Q4 & FY 2024 Financial Results ©2025 eHealthInsurance Services, Inc. 1 Safe Harbor Statement Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this presentation include, but are not limited to, the following: our estimates regarding Medicare enrollment growth; our estimates regarding comm ...

Financial Data and Key Metrics Changes - eHealth reported a record high revenue of $315.2 million for Q4 2024, representing a 27% increase year-over-year, and a 33% increase when excluding net adjustment revenue [43] - GAAP net income for Q4 2024 increased by 87% to $97.5 million, up from $52.2 million [43] - Adjusted EBITDA for Q4 grew 74% to $121.3 million, with an adjusted EBITDA margin of 38% [44][50] - Full year 2024 revenue reached $532.4 million, an 18% increase, with adjusted EBITDA of $69.3 million, up from $14.1 million in 2023 [51][52] Business Line Data and Key Metrics Changes - Medicare segment revenue grew 31% to $305.8 million in Q4 2024, with total Medicare submissions increasing by 38% [44][45] - The Agency fulfillment model saw submissions rise by 49%, reflecting consumer preference for platforms with broad plan offerings [45] - The E&I segment revenue decreased by 33% to $9.4 million in Q4, with a gross profit of $4 million [47] Market Data and Key Metrics Changes - The Medicare Advantage lifetime value (LTV) increased by 2% to $1,174, with an LTV to customer acquisition cost (CAC) ratio of 2x, exceeding the target of 1.7x [46] - The company observed unprecedented disruption in the Medicare Advantage market, leading to increased consumer demand and a record high switching rate of 23% during the annual enrollment period [11][74] Company Strategy and Development Direction - eHealth aims to expand brand recognition beyond core Medicare products and enhance retention strategies [36][80] - The company plans to invest in AI and digital technology to improve service delivery and operational efficiency [25][37] - Strategic priorities include optimizing telesales operations and diversifying revenue streams through targeted investments in Medicare Supplement and ancillary products [35][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the fluid Medicare market and anticipates continued consumer demand [29][30] - The regulatory environment is expected to improve over the next four years, which could positively impact the Medicare Advantage sector [30] - Guidance for 2025 indicates a range of $510 million to $550 million in revenue, with expectations for adjusted EBITDA to decline relative to 2024 due to a more measured approach [57][63] Other Important Information - The company successfully navigated the Medicare sector disruption, taking market share and scaling its business at attractive economics [28] - eHealth ended 2024 with $82.2 million in cash and equivalents, with expectations for a significant increase in cash balance by the end of Q1 2025 [53][55] Q&A Session Summary Question: Expectations for 2025 in light of regulatory changes and competitive landscape - Management characterized the outlook as pragmatic, noting the rapid changes in administration and potential impacts on Medicare Advantage [70][72] Question: Impact of D-SNP rules on enrollment and marketing strategy - Management acknowledged the anticipated shift in D-SNP opportunities to Q4 and the need to adjust marketing strategies accordingly [84] Question: Future of the Amplify platform and its growth potential - Management remains optimistic about Amplify's evolution and its ability to scale and improve margins as it matures [88][94] Question: Changes in commission payments by carriers and their impact - Management indicated that while commission suppression was more pronounced, eHealth's broad carrier portfolio allowed it to navigate these challenges effectively [117][120]

Financial Data and Key Metrics Changes - eHealth reported a fourth quarter revenue increase of 27% year-over-year, reaching a record high of $315.2 million [43] - GAAP net income for the fourth quarter increased by 87% to $97.5 million, up from $52.2 million [43] - Adjusted EBITDA grew 74% to $121.3 million, with an adjusted EBITDA margin of 38% for the quarter [44] Business Line Data and Key Metrics Changes - Medicare segment revenue increased by 31% to $305.8 million, with total Medicare submissions rising 38% across Agency and Amplify enrollments [44][45] - The Agency fulfillment model saw submissions grow by 49%, reflecting consumer preference for platforms with broad plan offerings [45] - The E&I segment revenue decreased by 33% to $9.4 million, with a gross profit of $4 million [47] Market Data and Key Metrics Changes - The Medicare Advantage lifetime value (LTV) increased by 2% to $1,174, with an LTV to customer acquisition cost (CAC) ratio of 2x, exceeding the target of 1.7x [46] - The company observed unprecedented disruption in MA plan offerings, leading to elevated consumer demand as beneficiaries reassessed their coverage [11] Company Strategy and Development Direction - eHealth aims to expand brand recognition across all direct marketing channels and enhance retention and customer loyalty strategies [36] - The company plans to advance its AI and digital technology leadership to better serve stakeholders, including consumers and carriers [37] - eHealth is focusing on diversifying its revenue base through targeted investments in Medicare Supplement and ancillary products [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive and financial position, anticipating a fluid Medicare market with ongoing changes [29] - The regulatory environment in the Medicare Advantage sector is expected to improve over the next four years, with early indicators being the final MA rates and marketing rules [30] - The company is taking a balanced approach to its outlook, guiding for relatively flat revenues compared to the previous year [33] Other Important Information - eHealth successfully navigated the Medicare sector disruption, taking market share and scaling its business at attractive economics [28] - The company ended 2024 with $82.2 million in cash, cash equivalents, and marketable securities, with expectations for a meaningful increase in cash balance by the end of Q1 2025 [53][55] Q&A Session Summary Question: Expectations for 2025 and competitive environment - Management characterized the outlook as pragmatic due to changes in administration and regulatory priorities, with a focus on tracking the Medicare Advantage environment closely [70][72] Question: Impact of D-SNP rules on Q4 expectations - Management anticipated more D-SNP opportunities in Q4 due to changes in regulations affecting Q2 and Q3 volumes [84] Question: Future of the Amplify platform - Management expressed confidence in the Amplify platform's growth potential, emphasizing the importance of building the carrier pipeline and improving margins as the business matures [88][92] Question: Changes in consumer behavior and retention strategies - Management noted an increase in activity during the OEP, with diversified retention initiatives targeting beneficiaries impacted by plan changes [102] Question: Resource allocation towards E&I - Management remains bullish on the E&I segment, planning to continue investments while recognizing the need for a healthy capability in this area [105][109] Question: Carrier commission suppression and rate environment - Management indicated that while commission suppression was more pronounced, eHealth's broad carrier portfolio allowed it to navigate these challenges effectively [117][120]

