 2028[270] - The Company issued 750,000 shares of Series A Preferred Stock for $750.0 million and 175,000 shares of Series B Preferred Stock for $175.0 million[271] - As of September 30, 2024, the Company had non-regulated cash and cash equivalents of $110.3 million, with $33.7 million restricted as collateral[274]

Financial Performance - NeueHealth reported a revenue of $232.9 million for Q3 2024, a decrease of 13.5% compared to $269.4 million in Q3 2023[4] - The company achieved an Adjusted EBITDA of $9.4 million in Q3 2024, up from $3.4 million in Q3 2023, marking the third consecutive quarter of positive Adjusted EBITDA[4] - Net loss for Q3 2024 was reported at $40.4 million, a significant improvement from a net loss of $547.1 million in Q3 2023[4] - Total revenue for the three months ended September 30, 2024, was $232,933,000, a decrease of 13.5% compared to $269,399,000 for the same period in 2023[13] - Operating loss for the nine months ended September 30, 2024, was $(77,993,000), an improvement from $(531,061,000) in the same period of 2023[13] - Net loss attributable to common shareholders for the three months ended September 30, 2024, was $(70,475,000), compared to $(646,357,000) in the prior year[13] - The company reported a net loss of $(40,365) for the three months ended September 30, 2024, compared to $(547,148) for the same period in 2023[21] Revenue Breakdown - Capitated revenue increased to $71,334,000 for the three months ended September 30, 2024, up 18.3% from $60,371,000 in the prior year[13] - ACO REACH revenue decreased significantly to $149,477,000, down 25.2% from $200,044,000 year-over-year[13] - Total segment revenue for NeueCare was $83,867,000 for the three months ended September 30, 2024, an increase of 24.9% from $67,134,000 in the same period of 2023[16] - Total segment revenue for the nine months ended September 30, 2024, was $478,014, down 29.6% from $678,521 in the prior year[17] Cost Management - Total operating expenses for the three months ended September 30, 2024, were $250,275,000, a decrease of 65.8% from $732,174,000 in the same period of 2023[13] - Total operating expenses for the three months ended September 30, 2024, were $157,875, down from $230,132 in the prior year[17] - Medical costs for the three months ended September 30, 2024, were $182,693,000, a decrease from $226,438,000 in the prior year[13] - Medical costs for the three months ended September 30, 2024, were $153,840, a decrease from $204,017 in the same period of 2023[17] - The Operating Cost Ratio for the three months ended September 30, 2024, was 27.5%, up from 26.9% in the prior year[22] - Adjusted Operating Cost Ratio for the nine months ended September 30, 2024, improved to 17.8% from 15.9% in the same period last year[22] - The impact of share-based compensation on the Operating Cost Ratio was (7.0)% for the three months ended September 30, 2024[22] Consumer and Market Growth - As of September 30, 2024, NeueHealth served 390,000 value-based consumers, an increase of 9.86% from 355,000 in the same period of 2023[3] - The number of lives served through enablement services rose significantly to 119,000, compared to just 31,000 a year earlier, representing a growth of 283.87%[3] - The company is well-positioned to capitalize on strategic growth opportunities in 2025 and beyond, focusing on aligning interests among consumers, providers, and payors[2] Future Projections - For the full year 2024, NeueHealth expects total revenue to be approximately $950 million, with NeueCare revenue projected at $320 million and NeueSolutions revenue at $640 million[5] - The company reaffirmed its Adjusted EBITDA guidance for 2024, expecting it to be between $15 million and $25 million[5] Asset and Liability Management - Total assets as of September 30, 2024, were reported at $696.8 million, a decrease from $1.2 billion at the end of 2023[12] - Current liabilities decreased to $872.4 million from $1.4 billion at the end of 2023, indicating improved financial management[12]

Consumer and Care Services - As of June 30, 2024, NeueHealth served approximately 372,000 consumers, including 320,000 value-based consumers and 52,000 fee-for-service consumers[165] - NeueSolutions had approximately 44,000 value-based care consumers attributed to its REACH ACOs and 113,000 enablement services lives as of June 30, 2024[166] - Value-based consumers decreased by approximately 9,000 year-over-year, driven by a decline of approximately 24,000 ACO REACH lives, partially offset by an increase of 15,000 through third-party payor relationships[175] - The company reported a year-over-year increase in enablement services lives from 31,000 in June 2023 to 113,000 in June 2024[174] - NeueHealth's model aims to improve care delivery by fostering strong relationships with consumers and providers, focusing on personalized care[170] - The company is committed to aligning the interests of consumers, providers, and payors to enhance the healthcare experience[172] Financial Performance - Adjusted EBITDA for the three months ended June 30, 2024, was $3.962 