[8-K] eHealth, Inc. Reports Material Event
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
eHealth, Inc. reported first quarter 2026 results showing a strategic pullback in volume to improve profitability. Q1 2026 total revenue was $88.0 million, down 22% from $113.1 million a year earlier, as the company reduced Medicare marketing spend and focused on higher-return channels.
GAAP results shifted to a net loss of $4.7 million versus net income of $2.0 million, mainly due to $6.4 million in restructuring charges. Adjusted EBITDA was $9.0 million with a 10% margin, compared to $12.5 million and an 11% margin in Q1 2025. Total operating costs fell to $90.9 million, a 16% decrease, and non-GAAP operating costs declined 21%, supporting the company’s plan to cut full-year 2026 operating costs by about $90 million.
The Medicare segment’s gross margin improved to 41% from 34%, driven by a 3% increase in Medicare Advantage lifetime value per member and a 10% reduction in total acquisition cost per MA-equivalent approved member, raising the Medicare LTV-to-CAC ratio to 1.4x. Operating cash flow was $35.8 million, with cash and marketable securities of $110.8 million and commissions receivable of $1.0 billion as of March 31, 2026. eHealth reaffirmed full-year 2026 guidance, including total revenue of $405–$445 million, GAAP net income of $8–$25 million and adjusted EBITDA of $55–$75 million.
The company also announced that director Cesar Soriano will resign effective immediately before the June 18, 2026 annual meeting, citing focus on his CEO role at Confie Corporation, with no disagreement reported. Following his departure and the previously disclosed end of Andrea Brimmer’s term, the board plans to reduce its size from ten to eight members.
Positive
- None.
Negative
- None.
8-K Event Classification
3 items: 2.02, 5.02, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 total revenue: $88.0M
Q1 2026 GAAP net income (loss): ($4.7M)
Q1 2026 adjusted EBITDA: $9.0M
+5 more
8 metrics
Q1 2026 total revenue
$88.0M
Down 22% from $113.1M in Q1 2025
Q1 2026 GAAP net income (loss)
($4.7M)
Compared to $2.0M net income in Q1 2025
Q1 2026 adjusted EBITDA
$9.0M
Versus $12.5M in Q1 2025, 10% margin
Q1 2026 total operating costs
$90.9M
Decreased 16% from $108.3M in Q1 2025
Q1 2026 Medicare gross margin
41%
Up from 34% in Q1 2025
Q1 2026 operating cash flow
$35.8M
Three months ended March 31, 2026
Cash and securities balance
$110.8M
Cash, cash equivalents and short-term marketable securities as of March 31, 2026
FY 2026 adjusted EBITDA guidance
$55M–$75M
Full year 2026 company outlook
Key Terms
constrained lifetime value, LTV-to-CAC ratio, adjusted EBITDA, non-GAAP total operating costs and expenses, +1 more
5 terms
constrained lifetime value financial
"Q1 2026 constrained lifetime value (“LTV”) of commissions improved across all Medicare products year-over-year"
LTV-to-CAC ratio financial
"Medicare LTV-to-CAC ratio(8) of 1.4x, up from 1.2x in Q1 2025"
adjusted EBITDA financial
"Q1 2026 adjusted EBITDA(1) of $9.0 million declined 28% compared to Q1 2025 adjusted EBITDA(1) of $12.5 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP total operating costs and expenses financial
"Q1 2026 non-GAAP total operating costs and expenses(1) decreased 21% year-over-year"
Medicare Advantage financial
"a 3% increase in Medicare Advantage (“MA”) plans"
Medicare Advantage is a type of health insurance plan offered by private companies that covers services traditionally provided by government-run Medicare. Think of it as a bundled package that combines hospital, doctor, and other medical care into one plan, often with added benefits. For investors, it matters because the popularity and profitability of these plans can influence healthcare companies and the broader health insurance industry.
Offering Details
earnings_snapshot
Offering
Offering Type
earnings_snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): May 3, 2026
(Exact Name of Registrant as Specified in its Charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
(737 ) 248-2340
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition. | |||||||
On May 6, 2026, eHealth, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended March 31, 2026 and its financial condition as of March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
On May 6, 2026, the Company posted supplemental investor material on its investor relations webpage at https://ir.ehealthinsurance.com. The Company intends to use its investor relations webpage as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. A copy of the supplemental investor materials is also furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in Item 2.02 of this Current Report on Form 8-K and Exhibits 99.1 and 99.2 attached hereto are intended to be “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Except as shall be expressly set forth by specific reference in such filing, the information contained herein and in the accompanying exhibits shall not be incorporated by reference into any filing with the Securities and Exchange Commission made by the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. | |||||||
On May 3, 2026, Cesar Soriano notified the board of directors of eHealth, Inc. (the “Board”) of his decision to resign from the Board, including all committees thereof, effective immediately prior to the commencement of the Company’s 2026 Annual Meeting of Stockholders currently scheduled for June 18, 2026, at 9:00 a.m. Eastern Time.
Mr. Soriano’s resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices. The decision reflects his desire to focus on the increasing demands of his role as Chief Executive Officer of Confie Corporation. The Company appreciates Mr. Soriano’s service and contributions to the Board.
In connection with Mr. Soriano’s resignation and with the expiration of Andrea Brimmer’s term as a member of the Board at the 2026 Annual Meeting of Stockholders, as previously disclosed on March 31, 2026, the Board intends to reduce the size of the Board from ten to eight members, effective as of the date of the 2026 Annual Meeting of Stockholders.
| Item 9.01 | Financial Statements and Exhibits. | |||||||
(d) Exhibits
| Exhibit No. | Description | ||||
| 99.1 | Press Release of eHealth, Inc. dated May 6, 2026 (eHealth, Inc. Announces First Quarter 2026 Results) | ||||
| 99.2 | Financial Results Conference Call Slides of eHealth, Inc. dated May 6, 2026 | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| eHealth, Inc. | ||||||||
| Date: | May 6, 2026 | /s/ John J. Dolan | ||||||
John J. Dolan Chief Financial Officer (Principal Financial Officer) | ||||||||
eHealth, Inc. Announces First Quarter 2026 Results
Q1 2026 results ahead of expectations
Strong Medicare segment profitability and operating expense improvements YoY
Launches lifetime advisory model and final expense insurance offering
On track to reduce total FY 2026 operating costs by approximately $90M
INDIANAPOLIS — May 6, 2026 — eHealth, Inc. (Nasdaq: EHTH), a leading private online health insurance marketplace, today announced its financial results for the first quarter ended March 31, 2026.
| CEO Comments | ||||||||
“We’re pleased with our first quarter results, which came in ahead of expectations, driven by stronger than anticipated enrollment volume at favorable acquisition costs. During the quarter, we made meaningful progress towards our FY 2026 strategic initiatives, including implementing targeted cost reductions and completing critical build and readiness work for initiatives that launched in April. Most notably, we prepared for the rollout of our lifetime advisory model and the introduction of our new final expense insurance product, continuing to strengthen our ability to serve consumers navigating an increasingly complex healthcare landscape.”– Derrick Duke, Chief Executive Officer | ||||||||
| Results Overview | ||
■Q1 2026 total revenue of $88.0 million decreased 22% compared to Q1 2025 total revenue of $113.1 million, reflecting lower Medicare approved members, consistent with our strategy to reduce variable and fixed expenses in fiscal 2026 and focus demand generation on our more profitable marketing channels.
■Q1 2026 positive net adjustment revenue of $8.0 million compared to $10.5 million in Q1 2025.
■Q1 2026 constrained lifetime value (“LTV”) of commissions improved across all Medicare products year-over-year, reflecting:
■a 3% increase in Medicare Advantage (“MA”) plans;
■a 19% increase in Medicare Supplement plans; and
■a 78% increase in Medicare Part D plans.
■Q1 2026 total operating costs and expenses decreased 16% to $90.9 million compared to $108.3 million in Q1 2025.
■Variable marketing spend within our Medicare segment declined 45% year-over-year.
■Q1 2026 non-GAAP total operating costs and expenses(1) decreased 21% year-over-year.
