UNITEDHEALTH GROUP INC 10-Q

ITEM 1. FINANCIAL STATEMENTS UnitedHealth Group Condensed Consolidated Balance Sheets (Unaudited) (in millions, except per share data) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 28,596 $ 25,312 Short-term investments 3,424 3,801 Accounts receivable, net 24,142 22,365 Other current receivables, net 28,582 26,089 Prepaid expenses and other current assets 8,955 8,212 Total current assets 93,699 85,779 Long-term investments 52,466 52,354 Property, equipment and capitalized software, net 10,923 10,553 Goodwill 107,677 106,734 Other intangible assets, net 22,510 23,268 Other assets 21,298 19,590 Total assets $ 308,573 $ 298,278 Liabilities, redeemable noncontrolling interests and equity Current liabilities: Medical costs payable $ 38,427 $ 34,224 Accounts payable and accrued liabilities 34,330 34,337 Short-term borrowings and current maturities of long-term debt 5,698 4,545 Unearned revenues 3,032 3,317 Other current liabilities 29,294 27,346 Total current liabilities 110,781 103,769 Long-term debt, less current maturities 73,495 72,359 Deferred income taxes 3,804 3,620 Other liabilities 15,709 15,939 Total liabilities 203,789 195,687 Commitments and contingencies (Note 7) Redeemable noncontrolling interests 4,315 4,323 Equity: Preferred stock, $ 0.001 par value - 10 shares authorized; no shares issued or outstanding — — Common stock, $ 0.01 par value - 3,000 shares authorized; 905 and 915 issued and outstanding 9 9 Retained earnings 97,250 96,036 Accumulated other comprehensive loss ( 2,535 ) ( 3,387 ) Nonredeemable noncontrolling interests 5,745 5,610 Total equity 100,469 98,268 Total liabilities, redeemable noncontrolling interests and equity $ 308,573 $ 298,278 See Notes to the Condensed Consolidated Financial Statements 1 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share data) 2025 2024 2025 2024 Revenues: Premiums $ 87,905 $ 76,897 $ 174,439 $ 154,885 Products 13,564 12,211 26,600 24,120 Services 9,039 8,750 18,011 17,638 Investment and other income 1,108 997 2,141 2,008 Total revenues 111,616 98,855 221,191 198,651 Operating costs: Medical costs 78,585 65,458 151,996 131,193 Operating costs 13,778 13,162 27,372 27,239 Cost of products sold 13,019 11,340 25,409 22,396 Depreciation and amortization 1,084 1,020 2,145 2,017 Total operating costs 106,466 90,980 206,922 182,845 Earnings from operations 5,150 7,875 14,269 15,806 Interest expense ( 1,027 ) ( 985 ) ( 2,025 ) ( 1,829 ) Loss on sale of subsidiary and subsidiaries held for sale ( 41 ) ( 1,225 ) ( 56 ) ( 8,311 ) Earnings before income taxes 4,082 5,665 12,188 5,666 Provision for income taxes ( 510 ) ( 1,244 ) ( 2,142 ) ( 2,466 ) Net earnings 3,572 4,421 10,046 3,200 Earnings attributable to noncontrolling interests ( 166 ) ( 205 ) ( 348 ) ( 393 ) Net earnings attributable to UnitedHealth Group common shareholders $ 3,406 $ 4,216 $ 9,698 $ 2,807 Earnings per share attributable to UnitedHealth Group common shareholders: Basic $ 3.76 $ 4.58 $ 10.66 $ 3.05 Diluted $ 3.74 $ 4.54 $ 10.61 $ 3.02 Basic weighted-average number of common shares outstanding 907 921 910 921 Dilutive effect of common share equivalents 3 7 4 8 Diluted weighted-average number of common shares outstanding 910 928 914 929 Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents 13 8 10 7 See Notes to the Condensed Consolidated Financial Statements 2 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in millions) 2025 2024 2025 2024 Net earnings $ 3,572 $ 4,421 $ 10,046 $ 3,200 Other comprehensive income: Gross unrealized gains (losses) on investment securities during the period 327 ( 75 ) 848 ( 365 ) Income tax effect ( 75 ) 17 ( 194 ) 85 Total unrealized gains (losses), net of tax 252 ( 58 ) 654 ( 280 ) Gross reclassification adjustment for net realized gains included in net earnings ( 17 ) ( 26 ) ( 27 ) ( 58 ) Income tax effect 4 6 6 13 Total reclassification adjustment, net of tax ( 13 ) ( 20 ) ( 21 ) ( 45 ) Foreign currency translation gains (losses) 131 8 219 ( 285 ) Reclassification adjustment for translation losses included in net earnings — 86 — 4,214 Total foreign currency translation gains 131 94 219 3,929 Other comprehensive income 370 16 852 3,604 Comprehensive income 3,942 4,437 10,898 6,804 Comprehensive income attributable to noncontrolling interests ( 166 ) ( 205 ) ( 348 ) ( 393 ) Comprehensive income attributable to UnitedHealth Group common