eHealth, Inc.

What they do

eHealth operates an omnichannel platform — self-service ecommerce, telephone advisors, and hybrid chat/co-browsing — that lets consumers compare and enroll in insurance plans. It offers thousands of Medicare Advantage, Medicare Supplement, Medicare Part D, individual, family, small business, and ancillary products from over 180 carriers, including approximately 50 Medicare carriers. Revenue comes from commissions and other compensation paid by carrier partners; the platform is free to consumers and eHealth takes no underwriting risk. It reports in two segments: Medicare and Employer and Individual (E&I).

Revenue drivers

• Medicare segment — Commission revenue from Medicare Advantage, Medicare Supplement, and Part D plans where eHealth is broker of record, plus bonus payments, advertising, and fee-based post-enrollment services; constituted approximately 96% of 2025 revenue.
• Employer and Individual (E&I) segment — Commissions on individual, family, and small business health insurance plans; the smaller segment, and the target of 2026 ICHRA capability investments.
• Ancillary products — Dental, vision, hospital indemnity, and, as of Q2 2026, final expense insurance; cross-sell into the Medicare base, with Q2 2026 advisor-assisted ancillary cross-sell rates reportedly double the prior year.
• Carrier advertising and non-broker-of-record fees — Medicare advertising programs and fee-based post-enrollment services that add revenue beyond commissions.

Recent performance

Q2 2026 total revenue was $33.6M, down 45% from $60.8M in Q2 2025, on lower Medicare enrollment volume. GAAP net loss was $(23.6)M versus $(17.4)M a year earlier, and adjusted EBITDA was $(21.8)M versus $(14.1)M. Operating cash flow was $(5.0)M, an improvement of $36.2M year-over-year. Total operating costs and expenses fell 27% to $61.0M from $83.8M after the January cost-reduction program. Full-year 2025 results were $554.0M revenue, $40.0M net income, and $(25.3)M operating cash flow.

Strategy

Management entered 2026 with three priorities: build a lifetime advisory model, materially improve cash flow, and make targeted investments in long-term growth such as ICHRA. The lifetime advisory model shifts marketing spend to the first and fourth quarters and focuses advisors on existing members in the second and third quarters. In Q1 2026 eHealth cut approximately 14% of its workforce and targeted vendor spend, aiming for more than $60M in annual variable spend reductions and roughly $30M in annual fixed cost savings. It also launched final expense insurance in Q2 2026 and continues ICHRA pipeline, partnership, and broker-relationship development.

Risks

• Intense competition — eHealth competes with government-run Medicare and ACA exchanges and marketplaces, carrier direct channels, national telesales brokers, lead generators, and local agents, some with greater resources.
• Carrier concentration — A significant portion of revenue comes from a small number of health insurance carriers, so impairment of those relationships would harm results.
• Regulatory and CMS dependence — Medicare Advantage and Part D pricing and commission caps are set by CMS, and marketing and sale of Medicare plans are subject to frequently changing rules.
• Seasonality and member retention — Results are seasonal and depend on attracting and retaining members and on estimated lifetime value of commissions per approved member.

Outlook

Management reiterated full-year 2026 guidance: total revenue of $405.0M to $445.0M, GAAP net income of $8.0M to $25.0M, adjusted EBITDA of $55.0M to $75.0M, and operating cash flow of $(10.0)M to $12.0M. Positive net adjustment revenue is now expected at $16M to $20M. The CEO said eHealth remains on track for meaningful year-over-year operating cash flow improvement and is building a foundation to return to sustainable growth beginning in 2027.