Stonegate Capital Partners Updates Coverage on GoHealth Inc. (GOCO) 2025 Q3November 17, 2025 9:52 AM EST | Source: Reportable, Inc. Dallas, Texas--(Newsfile Corp. - November 17, 2025) - GoHealth Inc. (NASDAQ: GOCO): Stonegate Capital Partners updates their coverage on GoHealth Inc. (NASDAQ: GOCO). GoHealth, Inc. reported a difficult 3Q25 as the Company continued to navigate a materially different Medicare Advantage environment. Net revenues declined to $34.2M from $118.3M a year ago, reflectin ...

Financial Performance - Net revenues for Q3 2025 were $34,186,000, a decrease of 71.1% compared to $118,292,000 in Q3 2024[25] - Net loss attributable to GoHealth, Inc. for Q3 2025 was $165,846,000, compared to a net income of $6,775,000 in Q3 2024[25] - The company reported a comprehensive loss of $313,830,000 for Q3 2025, compared to a comprehensive income of $15,386,000 in Q3 2024[29] - For the three months ended September 30, 2025, the net loss was $313.9 million, compared to a net income of $15.4 million for the same period in 2024[35] - The total stockholders' equity decreased to $6.9 million as of September 30, 2025, down from $345.3 million a year earlier[35] - For the nine months ended September 30, 2025, GoHealth reported a net loss of $439.693 million, compared to a net loss of $65.294 million for the same period in 2024, indicating a significant increase in losses[42] - The company experienced a net loss of $313.9 million for the three months ended September 30, 2025, compared to a net income of $15.4 million in the prior year[183] Operating Expenses - Total operating expenses for Q3 2025 were $322,103,000, an increase of 100.0% from $160,964,000 in Q3 2024[25] - The loss from operations for the three months ended September 30, 2025, was $287.9 million, compared to a loss of $42.7 million in the prior year[164] - Marketing and advertising expenses for Q3 2025 were $17,471,000, a decrease of 61.5% from $45,270,000 in Q3 2024[25] - General and administrative expenses increased by 61.5% to $27.7 million for the three months ended September 30, 2025, up from $17.1 million in 2024[171] - Consumer care and enrollment expenses fell by 62.2% to $17.2 million for the three months ended September 30, 2025, compared to $45.6 million in 2024[168] Impairment Charges - The company incurred impairment charges of $206,163,000 in Q3 2025, with no such charges reported in Q3 2024[25] - The Company recorded long-lived asset impairment charges of $206.2 million and $260.0 million for the three and nine months ended September 30, 2025, respectively[221] - The Company recognized intangible asset impairment charges of $179.0 million and $232.0 million for the three and nine months ended September 30, 2025, respectively, to write down indefinite-lived trade names and definite-lived amortizable intangible assets[66] - Operating lease impairment charges amounted to $4.5 million for the three months and $5.3 million for the nine months ended September 30, 2025, due to cost-saving initiatives[222] Cash and Liquidity - Cash and cash equivalents decreased to $32,076,000 as of September 30, 2025, down from $40,921,000 at the end of 2024[31] - The company is actively pursuing strategic alternatives, including refinancing and cost management initiatives, to address liquidity concerns[53] - GoHealth's cash management initiatives are aimed at maintaining compliance with its debt covenants amid significant financial challenges[53] - The Company plans to focus on customer retention and cash preservation, expecting reduced revenues compared to the previous year due to scaled-back Medicare Advantage activities[154] Debt and Financing - The carrying value of the Company's long-term debt as of September 30, 2025, was $581.8 million, an increase from $487.4 million as of December 31, 2024[67] - The Company has a term loan facility with a principal amount of $636.5 million as of September 30, 2025, with scheduled repayments starting in 2025[67] - The Superpriority Credit Agreement was established on August 6, 2025, with a total principal amount of $115.0 million, including $80.0 million in new-money term loans and $35.0 million in roll-up term loans[74] - The Company recognized an aggregate loss on extinguishment of debt of $1.7 million and recorded debt discounts of $25.1 million related to the Class A common stock issued as non-cash consideration[78] Revenue Sources - Medicare agency revenue for the three months ended September 30, 2025, was $26.3 million, down from $92.3 million in the same period of 2024[117] - Total Medicare revenue for the nine months ended September 30, 2025, was $331.7 million, down from $406.7 million in the same period of 2024[117] - Significant customers included United, which represented 33.1% of total net revenues for the three months ended September 30, 2025, up from 25.9% in 2024[131] Employee and Organizational Changes - Management implemented a reduction in force impacting approximately 487 employees to improve cash flows and reduce operating expenses[53] - A workforce reduction impacting approximately 487 employees was announced on November 3, 2025, as part of cost-saving measures amid market conditions[148] - The Company established a "Transformation Committee" to explore strategic alternatives, including mergers and acquisitions, to enhance financial flexibility and stockholder value[156] Shareholder Information - The weighted-average shares of Class A common stock outstanding were 14,136,000 for Q3 2025, compared to 10,077,000 for Q3 2024[25] - The Company issued 4,766,219 shares of Class A common stock, representing 19.99% of the total issued and outstanding shares, as part of the amendment to the Existing Credit Agreement on August 6, 2025[109] - The initial liquidation preference for the Series A redeemable convertible preferred stock is $1,000 per share, with an annual dividend rate of 7.0%[98] Future Outlook - The Company is currently assessing the impact of recent accounting pronouncements on its disclosures, including ASU 2023-09 and ASU 2024-03[56][57] - The Company is actively looking to terminate or sublease certain office spaces and call centers as part of its cost-saving initiatives[62] - The Company’s revised long-term forecasts reflect a pullback on Medicare Advantage activity due to tightening health plan economics[223]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