shareholders $ 3,776 $ 4,232 $ 10,550 $ 6,411 See Notes to the Condensed Consolidated Financial Statements 3 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Changes in Equity (Unaudited) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Nonredeemable Noncontrolling Interests Total Equity Three months ended June 30, (in millions) Shares Amount Net Unrealized (Losses) Gains on Investments Foreign Currency Translation (Losses) Gains Balance at March 31, 2025 910 $ 9 $ — $ 97,934 $ ( 1,832 ) $ ( 1,073 ) $ 5,773 $ 100,811 Net earnings 3,406 149 3,555 Other comprehensive income 239 131 370 Issuances of common stock, and related tax effects 1 — 196 196 Share-based compensation 229 229 Common share repurchases ( 6 ) — ( 415 ) ( 2,090 ) ( 2,505 ) Cash dividends paid on common shares ($ 2.21 per share) ( 2,000 ) ( 2,000 ) Redeemable noncontrolling interests fair value and other adjustments ( 10 ) ( 10 ) Acquisition and other adjustments of nonredeemable noncontrolling interests ( 19 ) ( 19 ) Distribution to nonredeemable noncontrolling interests ( 158 ) ( 158 ) Balance at June 30, 2025 905 $ 9 $ — $ 97,250 $ ( 1,593 ) $ ( 942 ) $ 5,745 $ 100,469 Balance at March 31, 2024 920 $ 9 $ — $ 90,118 $ ( 2,218 ) $ ( 1,221 ) $ 5,682 $ 92,370 Net earnings 4,216 158 4,374 Other comprehensive (loss) income ( 78 ) 94 16 Issuances of common stock, and related tax effects 1 — 196 196 Share-based compensation 210 210 Common share repurchases — — 3 1 4 Cash dividends paid on common shares ($ 2.10 per share) ( 1,935 ) ( 1,935 ) Redeemable noncontrolling interests fair value and other adjustments ( 36 ) ( 36 ) Acquisition and other adjustments of nonredeemable noncontrolling interests ( 338 ) ( 338 ) Distribution to nonredeemable noncontrolling interests ( 185 ) ( 185 ) Balance at June 30, 2024 921 $ 9 $ 373 $ 92,400 $ ( 2,296 ) $ ( 1,127 ) $ 5,317 $ 94,676 See Notes to the Condensed Consolidated Financial Statements 4 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Changes in Equity (Unaudited) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Nonredeemable Noncontrolling Interests Total Equity Six months ended June 30, (in millions) Shares Amount Net Unrealized (Losses) Gains on Investments Foreign Currency Translation (Losses) Gains Balance at January 1, 2025 915 $ 9 $ — $ 96,036 $ ( 2,226 ) $ ( 1,161 ) $ 5,610 $ 98,268 Net earnings 9,698 297 9,995 Other comprehensive income 633 219 852 Issuances of common stock, and related tax effects 2 — 379 379 Share-based compensation 591 591 Common share repurchases ( 12 ) — ( 955 ) ( 4,572 ) ( 5,527 ) Cash dividends paid on common shares ($ 4.31 per share) ( 3,912 ) ( 3,912 ) Redeemable noncontrolling interests fair value and other adjustments ( 15 ) ( 15 ) Acquisition and other adjustments of nonredeemable noncontrolling interests 175 175 Distribution to nonredeemable noncontrolling interests ( 337 ) ( 337 ) Balance at June 30, 2025 905 $ 9 $ — $ 97,250 $ ( 1,593 ) $ ( 942 ) $ 5,745 $ 100,469 Balance at January 1, 2024 924 $ 9 $ — $ 95,774 $ ( 1,971 ) $ ( 5,056 ) $ 5,665 $ 94,421 Net earnings 2,807 307 3,114 Other comprehensive (loss) income ( 325 ) 3,929 3,604 Issuances of common stock, and related tax effects 3 — 438 438 Share-based compensation 562 562 Common share repurchases ( 6 ) — ( 571 ) ( 2,517 ) ( 3,088 ) Cash dividends paid on common shares ($ 3.98 per share) ( 3,664 ) ( 3,664 ) Redeemable noncontrolling interests fair value and other adjustments ( 56 ) ( 56 ) Acquisition and other adjustments of nonredeemable noncontrolling interests ( 319 ) ( 319 ) Distribution to nonredeemable noncontrolling interests ( 336 ) ( 336 ) Balance at June 30, 2024 921 $ 9 $ 373 $ 92,400 $ ( 2,296 ) $ ( 1,127 ) $ 5,317 $ 94,676 See Notes to the Condensed Consolidated Financial Statements 5 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, (in millions) 2025 2024 Operating activities Net earnings $ 10,046 $ 3,200 Noncash items: Depreciation and amortization 2,145 2,017 Deferred income taxes ( 87 ) ( 358 ) Share-based compensation 572 594 Loss on sale of subsidiary and subsidiaries held for sale 56 8,311 Other, net 127 459 Net change in other operating items, net of effects from acquisitions and dispositions: Accounts receivable ( 1,681 ) ( 2,471 ) Other assets ( 2,143 ) ( 4,121 ) Medical costs payable 4,371 777 Accounts payable and other liabilities ( 480 ) 36 Unearned revenues ( 282 ) ( 554 ) Cash flows from