eHealth (NASDAQ: EHTH) boosts 2025 earnings but guides lower for 2026
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
eHealth, Inc. reported another year of improved profitability for 2025 while issuing a cautious outlook for 2026. Full-year 2025 revenue reached $554.0 million, up 4%, with GAAP net income rising to $40.0 million from $10.1 million and adjusted EBITDA increasing 40% to $97.3 million.
Fourth-quarter 2025 revenue was $326.2 million, up 4% year over year, while GAAP net income declined to $87.2 million from $97.5 million, mainly due to a higher effective tax rate. Q4 adjusted EBITDA improved 10% to $132.9 million, and the adjusted EBITDA margin increased to 41%.
The company ended 2025 with a $1.1 billion commissions receivable balance, up 12%, and enhanced liquidity by replacing a $70.0 million term loan with a $125.0 million asset-backed revolving credit facility maturing in 2028. For 2026, eHealth guides to revenue of $405–$445 million, GAAP net income of $8–$25 million, adjusted EBITDA of $55–$75 million, and operating cash flow between -$10 million and $12 million, prioritizing cash generation and margin over near-term growth.
Positive
- Profitability inflection in 2025: Revenue rose to $554.0 million (up 4%), GAAP net income increased to $40.0 million from $10.1 million, and adjusted EBITDA climbed 40% to $97.3 million, supported by better Medicare unit economics and cost efficiency.
Negative
- Materially lower 2026 outlook vs. 2025 actuals: Guidance calls for revenue of $405–$445 million and adjusted EBITDA of $55–$75 million, both well below 2025 levels, indicating expected top-line and earnings contraction despite a focus on cash flow.
Insights
2025 profitability improved sharply, but 2026 guidance points to lower revenue and earnings.
eHealth delivered clear operating leverage in 2025: revenue grew 4% to
Cash generation foundations also improved. Commissions receivable increased 12% to
However, the
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): February 25, 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)
(Former name or former address, if changed since last report)
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 February 25, 2026, eHealth, Inc. (the “Company”) issued a press release announcing its financial results for the three and twelve months ended December 31, 2025 and its financial condition as of December 31, 2025. 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 February 25, 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 the exhibits 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. 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 9.01 | Financial Statements and Exhibits. | |||||||
(d) Exhibits
| Exhibit No. | Description | ||||
| 99.1 | Press Release of eHealth, Inc. dated February 25, 2026 (eHealth, Inc. Announces Fourth Quarter and Fiscal Year 2025 Results) | ||||
| 99.2 | Financial Results Conference Call Slides of eHealth, Inc. dated February 25, 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: | February 25, 2026 | /s/ John J. Dolan | ||||||
John J. Dolan Chief Financial Officer (Principal Financial Officer) | ||||||||
eHealth, Inc. Announces Fourth Quarter and Fiscal Year 2025 Results
Achieves record-breaking quarterly revenue
Ends FY’25 with highest ever commissions receivable balance of $1.1 billion
Increases financial flexibility with $125.0 million asset-based revolving credit facility
Launches AI voice agent at scale during Medicare Annual Enrollment Period
INDIANAPOLIS, Indiana — February 25, 2026 — eHealth, Inc. (Nasdaq: EHTH), a leading private online health insurance marketplace, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2025.
| CEO Comments | ||||||||
“In 2025, eHealth delivered strong results, achieving meaningfully higher earnings year-over-year and growth of our commissions receivable in a complex and rapidly evolving environment. We closed the year with another highly successful Annual Enrollment Period (“AEP”), helping hundreds of thousands of seniors navigate another disruptive Medicare Advantage cycle. This is an outcome that speaks to the differentiated value of our platform, brand, and the trust we’ve built with consumers and carrier partners. We've also strengthened our balance sheet, entering 2026 with enhanced financial flexibility and a longer-term commitment of capital to execute our strategic priorities.” – Derrick Duke, Chief Executive Officer | ||||||||
| Results Overview | ||
■Successful execution of AEP with a more tenured advisor force, stronger branded channels, expanded member retention programs and scaling of our AI capabilities.
■Q4 2025 total revenue of $326.2 million increased 4% compared to Q4 2024 total revenue of $315.2 million, driven primarily by meaningful Medicare segment growth, partially offset by lower other revenue and positive net adjustment revenue.
■Medicare Advantage (“MA”) constrained lifetime value (“LTV”) of commissions increased 11%, reflecting improved quality and retention trends.
■Total MA submissions(9) across agency and carrier-dedicated Amplify platforms declined 4% year-over-year, as we focused on our highest-margin channels during AEP, de-emphasizing spend on third-party channels.
■Q4 2025 Medicare unit economics expanded 4% year-over-year, driven by higher MA constrained LTV of commissions while total Medicare acquisition cost per MA-equivalent approved member increased 1%, resulting in a Medicare LTV-to-CAC ratio(10) of 2.2x, a meaningful improvement from 2.0x in Q4 2024.
■Q4 2025 GAAP net income of $87.2 million decreased $10.3 million, compared to Q4 2024 GAAP net income of $97.5 million primarily due to a higher year-over-year effective tax rate driven by a difference in quarterly tax expense estimation methods, partially offset by higher total revenue.
■Q4 2025 adjusted EBITDA(1) of $132.9 million improved 10% compared to Q4 2024 adjusted EBITDA(1) of $121.3 million primarily driven by improved Medicare LTV-to-CAC ratio and continued cost efficiency efforts.
■FY 2025 total revenue of $554.0 million increased 4% compared to FY 2024 total revenue of $532.4 million.
■FY 2025 total MA submissions across agency and carrier-dedicated Amplify platforms declined 3% year-over-year.
■FY 2025 GAAP net income of $40.0 million increased significantly compared to FY 2024 GAAP net income of $10.1 million.
■FY 2025 adjusted EBITDA(1) of $97.3 million improved 40% compared to FY 2024 adjusted EBITDA(1) of $69.3 million.
