In This Article:
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Revenue: $113.1 million, a 22% increase year over year.
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GAAP Net Income: $2 million.
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Adjusted EBITDA: $12.5 million.
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Cash and Equivalents: $155.6 million.
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Medicare Submissions Growth: 22% year over year.
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Medicare Segment Revenue: $103.7 million, a 26% increase.
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Medicare Segment Gross Profit: $35.7 million, a 62% increase.
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Operating Cash Flow: $77.1 million for Q1.
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Commissions Receivable Balance: $923.3 million.
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Medicare Supplement Submission Growth: 32% within agency fulfillment model.
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Tail Revenue: $10.5 million, compared to $2.5 million in the prior year.
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Non-GAAP Operating Expense: $104.5 million, up 6%.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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eHealth Inc (NASDAQ:EHTH) reported a 22% increase in first-quarter revenue, reaching $113.1 million, driven by increased Medicare enrollments.
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The company achieved a GAAP net income of $2 million and an adjusted EBITDA of $12.5 million, indicating improved profitability.
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Medicare submissions grew by 22% year over year, with a notable 26% increase in submitted Medicare Advantage applications.
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eHealth Inc (NASDAQ:EHTH) ended the quarter with $155.6 million in cash, cash equivalents, and short-term marketable securities, reflecting strong collections from new Medicare enrollments.
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The company has successfully integrated artificial intelligence into its telephonic enrollment funnel, enhancing customer service and operational efficiency.
Negative Points
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eHealth Inc (NASDAQ:EHTH) is facing a Department of Justice complaint, which could pose legal and reputational risks.
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The company anticipates challenging year-over-year comparisons in Q2 due to regulatory changes affecting special need plans.
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Despite strong Q1 results, eHealth Inc (NASDAQ:EHTH) is not updating its annual guidance, indicating uncertainty about future performance.
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The litigation and regulatory environment remains uncertain, with potential impacts on carrier relationships and marketing strategies.
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Operating cash flow for the 12 months ended March 30, 2025, was negative $12 million, reflecting strategic decisions to invest in consumer demand.
Q & A Highlights
Q: How does the removal of Medicare Advantage plans from online marketing platforms by a carrier affect eHealth's operations? A: Francis Soistman, Executive Vice President - Government Services, explained that eHealth's strategy focuses on providing significant choice, with nearly 50 Medicare Advantage carrier relationships across the country. This diversification means they are not overly dependent on any single carrier, mitigating the impact of such actions.