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EI

eHealth, Inc. (EHTH)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $53.9M, down 8% YoY, with GAAP net loss of $31.7M and adjusted EBITDA of $(34.0)M; management cited dual-eligible enrollment rule changes as a key headwind while positive net adjustment revenue (“TEL”) helped profitability .
  • Results beat S&P Global consensus: revenue $53.9M vs $52.1M* and EPS $(1.31)* vs $(1.81)*; beats were driven by $12.2M TEL revenue and disciplined variable marketing spend that was pulled back in Q3 to preserve AEP ROI .
  • FY2025 guidance was raised for GAAP net income to $9–$30M and adjusted EBITDA to $60–$80M, with updated TEL revenue expected at $40–$43M; total revenue and operating cash flow ranges were maintained .
  • Early AEP indicators were “encouraging,” with strong consumer demand, improving branded channel efficiency, and a more tenured advisor force; term loan maturity was extended to January 2027, improving flexibility .

What Went Well and What Went Wrong

What Went Well

  • Raised FY2025 GAAP net income and adjusted EBITDA guidance ranges; CFO highlighted TEL revenue and favorable operating costs as drivers: “The increase reflects the positive impact of net adjustment revenue and favorable operating costs relative to our internal expectations” .
  • Positive TEL revenue of $12.2M vs $1.2M last year supported profitability; Medicare segment loss narrowed to $1.2M from $5.6M YoY .
  • AEP execution setup: “We entered the enrollment season exceptionally well prepared—with a more experienced advisor force, a trusted and growing brand, and one of the broadest plan selections” – CEO Derrick Duke ; early AEP tracking “in line with internal expectations,” with improving branded channel efficiency .

What Went Wrong

  • Medicare Advantage volume below expectations due to removal of the quarterly dual-eligible enrollment period; MA approved members fell 29% YoY in Q3 and total Medicare submissions fell 36% YoY .
  • Acquisition costs per MA-equivalent approved member rose 19% YoY to $1,489 (CC&E +29% to $930; variable marketing +4% to $559), as fixed costs were spread over lower volumes .
  • Employer & Individual segment revenue declined 24% YoY to $3.9M, with segment gross profit down 47% YoY to $0.97M, reflecting market dynamics and constrained marketing allocations .

Financial Results

Consolidated performance and profitability

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$58.409 $60.782 $53.869
GAAP Net Loss ($USD Millions)$(42.473) $(17.398) $(31.691)
Net Loss Margin (%)(73)% (29)% (59)%
Adjusted EBITDA ($USD Millions)$(34.832) $(14.142) $(34.007)
Adjusted EBITDA Margin (%)(60)% (23)% (63)%
Diluted EPS (Common) ($)$(1.83) $(0.98) $(1.46)

Q3 2025 vs Wall Street consensus (S&P Global)

MetricConsensus*ActualSurprise
Revenue ($USD Millions)$52.120*$53.869 +$1.749
EPS ($)$(1.8059)*$(1.3124)*+$0.4935

Values marked with * were retrieved from S&P Global.

Segment breakdown

SegmentQ3 2024Q2 2025Q3 2025
Medicare Revenue ($USD Millions)$53.221 $58.059 $49.932
Medicare Segment Gross Profit (Loss) ($USD Millions)$(5.624) $19.145 $(1.153)
Employer & Individual Revenue ($USD Millions)$5.188 $2.723 $3.937
Employer & Individual Segment Gross Profit ($USD Millions)$1.843 $(0.257) $0.973

KPIs and unit economics

KPIQ3 2024Q2 2025Q3 2025
Medicare Advantage Approved Members (units)40,141 30,568 28,645
Medicare Supplement Approved Members (units)1,438 1,730 1,393
Medicare Part D Approved Members (units)1,292 1,378 1,129
Total Medicare Approved Members (units)42,871 33,676 31,167
Individual & Family Approved Members (units)2,872 2,062 1,872
Ancillary Approved Members (units)11,382 12,360 12,003
Small Business Approved Members (units)1,141 838 1,228
Total Approved Members (units)58,266 48,936 46,270
MA LTV per Approved Member ($)990 934 975
Med Supp LTV per Approved Member ($)1,105 1,435 1,467
Part D LTV per Approved Member ($)222 171 168
CC&E per MA-equivalent ($)719 664 930
Variable Marketing per MA-equivalent ($)537 423 559
Total Acquisition Cost per MA-equivalent ($)1,256 1,087 1,489
Medicare Submissions (units)55,518 41,138 40,921
Positive Net Adjustment Revenue (TEL) ($USD Millions)1.2 17.8 12.2