■Cash, cash equivalents and marketable securities of $77.2 million as of December 31, 2025.
■Commissions receivable balance of $1.1 billion as of December 31, 2025 grew 12% compared to $1.0 billion as of December 31, 2024.
■Replaced $70.0 million term loan credit facility with $125.0 million asset-backed revolving credit facility maturing in December 2028, providing additional financial flexibility.
__________
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
Said John Dolan, Chief Financial Officer: “With gains already evident in 2025, we remain firmly focused on enrollment quality and are continuing to build on this positive momentum with the intention to drive break-even operating cash flow in 2026. We plan to further reduce our investment in lower-margin third-party marketing channels, focusing on our direct branded channels and key diversification initiatives. Our guidance also reflects our cost savings efforts already initiated in January 2026, which are expected to generate approximately $30 million of fixed cost savings combined with over $60 million of planned reductions in variable spend in 2026 compared to 2025.”
Based on information available as of February 25, 2026, we are providing 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 in the 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, February 25, 2026 at 5:00 p.m. Eastern Time. Individuals interested in listening to the conference call may do so by dialing (800) 549-8228. The participant passcode is 52426. 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.
We’re Matchmakers. For over 25 years, eHealth has helped millions of Americans find the healthcare coverage that fits their needs at a price they can afford. As a leading independent licensed insurance agency and advisor, eHealth offers access to over 180 health insurers, including national and regional companies.
For more information, visit eHealth.com or follow us on LinkedIn, Facebook, Instagram, and X. Open positions can be found on our career page.
Forward-Looking Statements
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. 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 costs per approved member; our expectations regarding our growth and operational strategies and plans, including cost savings, marketing, diversification, enrollment quality initiatives and the expected impact of these initiatives on our business, operating results and financial condition; our ability to execute our operational and strategic plans; our 2026 annual guidance for total revenue, GAAP net income, adjusted EBITDA and operating cash flow; our estimates for positive net adjustment revenue and its expected impact on our 2026 annual guidance; our expectations regarding market opportunity, consumer demand and our competitive advantage; the expected financial flexibility resulting from our asset-based revolving credit facility; and other statements regarding our future operations, financial condition, prospects and business strategies.
2
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. 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 contact our consumers or market our products through specific channels; 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; 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)
| December 31, 2025 | December 31, 2024 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 73,725 | $ | 39,197 | |||||||
| Short-term marketable securities | 3,495 | 43,043 | |||||||||
| Accounts receivable | 7,688 | 16,807 | |||||||||
| Contract assets – commissions receivable – current | 236,116 | 242,467 | |||||||||
| Prepaid expenses and other current assets | 13,328 | 12,961 | |||||||||
| Total current assets | 334,352 | 354,475 | |||||||||
| Contract assets – commissions receivable – non-current | 886,614 | 757,523 | |||||||||
| Property and equipment, net | 4,531 | 4,437 | |||||||||
| Operating lease right-of-use assets | 8,429 | 12,081 | |||||||||
| Restricted cash | 3,090 | 3,090 | |||||||||
| Other assets | 25,452 | 23,819 | |||||||||
| Total assets | $ | 1,262,468 | $ | 1,155,425 | |||||||
| Liabilities, convertible preferred stock and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 28,323 | $ | 23,448 | |||||||
| Accrued compensation and benefits | 41,009 | 43,888 | |||||||||
| Accrued marketing expenses | 16,182 | 16,612 | |||||||||
| Lease liabilities – current | 7,349 | 7,732 | |||||||||
| Other current liabilities | 6,207 | 4,331 | |||||||||
| Total current liabilities | 99,070 | 96,011 | |||||||||
| Long-term debt | 112,954 | 68,458 | |||||||||
| Deferred income taxes – non-current | 57,223 | 38,870 | |||||||||
| Lease liabilities – non-current | 14,050 | 20,731 | |||||||||
| Other non-current liabilities | 5,519 | 5,418 | |||||||||
| Total liabilities | 288,816 | 229,488 | |||||||||
| Convertible preferred stock | 382,057 | 337,509 | |||||||||
| Stockholders’ equity: | |||||||||||
| Common stock | 44 | 43 | |||||||||
| Additional paid-in capital | 761,495 | 773,371 | |||||||||
| Treasury stock, at cost | (199,998) | (199,998) | |||||||||
| Retained earnings | 30,116 | 15,246 | |||||||||
| Accumulated other comprehensive loss | (62) | (234) | |||||||||
| Total stockholders’ equity | 591,595 | 588,428 | |||||||||
| Total liabilities, convertible preferred stock and stockholders’ equity | $ | 1,262,468 | $ | 1,155,425 | |||||||
4
EHEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts, unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||
| Commission | $ | 297,055 | $ | 275,651 | 8 | % | $ | 497,955 | $ | 461,647 | 8 | % | |||||||||||||||||||||||
| Other | 29,183 | 39,530 | (26) | % | 56,053 | 70,763 | (21) | % | |||||||||||||||||||||||||||
| Total revenue | 326,238 | 315,181 | 4 | % | 554,008 | 532,410 | 4 | % | |||||||||||||||||||||||||||
Operating costs and expenses(a): | |||||||||||||||||||||||||||||||||||
Marketing and advertising | 94,231 | 97,446 | (3) | % | 181,240 | 192,631 | (6) | % | |||||||||||||||||||||||||||
Customer care and enrollment | 60,940 | 62,675 | (3) | % | 162,885 | 163,448 | — | % | |||||||||||||||||||||||||||
Technology and content | 16,069 | 14,907 | 8 | % | 51,829 | 53,520 | (3) | % | |||||||||||||||||||||||||||
General and administrative | 28,738 | 27,447 | 5 | % | 89,555 | 89,765 | — | % | |||||||||||||||||||||||||||
| Impairment, restructuring and other charges | — | 66 | (100) | % | 2,010 | 9,475 | (79) | % | |||||||||||||||||||||||||||
| Total operating costs and expenses | 199,978 | 202,541 | (1) | % | 487,519 | 508,839 | (4) | % | |||||||||||||||||||||||||||
| Income from operations | 126,260 | 112,640 | 12 | % | 66,489 | 23,571 | 182 | % | |||||||||||||||||||||||||||
| Interest expense | (3,381) | (2,642) | (28) | % | (10,761) | (11,159) | 4 | % | |||||||||||||||||||||||||||
| Other income (loss), net | (896) | 475 | (289) | % | 2,998 | 6,900 | (57) | % | |||||||||||||||||||||||||||
| Income before income taxes | 121,983 | 110,473 | 10 | % | 58,726 | 19,312 | 204 | % | |||||||||||||||||||||||||||
| Provision for income taxes | 34,800 | 12,991 | 18,682 | 9,255 | |||||||||||||||||||||||||||||||
| Net income | 87,183 | 97,482 | (11) | % | 40,044 | 10,057 | 298 | % | |||||||||||||||||||||||||||
| Preferred stock dividends | (5,990) | (5,646) | (23,604) | (22,249) | |||||||||||||||||||||||||||||||
| Change in preferred stock redemption value | (7,261) | (6,149) | (26,844) | (22,768) | |||||||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 73,932 | $ | 85,687 | (14) | % | $ | (10,404) | $ | (34,960) | 70 | % | |||||||||||||||||||||||
Net income (loss) per share attributable to common stockholders(8): | |||||||||||||||||||||||||||||||||||
Basic | $ | 2.13 | $ | 2.57 | (17) | % | $ | (0.34) | $ | (1.19) | 71 | % | |||||||||||||||||||||||
| Diluted | $ | 2.06 | $ | 2.51 | (18) | % | $ | (0.34) | $ | (1.19) | 71 | % | |||||||||||||||||||||||
| Weighted-average number of shares used in per share: | |||||||||||||||||||||||||||||||||||
Basic | 30,890 | 29,706 | 4 | % | 30,484 | 29,335 | 4 | % | |||||||||||||||||||||||||||
| Diluted | 32,024 | 30,554 | 5 | % | 30,484 | 29,335 | 4 | % | |||||||||||||||||||||||||||
_____________________________ (a) Includes stock-based compensation expense as follows: | |||||||||||||||||||||||||||||||||||
| Marketing and advertising | $ | 577 | $ | 621 | $ | 2,268 | $ | 2,413 | |||||||||||||||||||||||||||
| Customer care and enrollment | 286 | 358 | 1,221 | 1,845 | |||||||||||||||||||||||||||||||
| Technology and content | 518 | 733 | 2,552 | 3,331 | |||||||||||||||||||||||||||||||
| General and administrative | 2,075 | 3,044 | 9,002 | 12,292 | |||||||||||||||||||||||||||||||
| Total stock-based compensation expense | $ | 3,456 | $ | 4,756 | (27) | % | $ | 15,043 | $ | 19,881 | (24) | % | |||||||||||||||||||||||
Non-GAAP Results(1): | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | $ | 132,928 | $ | 121,289 | 10 | % | $ | 97,300 | $ | 69,265 | 40 | % | |||||||||||||||||||||||
Adjusted EBITDA margin(1) | 41 | % | 38 | % | 18 | % | 13 | % | |||||||||||||||||||||||||||
__________
Note: See accompanying footnotes on page 14.
5
EHEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Operating activities: | |||||||||||||||||||||||
| Net income | $ | 87,183 | $ | 97,482 | $ | 40,044 | $ | 10,057 | |||||||||||||||
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||||||||||||
| Depreciation and amortization | 497 | 502 | 1,881 | 1,983 | |||||||||||||||||||
| Amortization of internally developed software | 2,715 | 3,325 | 11,877 | 14,355 | |||||||||||||||||||
| Stock-based compensation expense | 3,456 | 4,756 | 15,043 | 19,881 | |||||||||||||||||||
| Deferred income taxes | 35,363 | 13,523 | 18,353 | 9,183 | |||||||||||||||||||
| Loss on debt extinguishment | 1,207 | — | 1,207 | — | |||||||||||||||||||
| Impairment charges | — | 66 | 868 | 7,479 | |||||||||||||||||||
| Other non-cash items | 843 | 472 | 247 | 429 | |||||||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||||||
| Accounts receivable | (5,835) | (10,943) | 9,120 | (12,814) | |||||||||||||||||||
| Contract assets – commissions receivable | (215,767) | (186,499) | (122,956) | (81,917) | |||||||||||||||||||
| Prepaid expenses and other assets | 2,955 | 5,690 | (4,706) | (4,206) | |||||||||||||||||||
| Accounts payable | 22,120 | 18,138 | 5,009 | 16,173 | |||||||||||||||||||
| Accrued compensation and benefits | 16,742 | 17,680 | (2,879) | 3,087 | |||||||||||||||||||
| Accrued marketing expenses | 10,624 | 7,404 | (430) | (3,728) | |||||||||||||||||||
| Deferred revenue | 1,838 | 550 | 966 | 1,411 | |||||||||||||||||||
| Accrued expenses and other liabilities | 110 | 192 | 1,011 | 261 | |||||||||||||||||||
| Net cash used in operating activities | (35,949) | (27,662) | (25,345) | (18,366) | |||||||||||||||||||
| Investing activities: | |||||||||||||||||||||||
