Key Takeaways UnitedHealth leverages insurance and Optum services as Q4 2025 revenues climbed 12.3% year over year.UNH's medical care ratio hit 92.4% as costs jumped, while Medicare Advantage membership rose 7.6%.Humana's Q4 revenues grew 11.3%, but 2026 EPS is seen falling 41% amid Medicare Advantage exposure.The landscape of managed care is undergoing significant changes due to rising medical utilization, evolving reimbursement models and ongoing cost challenges. Meanwhile, the aging population and the ch ...

eHealth (NasdaqGS:EHTH) Q4 2025 Earnings call February 25, 2026 05:00 PM ET Company ParticipantsDerrick Duke - CEOJohn Dolan - CFOConference Call ParticipantsGeorge Sutton - Senior Research AnalystJonathan Yong - Equity Research AnalystMax Young - Equity Research AnalystMichael Murray - Equity Research AnalystOperatorGood afternoon, everyone, welcome to eHealth, Inc. conference call to discuss the company's Q4 and fiscal year 2025 financial results. At this time, all participants have been placed in listen- ...

©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 ...

Group 1 - UBS maintained a Neutral rating and a $195 price target on Humana, emphasizing the importance of sustainable margins in its Medicare Advantage (MA) business [1] - Management highlighted that long-term value calculations for MA members depend on achieving sustainable margin levels and indicated corrective actions may be taken if the upcoming rate notice does not improve or if challenges arise with new MA enrollees [1] Group 2 - Management expects greater clarity on pricing for the 2026 book of business by April or May, ahead of bid submissions in early June [2] - Humana projected a 25% membership growth for 2026, which could provide additional upside to its broader financial targets, although management prefers to assess trends through 2028 before making firm conclusions [2] Group 3 - The company has implemented measures to enhance capital efficiency, including relocating its Wisconsin and Washington entities back to Kentucky, which reduces capital requirements with support from reinsurance arrangements [3]

UnitedHealth Group Incorporated (UNH), headquartered in Minnetonka, Minnesota, owns and manages organized health systems. With a market cap of $255.8 billion, the company provides employers products and resources to plan and administer employee benefit programs serving customers worldwide. Companies worth $200 billion or more are generally described as “mega-cap stocks,” and UNH definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and ...

Financial Data and Key Metrics Changes - 2025 was a record year for the company, achieving $2 billion in Transaction Value, $1 billion in revenue, and $100 million in Adjusted EBITDA for the first time [11] - Transaction Value grew by 45%, driven by a 65% increase in the P&C vertical, offsetting declines in Under-65 health insurance [11] - In Q4, Transaction Value was $613 million, up 23% year-over-year, with P&C vertical growth of 38% and a 40% decline in health vertical [12] - Revenue for Q4 was $291 million, down 3% year-over-year, but up 9% excluding Under-65 health insurance [12] - Adjusted EBITDA for Q4 was $30.8 million, down 16% year-over-year, but core business growth was approximately 10% when excluding Under-65 health insurance [12] Business Line Data and Key Metrics Changes - The P&C vertical showed strong performance with a 38% year-over-year growth, while the health vertical saw a significant decline of 40% [12] - The company narrowed the scope of its Under-65 health insurance business, improving its risk profile and strategic focus [4] - The take rate for Q4 was 7.6%, slightly above expectations, driven by a favorable Open Marketplace mix [12] Market Data and Key Metrics Changes - The company expects continued positive momentum in the P&C business for 2026, with carriers focusing on growing their customer base [5] - The competitive landscape is intensifying, with many carriers lowering rates to gain market share [5] - The company anticipates that advertising budgets will continue to increase as carriers seek to grow in a soft market environment [5] Company Strategy and Development Direction - The company is focused on scaling under-penetrated carriers in its marketplace, optimizing their campaigns, and driving profitable policy growth [6] - There is a significant opportunity to leverage AI for pricing media with greater precision, enhancing publisher yield and return on ad spend for carriers [8] - The company aims to maintain its role as a core infrastructure layer connecting carriers with high-intent shoppers [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the overall market ecosystem, noting that many carriers are leaning into growth and customer acquisition [59] - The company expects to generate $90 million to $100 million in free cash flow for 2026, including the final FTC payment [16] - Management believes that the current industry backdrop, including AI evolution, strengthens the company's role in the ecosystem [9] Other Important Information - The company completed $47.3 million in share repurchases, representing approximately 7% of shares outstanding [4] - A $50 million increase in the share repurchase program was authorized, bringing the total to $100 million [14] Q&A Session Summary Question: Changes in AI and its impact on value proposition - Management stated that AI's impact is primarily on the research and shopping experience, with carriers wanting to maintain control over quotes and binding [18][19] Question: Go-to-market strategy for under-penetrated carriers - The company is investing in platform solution capabilities to optimize the conversion process for under-penetrated carriers [24][25] Question: Seasonality in P&C business - Management noted that Q4 was slightly less robust than expected, but Q1 is off to a good start with smaller carriers leaning in [28][29] Question: Medicare Advantage growth opportunity - Management sees long-term growth potential in Medicare Advantage despite current market challenges [44][46] Question: Proprietary component of Transaction Value - The guidance for Q1 indicates a shift towards the Open Marketplace, with expectations for continued growth from under-penetrated carriers [47][48]

