NEW YORK, May 13, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of GoHealth, Inc. (“GoHealth” or the “Company”) (NASDAQ: GOCO). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether GoHealth and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action] On May 1, 2025, th ...

GoHealth (GOCO) came out with a quarterly loss of $0.47 per share versus the Zacks Consensus Estimate of a loss of $0.26. This compares to loss of $0.89 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -80.77%. A quarter ago, it was expected that this company would post earnings of $1.16 per share when it actually produced earnings of $2.41, delivering a surprise of 107.76%.Over the last four quarters, the company has surpassed ...

Financial Data and Key Metrics Changes - Q1 2025 revenue increased to $221 million, a 19% improvement from $186 million in Q1 2024 [9][26] - Adjusted EBITDA for Q1 2025 grew to $42.1 million, representing a 56% increase from $26.9 million in Q1 2024 [26] - GAAP net loss for the quarter was $9.8 million, showing significant year-over-year improvement [26] - Cash flow from operations reported a negative $12.4 million, down from a positive $12.5 million in the prior year [27] Business Line Data and Key Metrics Changes - Submission volume in Q1 increased significantly, driven by a 64% year-over-year growth in the captive Medicare team, while agent headcount grew by only 24% [9][10] - Sales per submission decreased by 15% year-over-year, attributed to a higher mix of agency versus non-agency submissions [11][52] Market Data and Key Metrics Changes - CMS announced a 5.06% average increase in Medicare Advantage revenue for health plans and a 10.72% increase in the Broker Commission Schedule, marking the most significant adjustment in over a decade [21] - The company anticipates a disruptive Annual Enrollment Period (AEP) due to health plans suppressing commission eligibility and adjusting plan benefits [22][23] Company Strategy and Development Direction - GoHealth is transitioning from a traditional Medicare enrollment company to a Medicare engagement company, focusing on long-term relationships with consumers [7][8] - The launch of GoHealthProtect, a suite of life insurance products, aims to diversify the product portfolio and reduce revenue seasonality [12][16] - Continued investment in technology and AI tools is expected to enhance consumer experience and agent efficiency [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market conditions but acknowledged the uncertainty surrounding health plan decisions and their impact on growth [23][30] - The company plans to leverage GoHealthProtect to stabilize revenue and cash flow during the second and third quarters [59] Other Important Information - GoHealth is facing a lawsuit related to alleged violations of the False Claims Act and the Anti-Kickback Statute, which the company intends to vigorously defend [23][25] - The company reported a significant increase in commissions receivable, growing nearly 19% year-over-year, indicating the durability and scale of the business [27] Q&A Session Summary Question: Opportunities to improve capital structure - Management indicated ongoing assessment of capital structure alternatives, emphasizing the importance of timing and terms to enhance their position [37][38] Question: Thoughts on United's changes and expectations for AEP - Management noted industry-wide margin challenges and anticipated more benefit resets and disruptions in the upcoming AEP [39][42] Question: Details on GoHealthProtect and marketing strategy - Management clarified that GoHealthProtect is being tested with a consumer-oriented approach, balancing outbound and inbound marketing strategies [45][48] Question: Explanation of sales per submission decline - Management explained the decline is due to a mix shift between agency and non-agency contracts, not a change in isolated rates [52][53] Question: Growth from eTeleQuote agents - Management stated that integration with eTeleQuote agents is ongoing, contributing to a 25% year-over-year increase in agent headcount [57] Question: Balance sheet information - Cash at the end of the quarter was $23 million, down from year-end figures [62]

Financial Data and Key Metrics Changes - Q1 2025 revenue increased to $221 million, a 19% improvement from $186 million in Q1 2024 [7][25] - Adjusted EBITDA for Q1 2025 grew to $42 million, representing a 56% year-over-year increase from $26.9 million in Q1 2024 [7][27] - GAAP net loss for the quarter was $9.8 million, showing significant improvement year-over-year [26] - Cash flow from operations reported a negative $12.4 million, compared to a positive $12.5 million in the prior year [27] Business Line Data and Key Metrics Changes - Submission volume in Q1 increased year-over-year, driven by a 64% growth in the captive Medicare team, while agent headcount grew by 24% [7] - Sales per submission decreased by 15% year-over-year, attributed to a higher mix of agency versus non-agency submissions [10][51] Market Data and Key Metrics Changes - CMS announced a 5.06% average increase in Medicare Advantage revenue for health plans and a 10.72% increase in the Broker Commission Schedule [20] - The company anticipates a disruptive Annual Enrollment Period (AEP) due to health plans suppressing commission eligibility and adjusting plan benefits [21] Company Strategy and Development Direction - GoHealth is transitioning from a traditional Medicare enrollment company to a Medicare engagement company, focusing on long-term relationships with consumers [6] - The launch of GoHealthProtect, a suite of life insurance products, aims to diversify the product portfolio and reduce revenue seasonality [11][15] - Continued investment in technology and AI tools to enhance consumer experience and agent efficiency [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming AEP despite potential disruptions, indicating a need for consumers to reassess their options [21][22] - The company is focused on capital discipline and maximizing return on investment while adapting to evolving market dynamics [30] Other Important Information - GoHealth is involved in a key lawsuit related to alleged violations of the False Claims Act and the Anti-Kickback Statute, which the company intends to vigorously defend [22][23] Q&A Session Summary Question: Opportunities to improve capital structure - Management indicated ongoing assessment of capital structure alternatives and emphasized that DOJ actions would not deter plans to enhance capital efficiency [38][39] Question: Thoughts on United's changes and expectations for AEP - Management noted industry-wide margin challenges and anticipated more benefit resets and disruptions in the upcoming AEP [40][42] Question: Details on GoHealthProtect offering and marketing strategy - Management clarified that GoHealthProtect is being tested with a consumer-oriented approach and selective partnerships, with a balanced marketing strategy [45][48] Question: Explanation of sales per submission decline - Management explained that the decline is due to a mix shift between agency and non-agency contracts, not a change in isolated rates [51][52] Question: Growth from eTeleQuote agents - Management stated that integration with eTeleQuote agents is ongoing, contributing to a 25% year-over-year increase in agent headcount [58] Question: Balance sheet information - Cash at the end of the quarter was $23 million, down from year-end [63]

Financial Performance - GoHealth's Q1 2025 revenue increased to $221 million, a 19% increase compared to $1856 million in Q1 2024[11] - Adjusted EBITDA for Q1 2025 was $421 million, a 56% increase from $269 million in Q1 2024[11] - Cash flow from operations improved significantly, from -$124 million in Q1 2024 to $125 million in Q1 2025, a 199% increase[14] - Ending commissions receivable (current and non-current) increased by 19%, from $8431 million on March 31, 2024, to $10006 million on March 31, 2025[14] - Adjusted EBITDA margin increased from 145% to 190%[23] Unit Economics - Sales per submission decreased by 15%, from $856 in Q1 2024 to $724 in Q1 2025[16] - Direct operating cost per submission improved by 18%, decreasing from $640 in Q1 2024 to $522 in Q1 2025[16] Non-GAAP Measures - The company uses non-GAAP financial measures like EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin to evaluate business performance[7] - Adjusted EBITDA is calculated by adjusting EBITDA for items like severance costs, share-based compensation, professional services, operating lease impairment, and legal fees[7, 23]

Financial Performance - First quarter 2025 net revenues reached $221.0 million, a 19.1% increase from $185.6 million in the prior year period[4] - The net loss for the first quarter 2025 was $9.8 million, reflecting a 54.2% improvement compared to a net loss of $21.3 million in the prior year period[4] - Adjusted EBITDA for the first quarter 2025 was $42.1 million, a 56.4% increase from $26.9 million in the prior year period[4] - Net revenues for Q1 2025 reached $220,972,000, a 19.1% increase from $185,600,000 in Q1 2024[19] - The company reported a net loss of $9,786,000 for Q1 2025, an improvement of 54.2% compared to a net loss of $21,346,000 in Q1 2024[19] - Adjusted EBITDA for Q1 2025 was $42,060,000, compared to $26,894,000 in Q1 2024, reflecting a significant increase[20] - The net income (loss) margin improved to (4.4)% in Q1 2025, compared to (11.5)% in Q1 2024[20] Operational Metrics - Submissions in the first quarter 2025 totaled 303,026, marking a 40.2% increase from 216,148 submissions in the prior year period[4] - The number of submissions increased by 40.2%, reaching 303,026 in Q1 2025, compared to 216,148 in Q1 2024[24] - Sales per submission decreased to $724 in Q1 2025, down 15.4% from $856 in Q1 2024[24] - Direct operating cost per submission improved to $522, an 18.4% decrease from $640 in the prior year period[4] - Direct operating cost per submission improved to $522 in Q1 2025, a reduction of 18.4% from $640 in Q1 2024[24] Revenue Sources - The company experienced a significant increase in commission revenue, which rose to $167,109,000 from $79,733,000 year-over-year[22] - Commissions receivable - current decreased to $207,443,000 as of March 31, 2025, down from $320,399,000 at the end of 2024[23] Strategic Initiatives - GoHealth launched GoHealth Protect, expanding its product offerings into guaranteed acceptance life insurance[4] - The company aims to enhance cash flow generation and reduce acquisition costs through the scaling of the new life insurance offering[3] - Investments in high-return initiatives are expected to drive continued momentum in future quarters[3] - The company is focused on refining its platform and technology to improve consumer experience and outcomes[3] - GoHealth's proprietary technology platform leverages machine-learning algorithms to match health plans to consumer needs[7]

