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1. Company Snapshot

1.a. Company Description

eHealth, Inc.operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States.The company operates in two segments, Medicare; and Individual, Family and Small Business.


Its ecommerce platforms organize and present health insurance information in various formats that enable individuals, families, and small businesses to research, analyze, compare, and purchase a range of health insurance plans.The company operates a marketplace that offers consumers a choice of insurance products, such as Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual and family, small business, and other ancillary health insurance products from health insurance carriers.It markets health insurance plans through its websites, including eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, PlanPrescriber.com, and GoMedigap.com, as well as through a network of marketing partners.


The company also licenses its health insurance ecommerce technology that enables health insurance carriers to market and distribute health insurance plans online; and provides online sponsorship and advertising, and lead referral services.eHealth, Inc.was incorporated in 1997 and is headquartered in Santa Clara, California.

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1.b. Last Insights on EHTH

Here is a 90-word analysis of the positive drivers behind eHealth, Inc.'s recent stock performance: eHealth's strong Q4 performance, driven by higher approved members in Medicare Advantage and Medicare Part D plans, has positively impacted its stock. The company's omnichannel platform has seen strong conversion rates, exceeding expectations. Additionally, eHealth's guidance for 2025 revenues of $510-$550 million indicates a strong outlook. The company's inducement grants to new employees also suggest confidence in its growth prospects. Overall, these drivers suggest a positive trajectory for eHealth's business.

1.c. Company Highlights

2. eHealth's Q3 Results: A Mixed Bag with a Positive Outlook

eHealth's Q3 2025 financial results were in line with expectations, with total revenue meeting estimates. However, Medicare Advantage volume came in below expectations due to dual-eligible enrollment rules, resulting in a pullback in marketing spend. The company's GAAP net loss per share was $-1.32, worse than the estimated $-0.93. Despite this, eHealth raised its 2025 GAAP net income and adjusted EBITDA guidance ranges, reflecting strong execution through the end of Q3. Total revenue is expected to be in the range of $525 million to $565 million, with GAAP net income between $9 million to $30 million, and adjusted EBITDA between $60 million to $80 million.

Publication Date: Nov -12

📋 Highlights
  • Revenue Guidance Raised: eHealth increased 2025 total revenue guidance to $525–565 million, with GAAP net income of $9–30 million and adjusted EBITDA of $60–80 million.
  • Medicare Volume Adjustments: Q3 Medicare Advantage volume fell short due to dual-eligible enrollment rules, prompting reduced marketing spend to preserve budget for AEP (Annual Election Period).
  • Retention Improvements: Outbound calls to members rose by 20%, driven by brand-driven retention strategies, enhancing continuity in member relationships during plan changes.
  • Tail Revenue Growth: Net adjustment revenue from existing Medicare cohorts contributed positively, with $11 million midpoint increase in tail revenue guidance.
  • AEP Demand Stability: Despite carrier disruptions, demand for AEP remained flat year-over-year, with eHealth prepared to invest in high-ROI channels and expect mid-single-digit growth.

Operational Highlights

eHealth's management highlighted the company's strong position in the Medicare Advantage market, driven by a more tenured adviser force and a growing brand identity. The company is well-prepared for the Annual Election Period (AEP), with a focus on preserving the continuity of the member relationship. According to Derrick Duke, "We're pleased with the growth of our branded channels, which are performing well together, and we're seeing a great lift in search traffic as a result."

Valuation and Growth Prospects

eHealth's valuation metrics indicate a relatively low price-to-sales ratio of 0.23 and an EV/EBITDA ratio of 2.21. Analysts estimate next year's revenue growth at 0.9%. While the company's ROE and ROIC are relatively low at 5.51% and 5.66%, respectively, the increase in tail revenue guidance by $11 million at the midpoint is a positive sign. With a current P/E Ratio of 2.52, the market appears to be pricing in a relatively low growth trajectory.

Outlook and Conclusion

eHealth's management is optimistic about the company's prospects, driven by carrier disruption and a strong brand identity. The company is prepared to be opportunistic in its marketing spend, investing in channels with better economics and higher LTV to CAC ratios. As the company heads into AEP, investors will be watching for updates on the company's execution and growth prospects.

