[Form 4] Southwest Airlines Co. Insider Trading Activity

Rhea-AI Filing Summary

EHTH Q2-25 (10-Q) snapshot

• Revenue: Q2 $60.8 m (-8% YoY); 1H $173.9 m (+10%). Medicare remains the core driver: 83% of commission revenue, aided by $19.1 m favorable prior-period adjustments.
• Profitability: Q2 operating loss trimmed to $23.0 m from $28.0 m; net loss to common holders narrowed 24% to $29.8 m (-$0.98 EPS). 1H net loss down 40% to $39.8 m as every expense line declined, cutting total opex 11%.
• Cash & liquidity: Positive operating cash flow $35.9 m; cash & equivalents up to $65.9 m vs $39.2 m YE-24. Long-term debt reclassified to $69.1 m short-term; company remains in breach of asset-coverage and liquidity covenants linked to H.I.G.’s $225 m Series A preferred.
• Balance sheet: Equity fell to $554.9 m (-6% YTD) after $23.5 m in preferred dividends/accretion; contract assets down 8% to $917 m as collections outpaced new deferrals.
• Operating trends: Marketing spend -20% YoY; tech & content -13%. Small-business renewals stable, but individual/family and Part D produced negative revenue due to retro adjustments.
• Key risks: Ongoing losses, covenant non-compliance granting H.I.G. extra governance rights, 58% receivable concentration with Humana & UnitedHealthcare, and a False Claims Act suit filed 1 May 25.

Positive

• Operating loss narrowed 24% YoY in Q2 and 60% for 1H, reflecting expense discipline.
• Positive operating cash flow of $35.9 m boosted cash to $65.9 m, improving near-term liquidity.
• Medicare segment growth (+18% 1H) underscores franchise strength and recurring revenue visibility.
• Cost reductions in marketing (-20%) and tech/content (-13%) signal improved operating leverage.

Negative

• Continued net losses and negative EPS (-$0.98) underline an unproven path to profitability.
• Covenant breaches on asset-coverage and liquidity give H.I.G. enhanced control and could restrict strategy.
• Heavy preferred burden: $23.5 m YTD dividends/accretion dilute common equity and raise redemption risk in 2027.
• Regulatory/legal overhang from a May 2025 False Claims Act suit and high carrier concentration increase risk.

Insights

Financial Analyst

TL;DR: Improved losses and cash, but covenant breaches, litigation and rising preferred burden keep outlook cautious.

eHealth’s cost-control program is working: 1H operating loss fell 60% and positive cash flow lifted liquidity to $66 m. Yet the firm still posts negative EPS, carries $69 m of soon-maturing debt and faces tight covenants attached to the 8% Series A preferred. Non-compliance hands H.I.G. board influence and limits strategic flexibility. Preferred accretion/ dividends exceeded $23 m YTD—larger than the operating loss—so common shareholders continue to be diluted economically. While Medicare revenue grew on favorable true-ups, core Q2 top-line slipped and certain categories (Part D, ACA plans) were negative, hinting at retention pressure. Net/net the filing is modestly negative for equity holders and neutral for credit; watch cash, covenant cures and litigation developments.

Regulatory Risk Specialist

TL;DR: Litigation and compliance gaps add material downside despite operational progress.

The newly disclosed False Claims Act complaint, combined with concentration risk (Humana, UnitedHealthcare, Aetna 75% of receivables) and recurring covenant breaches, raise the regulatory and financing risk profile. Failure to regain the asset-coverage and liquidity thresholds could trigger further H.I.G. oversight or stricter financing terms. Management cites cybersecurity, AI deployment, and Chinese operations as additional exposures. Investors should discount for potential fines, mandated operational changes and refinancing costs.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Feinberg Sarah

(Last) (First) (Middle)

2702 LOVE FIELD DRIVE

HDQ 4GC

(Street)

DALLAS TX 75235

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
SOUTHWEST AIRLINES CO [ LUV ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director		10% Owner
	Officer (give title below)		Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
08/05/2025

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	08/05/2025		P		1,300	A	$30.005	14,029	D
Common Stock	08/05/2025		P		200	A	$30.006	14,229	D
Common Stock								268	I	By domestic partner

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

Remarks:

	/s/ Tim Whisler, on behalf of and as attorney-in-fact for Sarah Feinberg	08/07/2025
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

FAQ

How did eHealth (EHTH) revenue perform in Q2 2025?

Total revenue fell 8% YoY to $60.8 million, mainly due to lower Individual & Family and Part D contributions.

Is eHealth profitable in 2025?

No. Q2 net loss to common stockholders was $29.8 million (-$0.98 EPS); 1H loss was $39.8 million.

What is eHealth’s cash position after Q2 2025?

Cash and cash equivalents increased to $65.9 million, supported by $35.9 million operating cash flow.

Why is H.I.G.’s Series A preferred significant?

The 8% preferred carries covenant tests; breaches grant H.I.G. board rights and the redemption value reached $359 million.

What litigation risks does EHTH face?

A False Claims Act complaint filed 1 May 2025 could lead to fines and operational constraints if adverse.