Core Insights - GoHealth, Inc. reported strong financial results for Q1 2025, highlighting significant growth in revenue and improved operational metrics [1][3][6] - The company launched GoHealth Protect, expanding its product offerings to include guaranteed acceptance life insurance, aiming to enhance customer relationships and unit economics [3][6] Financial Performance - Q1 2025 net revenues reached $221.0 million, a 19.1% increase from $185.6 million in Q1 2024 [6][19] - The net loss for Q1 2025 was $9.8 million, showing a 54.2% improvement compared to a net loss of $21.3 million in the prior year [6][19] - Adjusted EBITDA for Q1 2025 was $42.1 million, a 56.4% increase from $26.9 million in Q1 2024 [6][19] - The number of submissions increased to 303,026, a 40.2% rise from 216,148 submissions in the same period last year [6][26] Operational Metrics - Direct Operating Cost per Submission improved to $522, an 18.4% decrease from $640 in Q1 2024 [6][26] - The company reported a total operating expense of $214.3 million, a 13.0% increase from $189.6 million in the prior year [19] - The Adjusted EBITDA Margin for Q1 2025 was 19.0%, compared to 14.5% in Q1 2024 [20][19] Product Development - The launch of GoHealth Protect aims to diversify the company's offerings and improve customer engagement [3][6] - The new product suite is expected to enhance cash flow generation and reduce customer acquisition costs as it scales [3][6]

Core Viewpoint - GoHealth, Inc. is under investigation for potential violations of federal securities laws and unlawful business practices following a False Claims Act complaint filed by the U.S. Department of Justice against several health insurance companies, including GoHealth [1][2]. Group 1: Legal Investigation - Bragar Eagel & Squire, P.C. is investigating potential claims against GoHealth on behalf of its stockholders [1]. - The DOJ's complaint alleges that from 2016 to at least 2021, GoHealth and other insurers paid hundreds of millions of dollars in illegal kickbacks to brokers for enrollments into Medicare Advantage plans [2]. Group 2: Stock Market Impact - Following the announcement of the DOJ's lawsuit, GoHealth's stock price dropped by $1.09 per share, representing a decline of 10.35%, closing at $9.44 per share on May 1, 2025 [2].

Core Viewpoint - GoHealth, Inc. firmly denies allegations made by the Government in a lawsuit regarding its compliance with Medicare Advantage regulations and emphasizes its commitment to serving beneficiaries' needs [1][2][4]. Group 1: Compliance and Allegations - GoHealth asserts that it has complied with laws governing payments by Medicare Advantage carriers to brokers and denies receiving kickbacks or placing beneficiaries in suboptimal plans due to compensation [2]. - The company expresses disappointment over the Government's pursuit of claims against it, highlighting its efforts to advance the interests of the Medicare Advantage program [1][4]. Group 2: Commitment to Beneficiaries - GoHealth has a notable history of enrolling special needs beneficiaries, with 35% of its enrollees being from this population, compared to 17% in the overall Medicare Advantage population [3]. - The company has implemented programs like the Low Income Subsidy (LIS) team to help beneficiaries enroll in government programs at no charge, demonstrating its focus on prioritizing beneficiaries' needs [3]. Group 3: Company Overview - GoHealth is a leading health insurance marketplace focused on Medicare, utilizing a technology platform that leverages machine-learning algorithms to match health plans to consumer needs [8]. - The company aims to provide peace of mind to consumers in their healthcare decisions, facilitating the enrollment of millions in Medicare plans since its inception [8].

Core Viewpoint - Kirby McInerney LLP is investigating potential claims against GoHealth, Inc. regarding possible violations of federal securities laws and unlawful business practices [1] Group 1: Legal Investigation - The investigation focuses on whether GoHealth and/or its officers have engaged in unlawful business practices [1] - The U.S. Department of Justice filed a complaint against GoHealth, alleging that the company received illegal kickbacks from insurers for enrollments in Medicare Advantage plans [3] Group 2: Financial Impact - Following the DOJ complaint, GoHealth's share price dropped by $1.09, from $10.53 on April 30, 2025, to $9.44 on May 1, 2025 [3]