NeueHealth Reports First Quarter 2025 Results

Delivered strong first quarter performance as care model continues to resonate with consumers, providers, and payors across the healthcare industry
Drove positive Adjusted EBITDA for the fifth consecutive quarter, providing a strong foundation for continued success in 2025 and beyond
Served approximately 709,000 consumers, an increase of 51% over the first quarter of 2024
DORAL, Fla., May 08, 2025--(BUSINESS WIRE)--NeueHealth, Inc. ("NeueHealth" or the "Company") (NYSE: NEUE), the value-driven healthcare company, today reported financial results for its first quarter ended March 31, 2025.
"We are starting 2025 in a very strong position, generating substantial growth in the number of consumers we serve and delivering another quarter of Adjusted EBITDA profitability," said Mike Mikan, President and CEO of NeueHealth. "Our value-driven, consumer-centric care model is compelling, and we continue to see it resonate with the market as we align interests to create a seamless, more coordinated care experience for consumers, providers, and payors. This year, we are focused on driving long-term, sustainable growth and building on the relationships we have formed across the industry. I am excited for all we will achieve in 2025 and beyond."
Key Metrics
As of March 31,
2025
2024
Consumer and Patient Metrics
Value-Based Consumers served
571,000
360,000
Enablement Services Lives
138,000
109,000
Three Months Ended
($ in thousands)
March 31,
2025
2024
Financial Metrics
Revenue
$
215,787
$
245,095
Net Loss
$
(10,848
)
$
(4,177
)
Net Income (Loss) from Continuing Operations
$
(1,438
)
$
5,688
Adjusted EBITDA (non-GAAP)
$
13,478
$
3,657
See the table at the end of this release for additional information and a reconciliation of the non-GAAP measures used in the table above. See table at the end of this release for more detail.
Earnings Conference Call
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.neuehealth.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 Relations page of the Company's website. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website. Accordingly, investors should monitor this portion of our website, in addition to following our press releases, U.S. Securities and Exchange Commission ("SEC") filings and public conference calls and webcasts.
About NeueHealth
NeueHealth is a value-driven healthcare company grounded in the belief that all health consumers are entitled to high-quality, coordinated care. By uniquely aligning the interests of health consumers, providers, and payors, NeueHealth helps to make healthcare accessible and affordable to all populations across the ACA Marketplace, Medicare, and Medicaid. NeueHealth delivers high-quality clinical care to over 700,000 health consumers through owned clinics and unique partnerships with over 3,000 affiliated providers. We also enable independent providers and medical groups to thrive in performance-based arrangements through a suite of technology and services scaled centrally and deployed locally. We believe our value-driven, consumer-centric care model can transform the healthcare experience and maximize value across the healthcare system. For more information, visit: www.neuehealth.com.
Important Additional Information and Where to Find It
On December 23, 2024, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with NH Holdings 2025, Inc. ("Parent"), pursuant to which, if all applicable conditions are satisfied or waived, the Company will become a wholly owned subsidiary of Parent (the "Transaction"). Parent is indirectly controlled by private investment funds affiliated with New Enterprise Associates, Inc. ("NEA").
In connection with the Transaction, the Company has filed with the U.S. Securities and Exchange Commission a preliminary proxy statement on Schedule 14A (the "Proxy Statement"), the definitive version of which has been sent or provided to Company stockholders. The Company, affiliates of the Company and affiliates of NEA have jointly filed a transaction statement on Schedule 13E-3 (the "Schedule 13E-3") with the SEC. The Company has also filed or may also file other documents with the SEC regarding the transaction. This release is not a substitute for the Proxy Statement, the Schedule 13E-3 or any other document which the Company has filed or may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT, THE SCHEDULE 13E-3 AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE COMPANY OR THE TRANSACTION BECAUSE THESE DOCUMENTS CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of the Proxy Statement, the Schedule 13E-3 and other documents that are filed or will be filed with the SEC by the Company, when such documents become available, through the website maintained by the SEC at www.sec.gov or through the Company's website at https://investors.neuehealth.com/home/default.aspx.