Quick Read Medical care costs rose 2.85% year-over-year versus 2.16% general inflation. Healthcare spending grew 6.9% while consumer spending rose 4.6%. Original Medicare has no out-of-pocket maximum. Medicare Advantage plans cap catastrophic costs but impose network and prior authorization restrictions. Personal savings rate fell from 6.2% in early 2024 to 4.2% by mid-2025. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to rea ...

Core Insights - A common misconception about retirement is that all expenses will decrease, but healthcare costs are likely to increase significantly during this period [1] Group 1: Healthcare Expenses in Retirement - Healthcare is a non-negotiable expense that can lead to financial strain if not managed properly [2] - There are strategies available to help reduce healthcare spending during retirement [3] Group 2: Strategies to Reduce Healthcare Costs - Annual assessment of Medicare plan choices is crucial, as changes during the open enrollment period can lead to significant savings [4] - Reviewing Part D plans can result in lower copays for new medications, highlighting the importance of annual plan evaluations [5] - Utilizing Medicare's preventive services can help avoid costly health issues, with some services available at no cost [6] - Inquiring about self-pay discounts for services not covered by Medicare can lead to reduced out-of-pocket expenses [7]

Core Viewpoint - Humana Inc. shares declined over 2% after issuing 2026 earnings guidance that fell short of analyst expectations, despite reporting better-than-expected fourth-quarter results [1][2] Financial Performance - For Q4 2025, Humana reported an adjusted net loss of $3.96 per share, slightly better than the expected loss of $4.00 per share. Revenue reached $32.52 billion, surpassing the consensus estimate of $32.04 billion [1] - For the full year 2025, adjusted earnings were $17.14 per share, an increase from $16.21 in 2024. The Insurance segment had a GAAP benefit ratio of 90.4%, slightly better than the guidance range of 90.1% to 90.5% [3] Earnings Guidance - Humana's 2026 adjusted earnings guidance is projected at a minimum of $9.00 per share, significantly below analyst expectations of $12.00. The company cited a decline primarily due to a Star Ratings headwind for Bonus Year 2026, net of mitigation efforts [2] Membership Growth - Despite the lower earnings outlook, Humana anticipates approximately 25% growth in individual Medicare Advantage membership in 2026, driven by new enrollments and improved retention [4] - The company also reported a 25% increase in Senior Primary Care patients within its CenterWell platform during 2025 [4]

Group 1 - Humana reported a narrower-than-expected loss in the fourth quarter, but the stock fell due to a full-year outlook that was below expectations [1] - The company and its insurance peers are facing challenges related to proposed Medicare Advantage payment rates [1]