■Significant expansion in Q1 2026 Medicare segment gross margin to 41% from 34% in Q1 2025.
■Q1 2026 Medicare unit economics improved year-over-year, driven by higher MA constrained LTV of commissions and a 10% reduction in total acquisition cost per MA-equivalent approved member.
■ Medicare LTV-to-CAC ratio(8) of 1.4x, up from 1.2x in Q1 2025.
■Q1 2026 GAAP net loss of $4.7 million compared to Q1 2025 GAAP net income of $2.0 million primarily due to Q1 2026 restructuring charges of $6.4 million.
■ Q1 2026 GAAP net loss margin of 5% compared to Q1 2025 GAAP net income margin of 2%.
■Q1 2026 adjusted EBITDA(1) of $9.0 million declined 28% compared to Q1 2025 adjusted EBITDA(1) of $12.5 million.
■Q1 2026 adjusted EBITDA margin(1) of 10% compared to Q1 2025 adjusted EBITDA margin(1) of 11%.
■Operating cash flow of $35.8 million for the three months ended March 31, 2026; on-track to achieve operating cash flow guidance for FY 2026.
■Cash, cash equivalents and short-term marketable securities of $110.8 million as of March 31, 2026.
■Commissions receivable balance of $1.0 billion as of March 31, 2026.
__________
Note: See the tables at the end of this press release for a reconciliation of our GAAP financial measures to our non-GAAP financial measures for the relevant periods and footnote (1) on page 14 at the end of this press release for definitions of our non-GAAP financial measures. Additionally, see accompanying footnotes on page 14 for additional definitions.
1
2026 Guidance
Based on information available as of May 6, 2026, we are reiterating guidance for the full year ending December 31, 2026. These expectations are forward-looking statements and we assume no obligation to update these statements. Actual results may be materially different and are affected by the risk factors and uncertainties identified in this press release and in eHealth’s annual and quarterly reports filed with the Securities and Exchange Commission.
The following guidance is for the full year ending December 31, 2026:
•Total revenue is expected to be in the range of $405.0 million to $445.0 million.
•GAAP net income is expected to be in the range of $8.0 million to $25.0 million.
•Adjusted EBITDA(1) is expected to be in the range of $55.0 million to $75.0 million.
•Operating cash flow is expected to be in the range of $(10.0) million to $12.0 million.
The above guidance includes the expected impact of positive net adjustment revenue which has been updated to be in the range of $8 million to $20 million to reflect the Q1 2026 positive net adjustment revenue, compared to the previous range of $0 to $20 million.
__________
Note: See accompanying footnotes on page 14.
Webcast and Conference Call Information
A webcast and conference call will be held today, Wednesday, May 6, 2026 at 5:00 p.m. Eastern Time. Individuals interested in listening to the conference call may do so by dialing (833) 461-5787. The participant passcode is 615629308. The live and archived webcast of the call will also be available under “Events & Presentations” on the Investor Relations page of our website at https://ir.ehealthinsurance.com.
About eHealth, Inc.
For nearly 30 years, eHealth, Inc. has helped millions of Americans find the healthcare coverage that fits their needs at a price they can afford, using data, artificial intelligence and a consumer-first approach to help people quickly and effectively compare insurance options. As a leading independent licensed insurance agency and advisor, eHealth offers access to plans from more than 180 health insurers, including national and regional companies, supporting consumers during their working years and retirement. eHealth’s team of licensed insurance agents help match consumers with the insurance plans, services, and support they need to live healthier, more financially secure lives. For more, visit eHealth.com or follow us on LinkedIn, Facebook, Instagram, and X.
Forward-Looking Statements
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. These include statements regarding our expectations regarding our business, financial condition, operations and strategy; our estimates regarding approved members and estimated memberships, in the aggregate and by product category; our estimates regarding constrained lifetime values of commissions per approved member by product category; our estimates regarding commissions receivable collection; our estimates regarding costs per approved member; our expectations regarding our profitability and our strategic plans and initiatives, including our lifetime advisory model, product diversification efforts, cost management and cash flow generation, and our ability to execute our operational and strategic plans and initiatives; our 2026 annual guidance for total revenue, GAAP net income, adjusted EBITDA and operating cash flow, and our ability to achieve our financial targets; our estimates for positive net adjustment revenue and its expected impact on our 2026 annual guidance; our expectations regarding our industry and market trends, including market opportunity, consumer demand and our competitive advantage; and other statements regarding our future operations, financial condition, prospects and business strategies.
These forward-looking statements are inherently subject to various risks and uncertainties that could cause actual results to differ materially from the statements made. In particular, we are required by Accounting Standards Codification 606 — Revenue from Contracts with Customers to make numerous assumptions that are based on historical trends and our management’s judgment.
2
These assumptions may change over time and have a material impact on our revenue recognition, guidance, and results of operations. Please review the assumptions stated in this press release carefully.
The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, our ability to retain existing members and enroll new members during the annual healthcare open enrollment period, the Medicare annual enrollment period, the Medicare Advantage open enrollment period and other special enrollment periods; changes in laws, regulations and guidelines, including in connection with healthcare reform or with respect to the marketing and sale of Medicare plans; competition, including competition from government-run health insurance exchanges and marketplaces, and other sources; the seasonality of our business and the fluctuation of our operating results; our ability to accurately estimate membership, lifetime value of commissions and commissions receivable; changes in product offerings among carriers on our ecommerce platform and changes in our estimated conversion rate of an approved member to a paying member and the resulting impact of each on our commission revenue; the concentration of our revenue with a small number of health insurance carriers; our ability to execute on our growth strategy and other business initiatives; changes in our senior management or other key employees; our ability to recruit, train, retain and ensure the productivity of licensed insurance agents, or benefit advisors, and other personnel; exposure to security risks and our ability to safeguard the security and privacy of confidential data; our relationships with health insurance carriers; the success of our carrier advertising and sponsorship program; our success in marketing and selling health insurance plans and our unit cost of acquisition; our ability to effectively manage our operations as our business evolves and execute on our business plan and other strategic initiatives; the need for health insurance carrier and regulatory approvals in connection with the marketing of Medicare-related insurance products; changes in the market for private health insurance; consumer satisfaction of our service and actions we take to improve the quality of enrollments; changes in member conversion rates; changes in commission rates; our ability to sell qualified health insurance plans to subsidy-eligible individuals and to enroll subsidy-eligible individuals through government-run health insurance exchanges and marketplaces; our ability to derive desired benefits from investments in our business, including membership growth and retention initiatives; our reliance on marketing partners; the success and cost of our marketing efforts, including branding, online advertising, direct-to-consumer mail, email, social media, telephone, SMS text, television, radio and other marketing efforts; our ability to contact our consumers or market our products through specific channels; timing of receipt and accuracy of commission reports; payment practices of health insurance carriers; risks associated with our operations in China; the restrictions in our debt obligations; the restrictions in our investment agreement with our convertible preferred stock investor; our ability to raise additional capital, including debt or equity financings, on terms acceptable to us or at all; compliance with insurance, privacy, cybersecurity and other laws and regulations; the outcome of litigation, government enforcement actions or regulatory inquiries in which we are or may from time to time be involved, including the complaint filed against us and certain defendants by the U.S. Attorney’s Office for the District of Massachusetts on May 1, 2025 alleging the violation of the Federal False Claims Act; the performance, reliability and availability of our information technology systems and our ability to maintain and improve such systems, ecommerce platform and underlying network infrastructure, including any new systems we may implement; our ability to deploy new and evolving technologies, such as artificial intelligence; public health crises, pandemics, natural disasters and other extreme events; general economic and macroeconomic conditions, including the risks of potential delays, reductions or disruptions in payments from a prolonged government shutdown, inflation, recession, political events, instability or geopolitical tensions, tariffs and trade tensions or other international disputes, financial, banking and credit market disruptions; our ability to effectively administer our self-insurance program; and other risks and uncertainties related to our business. Other factors that could cause our operating, financial and other results to differ are described in our most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K filed with the Securities and Exchange Commission and available on the Investor Relations page of our website at https://ir.ehealthinsurance.com and on the Securities and Exchange Commission’s website at www.sec.gov.