The Transaction will be implemented solely pursuant to the Merger Agreement, which contains the full terms and conditions of the transaction.
Participants in the Solicitation
The Company and certain of its directors, executive officers and employees may be deemed to be participants in the solicitation of proxies from stockholders of the Company in connection with the proposed transaction. Information regarding the Company's directors and executive officers is available in the definitive proxy statement for the 2025 annual meeting of stockholders of the Company, which was filed by the Company with the SEC on April 30, 2025 (the "Annual Meeting Proxy Statement"). Please refer to the sections captioned "Executive Compensation," "Director Compensation," and "Security Ownership of Certain Beneficial Owners and Management" in the Annual Meeting Proxy Statement and the section captioned "Security Ownership of Certain Beneficial Owners and Management" in the Proxy Statement. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, may be contained in other relevant materials to be filed with the SEC in connection with the proposed Transaction when they become available. Free copies of the Proxy Statement and such other materials may be obtained as described in the preceding paragraph.
Forward-Looking Statements
This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Statements made in this release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies, as well as statements regarding timing, completion, and effects of the Transaction. These statements often include words such as "anticipate," "expect," "plan," "believe," "intend," "project," "forecast," "estimates," "projections," "outlook," "ensure," and other similar expressions. These forward-looking statements include any statements regarding our plans and expectations. Such forward-looking statements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Factors that might materially affect such forward-looking statements include: the failure to complete the Transaction on the anticipated terms and within the anticipated timeframe, including as a result of failure to obtain required stockholder or regulatory approvals or to satisfy other closing conditions; potential litigation relating to the Transaction that could be instituted against NEA, the Company or their respective affiliates, directors, managers, officers or employees, and the effects of any outcomes related thereto; potential adverse reactions or changes to our business relationships or operating results resulting from the announcement, pendency or completion of the Transaction; the risk that our stock price may decline significantly if the Transaction is not consummated; certain restrictions during the pendency of the Transaction that may impact our ability to pursue certain business opportunities or strategic transactions; costs associated with the Transaction, which may be significant; the occurrence of events, changes or other circumstances that could give rise to the termination of the Merger Agreement, including in circumstances requiring us to pay a termination fee; our ability to continue as a going concern; expectations and outcomes related to the NEA Merger Agreement; our ability to comply with the terms of our credit facility or any credit facility into which we enter in the future; our ability to obtain any short or long term debt or equity financing needed to operate our business; our ability to quickly and efficiently complete the wind down of our remaining Individual and Family Plan ("IFP") businesses and MA businesses outside of California, including by satisfying liabilities of those businesses when due and payable; potential disruptions to our business due to the Transaction or corporate restructuring and any resulting headcount reduction; our ability to accurately estimate and effectively manage the costs relating to changes in our business offerings and models; a delay or inability to withdraw regulated capital from our subsidiaries; a lack of acceptance or slow adoption of our business model; our ability to retain existing consumers and expand consumer enrollment; our and our Care Partner's abilities to obtain and accurately assess, code, and report risk adjustment factor scores; our ability to contract with care providers and arrange for the provision of quality care; our ability to accurately estimate medical expenses; our ability to obtain claims information timely and accurately; the impact of any pandemic or epidemic on our business and results of operations; the risks associated with our reliance on third-party providers to operate our business; the impact of modifications or changes to the U.S. health insurance markets; the impact of changes to federal funding for government healthcare programs; our ability to manage any growth of our business; our ability to operate, update or implement our technology platform and other information technology systems; our ability to retain key executives; our ability to