Financial Data and Key Metrics Changes - In fiscal 2025, total revenue increased by 4% to $554 million, with fourth quarter revenue reaching a record $326.2 million, also up 4% [20][21] - GAAP net income for the full year was $40 million, a nearly 300% increase compared to $10.1 million in 2024, while fourth quarter GAAP net income was $87.2 million, down from $97.5 million in the previous year [25][26] - Adjusted EBITDA for the full year increased by 40% to $97.3 million, with fourth quarter Adjusted EBITDA rising by 10% to $132.9 million [26] Business Line Data and Key Metrics Changes - Medicare segment revenue for the full year grew by 6% to $531.2 million, with fourth quarter Medicare revenue increasing by 5% to $319.6 million [21][24] - Hospital Indemnity Plan (HIP) sales surged over 400% year-over-year in the fourth quarter, while Medicare Supplement saw a 39% growth in approved applications [8] - The Medicare Advantage Lifetime Value (LTV) to Customer Acquisition Cost (CAC) ratio improved to 2.2x in the fourth quarter, up from 2x in the previous year [23] Market Data and Key Metrics Changes - The Medicare Advantage market is undergoing a structural reset, with carriers facing elevated medical costs and regulatory pressures, leading to benefit changes and market exits [5][10] - The number of Americans turning 65 is expected to peak at over 4 million per year, with the Medicare-eligible population projected to exceed 80 million by 2034 [10] Company Strategy and Development Direction - The company aims to focus on a lifetime advisory engagement model, enhancing relationships with members and expanding ancillary product offerings [11][12] - In 2026, the company plans to prioritize operating cash flow and margin over enrollment volume, with a target to achieve break-even operating cash flow [14][30] - The strategy includes a disciplined approach to capital deployment, focusing on high-margin marketing channels and diversifying revenue streams [15][30] Management's Comments on Operating Environment and Future Outlook - Management anticipates that the challenging conditions affecting the industry will persist into 2026, with a focus on margin protection and targeted growth strategies [9][10] - The company believes it is well-positioned to lead growth in the Medicare Advantage market, leveraging its brand strength and technology innovations [10][16] Other Important Information - The company ended the year with $77.2 million in cash equivalents and marketable securities, down from $82.2 million the previous year [26] - Total commissions receivable reached a record high of $1.1 billion, up 12% year-over-year [27] Q&A Session Summary Question: Impact of MA payer limiting membership growth - Management acknowledged that the softer top-line outlook is related to prioritizing higher-margin branded marketing channels and the difficult macro environment [32][34] Question: Changes to MA LTV constraints or persistency assumptions - Management confirmed no changes to constraints for the MA product, expecting slightly improved LTVs in 2026 [35][36] Question: Assumptions regarding commission suppression by payers - Management indicated that they expect commission suppression to continue but emphasized that their pullback is a strategic decision to focus on margins [40][41] Question: Reasoning behind the current pullback in growth - Management clarified that the pullback is a calculated move to invest more in branded channels and to adapt to the current market dynamics [44][46] Question: Granularity on fixed cost savings and variable spend reductions - Management detailed that fixed cost savings would come from various areas, while variable spend reductions would focus on lower-margin channels [54] Question: Future growth expectations for 2027 - Management expressed confidence in returning to growth in 2027, driven by demographic trends and expected stabilization in carrier margins [55][56] Question: Strategic discussions with industry peers - Management is exploring various opportunities, including M&A and acquiring books of business, to navigate the current market volatility [58]

©2026 eHealthInsurance Services, Inc. 1 Safe Harbor Statement Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this presentation include, but are not limited to, the following: our expectations regarding our business, industry, regulatory and market trends, inclu ...