GoHealth (GOCO) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $2.06. This compares to a loss of $3.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +90.78%. A quarter ago, it was expected that this company would post a loss of $2.6 per share when it actually produced a loss of $1.23, delivering a surprise of +52.69%.Over the last four quarters, the company has surpassed co ...

Financial Data and Key Metrics Changes - GoHealth reported a cash balance of approximately $32 million at the end of Q3 2025, with access to an additional $40 million from a new super-priority term loan facility [44][47]. - The company emphasized cash management and maintaining liquidity to support operations and strategic opportunities [45][48]. Business Line Data and Key Metrics Changes - The company shifted focus from Medicare Advantage (MA) to GoHealth Protect, prioritizing retention and stable member profiles over volume growth due to tightening health plan economics [5][9]. - GoHealth Protect has been instrumental in retaining business, with a strategy to enhance consumer peace of mind through complementary product offerings [19][20]. Market Data and Key Metrics Changes - The Medicare Advantage market is experiencing strong demand, but health plans are prioritizing retention and stable member profiles rather than broad expansion [5][9]. - The total available non-special needs plan products are declining for 2026, while special needs plan options are increasing, indicating a shift in industry priorities [9]. Company Strategy and Development Direction - The company is focusing on quality over quantity, retention over short-term submissions, and cash preservation to maintain strategic flexibility [7][8]. - GoHealth aims to lead consolidation in a fragmented broker landscape, leveraging its strong balance sheet and governance structure to create long-term value [10][11]. Management's Comments on Operating Environment and Future Outlook - Management believes that the current actions taken by health plans are justified and prudent, reflecting a focus on retention and quality [6][9]. - The company expects the Medicare Advantage market to stabilize over the next 12-24 months, allowing for potential revenue growth with improved margins and cash profiles [12][17]. Other Important Information - GoHealth has retained its highest-quality agents and adjusted compensation structures to reinforce retention strategies [8][53]. - The company has invested in AI and automation to improve agent effectiveness and consumer experience [8][58]. Q&A Session Summary Question: What is the growth trajectory for Medicare Advantage over the next 12 to 24 months? - Management indicated that growth will depend on health plans stabilizing their cost structures and focusing on retention, with expectations for a return to growth as the market rationalizes [15][17]. Question: Can you discuss the key drivers of growth for GoHealth Protect? - The growth of GoHealth Protect is driven by enhancing consumer peace of mind and serving both existing and new customers effectively [19][20]. Question: Why did the company decide to pull back on Medicare Advantage? - The decision was based on feedback from health plans prioritizing retention and stability over new enrollments, as well as the need to focus on existing members [25][26]. Question: What are the implications of the company's current strategy if the market conditions change? - If the assessment proves correct, the company retains its capabilities and cash position, but if wrong, it may need to ramp up operations quickly [28][30]. Question: Why should the industry consolidate, and how is GoHealth positioned to lead? - The company believes that consolidation can reduce duplicative costs and enhance efficiency, positioning GoHealth as a leader due to its strong consumer base and technology investments [31][32].