operating activities 12,644 7,890 Investing activities Purchases of investments ( 8,180 ) ( 10,130 ) Sales of investments 5,181 5,288 Maturities of investments 4,326 4,621 Cash paid for acquisitions and other transactions, net of cash assumed ( 734 ) ( 3,031 ) Purchases of property, equipment and capitalized software ( 1,784 ) ( 1,596 ) Loans to care providers - cyberattack — ( 8,100 ) Repayments of care provider loans - cyberattack 1,293 604 Other, net ( 1,618 ) ( 1,413 ) Cash flows used for investing activities ( 1,516 ) ( 13,757 ) Financing activities Common share repurchases ( 5,545 ) ( 3,072 ) Cash dividends paid ( 3,912 ) ( 3,664 ) Proceeds from common stock issuances 581 744 Repayments of long-term debt — ( 1,750 ) (Repayments of) proceeds from short-term borrowings, net ( 1,403 ) 8,615 Proceeds from issuance of long-term debt 2,969 5,925 Customer funds administered ( 25 ) 990 Other, net ( 513 ) ( 753 ) Cash flows (used for) from financing activities ( 7,848 ) 7,035 Effect of exchange rate changes on cash and cash equivalents 29 ( 44 ) Increase in cash and cash equivalents, including cash within businesses held for sale 3,309 1,124 Less: net increase in cash within businesses held for sale ( 25 ) ( 265 ) Net increase in cash and cash equivalents 3,284 859 Cash and cash equivalents, beginning of period 25,312 25,427 Cash and cash equivalents, end of period $ 28,596 $ 26,286 See Notes to the Condensed Consolidated Financial Statements 6 Table of Contents UnitedHealth Group Notes to the Condensed Consolidated Financial Statements (Unaudited) 1. Basis of Presentation UnitedHealth Group Incorporated (individually and together with its subsidiaries, “UnitedHealth Group” and the “Company”) is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone. The Company’s two distinct, yet complementary businesses — Optum and UnitedHealthcare — are working to help build a modern, high-performing health system through improved access, affordability, outcomes and experiences for the individuals and organizations the Company is privileged to serve. The Company has prepared the Condensed Consolidated Financial Statements according to U.S. Generally Accepted Accounting Principles (GAAP) and has included the accounts of UnitedHealth Group and its subsidiaries. The year-end condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP. In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC), the Company has omitted certain footnote disclosures that would substantially duplicate the disclosures contained in its annual audited Consolidated Financial Statements. Therefore, these Condensed Consolidated Financial Statements should be read together with the Consolidated Financial Statements and the Notes included in Part II, Item 8, “Financial Statements and Supplementary Data” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC (2024 10-K). The accompanying Condensed Consolidated Financial Statements include all normal recurring adjustments necessary to present the interim financial statements fairly. Use of Estimates These Condensed Consolidated Financial Statements include certain amounts based on the Company’s best estimates and judgments. The Company’s most significant estimates relate to estimates and judgments for medical costs payable and goodwill. Certain of these estimates require the application of complex assumptions and judgments, often because they involve matters that are inherently uncertain and will likely change in subsequent periods. The impact of any change in estimates is included in earnings in the period in which the estimate is adjusted. Revenues - Products and Services As of June 30, 2025 and December 31, 2024, accounts receivable related to products and services were $ 9.8 billion and $ 9.9 billion, respectively. As of June 30, 2025, revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracts having an original expected duration of one year or less, contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, was $ 11.9 billion, of which approximately half is expected to be recognized in the next three years . 