successfully pursue acquisitions and integrate acquired businesses and divest businesses as needed; the occurrence of severe weather events, catastrophic health events, natural or man-made disasters, and social and political conditions or civil unrest; our ability to prevent and contain data security incidents and the impact of data security incidents on our members, patients, employees and financial results; our ability to comply with requirements to maintain effective internal controls; the outcome of threatened or pending litigation and risks of future legal disputes; the impacts resulting from new (or change to existing) laws, regulations and executive actions; our ability to mitigate risks associated with our ACO REACH and related businesses, including any unanticipated market or regulatory developments; and the other factors set forth under the heading "Risk Factors" in the Company's reports on Form 10-K, Form 10-Q, and Form 8-K (including all amendments to those reports) and our other filings with the SEC. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or changes in our expectations.
NeueHealth, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share data)
(Unaudited)
March 31, 2025
December 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
138,101
$
83,295
Short-term investments
7,004
9,871
Accounts receivable, net of allowance of $24 and $27, respectively
41,716
36,594
ACO REACH performance year receivable
468,346
95,075
Current assets of discontinued operations
94,467
173,006
Prepaids and other current assets
38,572
36,807
Total current assets
788,206
434,648
Other assets:
Property, equipment and capitalized software, net
11,108
11,240
Intangible assets, net
68,576
71,064
Other non-current assets
27,790
27,431
Total other assets
107,474
109,735
Total assets
$
895,680
$
544,383
Liabilities, Redeemable Noncontrolling Interest, Redeemable Preferred Stock and Shareholders' Equity (Deficit)
​
Current liabilities:
​
Medical costs payable
$
113,850
$
124,360
Accounts payable
5,451
6,298
Short-term borrowings
1,000
2,000
ACO REACH performance year obligation
382,478
—
Current liabilities of discontinued operations
335,181
344,651
Risk share payable to deconsolidated entity
123,981
123,981
Warrant liability
27,089
29,738
Other current liabilities
75,022
79,200
Total current liabilities
1,064,052
710,228
Long-term borrowings
207,400
202,614
Other liabilities
17,200
17,649
Total liabilities
1,288,652
930,491
Commitments and contingencies
​
Redeemable noncontrolling interests
47,769
48,580
Redeemable Series A preferred stock, 0.0001 par value; 750,000 shares authorized in 2025 and 2024; 750,000 shares issued and outstanding in 2025 and 2024
747,481
747,481
Redeemable Series B preferred stock, 0.0001 par value; 175,000 shares authorized in 2025 and 2024; 175,000 shares issued and outstanding in 2025 and 2024
172,936
172,936
Shareholders' equity (deficit):
​
Common stock, 0.0001 par value; 3,000,000,000 shares authorized in 2025 and 2024; 8,927,758 and 8,320,959 shares issued and outstanding in 2025 and 2024, respectively
1
1
Additional paid-in capital
3,105,109
3,099,423
Accumulated deficit
(4,454,268
)
(4,442,529
)
Accumulated other comprehensive loss
—
—
Treasury stock, at cost, 31,526 shares at December 31, 2025 and 2024
(12,000
)
(12,000
)
Total shareholders' equity (deficit)
(1,361,158
)
(1,355,105
)
Total liabilities, redeemable noncontrolling interests, redeemable preferred stock and shareholders' equity (deficit)
$
895,680
$
544,383
NeueHealth, Inc. and Subsidiaries
Consolidated Statements of Income (Loss)
(in thousands, except share and per share data)
(Unaudited)
​
Three Months Ended March 31,
​
2025
2024
Revenue:
​
​
Capitated revenue
$
80,987
$
61,466
ACO REACH revenue
124,040
171,811
Service revenue
9,834
11,615
Investment income
926
203
Total revenue
215,787
245,095
Operating expenses:
Medical costs
160,894
196,874
Operating costs
48,673
66,761
Depreciation and amortization
3,559
4,562
Total operating expenses
213,126
​
268,197
Operating income (loss)
2,661
​
(23,102
)
Interest expense
6,637
2,930
Warrant income
(2,649
)
(2,072
)
Gain on troubled debt restructuring
—
(30,311
)
(Loss) Income from continuing operations before income taxes
(1,327
)
6,351
Income tax expense
111
663
Net loss (income) from continuing operations
(1,438
)
5,688
Loss from discontinued operations, net of tax
(9,410
)
(9,865
)
Net Loss
(10,848
)
(4,177
)
Net income from continuing operations attributable to noncontrolling interests
(891
)
(11,737
)
Series A preferred stock dividend accrued
(10,729
)
(10,294
)
Series B preferred stock dividend accrued
(2,407
)
(2,310
)
Net loss attributable to NeueHealth, Inc. common shareholders
$
(24,875
)
$
(28,518
)
Basic and loss income per share attributable to NeueHealth, Inc. common shareholders
Continuing operations
$
(1.80
)
$
(2.31
)
Discontinued operations
(1.10
)
(1.22
)
Basic and diluted loss per share
(2.90
)
(3.53
)