Financial Performance - Q3 2024 - Net revenues for Q3 2024 were $118.292 million, compared to $132.037 million in Q3 2023[28] - Net loss for Q3 2024 was $15.366 million, compared to a net income of $(56.204) million in Q3 2023[28] - Adjusted EBITDA for Q3 2024 was $(12.106) million, compared to $(11.475) million in Q3 2023[28] - Adjusted EBITDA margin for Q3 2024 was (10.2)%, compared to (8.7)% in Q3 2023[28] Financial Performance - YTD 2024 - Net revenues for the nine months ended September 30, 2024, were $409.762 million, compared to $457.974 million for the same period in 2023[28] - Net loss for the nine months ended September 30, 2024, was $(65.294) million, compared to $(148.976) million for the same period in 2023[28] - Adjusted EBITDA for the nine months ended September 30, 2024, was $2.480 million, compared to $18.091 million for the same period in 2023[28] - Adjusted EBITDA margin for the nine months ended September 30, 2024, was 0.6%, compared to 4.0% for the same period in 2023[28] Financial Performance - TTM - TTM net revenues as of Q3 2024 were $686.459 million, compared to $527.350 million as of Q3 2023[32] - TTM net loss as of Q3 2024 was $(67.588) million, compared to $(299.713) million as of Q3 2023[32] - TTM Adjusted EBITDA as of Q3 2024 was $59.480 million, compared to $(76.690) million as of Q3 2023[32] - TTM Adjusted EBITDA margin as of Q3 2024 was 8.7%, compared to (14.5)% as of Q3 2023[32]

Financial Performance - Net revenues for Q3 2025 decreased to $34.186 million, a decline of 71.1% compared to $118.292 million in Q3 2024[19]. - Total operating expenses surged to $322.103 million, representing a 100.1% increase from $160.964 million in the same period last year[19]. - The company reported a net loss of $313.918 million for Q3 2025, compared to a net income of $15.366 million in Q3 2024, marking a significant decline of 2,142.9%[19]. - For the nine months ended September 30, 2025, net revenues were $349.206 million, down 14.8% from $409.762 million in the same period of 2024[20]. - Operating expenses for the nine months increased to $729.840 million, a rise of 46.8% from $497.076 million in the prior year[20]. - The net loss attributable to GoHealth, Inc. for the nine months was $224.531 million, compared to a loss of $28.437 million in the same period last year, reflecting a 689.6% increase in losses[20]. - EBITDA for Q3 2025 was $(262.620) million, a decrease from $60.860 million in Q3 2024[21]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $(16.325) million, compared to $2.479 million in the same period of 2024[21]. - The company incurred indefinite and long-lived asset impairment charges of $206.163 million in Q3 2025, which was not present in Q3 2024[21]. - The net income (loss) margin for Q3 2025 was (918.3)%, compared to 13.0% in Q3 2024, indicating a drastic decline in profitability[21]. - Total net revenues for the three months ended September 30, 2025, were $34,186 thousand, a decrease from $118,292 thousand in the same period of 2024, representing a decline of 71.1%[24]. - Medicare revenue for the nine months ended September 30, 2025, was $331,687 thousand, down from $406,653 thousand in 2024, reflecting a decrease of 18.4%[24]. - The company reported a net loss of $439,693 thousand for the nine months ended September 30, 2025, compared to a net loss of $65,294 thousand in 2024[26]. Operational Strategy - GoHealth intentionally reduced Medicare Advantage volume to prioritize retention, member quality, and unit economics in response to market shifts[6]. - The company maintained liquidity and reduced fixed costs while automating core operations, positioning itself for long-term value creation[4]. - GoHealth's leadership in Special Needs Plans (SNP) remains strong, with health plans continuing to allocate resources to this category[6]. - The company secured a superpriority term loan facility and received covenant relief to enhance strategic flexibility for potential integration opportunities[6]. - GoHealth's third-quarter performance reflects disciplined execution in a market focused on margin integrity and renewal stability[4]. - The company emphasized a retention-first strategy, confirming members' current plans to protect the quality and durability of its member base[6]. - GoHealth's balance sheet is stable, and its variable cost structure provides flexibility for future opportunities[4]. - The company continues to evaluate strategic alternatives and shifts in its business strategy, including the integration of e-TeleQuote Insurance, Inc.[10]. Submission and Cost Metrics - The number of submissions for the three months ended September 30, 2025, was 72,183, a significant drop of 56.6% compared to 166,195 in 2024[28]. - Sales per submission decreased to $461 in the three months ended September 30, 2025, down 34.3% from $702 in the same period of 2024[28]. - Direct operating cost per submission increased to $756 for the three months ended September 30, 2025, up 14.0% from $663 in 2024[28]. Balance Sheet and Equity - Total assets as of September 30, 2025, were $1,030,486 thousand, a decrease from $1,488,423 thousand as of December 31, 2024[25]. - Total current liabilities decreased to $175,682 thousand as of September 30, 2025, from $338,052 thousand at the end of 2024, a reduction of 48.0%[25]. - Cash and cash equivalents at the end of the period were $32,076 thousand, down from $40,921 thousand at the beginning of the period[26]. - The company had a total stockholders' equity deficit of $6,908 thousand as of September 30, 2025, compared to an equity of $405,438 thousand at the end of 2024[25].