We have based these forward-looking statements on our current expectations about future events, and these statements are not guarantees of future performance. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.
Investor Relations Contact
Kate Sidorovich, CFA
Senior Vice President, Investor Relations & Corporate Development
investors@ehealth.com
https://ir.ehealthinsurance.com
3
EHEALTH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 75,112 | $ | 73,725 | |||||||
| Short-term marketable securities | 35,702 | 3,495 | |||||||||
| Accounts receivable | 1,537 | 7,688 | |||||||||
| Contract assets – commissions receivable – current | 212,143 | 236,116 | |||||||||
| Prepaid expenses and other current assets | 12,115 | 13,328 | |||||||||
| Total current assets | 336,609 | 334,352 | |||||||||
| Contract assets – commissions receivable – non-current | 824,435 | 886,614 | |||||||||
| Property and equipment, net | 4,596 | 4,531 | |||||||||
| Operating lease right-of-use assets | 7,642 | 8,429 | |||||||||
| Restricted cash | 3,090 | 3,090 | |||||||||
| Other assets | 24,735 | 25,452 | |||||||||
| Total assets | $ | 1,201,107 | $ | 1,262,468 | |||||||
| Liabilities, convertible preferred stock and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 5,592 | $ | 28,323 | |||||||
| Accrued compensation and benefits | 21,144 | 41,009 | |||||||||
| Accrued marketing expenses | 4,729 | 16,182 | |||||||||
| Lease liabilities – current | 6,924 | 7,349 | |||||||||
| Other current liabilities | 5,960 | 6,207 | |||||||||
| Total current liabilities | 44,349 | 99,070 | |||||||||
| Long-term debt | 113,761 | 112,954 | |||||||||
| Deferred income taxes – non-current | 55,699 | 57,223 | |||||||||
| Lease liabilities – non-current | 12,511 | 14,050 | |||||||||
| Other non-current liabilities | 5,139 | 5,519 | |||||||||
| Total liabilities | 231,459 | 288,816 | |||||||||
| Convertible preferred stock | 393,917 | 382,057 | |||||||||
| Stockholders’ equity: | |||||||||||
| Common stock | 45 | 44 | |||||||||
| Additional paid-in capital | 763,617 | 761,495 | |||||||||
| Treasury stock, at cost | (199,998) | (199,998) | |||||||||
| Retained earnings | 12,009 | 30,116 | |||||||||
| Accumulated other comprehensive income (loss) | 58 | (62) | |||||||||
| Total stockholders’ equity | 575,731 | 591,595 | |||||||||
| Total liabilities, convertible preferred stock and stockholders’ equity | $ | 1,201,107 | $ | 1,262,468 | |||||||
4
EHEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts, unaudited)
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Revenue: | |||||||||||||||||
| Commission | $ | 79,807 | $ | 98,946 | (19) | % | |||||||||||
| Other | 8,211 | 14,173 | (42) | % | |||||||||||||
| Total revenue | 88,018 | 113,119 | (22) | % | |||||||||||||
Operating costs and expenses(a): | |||||||||||||||||
Marketing and advertising | 25,393 | 41,189 | (38) | % | |||||||||||||
Customer care and enrollment | 32,284 | 37,221 | (13) | % | |||||||||||||
Technology and content | 11,335 | 12,601 | (10) | % | |||||||||||||
General and administrative | 15,512 | 17,310 | (10) | % | |||||||||||||
| Impairment, restructuring and other charges | 6,372 | — | * | ||||||||||||||
| Total operating costs and expenses | 90,896 | 108,321 | (16) | % | |||||||||||||
| Income (loss) from operations | (2,878) | 4,798 | (160) | % | |||||||||||||
| Interest expense | (4,035) | (2,648) | (52) | % | |||||||||||||
| Other income, net | 840 | 1,576 | (47) | % | |||||||||||||
| Income (loss) before income taxes | (6,073) | 3,726 | (263) | % | |||||||||||||
| Provision for (benefit from) income taxes | (1,359) | 1,776 | |||||||||||||||
| Net income (loss) | (4,714) | 1,950 | (342) | % | |||||||||||||
| Preferred stock dividends | (6,133) | (5,781) | |||||||||||||||
| Change in preferred stock redemption value | (7,260) | (6,141) | |||||||||||||||
Net loss attributable to common stockholders | $ | (18,107) | $ | (9,972) | (82) | % | |||||||||||
Net loss per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | $ | (0.58) | $ | (0.33) | (76) | % | |||||||||||
| Weighted-average number of shares used in per share: | |||||||||||||||||
Basic and diluted | 31,132 | 29,997 | 4 | % | |||||||||||||
_____________________________ (a) Includes stock-based compensation expense as follows: | |||||||||||||||||
| Marketing and advertising | $ | 268 | $ | 497 | |||||||||||||
| Customer care and enrollment | 224 | 264 | |||||||||||||||
| Technology and content | 328 | 688 | |||||||||||||||
| General and administrative | 1,438 | 2,340 | |||||||||||||||
| Total stock-based compensation expense | $ | 2,258 | $ | 3,789 | (40) | % | |||||||||||
Non-GAAP Results(1): | |||||||||||||||||
Adjusted EBITDA(1) | $ | 9,010 | $ | 12,521 | (28) | % | |||||||||||
Adjusted EBITDA margin(1) | 10 | % | 11 | % | |||||||||||||
__________
* Percentage calculated is not meaningful.
Note: See accompanying footnotes on page 14.
5
EHEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating activities: | |||||||||||
| Net income (loss) | $ | (4,714) | $ | 1,950 | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 490 | 471 | |||||||||
| Amortization of internally developed software | 2,768 | 3,463 | |||||||||
| Stock-based compensation expense | 2,258 | 3,789 | |||||||||
| Deferred income taxes | (1,524) | 1,529 | |||||||||
| Other non-cash items | 346 | (306) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 6,151 | 13,421 | |||||||||
| Contract assets – commissions receivable | 86,437 | 77,048 | |||||||||
| Prepaid expenses and other assets | 159 | (978) | |||||||||
| Accounts payable | (23,127) | (16,034) | |||||||||
| Accrued compensation and benefits | (19,865) | 1,087 | |||||||||
| Accrued marketing expenses | (11,453) | (7,541) | |||||||||
| Deferred revenue | (2,815) | (332) | |||||||||
| Accrued expenses and other liabilities | 654 | (446) | |||||||||
| Net cash provided by operating activities | 35,765 | 77,121 | |||||||||
| Investing activities: | |||||||||||
| Capitalized internal-use software and website development costs | (2,150) | (3,118) | |||||||||
| Purchases of property and equipment and other assets | (155) | (308) | |||||||||
| Purchases of marketable securities | (35,554) | (27,362) | |||||||||
| Proceeds from redemption and maturities of marketable securities | 3,500 | 36,260 | |||||||||
| Net cash provided by (used in) investing activities | (34,359) | 5,472 | |||||||||
| Financing activities: | |||||||||||
| Repurchase of shares to satisfy employee tax withholding obligations | (160) | (699) | |||||||||
Net cash used in financing activities | (160) | (699) | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 141 | 1 | |||||||||
Net increase in cash, cash equivalents and restricted cash | 1,387 | 81,895 | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 76,815 | 42,287 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 78,202 | $ | 124,182 | |||||||
6
EHEALTH, INC.
SEGMENT INFORMATION
(in thousands, unaudited)
We evaluate our business performance and manage our operations as two distinct reporting segments: Medicare and Employer and Individual (“E&I”). The Medicare segment consists primarily of commissions earned as the broker of record from our sale of Medicare-related health insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, and to a lesser extent, ancillary products sold to our Medicare-eligible beneficiaries, including but not limited to, dental and vision insurance and hospital indemnity plans. Our commissions may also include certain bonus payments, which are generally based on attaining predetermined target sales levels or other objectives, as determined by the health insurance carriers. The Medicare segment also consists of amounts earned in connection with our advertising programs, including other services such as marketing as well as amounts earned from our non-broker of record fee-based arrangements and our performance of various post-enrollment services for members. The E&I segment consists primarily of commissions earned from our sale of individual and family plans, including both qualified and non-qualified plans, employer plans, including small business health insurance plans and Individual Coverage Health Reimbursement Arrangements (“ICHRAs”), and ancillary products sold to our non-Medicare-eligible consumers, including but not limited to, dental, vision and short-term insurance. To a lesser extent, the E&I segment includes amounts earned from our online sponsorship program that allows carriers to purchase advertising space in specific markets on our website as well as our technology licensing activities.
