eHealth, Inc. (EHTH) Market Cap
eHealth, Inc. has a market capitalization of $55.9M.
Financials based on reported quarter end 2025-12-31
Price: $1.80
▼ -0.03 (-1.64%)
Market Cap: 55.93M
NASDAQ · time unavailable
CEO: Derrick Anthony Duke
Sector: Financial Services
Industry: Insurance - Brokers
IPO Date: 2006-10-20
Website: https://www.ehealthinsurance.com
eHealth, Inc. (EHTH) - Company Information
Market Cap: 55.93M · Sector: Financial Services
eHealth, Inc. operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States. The company operates in two segments, Medicare; and Individual, Family and Small Business. Its ecommerce platforms organize and present health insurance information in various formats that enable individuals, families, and small businesses to research, analyze, compare, and purchase a range of health insurance plans. The company operates a marketplace that offers consumers a choice of insurance products, such as Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual and family, small business, and other ancillary health insurance products from health insurance carriers. It markets health insurance plans through its websites, including eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, PlanPrescriber.com, and GoMedigap.com, as well as through a network of marketing partners. The company also licenses its health insurance ecommerce technology that enables health insurance carriers to market and distribute health insurance plans online; and provides online sponsorship and advertising, and lead referral services. eHealth, Inc. was incorporated in 1997 and is headquartered in Santa Clara, California.
Analyst Sentiment
Based on 26 ratings
Analyst 1Y Forecast: $6.00
Average target (based on 2 sources)
Consensus Price Target
Low
$3
Median
$3
High
$3
Average
$3
Potential Upside: 66.7%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"EHTH reported revenue of $326.24M with a net income of $87.18M, resulting in earnings per share (EPS) of $2.39. Despite the positive earnings, the company exhibited negative operating cash flow of -$35.95M. Total assets stand at $1.26B against total liabilities of $288.82M, leading to healthy shareholder equity of $973.65M. However, with a substantial decline in market performance: a 1-year share price change of -79.70%, the company is facing significant challenges. The absence of dividends and negative cash flow raise concerns regarding its liquidity and cash management. The price target consensus remains at $9, indicating analysts still see some potential upside despite ongoing difficulties."
Revenue Growth
The revenue of $326.24M shows decent performance, but growth rates should be assessed against industry benchmarks.
Profitability
Net income is positive at $87.18M, indicating profitability despite operational cash flow concerns.
Cash Flow Quality
Negative operating and free cash flow raise flags about operational efficiency and liquidity.
Leverage & Balance Sheet
Strong equity position with liabilities considerably lower than assets indicates a solid balance sheet.
Shareholder Returns
Substantial decline in stock price and no dividends significantly impact shareholder returns.
Analyst Sentiment & Valuation
Stable price target at $9 reflects mixed sentiment amid current challenges.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
So what: eHealth is guiding 2026 lower on top-line/enrollment while insisting earnings (ex-tail) are roughly flat and operating cash flow improves to breakeven. Management frames the move as a deliberate margin-and-cash-flow “bridge year” in response to persistent carrier commission suppression and benefit changes—specifically shifting budget away from lower-margin third-party affiliate leads toward higher-quality branded/direct channels. The Q4/2025 fundamentals support that case: Medicare Advantage LTV rose 11% YoY and LTV-to-CAC improved to 2.2x; tail revenue was stronger full-year ($44.4M vs $22.7M), and HIP plus Medicare Supplement growth were very strong. However, the Q&A shows analyst pressure on whether softer revenue is caused by commission suppression versus reduced investment—management says it’s mostly channel mix and margin protection, not worsening suppression. Key hurdles are visible: carrier revenue/sponsorship declines, variable commission timing risk, and a tax-rate hit in Q4.