| Capitalized internal-use software and website development costs | (2,273) | (2,692) | (13,058) | (10,762) | |||||||||||||||||||
| Purchases of property and equipment and other assets | (143) | (631) | (2,250) | (2,094) | |||||||||||||||||||
| Purchases of marketable securities | — | (11,105) | (74,010) | (96,985) | |||||||||||||||||||
| Proceeds from redemption and maturities of marketable securities | 8,800 | 22,420 | 114,750 | 61,420 | |||||||||||||||||||
| Net cash provided by (used in) investing activities | 6,384 | 7,992 | 25,432 | (48,421) | |||||||||||||||||||
| Financing activities: | |||||||||||||||||||||||
| Repayment of term loan credit facility | (70,732) | — | (70,732) | — | |||||||||||||||||||
| Proceeds from revolving credit facility, net of costs | 122,188 | — | 122,188 | — | |||||||||||||||||||
| Payments of deferred financing costs | (8,233) | (1,050) | (9,233) | (1,050) | |||||||||||||||||||
| Net proceeds from exercise of common stock options and employee stock purchases | 215 | — | 404 | 354 | |||||||||||||||||||
| Repurchase of shares to satisfy employee tax withholding obligations | (337) | (1,112) | (2,439) | (3,413) | |||||||||||||||||||
| Principal payments in connection with leases | — | — | — | (4) | |||||||||||||||||||
| Payments of preferred stock dividends | (2,994) | (2,821) | (5,900) | (5,561) | |||||||||||||||||||
Net cash provided by (used in) financing activities | 40,107 | (4,983) | 34,288 | (9,674) | |||||||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 94 | (182) | 153 | (64) | |||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 10,636 | (24,835) | 34,528 | (76,525) | |||||||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 66,179 | 67,122 | 42,287 | 118,812 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 76,815 | $ | 42,287 | $ | 76,815 | $ | 42,287 | |||||||||||||||
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, which include 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 December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||||||||||||||
| Medicare: | |||||||||||||||||||||||||||||||||||
Total revenue | $ | 319,553 | $ | 305,781 | 5 | % | $ | 531,213 | $ | 500,638 | 6 | % | |||||||||||||||||||||||
Variable marketing and advertising | (82,598) | (86,091) | 4 | % | (147,081) | (157,121) | 6 | % | |||||||||||||||||||||||||||
| Medicare CC&E | (57,496) | (58,659) | 2 | % | (151,092) | (150,613) | — | % | |||||||||||||||||||||||||||
Cost of revenue | (1,160) | (1,151) | (1) | % | (1,002) | (1,396) | 28 | % | |||||||||||||||||||||||||||
| Medicare segment gross profit | $ | 178,299 | $ | 159,880 | 12 | % | $ | 232,038 | $ | 191,508 | 21 | % | |||||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||||||||||||||
| Employer and Individual: | |||||||||||||||||||||||||||||||||||
Total revenue | $ | 6,685 | $ | 9,400 | (29) | % | $ | 22,795 | $ | 31,772 | (28) | % | |||||||||||||||||||||||
Variable marketing and advertising | (1,726) | (1,911) | 10 | % | (4,356) | (4,321) | (1) | % | |||||||||||||||||||||||||||
| E&I CC&E | (2,843) | (3,371) | 16 | % | (9,378) | (10,103) | 7 | % | |||||||||||||||||||||||||||
Cost of revenue | (90) | (98) | 8 | % | (331) | (398) | 17 | % | |||||||||||||||||||||||||||
| E&I segment gross profit | $ | 2,026 | $ | 4,020 | (50) | % | $ | 8,730 | $ | 16,950 | (48) | % | |||||||||||||||||||||||
7
EHEALTH, INC.
SEGMENT INFORMATION
(in thousands, unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||||||||||||||
| Consolidated: | |||||||||||||||||||||||||||||||||||
Total revenue | $ | 326,238 | $ | 315,181 | 4 | % | $ | 554,008 | $ | 532,410 | 4 | % | |||||||||||||||||||||||
Variable marketing and advertising | (84,324) | (88,002) | 4 | % | (151,437) | (161,442) | 6 | % | |||||||||||||||||||||||||||
Segment CC&E | (60,339) | (62,030) | 3 | % | (160,470) | (160,716) | — | % | |||||||||||||||||||||||||||
Cost of revenue | (1,250) | (1,249) | — | % | (1,333) | (1,794) | 26 | % | |||||||||||||||||||||||||||
| Total segment gross profit | $ | 180,325 | $ | 163,900 | 10 | % | $ | 240,768 | $ | 208,458 | 15 | % | |||||||||||||||||||||||
A reconciliation of our segment gross profit to the Condensed Consolidated Statements of Operations for the periods presented is as follows:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||||||||||||||
| Total segment gross profit | $ | 180,325 | $ | 163,900 | 10 | % | $ | 240,768 | $ | 208,458 | 15 | % | |||||||||||||||||||||||
Other marketing and advertising(a) | (8,657) | (8,195) | (6) | % | (28,470) | (29,395) | 3 | % | |||||||||||||||||||||||||||
Other CC&E(b) | (601) | (645) | 7 | % | (2,415) | (2,732) | 12 | % | |||||||||||||||||||||||||||
| Technology and content | (16,069) | (14,907) | (8) | % | (51,829) | (53,520) | 3 | % | |||||||||||||||||||||||||||
| General and administrative | (28,738) | (27,447) | (5) | % | (89,555) | (89,765) | — | % | |||||||||||||||||||||||||||
| Impairment, restructuring and other charges | — | (66) | 100 | % | (2,010) | (9,475) | 79 | % | |||||||||||||||||||||||||||
| Interest expense | (3,381) | (2,642) | (28) | % | (10,761) | (11,159) | 4 | % | |||||||||||||||||||||||||||
| Other income (loss), net | (896) | 475 | (289) | % | 2,998 | 6,900 | (57) | % | |||||||||||||||||||||||||||
| Income before income taxes | $ | 121,983 | $ | 110,473 | 10 | % | $ | 58,726 | $ | 19,312 | 204 | % | |||||||||||||||||||||||
(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.
