Online health insurance comparison site eHealth (NASDAQ:EHTH) reported Q2 CY2025 results topping the market’s revenue expectations , but sales fell by 7.7% year on year to $60.78 million. The company’s full-year revenue guidance of $545 million at the midpoint came in 2.5% above analysts’ estimates. Its non-GAAP loss of $0.80 per share was 35.9% above analysts’ consensus estimates.
eHealth (EHTH) Q2 CY2025 Highlights:
Revenue: $60.78 million vs analyst estimates of $46.41 million (7.7% year-on-year decline, 31% beat)
Adjusted EPS: -$0.80 vs analyst estimates of -$1.25 (35.9% beat)
Adjusted EBITDA: -$14.14 million vs analyst estimates of -$34.92 million (-23.3% margin, 59.5% beat)
The company lifted its revenue guidance for the full year to $545 million at the midpoint from $530 million, a 2.8% increase
EBITDA guidance for the full year is $65 million at the midpoint, above analyst estimates of $51.68 million
Operating Margin: -37.9%, up from -42.5% in the same quarter last year
Estimated Membership: 1.15 million, down 31,137 year on year
Market Capitalization: $104.8 million
eHealth’s second quarter saw revenue exceed Wall Street’s expectations, with the market reacting positively to the company’s ability to adapt in a challenging environment. Management attributed this performance to stronger-than-anticipated Medicare Advantage enrollments and improved member retention, which drove favorable tail revenue and lifetime value metrics. CEO Fran Soistman noted that the company navigated regulatory changes limiting dual-eligible enrollments by shifting focus to insurance products that can be sold year-round and by implementing operational adjustments within the telesales organization. Soistman highlighted, “We successfully navigated benefit plan cancellations and carrier market exits, which enabled us to continue offering high-quality plan options across all of our key markets.”
Looking forward, eHealth’s updated guidance is shaped by expectations for a volatile Medicare Annual Enrollment Period (AEP) and industry-wide shifts in broker commissions. Management emphasized that the improved full-year outlook does not yet fully incorporate recently announced, more favorable commission rates for 2026. Soistman explained, “We have not incorporated any AEP-related impacts into our updated outlook, including this recent broker rate announcement.” The company is also preparing for further market complexity, including potential benefit reductions and service area changes by carriers, with the aim of leveraging its technology and broad carrier relationships to assist beneficiaries during enrollment season.
Key Insights from Management’s Remarks
Management cited the company’s operational flexibility, strategic use of technology, and proactive adaptation to regulatory changes as key to Q2 results and the updated annual outlook.
Medicare retention strategies: The company’s focus on member retention, including tailored loyalty programs and enhanced consumer brand initiatives, contributed to better-than-expected lifetime value (LTV) metrics for both Medicare Advantage and Medicare Supplement products.
AI-powered call center enhancements: eHealth piloted and began scaling AI voice agents to handle customer screening, improving call answer rates and customer satisfaction. These tools are expected to play a larger role during high-volume periods such as AEP, reducing wait times and enhancing conversion rates.
Telesales organization restructuring: The business introduced a more flexible mix of full-time and seasonal licensed advisers, improving cost efficiency and enabling rapid scaling to match Medicare’s seasonal enrollment patterns.
Adapting to regulatory changes: Management responded to new rules limiting dual-eligible Medicare beneficiary enrollments by expanding into products that can be sold outside of the main enrollment period, such as Medicare Supplement and ancillary insurance options, helping offset volume declines.
Leadership transition: Derek Duke was announced as the incoming CEO, with Soistman remaining in an advisory role through year-end. Duke’s background in health insurance distribution is expected to support the next phase of scale and diversification for the company.