We report segment information based on how our chief executive officer, who is our chief operating decision maker (“CODM”), regularly reviews our operating results, allocates resources and makes decisions regarding our business operations in the annual budget and forecasting process along with evaluation of actual performance. Our CODM considers budget-to-actual variances on a monthly basis for our segment performance measures when making decisions about allocating capital and personnel to our segments. These performance measures include total segment revenue and segment gross profit (loss).
Segment gross profit (loss) is calculated as total revenue for the applicable segment less variable marketing and advertising expenses, segment customer care and enrollment expenses (“CC&E”) and cost of revenue for the applicable segment. Variable marketing and advertising expenses represent costs incurred in member acquisition from our direct marketing and marketing partner channels and exclude fixed overhead costs, such as personnel related costs, consulting expenses and other operating costs allocated to the marketing and advertising department. Segment CC&E expenses include expenses we incur in assisting applicants during the enrollment process and exclude operating costs allocated to the CC&E department.
The results of our reportable segments are summarized for the periods presented below:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Medicare: | |||||||||||||||||
Total revenue | $ | 81,271 | $ | 103,669 | (22) | % | |||||||||||
Variable marketing and advertising | (18,729) | (33,753) | 45 | % | |||||||||||||
| Medicare CC&E | (29,612) | (34,469) | 14 | % | |||||||||||||
Cost of revenue | 106 | 300 | (65) | % | |||||||||||||
| Medicare segment gross profit | $ | 33,036 | $ | 35,747 | (8) | % | |||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Employer and Individual: | |||||||||||||||||
Total revenue | $ | 6,747 | $ | 9,450 | (29) | % | |||||||||||
Variable marketing and advertising | (843) | (1,190) | 29 | % | |||||||||||||
| E&I CC&E | (2,142) | (2,180) | 2 | % | |||||||||||||
Cost of revenue | (66) | (92) | 28 | % | |||||||||||||
| E&I segment gross profit | $ | 3,696 | $ | 5,988 | (38) | % | |||||||||||
7
EHEALTH, INC.
SEGMENT INFORMATION
(in thousands, unaudited)
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Consolidated: | |||||||||||||||||
Total revenue | $ | 88,018 | $ | 113,119 | (22) | % | |||||||||||
Variable marketing and advertising | (19,572) | (34,943) | 44 | % | |||||||||||||
Segment CC&E | (31,754) | (36,649) | 13 | % | |||||||||||||
Cost of revenue | 40 | 208 | (81) | % | |||||||||||||
| Total segment gross profit | $ | 36,732 | $ | 41,735 | (12) | % | |||||||||||
A reconciliation of our segment gross profit to the Condensed Consolidated Statements of Operations for the periods presented is as follows:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Total segment gross profit | $ | 36,732 | $ | 41,735 | (12) | % | |||||||||||
Other marketing and advertising(a) | (5,861) | (6,454) | 9 | % | |||||||||||||
Other CC&E(b) | (530) | (572) | 7 | % | |||||||||||||
| Technology and content | (11,335) | (12,601) | 10 | % | |||||||||||||
| General and administrative | (15,512) | (17,310) | 10 | % | |||||||||||||
| Impairment, restructuring and other charges | (6,372) | — | * | ||||||||||||||
| Interest expense | (4,035) | (2,648) | (52) | % | |||||||||||||
| Other income, net | 840 | 1,576 | (47) | % | |||||||||||||
| Income (loss) before income taxes | $ | (6,073) | $ | 3,726 | (263) | % | |||||||||||
__________
(a)Other marketing and advertising costs consist of fixed marketing and advertising, previously capitalized labor, depreciation and share-based compensation costs.
(b)Other CC&E costs consist of previously capitalized labor, depreciation and share-based compensation costs.
* Percentage calculated is not meaningful.
8
EHEALTH, INC.
COMMISSION REVENUE
(in thousands, unaudited)
Our commission revenue results from approval of an application from health insurance carriers, which we define as our customers under Accounting Standards Codification 606 — Revenue from Contracts with Customers (“ASC 606”). Our commission revenue is primarily comprised of commissions from health insurance carriers which is computed using the estimated constrained lifetime values of commission payments that we expect to receive. Our commissions may include certain bonus payments, which are generally based on our attaining predetermined target sales levels or other objectives, as determined by the health insurance carriers.
The following table presents commission revenue by product for the periods indicated:
| Three Months Ended March 31, | % Change | ||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Medicare | |||||||||||||||||
| Medicare Advantage | $ | 59,490 | $ | 74,986 | (21) | % | |||||||||||
| Medicare Supplement | 6,149 | 8,604 | (29) | % | |||||||||||||
Medicare Part D | 4,334 | 2,443 | 77 | % | |||||||||||||
| Total Medicare | 69,973 | 86,033 | (19) | % | |||||||||||||
Individual and Family | |||||||||||||||||
Non-Qualified Health Plans | 821 | 918 | (11) | % | |||||||||||||
Qualified Health Plans | 472 | 1,765 | (73) | % | |||||||||||||
Total Individual and Family | 1,293 | 2,683 | (52) | % | |||||||||||||
| Ancillary | 4,864 | 5,832 | (17) | % | |||||||||||||
| Small Business | 3,494 | 3,434 | 2 | % | |||||||||||||
| Commission Bonus and Other | 183 | 964 | (81) | % | |||||||||||||
| Total Commission Revenue | $ | 79,807 | $ | 98,946 | (19) | % | |||||||||||
The following table presents a summary of commission revenue by segment for the periods indicated:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Medicare | |||||||||||
Commission revenue from members approved during the period | $ | 66,438 | $ | 81,754 | |||||||
Net commission revenue from members approved in prior periods(a) | 6,790 | 7,965 | |||||||||
Total Medicare segment commission revenue | 73,228 | 89,719 | |||||||||
Employer and Individual | |||||||||||
Commission revenue from members approved during the period | 2,567 | 3,858 | |||||||||
Commission revenue from renewals of small business members during the period | 2,771 | 2,850 | |||||||||
Net commission revenue from members approved in prior periods(a) | 1,241 | 2,519 | |||||||||
Total Employer and Individual segment commission revenue | 6,579 | 9,227 | |||||||||
Total commission revenue | $ | 79,807 | $ | 98,946 | |||||||
_____________
(a)For all existing cohorts approved in prior periods, we reassess assumptions for our constrained LTV of commissions on a quarterly basis and compare to the current constrained LTV recognized on these cohorts. To the extent there is an indication of a change to expected cash collections for these cohorts, net commission revenue from members approved in prior periods, also referred to as net adjustment revenue, is recorded to adjust revenue previously recognized for the affected cohorts. Net adjustment revenue includes both increases and reductions to revenue; however, adjustments increasing revenue are only recognized when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur.
9
EHEALTH, INC.