million, compared to $7.797 million for the same period in 2023[178] - The net loss from continuing operations for the three months ended June 30, 2024, was $(39.446) million, compared to $(32.584) million for the same period in 2023[182] - Total revenue decreased by $72.0 million, or 24.2%, for the three months ended June 30, 2024, and $127.4 million, or 21.3%, for the six months ended June 30, 2024, compared to the same periods in 2023[186] - ACO REACH revenue decreased by approximately $87.2 million and $155.2 million for the three and six months ended June 30, 2024, respectively, due to a decrease of about 24,000 beneficiaries aligned to REACH ACOs[186] - Capitated revenue increased by $14.2 million, or 28.6%, for the three months ended June 30, 2024, and $26.2 million, or 26.3%, for the six months ended June 30, 2024, compared to the same periods in 2023[193] - Service revenue increased by $1.6 million and $3.4 million for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023[199] Cost Management - Medical costs decreased by $67.5 million, or 27.5%, for the three months ended June 30, 2024, and $130.7 million, or 25.9%, for the six months ended June 30, 2024, compared to the same periods in 2023[187] - Operating costs decreased by $0.1 million, or 0.1%, for the three months ended June 30, 2024, and $12.8 million, or 8.5%, for the six months ended June 30, 2024, compared to the same periods in 2023[188] - Total operating expenses were $263.5 million for the three months ended June 30, 2024, down from $321.4 million in the same period in 2023[185] - The operating cost ratio increased to 31.1% for the three months ended June 30, 2024, up from 23.6% in the same period in 2023[188] - Medical costs decreased by $84.0 million and $150.6 million for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023[199] Strategic Initiatives and Growth - The company is evaluating strategic growth opportunities to expand payor and provider partnerships and grow consumer numbers in new geographies[168] - The company recognized $11.4 million in impairments of intangible assets for the three and six months ended June 30, 2024, due to classifying AMD as held-for-sale[189] Capital and Liquidity - The company secured up to $150 million in a new term loan facility with Hercules Capital, strengthening its capital position[167] - As of June 30, 2024, the company had $66.4 million of long-term borrowings under the 2023 Credit Agreement[209] - The company declared $28.2 million of dividends from regulated insurance entities to the parent company during the six months ended June 30, 2024[203] - The company is out of compliance with minimum risk-based capital and surplus levels for certain regulated insurance legal entities as of June 30, 2024[204] - The company forecasts potential inability to satisfy obligations due to liquidity concerns, raising substantial doubt about its ability to continue as a going concern[200] - The company entered into a Hercules Credit Agreement providing up to $150.0 million in term loans, maturing on June 1, 2028[213] - As of June 30, 2024, the company had $261.5 million in cash and cash equivalents and $16.3 million in short-term investments[219] - The cash and cash equivalents at the beginning of the period for 2024 were $375.3 million, compared to $1,932.3 million at the beginning of 2023[220] - The total net decrease in cash and cash equivalents for the six months ended June 30, 2024, was $113.8 million[220] - The company had no long-term investments as of June 30, 2024, across both continuing and discontinued operations[219] Debt and Financing Activities - Net cash used in operating activities for the six months ended June 30, 2024, decreased by $646.9 million compared to the same period in 2023[221] - Net cash provided by investing activities increased by $32.2 million for the six months ended June 30, 2024, primarily due to the sale of the California Medicare Advantage business[222] - Net cash used in financing activities increased by $221.0 million for the six months ended June 30, 2024, attributed to the payoff of short-term debt from the sale proceeds[223] - As of June 30, 2024, the company had letters of credit of $16.5 million and surety bonds of $19.7 million[217] - The company issued 750,000 shares of Series A Preferred Stock for $750.0 million and 175,000 shares of Series B Preferred Stock for $175.0 million[218] - As of June 30, 2024, $52.0 million of non-regulated cash and cash equivalents was restricted as collateral for letters of credit and surety bonds[219]