Revenue Growth - Q4 2024 total revenue reached $315.2 million, a 27% increase from $247.7 million in Q4 2023, primarily driven by Medicare segment growth[5] - FY 2024 total revenue was $532.4 million, an 18% increase from $452.9 million in FY 2023[5] - Total revenue for the three months ended December 31, 2024, was $315,181,000, representing a 27% increase compared to $247,662,000 in the same period of 2023[20] - The consolidated total revenue rose by 27% to $315,181,000 for the three months ended December 31, 2024, from $247,662,000 in the prior year[30] - Non-GAAP total revenue excluding net adjustment revenue for 2024 was $509,675,000, a 26% increase from $404,796,000 in 2023[47] Profitability - Q4 2024 GAAP net income was $97.5 million, an 87% increase compared to $52.2 million in Q4 2023[5] - FY 2024 net income was $10.1 million, a significant turnaround from a net loss of $28.2 million in FY 2023[5] - The company reported a significant increase in net income attributable to common stockholders, reaching $85,687,000 for the three months ended December 31, 2024, compared to $41,691,000 in the same period of 2023[20] - Non-GAAP net income for Q4 2024 was $91,797,000, up from $40,379,000 in Q4 2023[46] - The income before income taxes surged by 89% to $110,473,000 for the three months ended December 31, 2024, compared to $58,469,000 in the same period of 2023[30] Medicare Segment Performance - Total Medicare submissions grew 38% year-over-year in Q4 2024, with Medicare Advantage submissions increasing by 42%[5] - The Medicare segment primarily consists of commissions from Medicare-related health insurance plans, contributing significantly to revenue growth[25] - Total revenue for the Medicare segment increased by 31% to $305,781,000 for the three months ended December 31, 2024, compared to $233,680,000 in the same period of 2023[28] - The gross profit for the Medicare segment increased by 56% to $159,880,000 for the three months ended December 31, 2024, compared to $102,357,000 in 2023[28] - Medicare Advantage approved members increased to 366,160 in 2024 from 290,712 in 2023, a growth of 26%[38] Future Projections - The company expects 2025 total revenue to be in the range of $510.0 million to $550.0 million[12] - 2025 adjusted EBITDA is projected to be between $35.0 million and $60.0 million[12] - The company anticipates an 8% CAGR for revenue from 2023 to 2025, with an implied adjusted EBITDA margin of 9% for 2025[7] - The company expects a GAAP net loss attributable to common stockholders in 2025 to range from $(60.0) million to $(35.0) million[50] Operating Costs and Expenses - Total operating costs and expenses for the three months ended December 31, 2024, were $202,541,000, an 8% increase from $188,294,000 in the same period of 2023[20] - Marketing and advertising expenses for the three months ended December 31, 2024, were $96,197,000, a 9% increase from $87,959,000 in the same period of 2023[20] - Variable marketing and advertising costs for the consolidated segment increased by 11% to $88,002,000 for the three months ended December 31, 2024[30] Membership and Acquisition Metrics - The number of approved Medicare members increased by 33% to 248,440 for the three months ended December 31, 2024, compared to 186,567 in 2023[36] - Total approved members rose to 485,456 in 2024, up 13% from 429,196 in 2023[38] - Estimated Medicare Advantage membership reached 690,874 in 2024, an 11% increase from 622,896 in 2023[39] - The total acquisition cost per Medicare Advantage-equivalent approved member decreased by 23% to $591 for the three months ended December 31, 2024[36] Financial Reporting and Measures - eHealth reported non-GAAP total revenue excluding net adjustment revenue, which provides a clearer view of the company's financial performance[55] - Non-GAAP operating costs and expenses were calculated by excluding stock-based compensation and other charges, reflecting a more accurate operational cost structure[56] - Adjusted EBITDA margin was derived from adjusted EBITDA divided by revenue, offering insights into profitability trends[56] - eHealth continues to emphasize the importance of non-GAAP financial measures to provide investors with a comprehensive view of its operating performance[54]

