GoHealth(GOCO) - 2025 Q3 - Quarterly Results

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].