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Millions)FY 2025$525–$565 $525–$565 Maintained
GAAP Net Income ($USD Millions)FY 2025$5–$26 $9–$30 Raised
Adjusted EBITDA ($USD Millions)FY 2025$55–$75 $60–$80 Raised
Operating Cash Flow ($USD Millions)FY 2025$(25)–$10 $(25)–$10 Maintained
Positive Net Adjustment Revenue ($USD Millions)FY 2025$29–$32 $40–$43 Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
AI/technology initiativesAI voice agents piloted; online conversion improvements; plan to scale into AEP AI screener deployed at scale; click-to-call features; expanded AI voice agent use (after-hours support and service calls) Increasing adoption and scale
Regulatory/macro (dual-eligible rules)Anticipated amplified seasonality and lower Q2/Q3 volumes due to D-SNP restrictions Larger impact on Q3 MA volume than Q2; TEL revenue helped offset Persistent headwind
Capital structureWorking to extend term loan and leverage commissions receivable; preferred instrument remains a multi-step process Term loan maturity extended to Jan 2027; sufficient liquidity claimed Improved flexibility
Brand/marketing mixGrowing branded channels; improved acquisition costs; plan to reinvest selectively Reduced Q3 spend to focus on AEP; improving efficiency in branded channels Efficiency focus
Retention strategyLarger retention team; improved retention in latest AEP cohort; TEL driven by retention Outbound calls up ~20% to prepare members; retention and loyalty team expansion Strengthening
Product performanceMed Supp and ancillary growth; ICHRA/Amplify building HIP enrollments doubled; Med Supp agency enrollments up 10% YoY Positive momentum

Management Commentary

  • “Early AEP indicators are encouraging: consumer demand is strong, and our branded messages resonate even stronger than a year ago” – Derrick Duke, CEO .
  • “We are raising our net income and adjusted EBITDA guidance ranges to reflect execution through the end of Q3” – John Dolan, CFO .
  • On competitive positioning: “I don’t want to just be the best telebroker. I want to be the best broker.” – Derrick Duke (emphasis on brand-led retention and relationship) .
  • On commission rates: expecting mid-single digit YoY broker rate increases in AEP; mix varies by carrier/product .

Q&A Highlights

  • Demand and disruption: Management sees similar levels of year-over-year demand tied to plan changes; early AEP performance tracking to internal expectations .
  • Opportunistic marketing: Intent to lean into higher LTV-to-CAC branded channels during AEP, dynamically reallocating across TV/search and other channels .
  • Retention push: Outbound calls increased ~20% to proactively assist members amid plan volatility, with brand and loyalty investments expected to yield further retention gains .
  • Commission rates/LTV: Mid-single-digit broker rate increases expected (partially muted by admin fees), implying low-to-mid-single-digit LTV growth for 2026 .
  • TEL revenue: Guidance increase (to $40–$43M) reflects strong year-to-date TEL and potential Q4 upside; TEL offset weaker commissions from lower volume .

Estimates Context

  • Q3 2025: Revenue beat ($53.9M vs $52.1M*) and EPS beat ($(1.31)* vs $(1.81)*), driven by TEL revenue and cost discipline .
  • Prior quarters also beat: Q1 revenue $113.1M vs $99.5M* and EPS $(0.27)* vs $(0.76); Q2 revenue $60.8M vs $45.98M and EPS $(0.80)* vs $(1.45)* .
PeriodRevenue Consensus* ($M)Revenue Actual ($M)Surprise ($M)EPS Consensus* ($)EPS Actual* ($)Surprise ($)
Q1 202599.458*113.119 +13.661(0.760)*(0.266)*+0.494
Q2 202545.983*60.782 +14.799(1.454)*(0.8009)*+0.653
Q3 202552.120*53.869 +1.749(1.806)*(1.3124)*+0.493

Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

  • The Q3 print was a modest beat vs consensus on both revenue and EPS, despite headwinds from dual-eligible rule changes; TEL revenue continued to be an earnings lever .
  • Guidance raise (GAAP NI and adjusted EBITDA) and updated TEL range signal confidence into peak AEP weeks; near-term stock catalysts include AEP progression updates and Q4 execution .
  • Unit economics worsened on lower volume (MA-equivalent acquisition cost up 19% YoY), but management is prioritizing higher-ROI branded channels during AEP to protect margins .
  • Retention efforts, brand strength, and AI-enabled capacity expansion (AI screener and voice agents) aim to stabilize cohorts and improve conversion/answer rates through peak season .
  • Capital flexibility improved via term loan maturity extension to Jan 2027; management working to leverage commissions receivable and address convertible preferred over time .
  • Segment dynamics: Medicare remains core; Med Supp and HIP show positive momentum, while Employer & Individual faces ongoing pressure from market dynamics .
  • Watch for carrier-specific plan mix and commission actions; management expects mid-single-digit commission rate increases offset by admin fee dynamics, pointing to low-to-mid-single-digit LTV growth in 2026 .

Values marked with * were retrieved from S&P Global.