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

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

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 Performance

EHTH stock traded up $0.15 during midday trading on Wednesday, hitting $1.89. The stock had a trading volume of 1,422,285 shares, compared to its average volume of 570,289. eHealth has a 52 week low of $1.41 and a 52 week high of $9.50. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.14. The stock has a 50-day simple moving average of $3.26 and a 200 day simple moving average of $3.85. The firm has a market capitalization of $58.15 million, a price-to-earnings ratio of -7.27 and a beta of 1.21.

Institutional Trading of eHealth

Several institutional investors have recently made changes to their positions in EHTH. The Manufacturers Life Insurance Company bought a new stake in eHealth in the second quarter valued at about $48,000. Bank of America Corp DE boosted its holdings in eHealth by 1,265.8% during 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. bought a new stake in shares of eHealth in the 3rd quarter valued at approximately $54,000. Headlands Technologies LLC bought a new stake in shares of eHealth in the 4th quarter valued at approximately $62,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of eHealth in the 2nd quarter worth approximately $68,000. 79.54% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research firms have recently weighed in on EHTH. Royal Bank Of Canada reduced their price objective on eHealth from $10.00 to $9.00 and set a “sector perform” rating for the company in a research report on Tuesday, November 25th. Weiss Ratings reiterated a “sell (d+)” rating on shares of eHealth in a research note on Monday, December 29th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $7.00.

About eHealth

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.