SUMMARY OF SELECTED METRICS
(unaudited)
Selected Metrics — First Quarter of 2026
| Three Months Ended March 31, | % Change | ||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
Approved Members(2) | |||||||||||||||||
| Medicare | |||||||||||||||||
| Medicare Advantage | 63,422 | 82,671 | (23) | % | |||||||||||||
| Medicare Supplement | 2,512 | 2,565 | (2) | % | |||||||||||||
| Medicare Part D | 814 | 2,642 | (69) | % | |||||||||||||
| Total Medicare | 66,748 | 87,878 | (24) | % | |||||||||||||
| Individual and Family | 3,585 | 5,817 | (38) | % | |||||||||||||
| Ancillary | 16,901 | 16,925 | — | % | |||||||||||||
| Small Business | 1,288 | 1,190 | 8 | % | |||||||||||||
| Total Approved Members | 88,522 | 111,810 | (21) | % | |||||||||||||
Constrained Lifetime Value of Commissions per Approved Member(3) | |||||||||||||||||
Medicare(a) | |||||||||||||||||
| Medicare Advantage | $ | 938 | $ | 907 | 3 | % | |||||||||||
| Medicare Supplement | 1,494 | 1,256 | 19 | % | |||||||||||||
| Medicare Part D | 298 | 167 | 78 | % | |||||||||||||
| Individual and Family | |||||||||||||||||
| Non-Qualified Health Plans | 365 | 386 | (5) | % | |||||||||||||
| Qualified Health Plans | 353 | 415 | (15) | % | |||||||||||||
| Ancillary | |||||||||||||||||
| Short-term | 134 | 118 | 14 | % | |||||||||||||
| Dental | 144 | 134 | 7 | % | |||||||||||||
| Vision | 91 | 88 | 3 | % | |||||||||||||
| Small Business | 287 | 249 | 15 | % | |||||||||||||
(a)Constraints for Medicare Advantage, Medicare Supplement and Medicare Part D were 5.5%, 4% and 7%, respectively, for the three months ended March 31, 2026. Constraints for Medicare Advantage, Medicare Supplement and Medicare Part D were 5.5%, 9% and 7%, respectively, for the three months ended March 31, 2025. | |||||||||||||||||
Expense Metrics per Approved Member(4) | |||||||||||||||||
Medicare Plans | |||||||||||||||||
CC&E cost per Medicare Advantage (“MA”)-equivalent approved member | $ | 393 | $ | 361 | 9 | % | |||||||||||
| Variable marketing cost per MA-equivalent approved member | 283 | 393 | (28) | % | |||||||||||||
| Total acquisition cost per MA-equivalent approved member | $ | 676 | $ | 754 | (10) | % | |||||||||||
Individual and Family Plans (“IFP”) | |||||||||||||||||
CC&E cost per IFP-equivalent approved member | $ | 283 | $ | 189 | 50 | % | |||||||||||
| Variable marketing cost per IFP-equivalent approved member | 92 | 119 | (23) | % | |||||||||||||
| Total acquisition cost per IFP-equivalent approved member | $ | 375 | $ | 308 | 22 | % | |||||||||||
__________
Note: See accompanying footnotes on page 14.
10
EHEALTH, INC.
SUMMARY OF SELECTED METRICS
(unaudited)
| As of March 31, | % Change | ||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
Estimated Membership(5) | |||||||||||||||||
Medicare(6) | |||||||||||||||||
| Medicare Advantage | 566,097 | 601,431 | (6) | % | |||||||||||||
| Medicare Supplement | 88,875 | 90,917 | (2) | % | |||||||||||||
| Medicare Part D | 133,566 | 180,076 | (26) | % | |||||||||||||
| Total Medicare | 788,538 | 872,424 | (10) | % | |||||||||||||
Individual and Family(6) | 56,235 | 69,652 | (19) | % | |||||||||||||
Ancillary(6) | 182,353 | 175,270 | 4 | % | |||||||||||||
Small Business(7) | 34,804 | 41,317 | (16) | % | |||||||||||||
| Total Estimated Membership | 1,061,930 | 1,158,663 | (8) | % | |||||||||||||
__________
Note: See accompanying footnotes on page 14.
11
EHEALTH, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)
Reconciliation of GAAP Operating Costs and Expenses to Non-GAAP Operating Costs and Expenses(1) (in thousands):
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
GAAP marketing and advertising expense | $ | 25,393 | $ | 41,189 | |||||||
Stock-based compensation expense | (268) | (497) | |||||||||
Non-GAAP marketing and advertising expense(1) | $ | 25,125 | $ | 40,692 | |||||||
GAAP customer care and enrollment expense | $ | 32,284 | $ | 37,221 | |||||||
| Stock-based compensation expense | (224) | (264) | |||||||||
Non-GAAP customer care and enrollment expense(1) | $ | 32,060 | $ | 36,957 | |||||||
GAAP technology and content expense | $ | 11,335 | $ | 12,601 | |||||||
| Stock-based compensation expense | (328) | (688) | |||||||||
Non-GAAP technology and content expense(1) | $ | 11,007 | $ | 11,913 | |||||||
GAAP general and administrative expense | $ | 15,512 | $ | 17,310 | |||||||
| Stock-based compensation expense | (1,438) | (2,340) | |||||||||
Non-GAAP general and administrative expense(1) | $ | 14,074 | $ | 14,970 | |||||||
GAAP total operating costs and expenses | $ | 90,896 | $ | 108,321 | |||||||
| Stock-based compensation expense | (2,258) | (3,789) | |||||||||
| Impairment, restructuring and other charges | (6,372) | — | |||||||||
Non-GAAP total operating costs and expenses(1) | $ | 82,266 | $ | 104,532 | |||||||
Reconciliation of GAAP Net Loss Attributable to Common Stockholders to Adjusted EBITDA(1) (in thousands) and Adjusted EBITDA Margin(1):
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
GAAP net loss attributable to common stockholders | $ | (18,107) | $ | (9,972) | |||||||
| Preferred stock dividends | 6,133 | 5,781 | |||||||||
| Change in preferred stock redemption value | 7,260 | 6,141 | |||||||||
GAAP net income (loss) | (4,714) | 1,950 | |||||||||
| Stock-based compensation expense | 2,258 | 3,789 | |||||||||
| Depreciation and amortization | 3,258 | 3,934 | |||||||||
| Impairment, restructuring and other charges | 6,372 | — | |||||||||
| Interest expense | 4,035 | 2,648 | |||||||||
Other income, net | (840) | (1,576) | |||||||||
Provision for (benefit from) income taxes | (1,359) | 1,776 | |||||||||
Adjusted EBITDA(1) | $ | 9,010 | $ | 12,521 | |||||||
Net income (loss) margin | (5) | % | 2 | % | |||||||
Adjusted EBITDA margin(1) | 10 | % | 11 | % | |||||||
__________
Note: See accompanying footnotes on page 14.
12
EHEALTH, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)
Reconciliation of Guidance GAAP Net Loss Attributable to Common Stockholders to Adjusted EBITDA(1) (in millions):
Full Year 2026 Guidance | |||||||||||
| Low | High | ||||||||||
| GAAP net loss attributable to common stockholders | $ | (49.0) | $ | (32.0) | |||||||
| Impact from preferred stock | 57.0 | 57.0 | |||||||||
| GAAP net income | 8.0 | 25.0 | |||||||||
| Stock-based compensation expense | 13.0 | 12.0 | |||||||||
| Depreciation and amortization | 13.0 | 12.0 | |||||||||
| Impairment, restructuring and other charges | 6.0 | 6.0 | |||||||||
| Interest expense | 14.0 | 13.0 | |||||||||
| Other income, net | (3.0) | (3.0) | |||||||||
| Provision for income taxes | 4.0 | 10.0 | |||||||||
Adjusted EBITDA(1) | $ | 55.0 | $ | 75.0 | |||||||
__________
Note: See accompanying footnotes on page 14.
13
EHEALTH, INC.
Footnotes to Preceding Financial Statements and Metrics
(dollars in thousands, unaudited)
(1)Non-GAAP Financial Information
This press release includes financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). To supplement eHealth’s condensed consolidated financial statements presented in accordance with GAAP, eHealth presents investors with non-GAAP financial measures, including non-GAAP total operating costs and expenses, certain non-GAAP operating expenses, adjusted EBITDA and adjusted EBITDA margin.
•Non-GAAP total operating costs and expenses is calculated by excluding the effect of expensing stock-based compensation related to stock options, restricted stock awards, performance-based and market-based awards and employee stock purchase plan and impairment, restructuring and other charges from GAAP total operating costs and expenses.
•Non-GAAP marketing and advertising, non-GAAP customer care and enrollment, non-GAAP technology and content and non-GAAP general and administrative expenses are each calculated by excluding the effect of expensing stock-based compensation related to stock options, restricted stock awards, performance-based and market-based awards and employee stock purchase plan from the respective GAAP operating costs and expenses.