7 Table of Contents 2. Investments A summary of debt securities by major security type is as follows: (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2025 Debt securities - available-for-sale: U.S. government and agency obligations $ 4,189 $ 3 $ ( 186 ) $ 4,006 State and municipal obligations 7,234 7 ( 375 ) 6,866 Corporate obligations 24,044 106 ( 735 ) 23,415 U.S. agency mortgage-backed securities 10,341 8 ( 783 ) 9,566 Non-U.S. agency mortgage-backed securities 2,875 7 ( 127 ) 2,755 Total debt securities - available-for-sale 48,683 131 ( 2,206 ) 46,608 Debt securities - held-to-maturity: U.S. government and agency obligations 448 1 ( 1 ) 448 State and municipal obligations 26 — ( 3 ) 23 Corporate obligations 19 — — 19 Total debt securities - held-to-maturity 493 1 ( 4 ) 490 Total debt securities $ 49,176 $ 132 $ ( 2,210 ) $ 47,098 December 31, 2024 Debt securities - available-for-sale: U.S. government and agency obligations $ 4,600 $ 1 $ ( 274 ) $ 4,327 State and municipal obligations 7,357 2 ( 375 ) 6,984 Corporate obligations 24,391 56 ( 1,140 ) 23,307 U.S. agency mortgage-backed securities 10,577 1 ( 994 ) 9,584 Non-U.S. agency mortgage-backed securities 2,890 2 ( 175 ) 2,717 Total debt securities - available-for-sale 49,815 62 ( 2,958 ) 46,919 Debt securities - held-to-maturity: U.S. government and agency obligations 444 — ( 2 ) 442 State and municipal obligations 28 — ( 2 ) 26 Corporate obligations 40 — — 40 Total debt securities - held-to-maturity 512 — ( 4 ) 508 Total debt securities $ 50,327 $ 62 $ ( 2,962 ) $ 47,427 The Company held $ 5.4 billion and $ 4.9 billion of equity securities as of June 30, 2025 and December 31, 2024, respectively. The Company’s investments in equity securities primarily consist of venture investments and employee savings plan related investments. Additionally, the Company’s investments included $ 3.4 billion and $ 3.8 billion of equity method investments primarily in operating businesses in the health care sector as of June 30, 2025 and December 31, 2024, respectively. The allowance for credit losses on held-to-maturity securities at June 30, 2025 and December 31, 2024 was not material. 8 Table of Contents The amortized cost and fair value of debt securities as of June 30, 2025, by contractual maturity, were as follows: Available-for-Sale Held-to-Maturity (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 3,530 $ 3,506 $ 319 $ 319 Due after one year through five years 14,415 14,106 152 152 Due after five years through ten years 11,983 11,485 5 5 Due after ten years 5,539 5,190 17 14 U.S. agency mortgage-backed securities 10,341 9,566 — — Non-U.S. agency mortgage-backed securities 2,875 2,755 — — Total debt securities $ 48,683 $ 46,608 $ 493 $ 490 The fair value of available-for-sale debt securities with gross unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Greater Total (in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2025 Debt securities - available-for-sale: U.S. government and agency obligations $ 1,377 $ ( 21 ) $ 1,833 $ ( 165 ) $ 3,210 $ ( 186 ) State and municipal obligations 2,116 ( 93 ) 4,037 ( 282 ) 6,153 ( 375 ) Corporate obligations 4,988 ( 80 ) 10,214 ( 655 ) 15,202 ( 735 ) U.S. agency mortgage-backed securities 3,914 ( 110 ) 4,561 ( 673 ) 8,475 ( 783 ) Non-U.S. agency mortgage-backed securities 300 ( 2 ) 1,636 ( 125 ) 1,936 ( 127 ) Total debt securities - available-for-sale $ 12,695 $ ( 306 ) $ 22,281 $ ( 1,900 ) $ 34,976 $ ( 2,206 ) December 31, 2024 Debt securities - available-for-sale: U.S. government and agency obligations $ 1,475 $ ( 51 ) $ 2,152 $ ( 223 ) $ 3,627 $ ( 274 ) State and municipal obligations 2,593 ( 58 ) 4,085 ( 317 ) 6,678 ( 375 ) Corporate obligations 7,402 ( 213 ) 11,449 ( 927 ) 18,851 ( 1,140 ) U.S. agency mortgage-backed securities 4,791 ( 191 ) 4,674 ( 803 ) 9,465 ( 994 ) Non-U.S. agency mortgage-backed securities 416 ( 5 ) 1,863 ( 170 ) 2,279 ( 175 ) Total debt securities - available-for-sale $ 16,677 $ ( 518 ) $ 24,223 $ ( 2,440 ) $ 40,900 $ ( 2,958 ) The Company’s unrealized losses from debt securities as of June 30, 2025 were generated from approximately 28,000 positions out of a total of 43,000 positions. The Company believes that it will timely collect the principal and interest due on its debt securities that have an amortized cost in excess of fair value. The unrealized losses were primarily caused by interest rate increases and not by unfavorable changes in the credit quality associated with these securities which impacted the Company’s assessment on collectability of principal and interest. At each reporting period, the Company evaluates available-for-sale debt securities for any credit-related impairment when the fair value of the investment is less than its amortized cost. The Company evaluated the expected cash flows, the underlying credit quality and credit ratings of the issuers, noting no significant credit deterioration since purchase. As of June 30, 2025, the Company did not have the intent to sell any of the available-for-sale debt securities in an unrealized loss position. Therefore, the Company believes these losses to be temporary. The allowance for credit losses on available-for-sale debt securities at June 30, 2025 and December 31, 2024 was not material. 