eHealth (NASDAQ:EHTH) Issues Quarterly Earnings Results, Misses Estimates By $0.32 EPS

eHealth (NASDAQ:EHTH) issued its earnings results on Wednesday. The financial services provider reported $2.06 earnings per share for the quarter, missing analysts’ consensus estimates of $2.38 by ($0.32), FiscalAI reports. eHealth had a net margin of 8.14% and a return on equity of 5.62%. The company had revenue of $326.24 million during the quarter, compared to analyst estimates of $318.25 million.

Here are the key takeaways from eHealth’s conference call:

• 2025 profitability meaningfully improved — revenue grew 4%, GAAP net income was nearly four times 2024, and Adjusted EBITDA rose ~40%, driven by higher Medicare LTVs and stronger enrollment margins.
• Balance sheet and receivables strength — commissions receivable reached a record $1.1 billion and a new $125M credit facility improved liquidity and capital flexibility for strategic execution.
• 2026 is a “bridge” year prioritizing cash flow over growth — company expects revenue of $405–445M, Adjusted EBITDA $55–75M, operating cash flow of -$10M to +$12M and anticipates lower enrollment and non‑commission revenue while targeting operating cash flow break‑even.
• Strategic shift to lifetime advisory and product diversification — eHealth will expand ancillaries (HIP, critical illness, final expense, dental/vision/hearing), pursue ICHRA/SaaS partner growth, and deepen year‑round advisor engagement to boost LTV and retention.
• Significant cost and marketing reallocation — planned reductions of about $30M in fixed costs and over $60M in variable spend (>$90M total) plus focus on higher‑margin branded channels and scaled AI screening to improve margins and cash generation.

eHealth Stock Up 8.6%

Shares of NASDAQ:EHTH traded up $0.15 during midday trading on Wednesday, reaching $1.89. The company’s stock had a trading volume of 1,422,285 shares, compared to its average volume of 716,428. eHealth has a fifty-two week low of $1.41 and a fifty-two week high of $9.50. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.14. The firm has a 50 day moving average price of $3.26 and a two-hundred day moving average price of $3.85.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Weiss Ratings restated a “sell (d+)” rating on shares of eHealth in a research report on Monday, December 29th. Royal Bank Of Canada cut their target price on eHealth from $10.00 to $9.00 and set a “sector perform” rating on the stock in a report on Tuesday, November 25th. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus target price of $7.00.

Institutional Trading of eHealth

Several large investors have recently modified their holdings of EHTH. The Manufacturers Life Insurance Company acquired a new position in shares of eHealth during the 2nd quarter valued at $48,000. Bank of America Corp DE increased its stake in eHealth by 1,265.8% in the second quarter. Bank of America Corp DE now owns 11,186 shares of the financial services provider’s stock valued at $49,000 after purchasing an additional 10,367 shares in the last quarter. Alliancebernstein L.P. acquired a new position in shares of eHealth during the third quarter valued at about $54,000. Headlands Technologies LLC bought a new position in shares of eHealth during the 4th quarter worth about $62,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in shares of eHealth in the 2nd quarter valued at about $68,000. Institutional investors and hedge funds own 79.54% of the company’s stock.

eHealth Company Profile

eHealth, Inc operates one of the largest online private health insurance exchanges in the United States. The company’s platform enables consumers to compare, select and enroll in individual, family and small-group health insurance plans offered by a broad network of licensed insurance carriers. In addition to Affordable Care Act–compliant offerings, eHealth provides dedicated services for Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, helping seniors navigate the complexities of Medicare coverage.

Through its digital marketplace, eHealth delivers real-time quotes, detailed plan comparisons and enrollment processing.