GoHealth(US:GOCO)2025-05-16 21:01Financial Performance - Net revenues for Q1 2025 were $220,972,000, a 19% increase from $185,600,000 in Q1 2024[26] - Operating expenses totaled $214,303,000 in Q1 2025, up from $189,632,000 in Q1 2024, reflecting an increase of 13%[26] - The company reported an income from operations of $6,669,000 in Q1 2025, compared to a loss of $4,032,000 in Q1 2024[26] - Net loss attributable to GoHealth, Inc. was $4,408,000 in Q1 2025, an improvement from a net loss of $9,216,000 in Q1 2024[26] - The net income (loss) per share for Class A common stock was $(0.52) in Q1 2025, compared to $(1.04) in Q1 2024[26] - Comprehensive loss for Q1 2025 was $9,905,000, an improvement from a comprehensive loss of $21,351,000 in Q1 2024[30] - For the three months ended March 31, 2025, GoHealth reported a net loss of $9,786 thousand, compared to a net loss of $21,346 thousand for the same period in 2024, indicating a 54.2% improvement in net loss year-over-year[39] - Adjusted EBITDA for Q1 2025 was $42.060 million, a 56.4% increase from $26.894 million in Q1 2024, with an adjusted EBITDA margin of 19.0%[165] Assets and Liabilities - Total assets decreased to $1,382,067,000 as of March 31, 2025, down from $1,488,423,000 at the end of 2024[32] - Cash and cash equivalents decreased to $22,153,000 as of March 31, 2025, from $40,921,000 at the end of 2024[32] - Current liabilities decreased to $233,399,000 as of March 31, 2025, compared to $338,052,000 at the end of 2024[32] - The company had a total stockholders' equity of $397,086,000 as of March 31, 2025, down from $405,438,000 at the end of 2024[32] - As of March 31, 2025, the total long-term debt of the company is $446.4 million, a slight decrease from $447.9 million as of December 31, 2024[62] - The company reported a net cash used in operating activities of $12,405 thousand for Q1 2025, compared to net cash provided of $12,512 thousand in Q1 2024[39] - The company raised substantial doubt about its ability to continue as a going concern due to insufficient funding to meet obligations within the next twelve months[214] Revenue Sources - Medicare revenue increased to $219.404 million in Q1 2025, up 18.5% from $185.026 million in Q1 2024, driven by a significant rise in agency revenue[100] - Agency revenue, which includes commission revenue and partner marketing, reached $187.633 million in Q1 2025, a substantial increase of 89.4% compared to $99.124 million in Q1 2024[100] - The increase in net revenues was primarily driven by an $88.5 million rise in agency revenue, partially offset by a $54.1 million decrease in non-agency revenue[147] - The Company recognized $41.6 million in revenue from deferred revenue during Q1 2025, compared to $34.9 million in Q1 2024[110] Expenses - Share-based compensation increased to $2,803 thousand in Q1 2025 from $1,783 thousand in Q1 2024, reflecting a 57.0% increase[39] - Marketing and advertising expenses rose to $67.415 million in Q1 2025, a 27.7% increase from $52.775 million in Q1 2024, aimed at generating more qualified prospects[149] - General and administrative expenses increased by 33.9% to $22.656 million in Q1 2025, primarily due to costs associated with the e-TeleQuote acquisition[153] - Interest expense decreased to $15.954 million in Q1 2025 from $17.951 million in Q1 2024, reflecting a reduction in interest rates on the Term Loan Facility[155] Operational Changes - The company is currently in compliance with its financial covenants but faces substantial doubt about its ability to continue as a going concern due to potential liquidity constraints[50] - The company has developed mitigating plans to address potential liquidity constraints, including cost control measures and renegotiation of existing debt arrangements[50] - The company is actively looking to terminate or sublease certain office spaces and call centers as part of its cost savings initiatives[60] - The company completed the acquisition of e-TeleQuote on September 30, 2024, and excluded it from the internal control evaluation for the quarter ended March 31, 2025[207] Customer Engagement - Submissions increased to 303,026 in Q1 2025 from 216,148 in Q1 2024, indicating a significant growth in customer engagement[168] - For the three months ended March 31, 2025, the number of Submissions increased to 303,026, up 40.2% from 216,148 in the same period of 2024, primarily due to enhanced marketing efforts and increased agent headcount following the e-TeleQuote acquisition[170] Legal and Compliance - The company is contesting a derivative action related to alleged breaches of fiduciary duty, which may impact its financial condition[120] - The company is subject to various legal proceedings that could adversely affect its business and financial condition[213] - The company’s internal control over financial reporting was evaluated as effective as of March 31, 2025[205]