9 Table of Contents 3. Fair Value Certain assets and liabilities are measured at fair value in the Condensed Consolidated Financial Statements or have fair values disclosed in the Notes to the Condensed Consolidated Financial Statements. These assets and liabilities are classified into one of three levels of a hierarchy defined by GAAP. For a description of the methods and assumptions that are used to estimate the fair value and determine the fair value hierarchy classification of each class of financial instrument, see Note 4 of Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” in the 2024 10-K. The following table presents a summary of fair value measurements by level and carrying values for items measured at fair value on a recurring basis in the Condensed Consolidated Balance Sheets: (in millions) Quoted Prices in Active Markets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total Fair and Carrying Value June 30, 2025 Cash and cash equivalents $ 23,299 $ 5,297 $ — $ 28,596 Debt securities - available-for-sale: U.S. government and agency obligations 3,876 130 — 4,006 State and municipal obligations — 6,866 — 6,866 Corporate obligations — 22,942 473 23,415 U.S. agency mortgage-backed securities — 9,566 — 9,566 Non-U.S. agency mortgage-backed securities — 2,755 — 2,755 Total debt securities - available-for-sale 3,876 42,259 473 46,608 Equity securities 1,879 213 207 2,299 Total assets at fair value $ 29,054 $ 47,769 $ 680 $ 77,503 Percentage of total assets at fair value 37 % 62 % 1 % 100 % December 31, 2024 Cash and cash equivalents $ 25,248 $ 64 $ — $ 25,312 Debt securities - available-for-sale: U.S. government and agency obligations 4,194 133 — 4,327 State and municipal obligations — 6,984 — 6,984 Corporate obligations 29 22,841 437 23,307 U.S. agency mortgage-backed securities — 9,584 — 9,584 Non-U.S. agency mortgage-backed securities — 2,717 — 2,717 Total debt securities - available-for-sale 4,223 42,259 437 46,919 Equity securities 1,859 24 65 1,948 Total assets at fair value $ 31,330 $ 42,347 $ 502 $ 74,179 Percentage of total assets at fair value 42 % 57 % 1 % 100 % There were no transfers in or out of Level 3 financial assets or liabilities during the six months ended June 30, 2025 or 2024. 10 Table of Contents The following table presents a summary of fair value measurements by level and carrying values for certain financial instruments not measured at fair value on a recurring basis in the Condensed Consolidated Balance Sheets: (in millions) Quoted Prices in Active Markets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total Fair Value Total Carrying Value June 30, 2025 Debt securities - held-to-maturity $ 466 $ 24 $ — $ 490 $ 493 Long-term debt and other financing obligations $ — $ 74,304 $ — $ 74,304 $ 79,193 December 31, 2024 Debt securities - held-to-maturity $ 482 $ 26 $ — $ 508 $ 512 Long-term debt and other financing obligations $ — $ 70,565 $ — $ 70,565 $ 75,604 Nonfinancial assets and liabilities or financial assets and liabilities that are measured at fair value on a nonrecurring basis are subject to fair value adjustments only in certain circumstances, such as when the Company records an impairment. The assets and liabilities within our South American operations held for sale as of June 30, 2025 were measured at the lower of carrying value or fair value less cost to sell. Fair value is measured based upon unobservable amounts, such as estimated selling price derived from Company-specific information and market conditions. There were no significant fair value adjustments for assets and liabilities recorded during the six months ended June 30, 2025 or 2024. 