ZACKS·2025-12-23 15:11Core Viewpoint - eHealth, Inc. (EHTH) has raised its financial outlook for fiscal year 2025 following stable performance during the Annual Enrollment Period (AEP), particularly in its Medicare business [1][8]. Financial Outlook - The company now forecasts total revenue of approximately $540-$560 million, an increase from previous guidance, and GAAP net income between $30-$45 million, which is significantly higher than earlier projections [1][8]. - Adjusted EBITDA is expected to range from $80-$95 million, up from the prior range of $60-$80 million [2][8]. - The Zacks Consensus Estimate for 2025 bottom line is currently at 29 cents per share, indicating a 119% year-over-year improvement, with expectations for further growth to $1.88 per share in 2026 [2]. Factors Driving Performance - The updated outlook is attributed to stable enrollment results during AEP, a shift towards higher-quality direct branded channels, and the implementation of AI tools that have enhanced marketing efficiency and sales conversion [5][6]. - The lifetime value in the fourth quarter is expected to grow year-over-year due to higher commission rates and improved persistency trends [5]. Market Position and Strategy - eHealth is demonstrating improved profitability and operational discipline, which strengthens confidence in its execution after previous financial pressures [6]. - The company is effectively navigating a competitive Medicare market by leveraging technology and channel strategies to drive results, indicating that its key enrollment period can significantly impact full-year prospects [6][8]. Stock Performance - eHealth shares have increased by 7.3% over the past three months, outperforming the broader industry and the S&P 500 Index [9]. - The company trades at a forward price-to-sales ratio of 0.25X, significantly lower than the industry average of 3.22X, although it carries a Value Score of C [12].