•Adjusted EBITDA is calculated by excluding dividends for preferred stock and change in preferred stock redemption value (together the “impact from preferred stock”), provision for (benefit from) income taxes, depreciation and amortization, stock-based compensation expense, impairment, restructuring and other charges, interest expense, other income (expense), net, and other non-recurring charges from GAAP net income (loss) attributable to common stockholders. Other non-recurring charges to GAAP net income (loss) attributable to common stockholders may include transaction expenses in connection with capital raising transactions (whether debt, equity or equity-linked) and acquisitions, whether or not consummated, purchase price adjustments and the cumulative effect of a change in accounting principles.
•Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue.
eHealth believes that the presentation of these non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to eHealth’s financial condition and results of operations. Management believes that the use of these non-GAAP financial measures provides consistency and comparability with eHealth’s past financial reports. Management also believes that the items described above provide an additional measure of eHealth’s operating results and facilitates comparisons of eHealth’s core operating performance against prior periods and business model objectives. This information is provided to investors in order to facilitate additional analyses of past, present and future operating performance and as a supplemental means to evaluate eHealth’s ongoing operations. eHealth believes that these non-GAAP financial measures are useful to investors in their assessment of eHealth’s operating performance.
Non-GAAP total operating costs and expenses, certain non-GAAP operating expenses, adjusted EBITDA and adjusted EBITDA margin are not calculated in accordance with GAAP, and should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP financial measures used in this press release have limitations in that they do not reflect all of the revenue and costs associated with the operations of eHealth’s business and do not reflect income tax as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of eHealth’s results as reported under GAAP. eHealth expects to continue to incur the stock-based compensation costs and depreciation and amortization described above, and exclusion of these costs, and their related income tax benefits, from non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. eHealth compensates for these limitations by prominently disclosing GAAP total operating costs and expenses, certain GAAP operating expenses, GAAP net income (loss), GAAP net income (loss) attributable to common stockholders, GAAP net income (loss) margin and providing investors with reconciliations from eHealth’s GAAP operating results to the non-GAAP financial measures for the relevant periods.
The tables above provide more details on the GAAP financial measures that are most directly comparable to the non-GAAP financial measures described above and the related reconciliations between these financial measures.
(2)Approved members represent the number of individuals on submitted applications that were approved by the relevant insurance carrier for the identified product during the current period for which we are the broker of record. The applications may be submitted in either the current period or prior periods. Not all approved members ultimately become paying members.
(3)Constrained lifetime value (“LTV”) of commissions per approved member for Medicare, individual and family and ancillary plans represents commissions estimated to be collected over the estimated life of an approved member’s plan after applying constraints in accordance with our revenue recognition policy. Constrained LTV of commissions per approved member for small business represents the estimated commissions we expect to collect from the plan over the following twelve months. The estimate is driven by multiple factors, including but not limited to, contracted commission rates, carrier mix, estimated average plan duration, the regulatory environment, cancellations of insurance plans offered by health insurance carriers with which we have a relationship, and applied constraints. The constraints are applied to help ensure that commissions estimated to be collected over the estimated life of an approved member’s plan are recognized as revenue only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with future commissions receivable from the plan is subsequently resolved. These factors may result in varying values from period to period.
(4)Expense Metrics per Approved Member: Marketing initiatives are an important component of our strategy to increase revenue and are primarily designed to encourage consumers to complete an application for health insurance. We calculate and evaluate the customer care and enrollment (“CC&E”) expense per approved member and the variable marketing cost per approved member. We incur CC&E
14
EHEALTH, INC.
Footnotes to Preceding Financial Statements and Metrics
(dollars in thousands, unaudited)
expenses in assisting applicants during the enrollment process. Variable marketing costs represent costs incurred in member acquisition from our direct marketing and marketing partner channels. Variable marketing costs exclude fixed overhead costs, such as personnel related costs, consulting expenses and other operating costs allocated to the marketing and advertising department.
The numerator used to calculate each member acquisition metric discussed above is the portion of the respective operating expenses for CC&E and marketing and advertising that is directly related to member acquisition for our sale of Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans (collectively, the “Medicare Plans”) and for all individual and family major medical plans and short-term health insurance plans (collectively, “IFP Plans”), respectively, for which we are the broker of record. The denominator used to calculate each metric is based on a derived metric that represents the relative value of the new members acquired. For Medicare Plans, we call this derived metric Medicare Advantage (“MA”)-equivalent approved members, and for IFP Plans, we call this derived metric IFP-equivalent approved members. MA-equivalent approved members is a derived metric with a Medicare Part D approved member being weighted at 25% of a Medicare Advantage member and a Medicare Supplement member based on their relative LTVs at the time of our adoption of ASC 606. We calculate the number of MA-equivalent approved members by adding the total number of approved Medicare Advantage and Medicare Supplement members and 25% of the total number of approved Medicare Part D members during the periods presented. IFP-equivalent approved members is a derived metric with a short-term approved member being weighted at 33% of a major medical individual and family health insurance plan member based on their relative LTVs at the time of our adoption of ASC 606. We calculate the number of IFP-equivalent approved members by adding the total number of approved qualified and non-qualified health plan members and 33% of the total number of short-term approved members during the period presented.
(5)Estimated membership represents the estimated number of members active as of the date indicated based on the number of members for whom we have received or applied a commission payment during the period of estimation as well as the number of approved members during the period of estimation from whom we expect to receive commission payments. There is generally up to a few months lag between newly approved plans and the receipt of commission payments from the health insurance carrier and is most pronounced in the fourth and first quarters of our fiscal year due to the annual and open enrollment periods. A member who purchases and is active on multiple standalone insurance plans will be counted as a member more than once.
Health insurance carriers bill and collect insurance premiums paid by our members. The majority of our members who terminate their policies do so by discontinuing their premium payments to the carrier or notifying the carrier directly and do not inform us of the cancellation. Therefore, we depend on carriers and others for membership data. Many carriers do not directly report member cancellations to us and thus we must infer cancellations from commission reports that carriers provide by analyzing whether member premium payments to the carrier have ceased for a period of time. Given the number of months required to observe non-payment of commissions in order to confirm cancellations, especially as some of our members pay their premiums less frequently than monthly, we estimate the number of members who are active on insurance policies as of a specified date.
After we have estimated membership as of a specified date, we may receive information from health insurance carriers that would have impacted the estimate if we had received the information prior to the date of estimation. We may receive commission payments or other information that indicates that a member who was not included in our estimates for a prior period was in fact an active member at that time, or that a member who was included in our estimates was in fact not an active member of ours. For instance, we reconcile information carriers provide to us and may determine that we were not historically paid commissions owed to us, which would cause us to have underestimated membership. Conversely, carriers may require us to return commission payments paid in a prior period due to policy cancellations for members we previously estimated as being active. We do not update our estimated membership numbers reported in previous periods. Instead, we reflect updated information regarding our historical membership in the membership estimate for the current period. If we experience a significant variance in historical membership as compared to our initial estimates, while we keep the prior period data consistent with previously reported amounts, we may provide the updated information in other communications or disclosures. As a result of the delay in our receipt of information from insurance carriers, actual trends in our membership are most discernible over periods longer than from one quarter to the next, making it difficult for us to determine with any certainty the impact of current conditions on our membership retention. Various circumstances could cause the assumptions and estimates that we make in connection with estimating our membership to be inaccurate, which would cause our membership estimates to be inaccurate.
(6)To estimate the number of members on Medicare-related, individual and family, and ancillary health insurance plans, we take the respective sum of (i) the number of members for whom we have received or applied a commission payment for a month that may be up to three months prior to the date of estimation (after reducing that number using historical experience for assumed member cancellations over the period being estimated); and (ii) the number of approved members over that period (after reducing that number using historical experience for an assumed number of members who do not accept their approved policy and for estimated member cancellations). To the extent we determine through confirmations from a health insurance carrier that a commission payment is delayed or is inaccurate as of the date of estimation, we adjust the estimated membership to also reflect the number of members for whom we expect to receive or to refund a commission payment. Further, to the extent we have received substantially all of the commission payments related to a given month during the period being estimated, we will take the number of members for whom we have received or applied a commission payment during the month of estimation. For ancillary health insurance plans, the one-to-three-month period varies by insurance product and is largely dependent upon the timeliness of commission payment and related reporting from the related carriers.