Revenue and Financial Performance - Revenue for Q2 2024 was $225.991 million, a decrease of 24.1% from $297.982 million in Q2 2023[2] - Total revenue for the three months ended June 30, 2024, was $225,991, a decrease of 24.1% from $297,982 in the same period of 2023[10] - Capitated revenue increased to $64,005 for the three months ended June 30, 2024, compared to $49,764 in the prior year, representing a growth of 28.6%[10] - Total segment revenue for NeueCare for the three months ended June 30, 2024, was $76,985, an increase from $66,068 in the same period of 2023, representing a growth of 18.5%[12] - Total segment revenue for the six months ended June 30, 2024, was $321,613, down from $476,801 in the same period of 2023, reflecting a decline of about 32.6%[13] Net Loss and Adjusted EBITDA - Net loss for Q2 2024 was $(57.698) million, compared to a net loss of $(88.627) million in Q2 2023, showing an improvement of 34.8%[2] - Net loss attributable to common shareholders for the three months ended June 30, 2024, was $(71,390), compared to $(125,005) in the same period of 2023, reflecting a reduction of 42.9%[10] - Adjusted EBITDA for Q2 2024 was $3.962 million, down from $7.797 million in Q2 2023[2] - Adjusted EBITDA for the three months ended June 30, 2024, was $3,962, down from $7,797 in the same period of 2023, a decline of approximately 49.1%[18] - NeueCare Adjusted EBITDA for the three months ended June 30, 2024, was $13,496, compared to $15,593 for the same period in 2023, a decrease of approximately 13.5%[21] - Adjusted EBITDA for the three months ended June 30, 2024, was $(566,000), a significant decrease from $2,996,000 in the prior year[22] - For the six months ended June 30, 2024, NeueSolutions reported an Adjusted EBITDA of $(2,250,000), down from $1,487,000 in the same period of 2023[22] Operating Expenses and Costs - Total operating expenses for the three months ended June 30, 2024, were $263,540, a decrease of 17.9% from $321,396 in the same period of 2023[10] - Total operating expenses for the three months ended June 30, 2024, were $151,678, compared to $234,690 for the same period in 2023, a reduction of about 35.4%[13] - Medical costs for the three months ended June 30, 2024, were $177,681, down from $245,160 in the same period of 2023, indicating a decrease of 27.5%[10] - Medical costs for the three months ended June 30, 2024, were $147,258, down from $231,279 in the same period of 2023, indicating a decrease of approximately 36.3%[13] - The company incurred restructuring charges of $239 for the three months ended June 30, 2024, compared to $1,285 in the same period of 2023, reflecting a decrease of 81.4%[10] Assets and Liabilities - Total assets as of June 30, 2024, were $897.265 million, down from $1,225.480 million at the end of 2023[9] - Total liabilities decreased to $1,179.803 million from $1,480.098 million at the end of 2023[9] Future Projections and Guidance - For 2024, revenue is expected to be approximately $950 million, with NeueCare revenue projected at $320 million and NeueSolutions revenue at $640 million[5] - Adjusted EBITDA guidance for 2024 is between $15 million and $25 million[5] - The company aims to reach the high end of its guidance range for consumers served by year-end 2024[3] Consumer Metrics - Value-based consumers served decreased to 364,000 as of June 2024, down from 373,000 in June 2023[1] - Enablement services lives increased significantly to 113,000 from 31,000 year-over-year[1] Cash Flow and Operating Activities - Cash and cash equivalents at the end of the period were $261,458, down from $1,360,441 at the end of the same period in 2023[11] - The company reported a net cash used in operating activities of $(77,148) for the six months ended June 30, 2024, compared to $(724,026) in the same period of 2023, showing a significant improvement[11] Special Items and Adjustments - The company recognized $11.4 million in intangible asset impairment expense due to operations classified as held-for-sale in the second quarter of 2024[22] - The non-cash compensation expense related to stock options and restricted stock units was estimated at $2.5 million for the three and six months ended June 30, 2024[22] - Restructuring and contract termination costs were incurred as part of a workforce reduction and early lease terminations, impacting the financial results[22] - The company plans to exclude the impact of held-for-sale operations from Adjusted EBITDA starting in the second quarter of 2024[22] - Transaction costs related to financing initiatives can vary significantly from period to period, affecting comparability of financial performance[22]

Financial Performance - Total revenues decreased by $55.5 million, or 18.5%, for the three months ended March 31, 2024, primarily due to a decrease of approximately 23,000 beneficiaries aligned to REACH ACOs [251]. - Net income from continuing operations for the first quarter of 2024 was $5.7 million, a significant improvement from a loss of $53.9 million in the same period of 2023 [245]. - Adjusted EBITDA for the first quarter of 2024 was $2.5 million, compared to a loss of $5.7 million in the same period in 2023 [248]. - Operating loss improved to $(23.1) million for the three months ended March 31, 2024, compared to $(44.9) million in the same period in 2023 [281]. - The company experienced a net loss of $4.2 million for the quarter ended March 31, 2024, and a net loss of $1.3 billion for the year ended December 31, 2023 [41]. - The net loss attributable to common shareholders for the three months ended March 31, 2024, was $28.5 million, compared to a net loss of $186.9 million for the same period in 2023 [109]. - The basic and diluted loss per share attributable to common shareholders for continuing operations was $(2.31) for the three months ended March 31, 2024, compared to $(9.04) for the same period in 2023 [109]. Revenue and Costs - Total revenue decreased by $55.5 million, or 18.5%, to $245.1 million for the three months ended March 31, 2024, compared to $300.6 million in the same period in 2023 [281]. - Capitated revenue increased by $11.9 million, or 24.1%, to $61.5 million for the three months ended March 31, 2024, compared to the same period in 2023 [287]. - Medical costs decreased by $63.2 million, or 24.3%, to $196.9 million for the three months ended March 31, 2024, compared to the same period in 2023 [313]. - Medical costs payable as of March 31, 2024, were $157.6 million, slightly down from $157.9 million as of December 31, 2023 [53]. - The company incurred $196.9 million in total medical costs during the three months ended March 31, 2024, compared to $257.6 million in the same period of 2023, reflecting a decrease of approximately 23% [53]. Operational Changes - Operating costs decreased by $12.7 million, or 16.0%, for the three months ended March 31, 2024, primarily due to a reduction in share-based compensation [252]. - Total operating costs for the three months ended March 31, 2024, were $66.8 million, a decrease of 16% from $79.5 million in the same period of 2023 [45]. - Operating cost ratio increased to 27.3% for the three months ended March 31, 2024, up 800 basis points from 19.3% in the same period in 2023 [283]. - The company recorded employee termination benefits of $58,000 for the three months ended March 31, 2024, down from $766,000 in the same period of 2023 [49]. Consumer Metrics - Value-Based Consumers served decreased to 360,000 as of March 31, 2024, down from 373,000 in the same period of 2023 [244]. - Enablement Services Lives increased significantly to 109,000 as of March 31, 2024, compared to 27,000 in the same period of 2023 [244]. - The company continues to advance its provider enablement business, serving approximately 109,000 consumers in the first quarter of 2024 [271]. Debt and Liabilities - The risk adjustment payable liability was $279.9 million as of March 31, 2024, down from $291.1 million as of December 31, 2023 [260]. - The remaining risk adjustment liability as of March 31, 2024, was $279.9 million after paying down $11.2 million of principal in the first quarter [41]. - As of March 31, 2024, the company had $66.4 million of long-term borrowings under the 2023 Credit Agreement [298]. - The company entered into a $350.0 million revolving credit agreement in March 2021, with no outstanding borrowings as of January 2, 2024 [325]. - As of March 31, 2024, the Company had $66.4 million borrowed under the 2023 Credit Agreement at a weighted-average effective interest rate of 15.00% [114]. Strategic Initiatives - The company expanded operations in Central Florida to serve additional ACA Marketplace consumers, demonstrating a capital-efficient growth strategy [270]. - The company is focused on long-term, sustainable growth of its value-driven, consumer-centric care model, which is seen as a strong alternative to traditional healthcare approaches [238]. - The company completed the sale of its California Medicare Advantage business for an aggregate purchase price of $500.0 million, effective January 1, 2024 [36]. Shareholder Information - The company declared $13.2 million in dividends from regulated insurance entities to the parent company during the three months ended March 31, 2024, compared to no dividends in the same period of 2023 [324]. - As of March 31, 2024, there were 2.1 million shares of common stock authorized for issuance under the 2021 Incentive Plan, with 1.0 million shares available for future issuance [90]. - The company issued 750,000 shares of Series A Preferred Stock for an aggregate purchase price of $750.0 million on January 3, 2022 [101]. - The company issued 175,000 shares of Series B Preferred Stock for an aggregate purchase price of $175.0 million on October 17, 2022 [105]. Warrant and Compensation - The company recognized warrant expense of $2.1 million for the three months ended March 31, 2024, compared to none in the same period in 2023 [284]. - The company recognized share-based compensation expense related to stock options of $6.8 million, with $20.4 million of unrecognized compensation expense expected to be recognized over 0.9 years [93]. - The company recognized share-based compensation expense related to Performance-based Restricted Stock Units (PSUs) of $6.3 million for the three months ended March 31, 2024, with $5.4 million of unrecognized compensation expense expected to be recognized over 0.2 years [99]. - The company reported a warrant liability of $11.9 million as of March 31, 2024, down from $13.9 million at the beginning of the year [61]. - For the three months ended March 31, 2024, warrant income was $2.1 million, with no equivalent liability or activity for the same period in 2023 [117].