Financial Results - eHealth, Inc. announced its financial results for the fourth quarter and fiscal year ended December 31, 2024 [1] - The company reported significant growth in its online health insurance marketplace, highlighting its role as a leading independent licensed insurance agency [4] Conference Call Information - A webcast and conference call regarding the financial results will be held on February 26, 2025, at 8:30 a.m. Eastern Time [3] - Interested participants can join the call by dialing (800) 549-8228 with the participant passcode 72156 [3] Company Overview - eHealth has been operational for over 25 years, assisting millions of Americans in finding suitable healthcare coverage [4] - The company provides access to over 180 health insurers, including both national and regional companies [4]

Core Viewpoint - Fortrea has appointed Erin L. Russell as a new independent member of its Board of Directors, following a cooperation agreement with Starboard Value LP, which owns approximately 5.4% of Fortrea's outstanding common stock [1][2]. Company Summary - Fortrea is a leading global contract research organization (CRO) that provides clinical development solutions to the life sciences industry, partnering with biopharmaceutical, biotechnology, medical device, and diagnostic companies [5]. - The company offers phase I-IV clinical trial management, clinical pharmacology, and consulting services, leveraging over 30 years of experience across more than 20 therapeutic areas [5]. Board Appointment - Erin L. Russell brings extensive experience in finance and healthcare, having held executive and board roles in various companies, including Modivcare, eHealth, and Kadant [2]. - Russell's previous board experience includes Tivity Health, DeVilbiss Healthcare, DynaVox, and 21st Century Oncology [2]. - She has a background in private equity, having spent 16 years as a principal at Vestar Capital Partners [2]. Cooperation Agreement - The cooperation agreement with Starboard includes a customary standstill and voting agreement, with Starboard having the right to appoint a representative to the Board under certain conditions starting in August 2025 [3]. - Both Fortrea and Starboard expressed positive sentiments regarding their collaboration, emphasizing the goal of driving financial improvements and maximizing shareholder value [2][3]. Advisory and Legal Counsel - Barclays is serving as the financial advisor to Fortrea, while White & Case LLP and Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, LLP are providing legal counsel to Fortrea [4]. - Starboard is represented by Olshan Frome Wolosky LLP as its legal counsel [4].

Company Overview - eHealth (EHTH) shares increased by 6.4% to close at $10.45, with notable trading volume compared to typical sessions, while the stock gained 0.8% over the past four weeks [1] - The company is expected to benefit from strong Medicare Advantage enrollment growth and has made significant progress in enhancing its tele sales organization [2] Revenue and Earnings Expectations - eHealth is projected to report quarterly earnings of $1.91 per share, reflecting an 18.6% year-over-year increase, with revenues expected to reach $270.08 million, a 9.1% increase from the previous year [4] - The consensus EPS estimate for eHealth has remained unchanged over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [6] Strategic Focus - The company is focused on developing a local market-oriented, omni-channel enrollment engine to improve conversion rates and margins, while expanding its product portfolio beyond Medicare Advantage [3] - This strategic focus is anticipated to drive revenue growth and generate positive adjusted EBITDA [3]

Group 1 - eHealth, Inc. plans to release its fourth quarter and fiscal year 2024 financial results on February 26, 2025 [1] - An earnings conference call will be held on the same day at 8:30 a.m. Eastern Time, hosted by CEO Fran Soistman and CFO John Dolan [2] - A live webcast of the earnings call will be available on the Investor Relations page of the company's website, with a replay accessible for one year [3] Group 2 - eHealth has been operating for over 25 years, assisting millions of Americans in finding affordable healthcare coverage [4] - The company is an independent licensed insurance agency, providing access to over 180 health insurers, including both national and regional companies [4] - For further information, eHealth encourages visits to their website and social media platforms [4]

Core Insights - eHealth, Inc. has launched Iris by eHealth, an Individual Coverage Health Reimbursement Account (ICHRA) solution aimed at helping employers manage healthcare costs while providing employees with personalized health plan options [1][2] Group 1: Cost Savings and Flexibility - Employers can potentially save an average of 17% on healthcare costs by utilizing ICHRA, allowing employees to select health plans that meet their unique needs [2][4] - The ICHRA model addresses the healthcare needs of diverse workforces, including geographically dispersed, seasonal, and mixed part-time and full-time employees [2] Group 2: User Experience and Support - Employers have reported satisfaction with the cost savings and the increased plan options available to employees through the individual market [3] - eHealth provides comprehensive support, including no plan markups or hidden fees, and offers a free annual review of plan options [3][7] Group 3: Functionality of Iris Platform - The Iris platform allows employers to set a flat monthly contribution towards each employee's health coverage, while employees can choose plans from various top insurance companies [7] - Employees can customize their plan selections by adding preferred doctors and prescriptions, ensuring their choices align with personal healthcare needs [7]

Group 1 - eHealth, Inc. (NASDAQ: EHTH) stock is experiencing significant gains, indicating potential for further upside in the small-cap sector [1] - The company operates as an online private health insurance marketplace, which has faced challenges in the current market environment [1]