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 December 31, | % Change | Year Ended December 31, | % Change | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||
| Medicare | |||||||||||||||||||||||||||||||||||
| Medicare Advantage | $ | 270,846 | $ | 251,315 | 8 | % | $ | 421,809 | $ | 394,942 | 7 | % | |||||||||||||||||||||||
| Medicare Supplement | 9,943 | 7,799 | 27 | % | 34,142 | 19,634 | 74 | % | |||||||||||||||||||||||||||
Medicare Part D | 1,928 | 6,535 | (70) | % | 4,884 | 12,773 | (62) | % | |||||||||||||||||||||||||||
| Total Medicare | 282,717 | 265,649 | 6 | % | 460,835 | 427,349 | 8 | % | |||||||||||||||||||||||||||
Individual and Family | |||||||||||||||||||||||||||||||||||
Non-Qualified Health Plans | 1,540 | 1,806 | (15) | % | 1,899 | 3,640 | (48) | % | |||||||||||||||||||||||||||
Qualified Health Plans | 635 | 1,404 | (55) | % | 1,934 | 4,762 | (59) | % | |||||||||||||||||||||||||||
Total Individual and Family | 2,175 | 3,210 | (32) | % | 3,833 | 8,402 | (54) | % | |||||||||||||||||||||||||||
| Ancillary | 7,870 | 3,508 | 124 | % | 19,225 | 10,787 | 78 | % | |||||||||||||||||||||||||||
| Small Business | 3,120 | 3,098 | 1 | % | 11,102 | 11,545 | (4) | % | |||||||||||||||||||||||||||
| Commission Bonus and Other | 1,173 | 186 | 531 | % | 2,960 | 3,564 | (17) | % | |||||||||||||||||||||||||||
| Total Commission Revenue | $ | 297,055 | $ | 275,651 | 8 | % | $ | 497,955 | $ | 461,647 | 8 | % | |||||||||||||||||||||||
The following table presents a summary of commission revenue by segment for the periods indicated:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Medicare | |||||||||||||||||||||||
Commission revenue from members approved during the period | $ | 286,901 | $ | 260,870 | $ | 433,205 | $ | 412,887 | |||||||||||||||
Net commission revenue from members approved in prior periods(a) | 3,827 | 5,905 | 42,962 | 18,678 | |||||||||||||||||||
Total Medicare segment commission revenue | 290,728 | 266,775 | 476,167 | 431,565 | |||||||||||||||||||
Employer and Individual | |||||||||||||||||||||||
Commission revenue from members approved during the period | 3,878 | 4,673 | 11,537 | 16,463 | |||||||||||||||||||
Commission revenue from renewals of small business members during the period | 2,383 | 2,540 | 8,862 | 9,562 | |||||||||||||||||||
Net commission revenue from members approved in prior periods(a) | 66 | 1,663 | 1,389 | 4,057 | |||||||||||||||||||
Total Employer and Individual segment commission revenue | 6,327 | 8,876 | 21,788 | 30,082 | |||||||||||||||||||
Total commission revenue | $ | 297,055 | $ | 275,651 | $ | 497,955 | $ | 461,647 | |||||||||||||||
_____________
(a)For all existing cohorts approved in prior periods, we reassess assumptions for our constrained lifetime value (“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 — Fourth Quarter of 2025
| Three Months Ended December 31, | % Change | ||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
Approved Members(2) | |||||||||||||||||
| Medicare | |||||||||||||||||
| Medicare Advantage | 214,947 | 222,631 | (3) | % | |||||||||||||
| Medicare Supplement | 5,918 | 4,248 | 39 | % | |||||||||||||
| Medicare Part D | 5,084 | 21,561 | (76) | % | |||||||||||||
| Total Medicare | 225,949 | 248,440 | (9) | % | |||||||||||||
| Individual and Family | 5,769 | 7,131 | (19) | % | |||||||||||||
| Ancillary | 30,927 | 15,146 | 104 | % | |||||||||||||
| Small Business | 1,796 | 1,646 | 9 | % | |||||||||||||
| Total Approved Members | 264,441 | 272,363 | (3) | % | |||||||||||||
Constrained Lifetime Value of Commissions per Approved Member(3) | |||||||||||||||||
Medicare(a) | |||||||||||||||||
| Medicare Advantage | $ | 1,304 | $ | 1,174 | 11 | % | |||||||||||
| Medicare Supplement | 1,496 | 1,270 | 18 | % | |||||||||||||
| Medicare Part D | 271 | 155 | 75 | % | |||||||||||||
| Individual and Family | |||||||||||||||||
| Non-Qualified Health Plans | 357 | 396 | (10) | % | |||||||||||||
| Qualified Health Plans | 335 | 399 | (16) | % | |||||||||||||
| Ancillary | |||||||||||||||||
| Short-term | 122 | 108 | 13 | % | |||||||||||||
| Dental | 138 | 140 | (1) | % | |||||||||||||
| Vision | 85 | 86 | (1) | % | |||||||||||||
| Small Business | 255 | 236 | 8 | % | |||||||||||||
(a)Constraints for Medicare Advantage, Medicare Supplement and Medicare Part D were 5.5%, 4% and 7%, respectively, for the three months ended December 31, 2025. Constraints for Medicare Advantage, Medicare Supplement and Medicare Part D were 5.5%, 9% and 7%, respectively, for the three months ended December 31, 2024. | |||||||||||||||||
Expense Metrics per Approved Member(4) | |||||||||||||||||
Medicare Plans | |||||||||||||||||
CC&E cost per Medicare Advantage (“MA”)-equivalent approved member | $ | 226 | $ | 220 | 3 | % | |||||||||||
| Variable marketing cost per MA-equivalent approved member | 372 | 371 | — | % | |||||||||||||
| Total acquisition cost per MA-equivalent approved member | $ | 598 | $ | 591 | 1 | % | |||||||||||
Individual and Family Plans (“IFP”) | |||||||||||||||||
CC&E cost per IFP-equivalent approved member | $ | 232 | $ | 288 | (19) | % | |||||||||||
| Variable marketing cost per IFP-equivalent approved member | 197 | 191 | 3 | % | |||||||||||||
| Total acquisition cost per IFP-equivalent approved member | $ | 429 | $ | 479 | (10) | % | |||||||||||
__________
Note: See accompanying footnotes on page 14.