Basic and diluted weighted-average common shares outstanding
8,570
8,079
NeueHealth, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
​
Three Months Ended March 31,
​
2025
2024
Cash flows from operating activities:
Net loss
$
(10,848
)
$
(4,177
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
3,559
4,562
Share-based compensation
5,565
18,627
Payment-In-Kind ("PIK") Interest
4,371
—
Gain on troubled debt restructuring
—
(30,311
)
Net accretion of investments
(181
)
(34
)
Loss on disposal of property, equipment, and capitalized software
87
245
Other, net
493
2
Changes in assets and liabilities, net of acquired assets and liabilities:
​
Accounts receivable
(5,122
)
(850
)
ACO REACH performance year receivable
(373,271
)
(530,749
)
Other assets
(120
)
(3,507
)
Medical cost payable
(15,495
)
(13,263
)
Risk adjustment payable
(4,996
)
(11,224
)
Accounts payable and other liabilities
(4,920
)
(5,612
)
Unearned revenue
—
(11
)
Warrant liability
(2,649
)
(2,072
)
Risk share payable to deconsolidated entity
382,478
529,657
Net cash used in operating activities
(21,049
)
(48,717
)
Cash flows from investing activities:
Purchases of investments
(1,195
)
—
Proceeds from sales, paydown, and maturities of investments
4,258
2,321
Purchases of property and equipment
(1,026
)
(64
)
Proceeds from sale of business, net
61,139
196,130
Net cash provided by investing activities
63,176
198,387
Cash flows from financing activities:
Repayments of short-term borrowings
(1,000
)
(273,636
)
Distributions to noncontrolling interest holders
(1,702
)
(1,884
)
Net cash used in financing activities
(2,702
)
(275,520
)
Net increase (decrease) in cash and cash equivalents
39,425
(125,850
)
Cash and cash equivalents – beginning of year
$
185,405
$
375,280
Cash and cash equivalents – end of period
$
224,830
$
249,430
NeueHealth, Inc. and Subsidiaries
Segment Information
(in thousands)
(Unaudited)
NeueCare
($ in thousands)
Three Months Ended March 31,
Statement of income (loss) and operating data:
2025
2024
Revenue:
Capitated revenue
$
80,987
$
61,466
Service revenue
6,264
9,530
Investment income
357
—
Total unaffiliated revenue
87,608
70,996
Affiliated revenue
2,909
2,627
Total segment revenue
90,517
73,623
Operating expenses
Medical Costs
37,518
27,436
Operating Costs
27,210
32,589
Depreciation and amortization
2,782
3,786
Total operating expenses
67,510
63,811
Operating income (loss)
$
23,007
$
9,812
NeueSolutions
($ in thousands)
Three Months Ended March 31,
Statement of income (loss) and operating data:
2025
2024
Revenue:
ACO REACH revenue
$
124,040
$
171,811
Service revenue
3,570
2,085
Total segment revenue
127,610
173,896
Operating expenses
Medical Costs
126,285
172,065
Operating Costs
4,317
4,763
Total operating expenses
130,602
176,828
Operating income (loss)
$
(2,992
)
$
(2,932
)
Non-GAAP Financial Measures
We use the non-GAAP financial measures Adjusted EBITDA and Adjusted Operating Cost Ratio. We define Adjusted EBITDA as Net Loss excluding loss from discontinued operations, interest expense, income taxes, depreciation and amortization, transaction costs, share-based and other long-term compensation expense, impact of troubled debt restructuring, restructuring and contract termination costs, impairment of goodwill and long-lived assets, losses related to the bankruptcy of one of our ACO REACH partners, impact of classifying certain of our operations as held-for-sale, and changes in the fair value of derivatives. We define Adjusted Operating Cost Ratio as Operating Cost Ratio excluding share-based compensation expense. These non-GAAP measures have been presented in this quarterly Earnings Release or in the earnings conference call and related materials as supplemental measures of financial performance that are not required by or presented in accordance with GAAP because we believe they assist management and investors in comparing our operating performance across reporting periods on a consistent basis by excluding and including items that we do not believe are indicative of our core operating performance. Management believes these measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses Adjusted EBITDA and Adjusted Operating Cost Ratio to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.
Adjusted EBITDA is not a recognized term under GAAP and should not be considered as an alternative to Net Income (Loss) as a measure of financial performance or any other performance measure derived in accordance with GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow available for management's discretionary use as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. The presentation of Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentation of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.
Adjusted Operating Cost Ratio is not a recognized term under GAAP and should not be considered as an alternative to Operating Cost Ratio as a measure of financial performance or any other performance measure derived in accordance with GAAP. The presentation of Adjusted Operating Cost Ratio has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentation of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.
