eHealth Shares Down 2.4% Despite Q1 Earnings Beat, '25 View Reaffirmed

Core Insights - eHealth, Inc. (EHTH) reported a first-quarter 2025 adjusted loss of 8 cents per share, significantly better than the Zacks Consensus Estimate of a loss of 41 cents, and an improvement from a loss of 79 cents in the prior year [2] - Revenues for the quarter reached $113.1 million, reflecting a year-over-year increase of 21.7% and surpassing the consensus estimate by 23.1% [2] - The company's shares have declined by 2.4% since the earnings report, despite strong performance in the Medicare segment [1] Financial Performance - Commissions increased by 22% year over year to $98.9 million, while other revenues rose 18% to $14.2 million [3] - Total operating costs decreased by 2% year over year to $108.3 million, primarily due to lower general and administrative expenses [4] - Net income for the quarter was $2 million, a 111% increase year over year, and adjusted EBITDA soared 858% to $12.5 million [4] Segment Analysis - Medicare segment revenues grew by 26% year over year to $103.7 million, with gross profit increasing by 62% to $35.7 million, driven by a 16% rise in approved members [4] - The Employer and Individual segment saw revenues decline by 11% year over year to $9.5 million, with gross profit down 19% to $6 million due to a decrease in approved members [5] Cash and Guidance - As of March 31, 2025, eHealth had cash and cash equivalents of $121.1 million, up from $39.2 million at the end of 2024 [6] - The company reaffirmed its 2025 revenue guidance in the range of $510-$550 million, indicating a slight dip from 2024 figures [7]