GoHealth(US:GOCO)2025-11-14 21:25Financial 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]