(7)To estimate the number of members on small business health insurance plans, we use the number of initial members at the time the group was approved, and we update this number for changes in membership if such changes are reported to us by the group or carrier. However, groups generally notify the carrier directly of policy cancellations and increases or decreases in group size without informing us. Health insurance carriers often do not communicate policy cancellation information or group size changes to us. We often are made
15
EHEALTH, INC.
Footnotes to Preceding Financial Statements and Metrics
(dollars in thousands, unaudited)
aware of policy cancellations and group size changes at the time of annual renewal and update our membership statistics accordingly in the period they are reported.
(8)LTV-to-CAC ratio is calculated as constrained lifetime value of commissions per MA-equivalent approved member for which we are the broker of record divided by total acquisition cost (including customer care and enrollment and variable marketing costs) per MA-equivalent approved member. The number of MA-equivalent approved members is calculated by adding the total number of approved Medicare Advantage and Medicare Supplement members and 25% of the total number of approved Medicare Part D members during the period presented.
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©2026 eHealthInsurance Services, Inc. 1 Q1 2026 Financial Results
©2026 eHealthInsurance Services, Inc. 2 Safe Harbor Statement Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this presentation include, but are not limited to, the following: our expectations regarding our business, industry and market trends, including market opportunity, consumer demand, carrier strategies and our competitive advantage and long-term vision; our estimates regarding membership, enrollment growth and acquisition costs; our estimates regarding commissions receivable collection; our estimates regarding constrained lifetime value (“LTV”) of commissions receivable per approved member and receivable collection; our expectations regarding our technological and digital capabilities; our expectations regarding our profitability, member retention and LTVs; our strategic objectives in 2026 and beyond, including our lifetime advisory model, product diversification efforts, business and growth strategy, cost management and cash flow generation, and our ability to achieve such strategic objectives; our financial strategies and our ability to achieve our financial targets, including our 2026 annual guidance for total revenue, GAAP net income, adjusted EBITDA and operating cash flow, and our three-year financial targets; our estimates for and the expected impact of positive net adjustment revenue on our 2026 annual guidance; and other statements regarding our future operations, financial condition, prospects and business strategies. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forth in our filings with the Securities and Exchange Commission, including our latest Form 10-Q and Form 10-K. The forward-looking statements in this presentation are based on information available to us as of today, and we disclaim any obligation to update any forward-looking statements, except as required by law. Non-GAAP Information This presentation includes both GAAP and non-GAAP financial measures. The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Definitions and reconciliations of the non-GAAP financial measures included in this presentation to the most directly comparable GAAP financial measures is available in the Appendix to this presentation. Management uses both GAAP and non- GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors. The Company has not provided U.S. GAAP reconciliations of the forward-looking non-U.S. GAAP financial measures in this presentation because certain items that impact these measures cannot be reasonably predicted or determined. As a result, such reconciliations are not available without unreasonable efforts, and the Company is unable to determine the probable significance of the unavailable information.
©2026 eHealthInsurance Services, Inc. 3 Q1 2026 Earnings Highlights Q1 2026 total revenue of $88.0 million decreased 22% YoY reflecting lower Medicare Advantage (“MA”) approved members consistent with our strategy to reduce variable and fixed expenses in ‘26 and focus demand generation on most profitable marketing channels. Q1 2026 positive net adjustment revenue was $8.0 million, compared to $10.5 million in Q1 2025. Q1 2026 total operating costs and expenses decreased 16% YoY. Q1 2026 non-GAAP total operating costs and expenses(1) decreased 21% YoY. On track to reduce total operating costs and expenses by approximately $90.0 million YoY in FY 2026. Variable marketing spend within our Medicare segment declined 45% YoY. Q1 2026 Medicare unit economics improved YoY driven by a 3% increase in MA LTV and a 10% decrease in total acquisition cost per MA-equivalent approved member(1). Q1 2026 Medicare LTV-to-CAC ratio(1) was 1.4x, an improvement from 1.2x in Q1 2025. Q1 2026 GAAP net loss of $4.7 million compared to GAAP net income of $2.0 million a year ago. Q1 2026 GAAP net loss margin of 5% compared to Q1 2025 GAAP net income margin of 2%. Q1 2026 adjusted EBITDA(1) of $9.0 million or 10% adjusted EBITDA margin(1) compared to $12.5 million or 11% adjusted EBITDA margin(1) a year ago. Q1 2026 operating cash flow of $35.8 million. On track to achieve 2026 annual operating cash flow guidance. Cash, cash equivalents and marketable securities of $110.8 million and commissions receivable balance of $1.04 billion as of March 31, 2026. eHealth delivered strong first quarter results that reflect material YoY improvements in operating expenses and Medicare unit economics. (1) Refer to the appendix for definitions of certain metrics and our non-GAAP financial measures along with reconciliations to the most comparable GAAP measure.
©2026 eHealthInsurance Services, Inc. 4 Q1 2026 Revenue & Profitability (1) Refer to the appendix for definitions of certain metrics and our non-GAAP financial measures along with reconciliations to the most comparable GAAP measure. $113.1 $88.0 Q1-FY25 Q1-FY26 Total Revenue ($, MM) $12.5 $9.0 Q1-FY25 Q1-FY26 Adjusted EBITDA(1) ($, MM) $2.0 ($4.7) Q1-FY25 Q1-FY26 GAAP Net Income (Loss) ($, MM) (22%) (28%) Q1 2026 revenue declined 22% YoY driven primarily by lower enrollment volume and partially offset by higher Medicare LTVs as we reduced variable marketing spend to focus on high ROI channels. Q1 2026 GAAP net loss YoY change was primarily due to restructuring charges of $6.4M booked in connection with our workforce reduction. Q1 2026 GAAP net loss margin of 5% compared to Q1 2025 GAAP net income margin of 2%. Q1 2026 adjusted EBITDA margin(1) of 10% declined slightly relative to 11% a year ago.
©2026 eHealthInsurance Services, Inc. 34% 41% Q1-FY25 Q1-FY26 Medicare Gross Margin(1) $35.7 $33.0 Q1-FY25 Q1-FY26 Medicare Segment Gross Profit(1) ($, MM) $103.7 $81.3 Q1-FY25 Q1-FY26 Medicare Segment Revenue ($, MM) 5 Q1 2026 Medicare Segment Performance (1) Refer to the appendix for definitions of certain metrics and our non-GAAP financial measures along with reconciliations to the most comparable GAAP measure. (8%) Q1 2026 Medicare segment revenue declined 22% YoY while Medicare segment gross margin(1) increased by 620bps YoY. Increase in Medicare gross margin was due to improvements in Medicare unit economics including greater LTVs and lower total cost of acquisition per MA-equivalent approved member(1). (22%) +620 bps
©2026 eHealthInsurance Services, Inc. 6 (1) Refer to the appendix for definitions of certain metrics and our non-GAAP financial measures along with reconciliations to the most comparable GAAP measures. Q1 2026 Medicare Submissions(1) Declined While Acquisition Costs and Lifetime Values Improved YoY 104,181 78,940 Q1-FY25 Q1-FY26 Medicare Submissions (24%) $907 $938 Q1-FY25 Q1-FY26 MA LTV ($) 3% $754 $676 Q1-FY25 Q1-FY26 Total Acquisition Cost per MA- equivalent Approved Member(1) ($) (10%) Q1 2026 Medicare submissions declined 24% YoY, while LTV grew for Medicare Advantage, Medicare Supplement, and PDP products. Q1 2026 total acquisition cost per MA-equivalent approved member(1) declined 10%, primarily driven by a 28% YoY decline in variable marketing costs per member.