The following table provides a reconciliation of net loss to Adjusted EBITDA for the periods presented:
Three Months Ended March 31,
($ in thousands)
2025
2024
Net Loss
$
(10,848
)
$
(4,177
)
Loss from Discontinued Operations
9,410
9,865
EBITDA adjustments from continuing operations
Interest expense
6,637
2,930
Income tax expense
111
663
Depreciation and amortization (g)
3,559
4,067
Transaction costs (a)
1,614
1,121
Share-based and other long-term incentive compensation expense (b)
5,644
18,627
Gain on troubled debt restructuring
—
(30,311
)
Change in fair value of warrant liability (c)
(2,649
)
(2,072
)
Restructuring and contract termination costs (d)
—
(58
)
Held-for-sale operations (e)
—
1,623
ACO REACH care partner bankruptcy (f)
—
1,248
Impairment of goodwill and long-lived assets
—
131
EBITDA adjustments from continuing operations
$
14,916
$
(2,031
)
Adjusted EBITDA
$
13,478
$
3,657
(a) Transaction related costs include accounting, tax, valuation, consulting, legal and investment banking fees directly relating to financing initiatives and acquisitions or dispositions. These costs can vary from period to period and impact comparability, and we do not believe such transaction costs reflect the ongoing performance of our business.
(b) Represents non-cash compensation expense related to stock option and restricted stock unit award grants, which can vary from period to period based on several factors, including the timing, quantity and grant date fair value of the awards. Also includes $0.1 million of compensation expense that was recognized for the cancellation of P-Unit Awards in relation to our purchase of the minority interest in Centrum for the three months ended March 31, 2025. There was no equivalent compensation expense included within for the three months ended March 31, 2024.
(c) Represents the non-cash change in the fair value of the warrant liability established for warrants included in our financing arrangements, which are remeasured at fair value each reporting period.
(d) Restructuring and contract termination costs represent severance costs as part of a workforce reduction, amounts paid for early termination of leases, and impairment of certain long-lived assets primarily relating to our decision to exit the Commercial business for the 2023 plan year.
(e) Beginning in the second quarter of 2024, Adjusted EBITDA excludes the impact of our operations classified as held-for-sale that were subsequently sold in November 2024; the comparable 2024 period has been recast to exclude these impacts.
(f) Represents the costs expected to be incurred as a result of one of our ACO REACH care partners filing for bankruptcy; includes the full allowance established for the outstanding receivable and ongoing costs incurred to manage and provide service to members attributed to the care partner that would have otherwise been reimbursed prior to the care partner's bankruptcy.
(g) Adjustment has been updated to remove the impact of our held-for-sale operations that are adjusted for in their entirety as described in (e).
The following table provides a reconciliation of Adjusted Operating Cost Ratio for the periods presented:
Three Months Ended March 31,
2025
2024
Operating Cost Ratio
22.6
%
27.2
%
Impact of share-based and other long-term incentive compensation expense (a)
(2.6)
%
(7.6)
%
Impact of held-for-sale operations (b)
0.0
%
(2.4)
%
Impact of transaction related costs (c)
(0.7)
%
(0.5)
%
Adjusted Operating Cost Ratio
19.3
%
16.7
%
(a) Represents non-cash compensation expense related to stock option and restricted stock unit award grants, which can vary from period to period based on several factors, including the timing, quantity and grant date fair value of the awards. Also includes $0.1 million of compensation expense that was recognized for the cancellation of P-Unit Awards in relation to our purchase of the minority interest in Centrum for the three months ended March 31, 2025. There was no equivalent compensation expense included within for the three months ended March 31, 2024.
(b) Represents the impact of revenue and operating costs related to our operations classified as held-for-sale beginning in the second quarter of 2024. The sale was completed in November 2024.
(c) Transaction related costs include accounting, tax, valuation, consulting, legal and investment banking fees directly relating to financing initiatives and acquisitions or dispositions. These costs can vary from period to period and impact comparability, and we do not believe such transaction costs reflect the ongoing performance of our business.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250508547475/en/
Contacts
Investor Contact: IR@neuehealth.com
Media Contact: media@neuehealth.com

