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eHealth, Inc.’s (EHTH - Free Report) shares have lost 2.4% since the company reported first-quarter 2025 results on May 7, before the opening bell. The strong quarterly results benefited from Medicare segment growth, driven by a 25% surge in Medicare Advantage submissions and a 16% rise in approved members. Higher commissions and other revenues also supported the quarterly performance. However, a significant revenue decline in the Employer and Individual segment partially offset the upside.
EHTH reported first-quarter 2025 adjusted loss of 8 cents per share, narrower than the Zacks Consensus Estimate of a loss of 41 cents. The bottom line improved from a loss of 79 cents in the prior year.
Revenues amounted to $113.1 million, which rose 21.7% year over year. The top line beat the consensus mark by 23.1%.
Commissions of $98.9 million improved 22% year over year. Other revenues climbed 18% year over year to $14.2 million. Medicare submissions across the core agency and carrier-dedicated Amplify platforms of the company rose 22% year over year on the back of a 25% year-over-year surge in Medicare Advantage submissions.
Total operating costs and expenses decreased 2% year over year to $108.3 million due to decreased general and administrative expenses. Interest expenses of $2.6 million witnessed a 6% year-over-year decline.
EHTH’s net income of $2 million jumped 111% year over year in the first quarter. Adjusted EBITDA soared 858% year over year to $12.5 million. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Segmental Update
Medicare: The segment’s revenues climbed 26% year over year to $103.7 million. Gross profit totaled $35.7 million, up 62% year over year. The segment benefited on the back of an increase in approved members across Medicare Advantage. Medicare plan approved members rose 16% year over year.
Employer and Individual: The unit recorded revenues of $9.5 million, which dropped 11% year over year. Gross profit declined 19% year over year to $6 million. The segment suffered a blow due to decreased individual, family and small business approved members.
eHealth’s Financial Update (as of March 31, 2025)
eHealth exited the first quarter with cash and cash equivalents of $121.1 million, which rose from $39.2 million at the 2024-end level. Total assets of $1.1 billion decreased from $1.2 billion at 2024-end.
Total stockholders’ equity of $581.6 million decreased from $588.4 million as of the 2024-end figure.
Net cash provided by operations totaled $77.1 million compared with $70.8 million in the prior-year quarter.
eHealth’s 2025 Guidance Reaffirmed
eHealth earlier expected revenues in the range of $510-$550 million, the mid-point of which indicates a 0.5% dip from the 2024 figure.
GAAP net income is still projected to remain in the $(10)-$15 million band.
Adjusted EBITDA was earlier anticipated to be in the band of $35-$60 million. Operating cash flow was earlier estimated to be in the range of $(25)-$10 million in 2025.
The Zacks Consensus Estimate for Root’s current-year earnings of $1.11 per share has witnessed one upward revision in the past 30 days against none in the opposite direction. Root beat earnings estimates in each of the trailing four quarters, with the average surprise being 208.9%. The consensus estimate for current-year revenues is pegged at $1.4 billion, implying 17.3% year-over-year growth.
The Zacks Consensus Estimate for EverQuote’s current-year earnings is pegged at $1.17 per share. EverQuote beat earnings estimates in each of the trailing four quarters, with the average surprise being 122.6%. The consensus estimate for current-year revenues is pegged at $640.3 million, suggesting 28% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $3.25 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, calling for 4.6% year-over-year growth.
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eHealth Shares Down 2.4% Despite Q1 Earnings Beat, '25 View Reaffirmed
eHealth, Inc.’s (EHTH - Free Report) shares have lost 2.4% since the company reported first-quarter 2025 results on May 7, before the opening bell. The strong quarterly results benefited from Medicare segment growth, driven by a 25% surge in Medicare Advantage submissions and a 16% rise in approved members. Higher commissions and other revenues also supported the quarterly performance. However, a significant revenue decline in the Employer and Individual segment partially offset the upside.
EHTH reported first-quarter 2025 adjusted loss of 8 cents per share, narrower than the Zacks Consensus Estimate of a loss of 41 cents. The bottom line improved from a loss of 79 cents in the prior year.
Revenues amounted to $113.1 million, which rose 21.7% year over year. The top line beat the consensus mark by 23.1%.
eHealth, Inc. Price, Consensus and EPS Surprise
eHealth, Inc. price-consensus-eps-surprise-chart | eHealth, Inc. Quote
EHTH’s Quarterly Operational Update
Commissions of $98.9 million improved 22% year over year. Other revenues climbed 18% year over year to $14.2 million. Medicare submissions across the core agency and carrier-dedicated Amplify platforms of the company rose 22% year over year on the back of a 25% year-over-year surge in Medicare Advantage submissions.
Total operating costs and expenses decreased 2% year over year to $108.3 million due to decreased general and administrative expenses. Interest expenses of $2.6 million witnessed a 6% year-over-year decline.
EHTH’s net income of $2 million jumped 111% year over year in the first quarter. Adjusted EBITDA soared 858% year over year to $12.5 million. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Segmental Update
Medicare: The segment’s revenues climbed 26% year over year to $103.7 million. Gross profit totaled $35.7 million, up 62% year over year. The segment benefited on the back of an increase in approved members across Medicare Advantage. Medicare plan approved members rose 16% year over year.
Employer and Individual: The unit recorded revenues of $9.5 million, which dropped 11% year over year. Gross profit declined 19% year over year to $6 million. The segment suffered a blow due to decreased individual, family and small business approved members.
eHealth’s Financial Update (as of March 31, 2025)
eHealth exited the first quarter with cash and cash equivalents of $121.1 million, which rose from $39.2 million at the 2024-end level. Total assets of $1.1 billion decreased from $1.2 billion at 2024-end.
Total stockholders’ equity of $581.6 million decreased from $588.4 million as of the 2024-end figure.
Net cash provided by operations totaled $77.1 million compared with $70.8 million in the prior-year quarter.
eHealth’s 2025 Guidance Reaffirmed
eHealth earlier expected revenues in the range of $510-$550 million, the mid-point of which indicates a 0.5% dip from the 2024 figure.
GAAP net income is still projected to remain in the $(10)-$15 million band.
Adjusted EBITDA was earlier anticipated to be in the band of $35-$60 million. Operating cash flow was earlier estimated to be in the range of $(25)-$10 million in 2025.
EHTH’s Zacks Rank & Key Picks
EHTH currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Finance space are Root Inc. (ROOT - Free Report) , EverQuote Inc. (EVER - Free Report) and Heritage Insurance Holdings Inc. (HRTG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Root’s current-year earnings of $1.11 per share has witnessed one upward revision in the past 30 days against none in the opposite direction. Root beat earnings estimates in each of the trailing four quarters, with the average surprise being 208.9%. The consensus estimate for current-year revenues is pegged at $1.4 billion, implying 17.3% year-over-year growth.
The Zacks Consensus Estimate for EverQuote’s current-year earnings is pegged at $1.17 per share. EverQuote beat earnings estimates in each of the trailing four quarters, with the average surprise being 122.6%. The consensus estimate for current-year revenues is pegged at $640.3 million, suggesting 28% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $3.25 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, calling for 4.6% year-over-year growth.