Growth Catalysts
- AI screener scaled during AEP; improved efficiency and reduced customer wait times (transfer rates/conversions performed on par or better vs human screeners)
- Medicare Matchmaker value proposition drove strong Medicare platform demand during AEP
- LTV expansion: Q4 2025 Medicare Advantage LTV up 11% YoY
- Hospital indemnity plan (HIP) growth: approved application volume up >400% YoY in Q4 2025; full-year annual approved members >30,000 and up >5x vs 2024
- Medicare Supplement: 39% approved application growth in Q4 2025
Business Development
- Carrier portfolio: ~50 payers and thousands of MA plans across hundreds of geographies (SNP availability embedded in platform; no cohort breakout provided)
- Expanded member retention program (named as a key AEP lever)
- ICHRA strategy: prioritizing partner-driven ICHRA growth including a partner-driven SaaS model (employer relationships via brokers)
Financial Highlights
- Q4 2025 revenue: $326.2M, +4% YoY; driven by Medicare and ancillary commissions; partially offset by lower noncommission revenue and individual & family commissions
- Full-year 2025 revenue: $554M, +4% YoY
- Q4 2025 Medicare revenue: $319.6M, +5% YoY; MA agency submissions -3% YoY offset by higher LTV
- Q4 2025 Medicare Advantage LTV: +11% YoY; LTV-to-CAC improved to 2.2x in Q4 2025 vs 2.0x in Q4 2024
- Tail (positive net adjustment) revenue: Q4 $3.9M vs $7.6M last year (Medicare tail almost all of it); full-year tail $44.4M vs $22.7M prior year
- Q4 2025 GAAP net income: $87.2M vs $97.5M prior year (decline primarily higher effective tax rate); full-year GAAP net income $40M vs $10.1M (+~300%)
- Adjusted EBITDA: Q4 $132.9M (+10%); full-year $97.3M (+40%)
- Operating expenses: Q4 total $200M, -1% YoY; marketing/customer care/enrollment costs -3%, while G&A +6% and technology & content +6% combined
- Commissions receivable: $1.1B at Dec 31, 2025 (+12% YoY) and described as record high
Capital Funding
- Cash, cash equivalents & marketable securities: $77.2M at year-end 2025 vs $82.2M last year
- Credit facility activity: $125M revolving credit facility entered January 2026 (net of transaction costs); $70.7M used to repay existing term loan
- Guidance emphasis: target breakeven operating cash flow in 2026; management frames $25M YoY operating cash flow improvement at guidance midpoint
Strategy & Ops
- 2026 bridge year strategy: prioritize margin/operating cash flow over enrollment volume
- Scaled AI screening during AEP; plan to further scale AI screening and add AI applications in back and front office
- Cost actions enacted January 2026: headcount and vendor consolidation expected to lower 2026 fixed operating costs by ~$30M (~20%)
- Planned variable spend reduction: >$60M in 2026 vs 2025
- Marketing mix shift: reduced spend on lower-margin third-party affiliate leads; increased direct branded channels’ share of marketing mix
- Q4 execution: leaned into elevated consumer demand in Q1 and Q4; pulled back in lower-demand middle quarters; deployed more flexible telesales operating structure
Market Outlook
- 2026 revenue guidance: $405M to $445M
- 2026 GAAP net income guidance: $8M to $25M
- 2026 adjusted EBITDA guidance: $55M to $75M
- 2026 operating cash flow guidance: -$10M to +$12M (assumes positive net adjustment/tail revenue of $0M to $20M)
- Management expectation: commissions receivable remains around current levels in beginning of 2027 (due to favorable retention and relationship-driven book management)
Risks & Headwinds
- Medicare Advantage payer margin pressure leading to plan eliminations, carrier market exits, and commission suppression (described as disruptive and persistent into 2026)
- CMS Enrollment data referenced by analyst: MA growth slowdown while SNP accelerated (company did not disclose SNP vs non-SNP mix)
- Headwind: carrier dedicated revenue and sponsorships declined year-over-year in Q4 2025, partially offset by core agency platform performance
- Q4 GAAP net income pressure: higher effective tax rate in Q4 2025
- Cash flow timing risk: commission cash inflows timing is “difficult to control,” reflected in operating cash flow guidance ranges
Sentiment: CAUTIOUS
Note: This summary was synthesized by AI from the EHTH Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.