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Yahoo

35 minutes ago

• Yahoo

Keller Industrial Properties to break ground on facility at Grissom Aeroplex

Keller Logistics Group announced the groundbreaking of a new 150,000-square-foot speculative warehouse at Grissom Aeroplex. Located at S. Innovation Way and West C.R. 800 South in Bunker Hill, the next-generation facility, developed in partnership with ARCO, aims to meet the surging demand for flexible, high-performance industrial space in the Peru-Bunker Hill corridor, according to a press release from ARCO. The warehouse was designed with future-proof capabilities and will feature 36-foot clear heights, multi-tenant rear-load access, and the potential to expand to 200,000 square feet. With six dock positions, three drive-in ramps, 40,000-lb airbag levelers, 800-amp power, and ESFR fire protection, it is engineered to serve a wide range of distribution, manufacturing, and logistics tenants. The ceremonial groundbreaking is set for Saturday, June 28. Completion is slated for late 2025. 'This is more than just a building—it's a long-term investment in the future of Indiana's logistics economy,' said Bryan Keller, president of Keller Industrial Properties. 'As supply chains continue shifting toward regionalized models and faster fulfillment, we're providing the infrastructure that makes those models sustainable and scalable.' The project responds directly to the trends shaping the industrial real estate market across the Midwest. According to CBRE's Q4 2024 Midwest Industrial Market Report, over 37 million square feet of industrial space was under construction across the region, with net absorption reaching 5.7 million square feet, driven by strong occupier demand and an evolving e-commerce landscape. 'The Peru-Bunker Hill corridor is one of Indiana's most compelling growth areas for logistics and manufacturing,' said Austin Brasher, vice president at ARCO. 'This project positions Keller and future tenants at the heart of that growth, offering proximity to major markets without the operational constraints of urban cores.' Local and regional leaders joined Keller and ARCO at the ceremonial groundbreaking, underscoring the project's broader economic impact. 'This development brings jobs, investment, and visibility to the region, aligning perfectly with our long-term economic goals,' said Jim Tidd, Economic Development Director with the Miami County Economic Development Authority. The project team also includes Curran Architecture of Indianapolis, which provided architectural design and renderings for the facility. The press release said the warehouse will be strategically located within a high-visibility logistics corridor, sitting near key interstates and freight corridors, enabling efficient access to regional and national markets while offering the labor force infrastructure and incentives critical to modern supply chain operations.