4. Medical Costs Payable The following table shows the components of the change in medical costs payable for the six months ended June 30: (in millions) 2025 2024 Medical costs payable, beginning of period $ 34,224 $ 32,395 Acquisitions (dispositions), net — ( 687 ) Reported medical costs: Current year 152,316 131,583 Prior years ( 320 ) ( 390 ) Total reported medical costs 151,996 131,193 Medical payments: Payments for current year ( 118,793 ) ( 102,288 ) Payments for prior years ( 28,998 ) ( 27,887 ) Total medical payments ( 147,791 ) ( 130,175 ) Less: increase in medical costs payable included within businesses held for sale ( 2 ) ( 179 ) Medical costs payable, end of period $ 38,427 $ 32,547 For the six months ended June 30, 2025 and 2024, prior years’ medical cost reserve development included no individual factors that were significant. Medical costs payable included reserves for claims incurred by consumers but not yet reported to the Company of $ 26.8 billion and $ 23.7 billion at June 30, 2025 and December 31, 2024, respectively. 11 Table of Contents 5. Short-Term Borrowings and Long-Term Debt In June 2025, the Company issued $ 3.0 billion of senior unsecured notes consisting of the following: (in millions, except percentages) Par Value 4.4 %, June 2028 $ 500 4.65 %, January 2031 750 5.3 %, June 2035 1,000 5.95 %, June 2055 750 For more information on the Company’s short-term borrowings, debt covenants and long-term debt, see Note 8 of Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” in the 2024 10-K. 6. Dividends In June 2025, the Company’s Board of Directors increased the Company’s quarterly cash dividend to shareholders to an annual rate of $8.84 compared to $8.40 per share, which the Company had paid since June 2024. Declaration and payment of future quarterly dividends is at the discretion of the Board of Directors and may be adjusted as business needs or market conditions change. The following table provides details of the Company’s dividend payments during the six months ended June 30, 2025: Payment Date Amount per Share Total Amount Paid (in millions) March 18 $ 2.10 $ 1,912 June 24 2.21 2,000 7. Commitments and Contingencies Pending Acquisitions As of June 30, 2025, the Company had entered into agreements to acquire companies in the health care sector, subject to regulatory approval and other customary closing conditions. The total anticipated capital required for these acquisitions, excluding the payoff of acquired indebtedness, was approximately $ 4 billion. Legal Matters The Company is frequently made party to a variety of legal actions and regulatory inquiries, including class actions and suits brought by members, care providers, consumer advocacy organizations, customers, shareholders, and regulators, relating to the Company’s businesses, including management and administration of health benefit plans and other services. These matters include medical malpractice, employment, intellectual property, antitrust, privacy and contract claims and claims related to health care benefits coverage and other business practices. The Company records liabilities for its estimates of probable costs resulting from these matters where appropriate. Estimates of costs resulting from legal and regulatory matters involving the Company are inherently difficult to predict, particularly where the matters: involve indeterminate claims for monetary damages or may involve fines, penalties or punitive damages; present novel legal theories or represent a shift in regulatory policy; involve a large number of claimants or regulatory bodies; are in the early stages of the proceedings; or could result in a change in business practices. Accordingly, the Company is often unable to estimate the losses or ranges of losses for those matters where there is a reasonable possibility or it is probable a loss may be incurred. 12 Table of Contents Government Investigations, Audits and Reviews The Company has been involved or is currently involved in various governmental investigations, audits and reviews. These include routine, regular and special investigations, audits and reviews by the Centers for Medicare and Medicaid Services (CMS), state insurance and health and welfare departments, state attorneys general, the Office of the Inspector General (OIG), the Office of Personnel Management, the Office for Civil Rights, the Government Accountability Office, the Federal Trade Commission, U.S. Congressional committees, the U.S. Department of Justice (DOJ), the SEC, the Internal Revenue Service, the U.S. Drug Enforcement Administration, the U.S. Department of