3. NewsRoom

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eHealth Unveils New Growth Strategy Centered on Trusted, Lifelong Customer Relationships

Feb -19

Source: prnewswire.com

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Open Enrollment Recap: Americans Who Comparison Shopped Medicare Advantage for 2026 Potentially Saved an Average of Over $1,600 Per Year

Feb -12

Source: prnewswire.com

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eHealth, Inc. to Hold Fourth Quarter and Fiscal Year 2025 Earnings Call on February 25 at 5:00 p.m. Eastern Time

Feb -09

Source: prnewswire.com

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Stock Traders Purchase High Volume of eHealth Put Options (NASDAQ:EHTH)

Jan -28

Source: defenseworld.net

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eHealth, Inc. Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Jan -06

Source: prnewswire.com

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eHealth Announces $125 Million Asset-Based Revolving Credit Facility

Jan -06

Source: prnewswire.com

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eHealth's Guidance Update: Here's What a Strong AEP Signals

Dec -23

Source: zacks.com

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eHealth, Inc. Updates Guidance for Fiscal Year 2025 Following Strong AEP Performance

Dec -18

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.80%)

6. Segments

Medicare

Expected Growth: 7%

Medicare growth driven by increasing demand for affordable healthcare, aging population, and government initiatives. eHealth's user-friendly platform and expanded carrier network attract more seniors, while strategic partnerships and investments in technology enhance customer experience, contributing to 7% growth.

Employer and Individual

Expected Growth: 5%

For eHealth, Inc., the employer segment growth drivers include increasing adoption of employee benefits platforms, rising healthcare costs, and growing demand for voluntary benefits. Individual segment growth drivers include the Affordable Care Act (ACA) expansion, rising health insurance premiums, and increasing awareness of health insurance options.

7. Detailed Products

Medicare Advantage

eHealth offers a range of Medicare Advantage plans from top insurance carriers, providing beneficiaries with additional benefits and lower out-of-pocket costs.

Medicare Supplement

eHealth offers Medicare Supplement plans that help cover out-of-pocket costs not covered by Original Medicare, providing financial protection and peace of mind.

Medicare Part D

eHealth offers Medicare Part D prescription drug plans from top carriers, helping beneficiaries save on prescription medication costs.

Individual and Family Plans

eHealth offers individual and family health insurance plans from top carriers, providing coverage for those who don't have access to employer-sponsored insurance.

Short-Term Health Insurance

eHealth offers short-term health insurance plans that provide temporary coverage for unexpected medical expenses.

Dental Insurance

eHealth offers dental insurance plans from top carriers, providing coverage for routine dental care and unexpected dental expenses.

8. eHealth, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

eHealth, Inc. faces moderate threat from substitutes due to the presence of alternative health insurance marketplaces and brokers.

Bargaining Power Of Customers

eHealth, Inc. has a large customer base, but individual customers have limited bargaining power due to the complexity of health insurance products.

Bargaining Power Of Suppliers

eHealth, Inc. has a diverse supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The health insurance market is highly regulated, and new entrants face significant barriers to entry, but eHealth, Inc. still faces a high threat from new entrants due to the growing demand for online health insurance marketplaces.

Intensity Of Rivalry

The health insurance market is highly competitive, and eHealth, Inc. faces intense rivalry from established players and new entrants, leading to a high level of competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.64%
Debt Cost 6.33%
Equity Weight 92.36%
Equity Cost 6.33%
WACC 6.33%
Leverage 8.28%

11. Quality Control: eHealth, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
BRP Group

A-Score: 4.4/10

Value: 7.3

Growth: 6.3

Quality: 4.0

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
eHealth

A-Score: 4.3/10

Value: 10.0

Growth: 4.6

Quality: 8.0

Yield: 0.0

Momentum: 2.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
SelectQuote

A-Score: 4.0/10

Value: 9.5

Growth: 6.4

Quality: 6.6

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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GoHealth

A-Score: 3.6/10

Value: 10.0

Growth: 4.8

Quality: 4.9

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

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LendingTree

A-Score: 3.6/10

Value: 4.5

Growth: 2.7

Quality: 4.8

Yield: 0.0

Momentum: 7.5

Volatility: 2.0

1-Year Total Return ->

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Patriot National Bancorp

A-Score: 3.2/10

Value: 8.6

Growth: 1.3

Quality: 3.3

Yield: 0.0

Momentum: 5.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.48$

Current Price

1.48$

Potential

-0.00%

Expected Cash-Flows