Core Insights - GoHealth, Inc. has intentionally reduced its Medicare Advantage volume to adapt to a changing market that prioritizes retention and member stability over raw enrollment growth [2][3][6] - The company's third-quarter performance reflects a disciplined approach, maintaining liquidity and reducing fixed costs while focusing on platform efficiency and strategic flexibility [3][6] Financial Performance - For the three months ended September 30, 2025, GoHealth reported net revenues of $34.186 million, a decrease of 71.1% from $118.292 million in the same period of 2024 [16] - Operating expenses for the same period totaled $322.103 million, a significant increase of 100.1% compared to $160.964 million in 2024, leading to a loss from operations of $287.917 million [16][18] - The net loss attributable to GoHealth, Inc. for the three months ended September 30, 2025, was $165.846 million, compared to a net income of $6.775 million in the same period of 2024 [18] Strategic Focus - The company is emphasizing a retention-first strategy, reinforcing objective guidance to members and protecting the quality of its member base [6][3] - GoHealth aims to maintain its leadership in Special Needs Plans (SNP) and has preserved strategic capabilities to scale when market conditions stabilize [6][2] Market Environment - The Medicare Advantage environment has shifted towards margin integrity and long-term member value, prompting GoHealth to align its operating model accordingly [2][3] - Health plans are increasingly prioritizing renewal stability and member quality, which has influenced GoHealth's decision to reduce its Medicare Advantage volume [2][6] Operational Metrics - The number of submissions for the three months ended September 30, 2025, was 72,183, a decrease of 56.6% from 166,195 in the same period of 2024 [27] - Sales per submission decreased to $461 in the third quarter of 2025, down 34.3% from $702 in the same quarter of 2024 [27]

Core Insights - GoHealth, Inc. will release its third quarter 2025 financial results on November 13, 2025, with a conference call scheduled for 8:00 a.m. (ET) to discuss the results [1] Company Overview - GoHealth is a leading health insurance marketplace focused on Medicare, aiming to simplify healthcare decisions for consumers [3] - The company utilizes a proprietary technology platform that employs machine-learning algorithms to match health plans to consumer needs, enhancing the enrollment process for millions of Medicare consumers [3]

Core Insights - GoHealth aims to provide support to Medicare beneficiaries facing disruptions during the 2026 Annual Enrollment Period (AEP) by leveraging its proprietary technology to enhance the consumer experience [1][3]. Industry Overview - Approximately 2 million Medicare Advantage beneficiaries are expected to be impacted by plan exits, while an additional 10 million may experience plan degradation, leading to reduced provider networks, supplemental benefits, and increased costs [2][3]. - The Medicare market is undergoing significant disruption, with fewer plan options and higher costs anticipated as insurers attempt to manage expenses [3]. Company Solutions - GoHealth offers proprietary solutions such as PlanFit technology and PlanFit CheckUp, which help consumers compare their current Medicare plans with available options, ensuring they make informed decisions [7][8]. - The company’s AI-powered assistant, PlanGPT, streamlines the plan comparison process, allowing licensed agents to provide personalized guidance and reduce average call times by 10 minutes [7][8]. Recommendations for Beneficiaries - GoHealth encourages Medicare beneficiaries to take a proactive approach during the AEP, which runs from October 15 to December 7, by seeking guidance from licensed professionals and carefully assessing their options [4][6].