eHealth reported Q3 2025 revenue of $53.9 million, a 3.4 % beat over the consensus estimate of $52.12 million. The upside was largely driven by $12 million of positive tail revenue, which helped offset an 8 % year‑over‑year decline in new enrollment revenue. Medicare‑segment revenue was $49.9 million, down 6 % YoY, reflecting a modest loss of new members but a stronger tail‑revenue contribution.
The company posted a GAAP net loss of $31.7 million, an improvement from the $42.5 million loss reported in Q3 2024. Adjusted EBITDA narrowed to a $34 million loss from $34.8 million, showing the impact of cost‑control initiatives such as reduced marketing spend and lower customer‑care expenses. Despite these gains, the GAAP earnings per share were a loss of $1.46, missing the consensus estimate of $1.38 by 5.8 %. The adjusted EPS loss of $1.32 also fell short of the $0.93 consensus, a 41.9 % miss, indicating that the company’s profitability still lags behind analyst expectations even as it tightens costs.
Management raised its full‑year 2025 guidance for GAAP net income and adjusted EBITDA, while maintaining the revenue outlook of $525 million to $565 million. The upward revision signals confidence in the upcoming Annual Enrollment Period (AEP) and the continued benefit of tail revenue, but it also reflects the company’s belief that cost discipline will translate into stronger profitability moving forward.
CEO Derrick Duke emphasized that the company is better positioned for the AEP, citing a more tenured adviser force and strong consumer demand. He noted that the $12 million of tail revenue helped offset the decline in new enrollment revenue. CFO John Dolan highlighted ongoing cost‑cutting measures, including reduced marketing spend and customer‑care expenses, as key drivers of the narrowed loss. The company also warned of headwinds such as dual‑eligible regulatory changes and competitor lead‑generation cuts, while noting tailwinds from the AEP and positive tail revenue.
Investors reacted with a muted response, balancing the revenue beat and guidance raise against the EPS miss and year‑over‑year revenue decline. The market’s mixed reaction underscores the importance of the company’s ability to convert cost discipline into profitability while navigating a competitive Medicare‑advantage landscape.
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