Labor, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, the Defense Contract Audit Agency, the Food and Drug Administration and other governmental authorities. Similarly, the Company’s international businesses are also subject to investigations, audits and reviews by applicable foreign governments. The Company has also been responding to subpoenas, information requests and investigations from governmental entities. The Company can provide no assurance as to the scope and outcome of these matters and no assurance as to whether its business, financial condition or results of operations will be materially adversely affected. Certain of the Company’s businesses have been reviewed or are currently under review, including for, among other matters, compliance with coding and other requirements under the Medicare risk-adjustment model. CMS and OIG have selected certain of the Company’s local plans for risk adjustment data validation (RADV) audits to validate the coding practices of and supporting documentation maintained by health care providers and such audits may result in retrospective adjustments to payments made to the Company’s health plans. On February 14, 2017, the DOJ announced its decision to pursue certain claims within a lawsuit initially asserted against the Company and filed under seal by a whistleblower in 2011. The whistleblower’s complaint, which was unsealed on February 15, 2017, alleges the Company made improper risk adjustment submissions and violated the False Claims Act. In March 2025, a Special Master appointed by the court issued a report recommending that the court enter summary judgment in the Company’s favor on all remaining claims. In April 2025, the DOJ filed a motion asking the court to reject the Special Master’s report. The Company cannot reasonably estimate the outcome which may result from this matter given its procedural status. 8. Held for Sale The Company’s planned sales of its remaining South American operations are expected to close within the year, subject to regulatory and other customary closing conditions. Assets and liabilities held for sale have been included within prepaid expenses and other current assets and other current liabilities on the Condensed Consolidated Balance Sheet, respectively. The assets and liabilities of the held for sale disposal groups as of June 30, 2025, were as follows: (in millions) Businesses Held for Sale Assets Cash and cash equivalents $ 244 Accounts receivable and other current assets 674 Property, equipment and capitalized software 719 Goodwill and other intangible assets 442 Other long-term assets 292 Remeasurement of assets of businesses held for sale to fair value less cost to sell (1) ( 1,314 ) Total assets $ 1,057 Liabilities Medical costs payable $ 181 Accounts payable and other current liabilities 368 Other long-term liabilities 436 Total liabilities $ 985 (1) Includes the effect of $ 847 million of cumulative foreign currency translation losses and $ 50 million of noncontrolling interests. 13 Table of Contents 9. Segment Financial Information The Company’s four reportable segments are UnitedHealthcare, Optum Health, Optum Insight and Optum Rx. For more information on the Company’s segments, see Part I, Item I, “Business” and Note 14 of Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” in the 2024 10-K. The following tables present reportable segment financial information: Optum (in millions) UnitedHealthcare Optum Health Optum Insight Optum Rx Optum Eliminations Optum Corporate and Eliminations Consolidated Three Months Ended June 30, 2025 Revenues - unaffiliated customers: Premiums $ 83,019 $ 4,886 $ — $ — $ — $ 4,886 $ — $ 87,905 Products — 65 44 13,455 — 13,564 — 13,564 Services 2,511 3,846 1,516 1,166 — 6,528 — 9,039 Total revenues - unaffiliated customers 85,530 8,797 1,560 14,621 — 24,978 — 110,508 Total revenues - affiliated customers — 15,953 3,236 23,790 ( 1,267 ) 41,712 ( 41,712 ) — Investment and other income 573 455 32 48 — 535 — 1,108 Total revenues $ 86,103 $ 25,205 $ 4,828 $ 38,459 $ ( 1,267 ) $ 67,225 $ ( 41,712 ) $ 111,616 Total operating costs (a) $ 84,028 $ 24,569 $ 3,830 $ 37,018 $ ( 1,267 ) $ 64,150 $ ( 41,712 ) $ 106,466 Earnings from operations $ 2,075 $ 636 $ 998 $ 1,441 $ — $ 3,075 $ — $ 5,150 Interest expense — — — — — — ( 1,027 ) ( 1,027 ) Loss on sale of subsidiary and subsidiaries held for sale ( 41 ) — — — — — — ( 41 ) Earnings before