10
EHEALTH, INC.
SUMMARY OF SELECTED METRICS
(unaudited)
Selected Metrics — Year Ended December 31, 2025
| Year Ended December 31, | % Change | ||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
Approved Members(2) | |||||||||||||||||
| Medicare | |||||||||||||||||
| Medicare Advantage | 356,831 | 366,160 | (3) | % | |||||||||||||
| Medicare Supplement | 11,606 | 13,822 | (16) | % | |||||||||||||
| Medicare Part D | 10,233 | 27,896 | (63) | % | |||||||||||||
| Total Medicare | 378,670 | 407,878 | (7) | % | |||||||||||||
| Individual and Family | 15,520 | 20,671 | (25) | % | |||||||||||||
| Ancillary | 72,215 | 51,556 | 40 | % | |||||||||||||
| Small Business | 5,052 | 5,351 | (6) | % | |||||||||||||
| Total Approved Members | 471,457 | 485,456 | (3) | % | |||||||||||||
| As of December 31, | % Change | ||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
Estimated Membership(5) | |||||||||||||||||
Medicare(6) | |||||||||||||||||
| Medicare Advantage | 691,129 | 690,874 | — | % | |||||||||||||
| Medicare Supplement | 93,913 | 96,894 | (3) | % | |||||||||||||
| Medicare Part D | 177,108 | 210,917 | (16) | % | |||||||||||||
| Total Medicare | 962,150 | 998,685 | (4) | % | |||||||||||||
Individual and Family(6) | 64,936 | 78,452 | (17) | % | |||||||||||||
Ancillary(6) | 187,895 | 173,760 | 8 | % | |||||||||||||
Small Business(7) | 35,772 | 42,899 | (17) | % | |||||||||||||
| Total Estimated Membership | 1,250,753 | 1,293,796 | (3) | % | |||||||||||||
__________
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 December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
GAAP marketing and advertising expense | $ | 94,231 | $ | 97,446 | $ | 181,240 | $ | 192,631 | |||||||||||||||
Stock-based compensation expense | (577) | (621) | (2,268) | (2,413) | |||||||||||||||||||
Non-GAAP marketing and advertising expense(1) | $ | 93,654 | $ | 96,825 | $ | 178,972 | $ | 190,218 | |||||||||||||||
GAAP customer care and enrollment expense | $ | 60,940 | $ | 62,675 | $ | 162,885 | $ | 163,448 | |||||||||||||||
| Stock-based compensation expense | (286) | (358) | (1,221) | (1,845) | |||||||||||||||||||
Non-GAAP customer care and enrollment expense(1) | $ | 60,654 | $ | 62,317 | $ | 161,664 | $ | 161,603 | |||||||||||||||
GAAP technology and content expense | $ | 16,069 | $ | 14,907 | $ | 51,829 | $ | 53,520 | |||||||||||||||
| Stock-based compensation expense | (518) | (733) | (2,552) | (3,331) | |||||||||||||||||||
Non-GAAP technology and content expense(1) | $ | 15,551 | $ | 14,174 | $ | 49,277 | $ | 50,189 | |||||||||||||||
GAAP general and administrative expense | $ | 28,738 | $ | 27,447 | $ | 89,555 | $ | 89,765 | |||||||||||||||
| Stock-based compensation expense | (2,075) | (3,044) | (9,002) | (12,292) | |||||||||||||||||||
Non-GAAP general and administrative expense(1) | $ | 26,663 | $ | 24,403 | $ | 80,553 | $ | 77,473 | |||||||||||||||
| GAAP operating costs and expenses | $ | 199,978 | $ | 202,541 | $ | 487,519 | $ | 508,839 | |||||||||||||||
| Stock-based compensation expense | (3,456) | (4,756) | (15,043) | (19,881) | |||||||||||||||||||
| Impairment, restructuring and other charges | — | (66) | (2,010) | (9,475) | |||||||||||||||||||
Non-GAAP operating costs and expenses(1) | $ | 196,522 | $ | 197,719 | $ | 470,466 | $ | 479,483 | |||||||||||||||
Reconciliation of GAAP Net Income (Loss) Attributable to Common Stockholders to Adjusted EBITDA(1) (in thousands) and Adjusted EBITDA Margin(1):
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
GAAP net income (loss) attributable to common stockholders | $ | 73,932 | $ | 85,687 | $ | (10,404) | $ | (34,960) | |||||||||||||||
| Preferred stock dividends | 5,990 | 5,646 | 23,604 | 22,249 | |||||||||||||||||||
| Change in preferred stock redemption value | 7,261 | 6,149 | 26,844 | 22,768 | |||||||||||||||||||
GAAP net income | 87,183 | 97,482 | 40,044 | 10,057 | |||||||||||||||||||
| Stock-based compensation expense | 3,456 | 4,756 | 15,043 | 19,881 | |||||||||||||||||||
| Depreciation and amortization | 3,212 | 3,827 | 13,758 | 16,338 | |||||||||||||||||||
| Impairment, restructuring and other charges | — | 66 | 2,010 | 9,475 | |||||||||||||||||||
| Interest expense | 3,381 | 2,642 | 10,761 | 11,159 | |||||||||||||||||||
| Other income (loss), net | 896 | (475) | (2,998) | (6,900) | |||||||||||||||||||
Provision for income taxes | 34,800 | 12,991 | 18,682 | 9,255 | |||||||||||||||||||
Adjusted EBITDA(1) | $ | 132,928 | $ | 121,289 | $ | 97,300 | $ | 69,265 | |||||||||||||||
Net income margin | 27 | % | 31 | % | 7 | % | 2 | % | |||||||||||||||
Adjusted EBITDA margin(1) | 41 | % | 38 | % | 18 | % | 13 | % | |||||||||||||||
__________
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 operating costs and expenses, adjusted EBITDA and adjusted EBITDA margin.
•Non-GAAP operating costs and expenses are 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. Total non-GAAP 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.
