Molina Healthcare — Apr 23, 2025 release

RECONCILIATION OF UNAUDITED NON-GAAP FINANCIAL MEASURES (CONTINUED) 2025 GUIDANCE Amount Per Diluted Share (2) GAAP Net income $ 1,208  $ 22.32  Adjustments: Amortization of intangible assets 86  1.59  Acquisition-related expenses 66  1.23  Other 2  0.03  Subtotal, adjustments 154  2.85  Income tax effect (1) (37) (0.67) Adjustments, net of tax 117  2.18  Adjusted net income $ 1,325  $ 24.50  __________________ (1) Income tax effect calculated at the statutory tax rate of approximately 23.7%. (2) Computations assume approximately 54.1 million diluted weighted average shares outstanding. Non-GAAP Financial Measures The Company includes in this release the financial measure, “new store embedded earnings,” which is a non-GAAP measure. The term is defined as the incremental diluted earnings per share impact that we expect to achieve between 2026 and 2028 related to newly awarded but not yet commenced state Medicaid contracts, and recently closed and announced acquisitions. The incremental impact reflects the expected full-year earnings for the newly-awarded California, Iowa, Nebraska, New Mexico, Texas, and Georgia Medicaid contracts, the newly-awarded Idaho, Illinois, Massachusetts, Michigan, and Ohio Medicare Duals contracts, and the California Medicare Health Plans and ConnectiCare acquisitions, not yet included in the 2025 full-year guidance issued by the Company. This measure excludes amortization of intangible assets and non-recurring costs associated with acquisitions, including various transaction and integration costs. The Company and management believe