Yahoo

36 minutes ago

• Yahoo

Sunrun Stock (RUN) Plummets 40% as U.S. Senate Targets Solar Credits

The solar sector is reeling after the release of the Senate Finance Committee's proposed tax-and-spending bill, which targets renewable energy sources. Sunrun (RUN), a major player in residential solar, was particularly vulnerable to the news, shedding almost 40% of its valuation in the past week. Having traded as high as $13.20 per share in late May, the stock is now languishing at ~$6 following this week's news. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter In my view, the proposed incentive cuts pose a significant threat to Sunrun's viability, particularly given its ongoing inability to generate profits despite these benefits being in place. Without that financial support, a turnaround seems even less likely, leaving me firmly bearish on the stock. For those unfamiliar, Sunrun primarily operates under a third-party ownership (TPO) model. Instead of homeowners purchasing solar systems outright, Sunrun installs and owns the panels, allowing customers to either lease the system for a monthly fee or pay for the electricity it generates at a fixed rate. This model has gained popularity because it enables homeowners to adopt solar with little to no upfront cost. Thanks to the Inflation Reduction Act (IRA), which extended and enhanced the federal Investment Tax Credit (ITC), Sunrun, as the system owner, can claim a tax credit typically worth 30% of the system's cost. This significantly lowers installation expenses and enables Sunrun to pass those savings on to customers, making the model more financially appealing. The Senate Finance Committee has recently proposed eliminating solar tax credits in favor of supporting other energy sectors, such as geothermal, nuclear, and hydropower. If passed, this legislation would require Sunrun to absorb the full cost of its solar systems, which would inevitably be passed on to customers. The result would be a significant squeeze on margins and an acceleration of the company's ongoing cash burn. Senate Republicans are reportedly aiming to pass the bill before the July 4th holiday. Upon closer examination, this appears to mark a broader shift in U.S. energy policy away from residential solar and wind. The market has already begun to react, with notable declines in Sunrun's peers, including Enphase Energy (ENPH) and SolarEdge Technologies (SEDG), underscoring the potential sector-wide impact. There's still hope for solar advocates. The proposed bill faces strong resistance from Democrats, particularly from the original architects of the clean energy tax credits included in the Inflation Reduction Act. The clean energy industry is also mounting an aggressive lobbying effort, warning of potential job losses and higher energy costs. And while the bill is led by the GOP, not all Republicans are aligned in support. The legislation still has a long way to go. It narrowly passed the House in May with a 215–214 vote, and the Senate draft was just introduced on June 16. While the Senate version includes more extended phase-out periods for some clean energy incentives, it still calls for the elimination of Section 48E credits, which are key to residential solar leases. A Senate vote is expected soon, and if proponents can secure a simple majority, the bill could advance to President Trump's desk. For context, the current Senate makeup is 53 Republicans, 45 Democrats, and two Independents. In the near term, Sunrun could experience a temporary boost in demand as customers rush to take advantage of tax credits before they're phased out. However, expectations for 2026 and beyond point to a sharp and sustained decline in demand. A closer look at Sunrun's financials reveals troubling signs. The company has consistently reported negative operating cash flow, with a loss of over $100 million in Q1 2025 and nearly $800 million in total for 2024, highlighting the financial pressure it faces even before potential incentive cuts take effect. Meanwhile, Sunrun, in its pursuit of growth opportunities, is becoming increasingly leveraged, increasing its risk profile should things take a turn for the worse. Moving forward, ongoing tariff pressures and the disappearance of incentive credits spell long-term trouble for solar installers. Analyst sentiment on Sunrun (RUN) stock is mixed. The stock carries a consensus Hold rating, based on seven Buy, six Hold, and four Sell ratings over the past three months. Despite the cautious stance, RUN's average price target of $10.44 suggests significant upside potential—about 70% from current levels. Mizuho analyst Maheep Mandloi has a Buy (Outperform) rating on RUN with a price target of $16. He notes that the House's 'One Big Beautiful Bill' won't derail grandfathered credits until 2028. He also believes that demand for renewable energy will remain high without government incentives because it is 'still the cheapest option.' However, not everyone shares Mandloi's bullish outlook. Jefferies analyst Julien Dumoulin Smith downgraded RUN to Sell (Underperform) with a price target of $5. Due to the same legislation, Smith notes that Sunrun is exposed to 'both near- and long-term headwinds.' He believes that the market is underestimating 'how consequential the 'One Big Beautiful Bill Act' is uniquely on residential solar.' The so-called 'One Big Beautiful Bill' poses a major threat to solar companies like Sunrun. The company's growth has heavily relied on tax credits tied to third-party ownership (TPO) systems. Even with those incentives, Sunrun has struggled to achieve consistent profitability. Without them, serious doubts emerge about its ability to maintain its current business model. If the bill passes, Sunrun—and others in the space—will likely be forced to pivot toward new strategies or market segments. That said, the bill could still fail, or be amended in ways that lessen the impact on Sunrun. Additionally, the proposed phase-out period provides a window for the company to adjust. From my perspective, I'd prefer to stay on the sidelines until there is more regulatory clarity. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Medscape

