Ethos Technologies Inc.

What they do

Ethos operates a platform through which consumers apply for and purchase life insurance and related products, either directly or via third-party channels such as independent agencies. Carriers issue policies sold through the platform and pay Ethos commissions based on annual premium, typically over the life of the policy. The company also advances a portion of expected commissions to agents, with unearned advances becoming agent debt if a policy lapses. Its product set includes life insurance and Wills & Estate Planning products; activated policy counts exclude the Wills & Estate Planning products.

Revenue drivers

• Direct Channel — Revenue from consumers who come to Ethos' platform directly; generated $116.5M in Q2 2026 (2025-06-30 quarter not stated in the excerpt), representing 131% year-over-year growth and the larger of the two reported channels.
• Third-Party Channel — Revenue sourced through third-party channels such as independent agencies using the platform; generated $73.1M in Q2 2026, up 90% year-over-year.
• Commissions on activated policies — The core economics: carriers pay Ethos commissions based on a policy's annual premium, with most of a policy's lifetime commissions paid in the first year after activation. Revenue is recognized using persistency estimates, which are reviewed and updated as observed persistency changes.
• Reported Average Revenue per Unit — Reported at $1,758 in Q2 2026, down 8% year-over-year due to channel/product mix, against 107,847 activated policies in the quarter.

Recent performance

Q2 2026 revenue was $189.6 million, up 113% year-over-year, with the direct channel at $116.5 million (+131%) and third-party at $73.1 million (+90%). Net income was $19.5 million (10% margin), non-GAAP net income was $35.0 million (18% margin), and adjusted EBITDA was $35.2 million (19% margin). Gross profit was $185.5 million at a 98% gross margin; contribution profit was $62.3 million at a 33% margin. Diluted net income per share was $0.30 and non-GAAP diluted net income per share was $0.53. The company activated 107,847 new policies in the quarter, up 133% year-over-year.

Strategy

Management describes the mission as democratizing access to life insurance and highlights two consecutive quarters of over 100% year-over-year growth. Growth is pursued through both the direct channel and third-party channels. In the quarter the company launched Juvenile IUL with North American as a product innovation. On August 3, 2026 the Board authorized a share repurchase program of up to $100 million of Class A common stock. The company also points to cash generation, with $35.7 million of net cash provided by operations in Q2 2026.

Risks

• Persistency estimate risk — Revenue from activated policies is recognized using persistency estimates that the company regularly reviews and updates, so changes in observed persistency can affect recognized revenue.
• Agent debt from advances — Ethos typically advances agents a portion of expected commissions at policy activation; if a policy lapses before the advance is earned, the unearned portion becomes agent debt owed to the company.
• Channel and carrier dependence — Revenue depends on carriers continuing to offer products through the platform (active carriers are those that issued at least one policy in the last 12 months and continued to offer products as of the measurement date) and on agents and agencies selling through it.
• Growth and forward-looking guidance uncertainty — The Q3 and full-year 2026 outlook is explicitly forward-looking, and the company states it cannot reconcile forward-looking adjusted EBITDA to net income without unreasonable efforts due to variability in interest expense, interest income and income taxes.

Outlook

For Q3 2026, Ethos expects total revenue of $160 million to $164 million, representing a 73% increase year-over-year at the midpoint, and adjusted EBITDA of $23 million to $25 million. For full fiscal year 2026, the company expects total revenue of $727 million to $731 million, an 88% increase year-over-year at the midpoint, and adjusted EBITDA of $119 million to $123 million. Management cautions that these figures are forward-looking and actual results may differ materially.