Stonegate Capital Partners Updates Coverage on GoHealth Inc. (GOCO) 2025 Q3

Core Insights - GoHealth Inc. (NASDAQ: GOCO) reported a challenging 3Q25, with net revenues declining to $34.2 million from $118.3 million year-over-year, reflecting a strategic pullback in Medicare Advantage volume and a shift in industry focus towards margin integrity and renewal stability [1][6] Financial Performance - Net revenues for 3Q25 were $34.2 million, representing a decline of approximately 71.0% year-over-year, attributed to an intentional reduction in Medicare Advantage activities and a mix shift in revenue sources [6] - Significant non-cash impairment charges impacted reported margins, despite management's efforts to maintain liquidity and operational efficiency [1][6] Strategic Focus - Management emphasized a retention-first approach, particularly in Special Needs Plans, while also preserving agent technology and retention operations [6] - As of the end of the quarter, the company had $32.1 million in cash, with improved strategic flexibility due to a superpriority term loan and covenant relief [6] Market Outlook - The company is focused on retention, quality, and disciplined execution during the current Annual Enrollment Period (AEP), with plans to re-accelerate growth when market conditions stabilize [1]