•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 operating costs and 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 operating costs and 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 expenses in assisting applicants during the enrollment process. Variable marketing costs represent costs incurred in member
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EHEALTH, INC.
Footnotes to Preceding Financial Statements and Metrics
(dollars in thousands, unaudited)
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
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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)We apply the two-class method in calculating net income (loss) per share attributable to common stockholders as our Series A convertible preferred stock is considered a participating security. Accordingly, such securities are included in the earnings allocation in calculating income per share. Diluted income (loss) per common share is calculated using the more dilutive of the two-class method or as-converted method. The two-class method uses net income (loss) available to common stockholders and assumes conversion of all potential shares other than participating securities. The as-converted method uses net income (loss) available to common stockholders and assumes conversion of all potential shares including participating securities to the extent they are not anti-dilutive. Net loss attributable to common stockholders is not allocated to the convertible preferred stock as the holder of the Series A preferred stock does not have a contractual obligation to share in losses. For the three months ended December 31, 2025, and 2024, net income allocated to common stockholders (basic) was $65,744, and $76,365, respectively, and net income allocated to participating securities (basic) was $8,188 and $9,322, respectively. For the three months ended December 31, 2025, and 2024, net income allocated to common stockholders (diluted) was $66,003 and $76,597, respectively, and net income allocated to participating securities (diluted) was $7,929 and $9,091, respectively.
(9)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.
(10)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. 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
©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, regulatory and market trends, including market opportunity, consumer demand, carrier strategies and our competitive advantage; our strategic objectives and plans, including our lifetime advisory model, investment in product diversification efforts and growth strategy and cash flow generation; our estimates regarding membership, enrollment growth and acquisition costs; our estimates regarding commissions receivable collection; our estimates of constrained lifetime value (“LTV”) of commissions per approved member; our expectations regarding our profitability, member retention and LTVs; our expectations regarding our business plan, including a lifetime advisory model; our financial strategies and our ability to achieve such targets, including our 2026 annual guidance for total revenue, GAAP net income (loss), adjusted EBITDA and operating cash flow; 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 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.
©2026 eHealthInsurance Services, Inc. 3 FY 2025 Earnings Highlights FY 2025 total revenue of $554.0 million increased 4% YoY, driven by Medicare Advantage (MA) LTV growth and higher net adjustment revenue. FY 2025 GAAP net income of $40.0 million increased almost 4x compared to FY 2024 GAAP net income of $10.1 million. FY 2025 adjusted EBITDA(1) of $97.3 million improved 40% YoY driven by net adjustment revenue, increased Medicare LTV-to-CAC ratio(1), and continued cost efficiency efforts. FY 2025 total MA submissions(1) across our core agency and carrier-dedicated Amplify platforms declined 3% compared to FY 2024. Commissions receivable balance of $1.1 billion as of December 31, 2025, grew 12% compared to $1.0 billion as of December 31, 2024. Continue to recognize positive net adjustment revenue; $44.4 million in FY 2025 compared to $22.7 million in FY 2024. 2025 performance was defined by meaningful profitability expansion and growth in our Commissions Receivable. (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 Q4 2025 Earnings Highlights Q4 2025 total revenue of $326.2 million increased 4% YoY, driven by MA LTV growth, partially offset by lower MA approved members, non-commission revenue, and net adjustment revenue. Q4 2025 Medicare unit economics improved YoY driven by an 11% increase in MA LTV while total acquisition cost per MA-equivalent approved member increased 1%. Q4 2025 Medicare LTV-to-CAC ratio(1) was 2.2x, improving meaningfully from 2.0x in Q4 2024. Q4 2025 GAAP net income of $87.2 million declined 11% compared to Q4 2024 GAAP net income of $97.5 million primarily due to a higher effective tax rate YoY, partially offset by higher revenue. Q4 2025 net income margin decreased to 27% from 31% in Q4 2024. Q4 2025 adjusted EBITDA(1) of $132.9 million improved 10% YoY driven primarily by increased Medicare LTV-to-CAC ratio and continued cost efficiency efforts. Q4 2025 adjusted EBITDA margin(1) increased to 41% from 38% in Q4 2024. Q4 2025 total Medicare Advantage submissions(1) declined 4% compared to Q4 2024, as we focused on our highest-margin channels during AEP, de-emphasizing spend on third party leads. AEP performance was strong including YoY improvements in Q4 Medicare LTV-to-CAC ratio(1), adjusted EBITDA(1), and adjusted EBITDA margin(1). (1) Refer to the appendix for definitions of certain metrics and our non-GAAP financial measures along with reconciliations to the most comparable GAAP measure.
©2026 eHealthInsurance Services, Inc. 5 ($, MM) 2025 Was Another Year of Strong Execution (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. $532.4 $554.0 FY2024 FY2025 Revenue $10.1 $40.0 FY2024 FY2025 GAAP Net Income $69.3 $97.3 FY2024 FY2025 Adjusted EBITDA(1) In fiscal year 2025, eHealth significantly improved earnings, driven by greater enrollment margins in Medicare, continued strength of commissions receivable and cost savings across all operating expense categories. 2% GAAP Net Income Margin 7% GAAP Net Income Margin 13% Adj. EBITDA Margin(1) 18% Adj. EBITDA Margin(1) 4%
©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. Q4-FY23 MA LTV Variable marketing cost per MA-Equiv.(1) Approved Member CC&E per MA-Equiv. (1) Approved Member Per Unit Gross Margin $1,174 ($220) ($371) MA LTV Variable marketing cost per MA-Equiv.(1) Approved Member CC&E per MA-Equiv. (1) Approved Member Per Unit Gross Margin $583 Q4-FY24 50% $1,151 ($307) ($456) 34% $388 Successful AEP with Disciplined Execution MA LTV Variable marketing cost per MA-Equiv.(1) Approved Member CC&E per MA-Equiv. (1) Approved Member Per Unit Gross Margin Q4-FY25$1,304 ($372) $706 54% ($226) MA Unit Margins Continue to Expand YoY
©2026 eHealthInsurance Services, Inc. 7 Q4 2025 Enrollment Volume Reflects Decision to Focus on Unit Economics & Profitability 250,609 240,832 Q4-FY24 Q4-FY25 419,334 405,455 FY2024 FY2025 (4%) (3%) Total MA Submissions • Total MA submissions across Agency and Amplify fulfillment models decreased 4% YoY in Q4 2025 and 3% YoY in FY 2025 driven by our strategic decision to focus our demand generation on the high-ROI branded channels while pulling back on spending for third party leads. • Beyond driving greater than expected in-period profitability, this shift in channel mix is expected to contribute to higher member retention and LTVs.
