MOHHIGH SIGNALFINANCIAL10-K

MOH's net income declined substantially while revenue grew, indicating severe margin compression driven by a deteriorating medical care ratio.

The company experienced a dramatic earnings decline despite solid revenue growth, with the medical care ratio expanding from 89.1% to 91.7%, suggesting either inadequate pricing or unexpected medical cost inflation. This represents a concerning reversal from the prior year's margin improvement and signals potential challenges in core underwriting discipline.

Comparing 2026-02-10 vs 2025-02-11View on EDGAR →
FINANCIAL ANALYSIS

MOH delivered solid revenue growth of 11.7% to $45.4 billion, but profitability deteriorated sharply with both operating income and net income declining substantially year-over-year. The earnings compression reflects deteriorating underwriting performance as medical costs outpaced premium increases, resulting in a medical care ratio that expanded by 260 basis points. This represents a significant operational setback for a managed care organization where medical cost management is fundamental to profitability.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-60%
$1.2B→$472.0M

Net income declined 60% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-54.2%
$1.7B→$781.0M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Revenue
P&L
+11.7%
$40.6B→$45.4B

Revenue growing 11.7% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-02-10
PRIOR — 2025-02-11
ADDED
As of February 6, 2026, approximately 51.5 million shares of the registrant s Common Stock, $0.001 par value per share, were outstanding.
Management s Discussion and Analysis of Financial Condition and Results of Operations 40 7A.
Our business footprint, as of December 31, 2025, is illustrated below.
FINANCIAL HIGHLIGHTS Year Ended December 31, 2025 2024 (In millions, except per-share amounts) Premium Revenue $ 43,052 $ 38,627 Total Revenue $ 45,426 $ 40,650 Medical Care Ratio ( MCR ) (1) 91.7 % 89.1 % Net Income $ 472 $ 1,179 Net Income per Diluted Share $ 8.92 $ 20.42 _______________________ (1) Medical care ratio represents medical care costs as a percentage of premium revenue.
The Other segment, which is insignificant to our consolidated results of operations, includes long-term services and supports consultative services in Wisconsin and the Molina Healthcare, Inc.
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REMOVED
As of February 7, 2025, approximately 55.5 million shares of the registrant s Common Stock, $0.001 par value per share, were outstanding.
Management s Discussion and Analysis of Financial Condition and Results of Operations 39 7A.
Our business footprint, as of December 31, 2024, is illustrated below.
FINANCIAL HIGHLIGHTS Year Ended December 31, 2024 2023 (In millions, except per-share amounts) Premium Revenue $ 38,627 $ 32,529 Total Revenue $ 40,650 $ 34,072 Medical Care Ratio ( MCR ) (1) 89.1 % 88.1 % Net Income $ 1,179 $ 1,091 Net Income per Diluted Share $ 20.42 $ 18.77 _______________________ (1) Medical care ratio represents medical care costs as a percentage of premium revenue.
The Other segment, which is insignificant to our consolidated results of operations, includes long-term services and supports consultative services in Wisconsin.
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