Financial Performance - NeueHealth reported Q1 2024 revenue of $245.1 million, with a net income from continuing operations of $5.7 million and adjusted EBITDA of $2.5 million, indicating a solid foundation for profitable growth [2]. - For the full year 2024, NeueHealth expects total revenue to be approximately $1 billion, with NeueCare revenue projected between $310 million and $320 million, and NeueSolutions revenue expected between $690 million and $700 million [4]. - The company maintains an expectation for adjusted EBITDA in 2024 to be between $15 million and $25 million [4]. - Total revenue decreased to $245,095,000 for the three months ended March 31, 2024, down from $300,550,000 in the prior year, reflecting a decline of 18.4% [23]. - Operating loss improved to $(23,102,000) for the three months ended March 31, 2024, compared to $(44,872,000) in the same period of 2023, showing a decrease in losses of 48.6% [23]. - Net loss attributable to common shareholders was $(28,518,000) for the three months ended March 31, 2024, compared to $(186,905,000) in the same period of 2023, a significant improvement of 84.7% [23]. - Cash and cash equivalents at the end of the period were $249,430,000, down from $2,002,250,000 at the end of the previous year, a decrease of 87.6% [24]. - The company reported a net cash used in operating activities of $(48,717,000) for the three months ended March 31, 2024, compared to $(615,024,000) in the same period of 2023, indicating a significant improvement in cash flow management [24]. Cost Management - The adjusted operating cost ratio is anticipated to be between 15% and 16% (excluding corporate costs), and between 19% and 20% (including corporate costs) for 2024 [4]. - The operating cost ratio for Q1 2024 was reported at 27.3%, compared to 26.5% in Q1 2023 [14]. - Total operating expenses were $176,828,000 for the three months ended March 31, 2024, down from $241,567,000 in the same period of 2023, a reduction of 26.9% [25]. - Total operating expenses rose to $63,811,000 in Q1 2024, up from $56,043,000 in Q1 2023, primarily due to increased medical costs which reached $27,436,000, up from $23,722,000 [39]. Consumer Engagement and Services - NeueHealth serves over 460,000 health consumers through owned clinics and partnerships with over 3,000 affiliated providers, emphasizing its commitment to high-quality, coordinated care [20]. - The company expanded operations in Central Florida, focusing on proactive consumer engagement to enhance care delivery [18]. - As of March 31, 2024, NeueHealth served 360,000 value-based consumers, a decrease from 373,000 in the previous year, while enablement services lives increased significantly to 109,000 from 27,000 [30]. Revenue Streams - Capitated revenue for the three months ended March 31, 2024, was $61,466,000, an increase from $49,548,000 in the same period of 2023, representing a growth of 23.5% [23]. - ACO REACH revenue decreased to $171,811,000 for the three months ended March 31, 2024, from $239,807,000 in the same period of 2023, a decline of 28.4% [25]. - Total segment revenue for the first quarter of 2024 was $73,623,000, up 17.5% from $62,679,000 in the same period of 2023, driven by a 24% increase in capitated revenue [39]. Future Outlook - The company anticipates continued exclusion of certain non-GAAP adjustments in future disclosures, which may include share-based compensation and restructuring costs [33]. - Future financial outlook remains uncertain due to potential non-GAAP adjustments that could materially impact results [33]. - The company is committed to enhancing its market position through strategic initiatives, including potential expansions and new product developments [35]. - The company is focusing on restructuring efforts, which have led to a 4.3% increase in operating costs despite a decline in revenue due to fewer ACO REACH aligned beneficiaries [43].