©2026 eHealthInsurance Services, Inc. $952 ($419) ($415) $907 ($361) ($393) $938 ($393) ($283) 7 (1) Refer to the appendix for definitions of certain metrics and our non-GAAP financial measures along with reconciliations to the most comparable GAAP measures. Q1-FY24 MA LTV Variable marketing cost per MA-Equiv. Approved Member(1) CC&E per MA-Equiv. Approved Member(1) Per Unit Gross Margin MA LTV Variable marketing cost per MA-Equiv. Approved Member(1) CC&E per MA-Equiv. Approved Member(1) Per Unit Gross Margin Q1-FY25 Medicare Unit Economics Expanded in Q1 2026 MA LTV Variable marketing cost per MA-Equiv. Approved Member(1) CC&E per MA-Equiv. Approved Member(1) Per Unit Gross Margin Q1-FY26 Strong Medicare LTV-to-CAC ratio(1) growth driven by disciplined marketing spend, improved channel mix, and the continued impact of branding initiatives $118 12% $153 17% $262 28% 1.1x Medicare LTV-CAC Ratio 1.4x Medicare LTV-CAC Ratio 1.2x Medicare LTV-CAC Ratio
8 Launched Lifetime Advisory Model in April ‘26 Leading with deep member-advisor relationships, driving increased engagement, loyalty & lifetime value MA plan match Offer additional products / services Needs analysis Monitor changes in needs & coverage ©2026 eHealthInsurance Services, Inc.
©2026 eHealthInsurance Services, Inc. 9 FY26 Guidance (1) Refer to the appendix for definitions of certain metrics and our non-GAAP financial measures along with reconciliations to the most comparable GAAP measure. 2026 Full Year Guidance Guidance Range (in millions) Total Revenue $405 – $445 GAAP Net Income $8 – $25 Adjusted EBITDA(1) $55 – $75 Operating Cash Flow ($10) – $12 2026 guidance includes the expected impact of positive net adjustment revenue which has been updated to be in the range of $8 million to $20 million to reflect the Q1 2026 positive net adjustment revenue, compared to the previous range of $0 to $20 million.
10 3-Year Financial Targets • We view 2026 as a bridge year, with return to growth forecasted for 2027 on a streamlined cost foundation and greater product and revenue diversification. • Assumes conservative macro outlook. Growth goals could be accelerated should we observe a more rapid stabilization of the Medicare Advantage market. (1) Refer to the appendix for definitions of certain metrics and our non-GAAP financial measures along with reconciliations to the most comparable GAAP measure. (2) eHealth has not provided a reconciliation of its 3-Year financial targets for Adjusted EBITDA margin and Free Cash Flow for 2027 and 2028 to its most directly comparable GAAP financial measure in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. eHealth is unable to predict with reasonable certainty the amount and timing of adjustments that are used to calculate this non-GAAP financial measure, including, but not limited to, impairment, restructuring and other charges, other income and expense items and capitalized internal-use software and website development costs. 2027: Mid-single digit percentage growth YoY 2028: Mid-teens percentage growth YoY REVENUE ADJUSTED EBITDA(1) Adjusted EBITDA margin(1)(2) expansion in ‘27 and ‘28 Reaching 20% adjusted EBITDA margin(1)(2) by ‘28 2027: Positive operating cash flow, breakeven free cash flow(1)(2) 2028: Positive operating and free cash flow(1)(2) CASH FLOW Key Operational Assumptions • Modest YoY increases in Medicare marketing spend starting in Q4 ‘27 • Lifetime Advisory model increases member persistency and ancillary product revenue through higher attach rates • Diversification initiatives in the Employer & Individual space with focus on ICHRA start contributing to topline growth in ’28 • Fixed cost leverage driven by targeted reductions implemented In ’26 ©2026 eHealthInsurance Services, Inc.
©2026 eHealthInsurance Services, Inc. Appendix 11
©2026 eHealthInsurance Services, Inc. 12 Definitions LTV-to-CAC ratio is calculated as constrained lifetime value of commissions per Medicare Advantage (“MA”)-equivalent approved member for which we are the broker of record divided by total acquisition cost (including customer care and enrollment and variable marketing costs) per MA-equivalent approved member. MA-equivalent approved member is calculated by adding the total number of approved Medicare Advantage and Medicare Supplement members and 25% of the total number of approved Medicare Part D members during the period presented. Segment gross profit (loss) is calculated as total revenue for the applicable segment less variable marketing and advertising expenses, segment customer care and enrollment expenses and cost of revenue for the applicable segment. Variable marketing and advertising expenses represent costs incurred in member acquisition from our direct marketing and marketing partner channels and exclude fixed overhead costs, such as personnel related costs, consulting expenses and other operating costs allocated to the marketing and advertising department. Segment CC&E expenses include expenses we incur in assisting applicants during the enrollment process and exclude operating costs allocated to the CC&E department. Segment gross margin is calculated as segment gross profit (loss) divided by total revenue for the applicable segment. Submissions describe applications that are submitted by individuals online through our eHealth platform or completed with the assistance of our benefit advisors where the individual provides authorization to the benefit advisor to submit the application to the insurance carrier partner. The individual may have additional actions to take before the application will be reviewed by the insurance carrier and not all submissions ultimately become approved members.
©2026 eHealthInsurance Services, Inc. 13 Definitions Non-GAAP financial measures within this presentation are defined as follows: • Adjusted EBITDA is calculated by excluding dividends for preferred stock and change in preferred stock redemption value (together the “impact from preferred stock”), provision for (benefit from) income taxes, depreciation and amortization, stock- based compensation expense, impairment, restructuring and other charges, interest expense, other income (expense), net, and other non-recurring charges from GAAP net income (loss) attributable to common stockholders. Other non-recurring charges to GAAP net income (loss) attributable to common stockholders may include transaction expenses in connection with capital raising transactions (whether debt, equity or equity-linked) and acquisitions, whether or not consummated, purchase price adjustments and the cumulative effect of a change in accounting principles. • Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue. • Non-GAAP total operating costs and expenses is calculated by excluding the effect of expensing stock-based compensation related to stock options, restricted stock awards, performance-based and market-based awards and employee stock purchase plan and impairment, restructuring and other charges from GAAP total operating costs and expenses. • Free cash flow is calculated as net cash provided by (used in) operating activities reduced by capitalized internal-use software and website development costs and purchases of property and equipment and other assets.
©2026 eHealthInsurance Services, Inc. 14 Reconciliation of GAAP to Non-GAAP Financial Measures (1) Refer to the appendix for definitions of our non-GAAP financial measures.
©2026 eHealthInsurance Services, Inc. 15 Reconciliation of Guidance GAAP Net Loss Attributable to Common Stockholders to Adjusted EBITDA (1) Refer to the appendix for definitions of our non-GAAP financial measures.
FAQ
How did eHealth (EHTH) perform financially in Q1 2026?
eHealth generated $88.0 million in Q1 2026 revenue, a 22% year-over-year decline. The company reported a GAAP net loss of $4.7 million versus net income of $2.0 million in Q1 2025, mainly due to restructuring charges.
What were eHealth (EHTH) adjusted EBITDA results for Q1 2026?
eHealth reported adjusted EBITDA of $9.0 million in Q1 2026, down from $12.5 million a year earlier. Adjusted EBITDA margin was 10% compared to 11% in Q1 2025, reflecting lower revenue despite significant cost reductions.
How are eHealth’s (EHTH) Medicare unit economics trending in Q1 2026?
Medicare unit economics improved, with Medicare gross margin rising to 41% from 34%. Lifetime value for Medicare Advantage increased 3%, total acquisition cost per MA-equivalent approved member fell 10%, and the Medicare LTV-to-CAC ratio improved from 1.2x to 1.4x.
What cost reduction progress did eHealth (EHTH) report for Q1 2026?
Total operating costs declined to $90.9 million, down 16% year over year, while non-GAAP operating costs fell 21%. Management stated they are on track to reduce full-year 2026 operating costs by approximately $90 million compared with the prior year.
What is eHealth’s (EHTH) full year 2026 financial guidance?
For 2026, eHealth forecasts total revenue of $405–$445 million, GAAP net income of $8–$25 million and adjusted EBITDA of $55–$75 million. Operating cash flow is guided to a range between negative $10 million and positive $12 million.
Did eHealth (EHTH) announce any board changes in this filing?
Yes. Director Cesar Soriano will resign immediately before the June 18, 2026 annual meeting to focus on his CEO role at Confie Corporation. Along with Andrea Brimmer’s term ending, the board plans to shrink from ten members to eight.