income taxes $ 2,034 $ 636 $ 998 $ 1,441 $ — $ 3,075 $ ( 1,027 ) $ 4,082 Total assets $ 129,587 $ 96,452 $ 33,716 $ 61,674 $ — $ 191,842 $ ( 12,856 ) $ 308,573 Purchases of property, equipment and capitalized software 193 306 289 98 — 693 — 886 Depreciation and Amortization 221 296 351 216 — 863 — 1,084 Three Months Ended June 30, 2024 Revenues - unaffiliated customers: Premiums $ 70,950 $ 5,947 $ — $ — $ — $ 5,947 $ — $ 76,897 Products — 62 41 12,108 — 12,211 — 12,211 Services 2,388 4,083 1,405 874 — 6,362 — 8,750 Total revenues - unaffiliated customers 73,338 10,092 1,446 12,982 — 24,520 — 97,858 Total revenues - affiliated customers — 16,576 3,070 19,373 ( 1,129 ) 37,890 ( 37,890 ) — Investment and other income 528 382 27 60 — 469 — 997 Total revenues $ 73,866 $ 27,050 $ 4,543 $ 32,415 $ ( 1,129 ) $ 62,879 $ ( 37,890 ) $ 98,855 Total operating costs (a) $ 69,862 $ 25,131 $ 3,997 $ 31,009 $ ( 1,129 ) $ 59,008 $ ( 37,890 ) $ 90,980 Earnings from operations $ 4,004 $ 1,919 $ 546 $ 1,406 $ — $ 3,871 $ — $ 7,875 Interest expense — — — — — — ( 985 ) ( 985 ) Loss on sale of subsidiary and subsidiaries held for sale ( 1,225 ) — — — — — — ( 1,225 ) Earnings before income taxes $ 2,779 $ 1,919 $ 546 $ 1,406 $ — $ 3,871 $ ( 985 ) $ 5,665 Total assets $ 109,441 $ 93,858 $ 34,244 $ 56,058 $ — $ 184,160 $ ( 7,545 ) $ 286,056 Purchases of property, equipment and capitalized software 187 230 344 92 — 666 — 853 Depreciation and Amortization 221 277 316 206 — 799 — 1,020 (a) Total operating costs include medical costs, operating costs, cost of products sold and depreciation and amortization, as applicable for each reportable segment. 14 Table of Contents Optum (in millions) UnitedHealthcare Optum Health Optum Insight Optum Rx Optum Eliminations Optum Corporate and Eliminations Consolidated Six Months Ended June 30, 2025 Revenues - unaffiliated customers: Premiums $ 164,532 $ 9,907 $ — $ — $ — $ 9,907 $ — $ 174,439 Products — 130 88 26,382 — 26,600 — 26,600 Services 5,087 7,720 3,017 2,187 — 12,924 — 18,011 Total revenues - unaffiliated customers 169,619 17,757 3,105 28,569 — 49,431 — 219,050 Total revenues - affiliated customers — 31,867 6,298 44,927 ( 2,453 ) 80,639 ( 80,639 ) — Investment and other income 1,101 890 55 95 — 1,040 — 2,141 Total revenues $ 170,720 $ 50,514 $ 9,458 $ 73,591 $ ( 2,453 ) $ 131,110 $ ( 80,639 ) $ 221,191 Total operating costs (a) $ 163,419 $ 48,264 $ 7,499 $ 70,832 $ ( 2,453 ) $ 124,142 $ ( 80,639 ) $ 206,922 Earnings from operations $ 7,301 $ 2,250 $ 1,959 $ 2,759 $ — $ 6,968 $ — $ 14,269 Interest expense — — — — — — ( 2,025 ) ( 2,025 ) Loss on sale of subsidiary and subsidiaries held for sale ( 56 ) — — — — — — ( 56 ) Earnings before income taxes $ 7,245 $ 2,250 $ 1,959 $ 2,759 $ — $ 6,968 $ ( 2,025 ) $ 12,188 Total assets $ 129,587 $ 96,452 $ 33,716 $ 61,674 $ — $ 191,842 $ ( 12,856 ) $ 308,573 Purchases of property, equipment and capitalized software 389 585 627 183 — 1,395 — 1,784 Depreciation and Amortization 440 583 695 427 — 1,705 — 2,145 Six Months Ended June 30, 2024 Revenues - unaffiliated customers: Premiums $ 143,243 $ 11,642 $ — $ — $ — $ 11,642 $ — $ 154,885 Products — 121 82 23,917 — 24,120 — 24,120 Services 4,917 8,053 3,107 1,561 — 12,721 — 17,638 Total revenues - unaffiliated customers 148,160 19,816 3,189 25,478 — 48,483 — 196,643 Total revenues - affiliated customers — 33,193 5,801 37,654 ( 2,145 ) 74,503 ( 74,503 ) — Investment and other income 1,063 772 55 118 — 945 — 2,008 Total revenues $ 149,223 $ 53,781 $ 9,045 $ 63,250 $ ( 2,145 ) $ 123,931 $ ( 74,503 ) $ 198,651 Total operating costs (a) $ 140,824 $ 49,963 $ 8,009 $ 60,697 $ ( 2,145 ) $ 116,524 $ ( 74,503 ) $ 182,845 Earnings from operations $ 8,399 $ 3,818 $ 1,036 $ 2,553 $ — $ 7,407 $ — $ 15,806 Interest expense — — — — — — ( 1,829 ) ( 1,829 ) Loss on sale of subsidiary and subsidiaries held for sale ( 8,311 ) — — — — — — ( 8,311 ) Earnings before income taxes $ 88 $ 3,818 $ 1,036 $ 2,553 $ — $ 7,407 $ ( 1,829 ) $ 5,666 Total assets $ 109,441 $ 93,858 $ 34,244 $ 56,058 $ — $ 184,160 $ ( 7,545 ) $ 286,056 Purchases of property, equipment and capitalized software 370 468 589 169 — 1,226 — 1,596 Depreciation and Amortization 456 549 626 386 — 1,561 — 2,017 (a) Total operating costs include medical costs, operating costs, cost of products sold and depreciation and amortization, as applicable for each reportable segment. 15 Table of Contents