Stonegate Capital Partners Updates Coverage On GoHealth Inc. (GOCO) 2025 Q2

Company Performance - GoHealth Inc. reported a challenging second quarter in 2025, with net revenues decreasing by 11.2% year-over-year to $94.0 million, primarily due to a significant drop in partner revenue by 44.4% and non-agency revenue by 79.4% [1] - The overall revenue decline was partially offset by a strong increase in other revenues, particularly from GoHealth Protect [1] - The company experienced a net loss of $115.9 million in Q2, which was impacted by a $53 million intangible asset impairment charge; however, adjusted EBITDA improved slightly year-over-year to -$11.3 million [7] Strategic Initiatives - Management indicated a focus on adapting to market conditions and capitalizing on opportunities as they arise, particularly in light of the upcoming Annual Enrollment Period (AEP) [1] - The company secured $115 million in new and rolled-up loans and amended its credit agreement to waive near-term principal payments, creating a $250 million debt basket for pursuing strategic deals [7] Cost Management - Marketing and consumer care expenses were reduced by 26% and 33% year-over-year, respectively, leading to improved cost efficiency per submission despite a 7.5% decline in total submissions [7]