©2026 eHealthInsurance Services, Inc. 8 The Medicare Industry is Experiencing a Reset Underlying Trends • Elevated utilization trends combined with medical cost inflation • Regulatory changes • Fierce competition between MA plan providers • At the same time, MA remains a large and growing segment of the health insurance market Carrier Strategies • MA organizations focused on targeted enrollment growth, quality & margin preservation • Plan volatility including benefit changes, service area reductions, and carrier market exits • Carriers consolidate broker relationships, cutting ties with those that do not meet quality standards This has led to opportunities and strategic updates for eHealth: Opportunities • Elevated consumer demand for broker services • Increased differentiation of eHealth’s value proposition as a broad-choice, carrier-agnostic platform • High-intent shoppers drive conversion rates • Enrollment quality & commission rates contribute to LTV growth Strategy • Focus on increased member value and cash generation through lifetime advisory model • Supplement MA with attractive and measured diversification investment • Grow revenue in ‘27 on a positive operating cash flow foundation • Maintain technology lead through omnichannel platform and AI integrations
©2026 eHealthInsurance Services, Inc. 9 eHealth is Building a Lifetime Advisory Model Medicare Focus • Introducing advisor lifetime member-advisor relationship model that we believe will further connections between advisors and beneficiaries. o Combines relationship-driven sales model with eHealth core advantages in scale, technology, and carrier integration. • Plan to provide advisors with opportunities to engage members throughout the year: conducting needs assessments, identifying gaps in coverage, managing plan changes proactively, and offering relevant ancillary products. • Alignment with carrier prioritization of high-quality enrollments that persist long term. Non- Medicare Focus • Plan to expand portfolio of ancillary products, building on success of Hospital Indemnity Plan sales in 2025. • Greenfield ICHRA opportunity: growing market with no clear leader and strong demand for solutions that lower the health cost burden for employers. • Longer term plan includes addition of benefit navigation support, prescription management, and other adjacent services. Fe ed s M ed ic ar e as b en ef ic ia rie s ag e- in to e lig ib ili ty Feeds non-M edicare through ancillary cross sales
©2026 eHealthInsurance Services, Inc. 10 FY26 Guidance 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 an estimate for positive net adjustment revenue in the range of $0 to $20 million. (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.
©2026 eHealthInsurance Services, Inc. 11 ($18.4) ($25.3) $1.0 $10.1 $40.0 $16.5 $69.3 $97.3 $65.0 FY2024 FY2025 FY2026 (Estimate) Operating Cash Flow Net Income Adjusted EBITDA($, MM) 2026 Plan is Optimized for Cash Flow (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. (2) 2026 estimates represent the midpoint of our guidance ranges. (1) • The 2026 plan optimizes for operating cash flow generation, profit margin and targeted investment in diversification. • The company plans to grow revenue on a profitable and cash flow generative basis in 2027. (2)
©2026 eHealthInsurance Services, Inc. 12 Appendix
©2026 eHealthInsurance Services, Inc. 13 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. 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. 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. 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. 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.
©2026 eHealthInsurance Services, Inc. 14 Reconciliation of GAAP to Non-GAAP Financial Measures
©2026 eHealthInsurance Services, Inc. 15 Reconciliation of Guidance GAAP to Non-GAAP Financial Measures
FAQ
How did eHealth (EHTH) perform financially in full-year 2025?
eHealth reported 2025 revenue of $554.0 million, up 4% year over year. GAAP net income rose sharply to $40.0 million from $10.1 million, while adjusted EBITDA increased 40% to $97.3 million, reflecting stronger Medicare economics and cost discipline.
What were eHealth (EHTH) results for the fourth quarter of 2025?
In Q4 2025, eHealth generated revenue of $326.2 million, a 4% increase from $315.2 million a year earlier. GAAP net income was $87.2 million versus $97.5 million, primarily due to a higher effective tax rate, while adjusted EBITDA improved 10% to $132.9 million.
What guidance did eHealth (EHTH) provide for 2026 revenue and earnings?
For 2026, eHealth guided to total revenue of $405–$445 million and GAAP net income of $8–$25 million. Adjusted EBITDA is projected between $55 million and $75 million, with operating cash flow expected in a range of negative $10 million to positive $12 million.
How strong is eHealth’s (EHTH) balance sheet after 2025?
At December 31, 2025, eHealth held $77.2 million in cash, cash equivalents and marketable securities. Its commissions receivable balance reached $1.1 billion, up 12% year over year, and it replaced a $70.0 million term loan with a $125.0 million asset-based revolving credit facility maturing in 2028.
What trends did eHealth (EHTH) see in Medicare unit economics in 2025?
eHealth reported improved Medicare unit economics in 2025, with Medicare Advantage constrained lifetime value of commissions up 11% and a Q4 LTV-to-CAC ratio of 2.2x, versus 2.0x in Q4 2024. Total acquisition cost per MA-equivalent approved member increased just 1% year over year.
How did eHealth’s (EHTH) commission receivables change in 2025?
Commissions receivable reached $1.1 billion as of December 31, 2025, compared with $1.0 billion a year earlier. This 12% increase reflects growth in expected future commissions tied to the company’s enrolled membership and is a key driver of its long-term revenue visibility.
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