an hour ago

• Medscape

Fast Five Quiz: Drowning

Drowning is a significant cause of mortality. In the United States, it is the leading cause of death among children aged 1-4 years. Even when not fatal, drowning can result in permanent and severe disability due to prolonged hypoxia. Globally, drowning deaths decreased by 38% between 2000 and 2024. However, in the United States, the drowning mortality rate increased from 2019 to 2022. On average, 11 drowning deaths per day occur in the United States. Do you know the latest facts surrounding drowning? Check your knowledge with this brief quiz. There are major racial/ethnic disparities in drowning deaths and swimming ability in the United States. Although Alaska Native/non-Hispanic American Indian peoples and Black people have the highest drowning rates, the lowest rate of swimming lessons is among Hispanic adults, at only 28.1%. Comparatively, 36.9% of Black adults and 51.8% of White adults have taken swimming lessons. The overall rate of swimming lessons among all US adults is 45.3%. Learn more about drowning epidemiology. A global review on drowning prevention among children and young people found several effective strategies. In addition to placing barriers around bodies of water, the review also found wearing personal flotation devices and removing or covering water hazards to be effective in drowning prevention. Use of solar pool covers was deemed a harmful strategy because unsupervised children have become trapped under these covers and drowned. There have also been cases of drowning deaths among infants placed in baby bath seats in bathtubs. Community-based water safety awareness campaigns were rated as "promising" in the review. Although several campaigns have resulted in increased rates of personal flotation device ownership, the results vary according to the nature of the campaign and its audience. Some campaigns were noted to lack a statistically significant positive impact. Learn more about patient education on drowning. A retrospective cohort study of 406 pediatric drowning patients found that the absence of prehospital cardiac arrest, along with transfer to a high-volume hospital and indoor drowning location, were factors significantly associated with a good clinical outcome. In the study, only one patient died among the 218 patients without prehospital cardiac arrest. However, only five patients had good outcomes among the 188 patients with prehospital cardiac arrest. Patient sex, age, and prehospital time since drowning event were not significantly associated with clinical outcome. Learn more about drowning prognosis. According to American Heart Association/American Academy of Pediatrics guidelines, in-water rescue breathing should be provided to drowning victims by trained rescuers if safe. Guidelines from the Wilderness Medical Society concur. It is not necessary to wait until the patient is on dry land or in a vessel before commencing rescue breathing. Resuscitation of drowning patients should not focus on chest compressions alone. Ventilation and airway management are crucial because cardiac arrest often follows severe hypoxemia in drowning cases. Although it is prudent for water recreation areas to provide automatic external defibrillators, most drowning victims who enter cardiac arrest do not present with defibrillation-responsive rhythms. The Heimlich maneuver is not recommended in drowning because efforts to expel water from the lungs delays resuscitation and might increase the risk for vomiting and aspiration. Learn more about prehospital care in drowning. The Wilderness Medical Society does not recommend empirical antibiotics in the initial management of drowning patients. Although pneumonia might result from aspirated water, the causative microorganisms are often atypical and unresponsive to empirical antibiotic therapies. Additionally, inflammatory pneumonitis resulting from water aspiration and the stress of the drowning event may be mistaken for symptoms of infectious pneumonia. Ideally, before antibiotic administration, pneumonia should be confirmed by urinary antigen testing, sputum cultures, and/or blood cultures. Learn more about the disposition of drowning victims.