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eHealth, Inc.’s EHTH shares have lost 2.4% since the company reported first-quarter 2025 results on May 7, before the opening bell. The strong quarterly results benefited from Medicare segment growth, driven by a 25% surge in Medicare Advantage submissions and a 16% rise in approved members. Higher commissions and other revenues also supported the quarterly performance. However, a significant revenue decline in the Employer and Individual segment partially offset the upside.
EHTH reported first-quarter 2025 adjusted loss of 8 cents per share, narrower than the Zacks Consensus Estimate of a loss of 41 cents. The bottom line improved from a loss of 79 cents in the prior year.
Revenues amounted to $113.1 million, which rose 21.7% year over year. The top line beat the consensus mark by 23.1%.
eHealth, Inc. Price, Consensus and EPS Surprise
eHealth, Inc. price-consensus-eps-surprise-chart | eHealth, Inc. Quote
EHTH’s Quarterly Operational Update
Commissions of $98.9 million improved 22% year over year. Other revenues climbed 18% year over year to $14.2 million. Medicare submissions across the core agency and carrier-dedicated Amplify platforms of the company rose 22% year over year on the back of a 25% year-over-year surge in Medicare Advantage submissions.
Total operating costs and expenses decreased 2% year over year to $108.3 million due to decreased general and administrative expenses. Interest expenses of $2.6 million witnessed a 6% year-over-year decline.
EHTH’s net income of $2 million jumped 111% year over year in the first quarter. Adjusted EBITDA soared 858% year over year to $12.5 million. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Segmental Update
Medicare: The segment’s revenues climbed 26% year over year to $103.7 million. Gross profit totaled $35.7 million, up 62% year over year. The segment benefited on the back of an increase in approved members across Medicare Advantage. Medicare plan approved members rose 16% year over year.
Employer and Individual: The unit recorded revenues of $9.5 million, which dropped 11% year over year. Gross profit declined 19% year over year to $6 million. The segment suffered a blow due to decreased individual, family and small business approved members.
eHealth’s Financial Update (as of March 31, 2025)
eHealth exited the first quarter with cash and cash equivalents of $121.1 million, which rose from $39.2 million at the 2024-end level. Total assets of $1.1 billion decreased from $1.2 billion at 2024-end.
Total stockholders’ equity of $581.6 million decreased from $588.4 million as of the 2024-end figure.