eHealth(US:EHTH)2025-11-05 21:20Financial Performance - Q3 2025 total revenue was $53.9 million, an 8% decrease from $58.4 million in Q3 2024[4] - Q3 2025 positive net adjustment revenue increased to $12.2 million from $1.2 million in Q3 2024[4] - Q3 2025 GAAP net loss improved to $31.7 million, a $10.8 million improvement from a loss of $42.5 million in Q3 2024[4] - Q3 2025 total operating costs and expenses decreased by 6% to $95.4 million compared to $101.6 million in Q3 2024[4] - Total revenue for the three months ended September 30, 2025, was $53,869,000, a decrease of 8% compared to $58,409,000 in the same period of 2024[21] - Net loss for the three months ended September 30, 2025, was $31,691,000, a 25% improvement compared to a net loss of $42,473,000 in the same period of 2024[21] - Adjusted EBITDA for the three months ended September 30, 2025, was $(34,007,000), a 2% improvement from $(34,832,000) in 2024[21] - The company reported a net loss attributable to common stockholders of $44,581,000 for the three months ended September 30, 2025, a 17% improvement from $53,948,000 in 2024[21] - The net loss margin improved to (59)% in Q3 2025 from (73)% in Q3 2024[45] - Adjusted EBITDA for the full year 2025 is projected to be between $60.0 million and $80.0 million[48] Revenue Segmentation - The Medicare segment primarily consists of commissions earned from the sale of Medicare-related health insurance plans, contributing significantly to the company's revenue[26] - Total revenue for the Medicare segment decreased by 6% to $49,932 thousand in Q3 2025, while revenue for the nine months increased by 9% to $211,660 thousand compared to the same period in 2024[29] - The Employer and Individual segment reported a 24% decline in total revenue to $3,937 thousand for Q3 2025, with a 28% decrease for the nine months to $16,110 thousand[29] - Consolidated total revenue for Q3 2025 was $53,869 thousand, an 8% decrease from $58,409 thousand in Q3 2024, while revenue for the nine months increased by 5% to $227,770 thousand[32] Cost Management - Total operating costs and expenses for the three months ended September 30, 2025, were $95,394,000, down 6% from $101,608,000 in 2024[21] - Non-GAAP operating costs and expenses decreased to $91,017 thousand in Q3 2025 from $97,068 thousand in Q3 2024[45] - Marketing and advertising expenses decreased by 18% to $24,395,000 for the three months ended September 30, 2025, compared to $29,665,000 in 2024[21] - Marketing and advertising expenses decreased to $24,395 thousand in Q3 2025 from $29,665 thousand in Q3 2024[45] Membership and Commissions - Total approved members for Medicare decreased by 27% to 31,167 in Q3 2025, with Individual and Family members down by 35% to 1,872[39] - The constrained lifetime value of commissions per approved Medicare Advantage member was $975, a 2% decrease from $990 in Q3 2024[39] - The cost per Medicare Advantage-equivalent approved member increased by 29% to $930 in Q3 2025, while total acquisition cost per MA-equivalent member rose by 19% to $1,489[39] - Variable marketing costs per MA-equivalent approved member increased by 4% to $559 in Q3 2025[40] - Total approved members decreased by 3% to 207,016 in 2025 from 213,093 in 2024[42] - Medicare Advantage members decreased by 1% to 141,884 in 2025 from 143,529 in 2024[42] - Total estimated membership decreased by 4% to 1,118,521 in 2025 from 1,159,422 in 2024[42] - Medicare Part D members decreased by 19% to 5,149 in 2025 from 6,335 in 2024[42] - Ancillary members increased by 13% to 41,288 in 2025 from 36,410 in 2024[42] Financial Guidance and Projections - The company raised its 2025 guidance for GAAP net income to a range of $9.0 million to $30.0 million, up from the previous range of $5.0 million to $26.0 million[11] - The expected range for positive net adjustment revenue for 2025 was updated to $40 million to $43 million, compared to the previous range of $29 million to $32 million[6] Financial Flexibility - Cash, cash equivalents, and marketable securities totaled $75.3 million as of September 30, 2025[4] - The term loan maturity was extended to January 2027, providing additional financial flexibility[4] - Cash, cash equivalents, and restricted cash at the end of the period were $66,179,000, a slight decrease from $67,122,000 at the end of the same period in 2024[24] Member Acquisition Metrics - The numerator for member acquisition metrics includes operating expenses related to Medicare Plans and IFP Plans, while the denominator is based on the relative value of new members acquired[59] - Estimated membership is based on commission payments received and approved members, with a lag of up to a few months between new approvals and commission payments[59] - The company does not update historical membership estimates but reflects updated information in current period estimates, making long-term trends more discernible[60] - For estimating members on Medicare-related plans, the company considers commission payments and approved members while adjusting for historical cancellation rates[60] - Membership estimates for small business health insurance plans are based on initial member counts at approval, updated for changes reported by groups or carriers[60] - The company uses a derived metric for MA-equivalent approved members, weighting Medicare Part D members at 25% of a Medicare Advantage member[59] - IFP-equivalent approved members are calculated by adding approved health plan members and 33% of short-term approved members[59] - The company may experience variances in historical membership estimates due to delayed information from insurance carriers[60] - The estimation process for membership includes adjustments for delayed or inaccurate commission payments[60] - The company acknowledges that various circumstances could lead to inaccuracies in membership estimates[60]