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

eHealth (NASDAQ:EHTH) announced its earnings results 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. eHealth had a return on equity of 5.56% and a net margin of 6.12%.The business had revenue of $326.24 million for 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 Price Performance

EHTH traded down $0.02 on Friday, reaching $1.32. 1,070,762 shares of the company’s stock were exchanged, compared to its average volume of 658,776. eHealth has a twelve month low of $1.24 and a twelve month high of $9.24. The stock has a market cap of $40.45 million, a PE ratio of -1.84 and a beta of 1.21. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.23 and a quick ratio of 2.23. The stock’s fifty day moving average price is $3.13 and its 200-day moving average price is $3.82.

Institutional Investors Weigh In On eHealth

Large investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its holdings in shares of eHealth by 0.3% in the third quarter. Vanguard Group Inc. now owns 1,526,098 shares of the financial services provider’s stock valued at $6,577,000 after purchasing an additional 4,958 shares during the last quarter. Engineers Gate Manager LP raised its holdings in shares of eHealth by 16.6% during the 2nd quarter. Engineers Gate Manager LP now owns 41,995 shares of the financial services provider’s stock worth $183,000 after acquiring an additional 5,975 shares during the period. American Century Companies Inc. raised its holdings in shares of eHealth by 11.1% during the 2nd quarter. American Century Companies Inc. now owns 65,785 shares of the financial services provider’s stock worth $286,000 after acquiring an additional 6,571 shares during the period. Algert Global LLC boosted its position in shares of eHealth by 36.6% during the 3rd quarter. Algert Global LLC now owns 32,963 shares of the financial services provider’s stock valued at $142,000 after acquiring an additional 8,840 shares during the last quarter. Finally, AQR Capital Management LLC grew its holdings in shares of eHealth by 13.4% in the fourth quarter. AQR Capital Management LLC now owns 79,738 shares of the financial services provider’s stock valued at $367,000 after purchasing an additional 9,434 shares during the period. 79.54% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on EHTH. Royal Bank Of Canada reduced their price objective on shares of 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 reissued a “sell (d+)” rating on shares of eHealth in a research note on Monday, December 29th. Finally, Craig Hallum downgraded shares of eHealth from a “buy” rating to a “hold” rating and set a $2.00 price target for the company. in a research report on Thursday. Three analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average price target of $5.33.

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.