GoHealth, Inc. (GOCO)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 reflected a deliberate pullback in Medicare Advantage (MA) to prioritize retention and unit economics: net revenues fell 71% YoY to $34.2M, with a GAAP net loss driven by $206.2M in impairment charges; management emphasized preserving liquidity and core capabilities for a market rationalization phase .
• Results materially missed Wall Street expectations: revenue of $34.2M vs $102.4M consensus and Primary EPS of $(11.80) vs $(1.99) consensus, with the shortfall tied to sharply lower submissions and revenue mix (non-agency curtailed), as well as elevated GAAP charges; Adjusted EBITDA was $(47.1)M . Q3 consensus figures from S&P Global: Revenue $102.35M*, Primary EPS $(1.99)*.
• The company underscored a “retention-first” operating stance (confirming a member’s current plan when appropriate), leadership in Special Needs Plans (SNP), and investment in platform efficiency/AI; it also secured a superpriority term loan, covenant relief, and refreshed its Board to support strategic flexibility and industry consolidation .
• Key trading narrative: a large negative surprise vs consensus amid an intentional MA volume pullback and significant impairments; near-term investor focus likely on liquidity runway, AEP/OEP execution with a retention bias, Protect ramp cadence, and consolidation optionality .

What Went Well and What Went Wrong

• What Went Well

  • Management executed an intentional MA volume pullback aligned with carrier priorities for retention and unit economics, preserving core agent enablement technology, retention operations, and platform efficiency .
  • Strategic flexibility strengthened via a superpriority term loan facility, covenant relief, and Board refresh to support potential consolidation steps in a fragmented broker landscape .
  • Expansion of GoHealth Protect and continued AI/automation investments position the platform for more efficient engagement and complementary seasonality vs MA; management highlighted PlanGPT and targeted routing for SNP eligibility .

• What Went Wrong

  • Net revenues declined 71% YoY to $34.2M as submissions dropped 57% and Sales per Submission fell 34%, reflecting the MA pullback and tight carrier economics; Adjusted EBITDA deteriorated to $(47.1)M .
  • GAAP net loss widened by $329.3M YoY due largely to $206.2M in indefinite and long‑lived asset impairment charges, pushing net income margin to (918.3)% .
  • Results missed consensus substantially (revenue and EPS), pressuring investor confidence near-term and raising scrutiny on liquidity/cash burn into AEP/OEP despite management’s access to additional superpriority “new money” capacity .

Financial Results

Quarterly performance vs prior periods and estimates

Q3 2025 Actual vs Consensus (S&P Global)

*Values retrieved from S&P Global

Revenue disaggregation (Q3 YoY)

Key Operating Metrics (Q3 YoY)

Balance sheet and cash flow highlights

• Cash and cash equivalents: $32.1M at 9/30/25 .
• Long-term debt (net of current): $581.8M; total assets: $1,030.5M; total stockholders’ equity (deficit): $(6.9)M at 9/30/25 .
• 9M 2025 operating cash flow: $(82.9)M; capex: $(8.2)M; financing net: +$82.1M (proceeds from borrowings net of repayments and issuance costs) .

Guidance Changes

Management did not issue quantitative guidance; commentary emphasized retention-first execution, liquidity preservation, and optionality to re‑ramp and/or pursue consolidation as market conditions stabilize .

Earnings Call Themes & Trends

Management Commentary

• CEO on strategy: “Our pullback over the last two quarters was intentional… we aligned with that shift by focusing on quality over quantity, reinforcing objective guidance to our members, and protecting the capabilities that matter to us” .
• CEO on optionality: “If we had chased projected volume into deteriorating economics, the downside could have been significant and lasting. We believe our discipline protects value in either scenario…” .
• CFO on execution: “We maintained liquidity, reduced fixed cost, and continued to automate and streamline core parts of the operating model… our variable cost structure provides flexibility” .
• CEO on liquidity runway: cash ~$32M at quarter end and access to $40M of new money; focus on “risk‑adjusted cash on cash return” before re‑ramping .
• CEO on SNP and AI: routing SNP leads to experienced agents using PlanGPT to navigate complex eligibility and plan fit; technology and training drive agent confidence and compliance .

Q&A Highlights

• Why pull back MA? Carriers prefer retention over new volume amid tight economics and STARS sensitivities; GOCO prioritized cash discipline and avoided burning upfront cash without renewal visibility .
• Protect during AEP/OEP: Protect and MA are complementary; GOCO will shift capacity tactically, remain tentative given commission suppressions and mid‑stream changes experienced last year .
• Carrier posture: Broad preference for targeted growth with caps vs outsized share gains; retention and stability prioritized across major plans .
• Re‑ramp mechanics: Investments in standardized tools/AI enable faster agent ramp; ample agent supply available when market signals improve .
• Liquidity: ~$32M cash plus $40M available new money under the superpriority; discipline in deploying cash only with high‑confidence near‑term returns .

Estimates Context

• Q3 2025 missed S&P Global consensus on both revenue and EPS: $34.2M vs $102.35M* and $(11.80) vs $(1.99)*, respectively, reflecting the intentional MA pullback, weaker submissions, lower Sales per Submission, and significant GAAP impairment charges .
• Consensus likely needs to recalibrate for near‑term revenue and profitability given management’s retention‑first posture, reduced MA volumes, and revenue mix shift (non‑agency curtailed), with Protect helping offset seasonality but not yet at scale .
• Q4 2025 consensus (S&P Global) embeds Revenue $82.62M* and Primary EPS $(2.69)*; cadence will hinge on AEP outcomes under retention incentives and GOCO’s tactical capacity allocation rather than chasing volume.
  *Values retrieved from S&P Global

Key Takeaways for Investors

• Strategic discipline over growth: GOCO chose retention and cash preservation over near‑term MA volume, accepting a deep revenue/EPS miss to protect long‑term economics and optionality .
• GAAP losses magnified by impairments: $206.2M of indefinite and long‑lived asset impairments drove extreme margins; Adjusted EBITDA deterioration underscores the near‑term profitability trough during the pivot .
• Liquidity is the bridge: ~$32M cash plus access to $40M new money supports ongoing operations while waiting for improved carrier economics and re‑ramp signals; cash deployment will remain conservative .
• Product hedge building: GoHealth Protect provides complementary seasonality and potential cash flow smoothing as it scales, with AI/automation supporting agent productivity and compliance .
• Competitive positioning in SNP: Leadership and tech‑enabled workflows (PlanGPT/targeted routing) align with carrier priorities for targeted, higher‑value growth .
• Consolidation optionality: Governance and capital structure changes prepare GOCO to be a disciplined integrator as the broker landscape rationalizes .
• Near‑term stock drivers: estimate resets, AEP/OEP retention execution, visibility on 2026 plan economics/commissions, Protect scaling trajectory, and any consolidation developments .

Citations

• Q3 2025 press release/8-K:
• Q3 2025 earnings call:
• Q2 2025 results/calls:
• Q1 2025 8-K press release:
• Oct 14, 2025 AEP/PlanFit/PlanGPT press release: