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1. Company Snapshot

1.a. Company Description

GoHealth, Inc.operates as a health insurance marketplace and Medicare focused digital health company in the United States.It operates through four segments: Medicare—Internal; Medicare—External; Individual and Family Plans (IFP) and Other—Internal; and IFP and Other—External.


The company operates a technology platform that leverages machine-learning algorithms of insurance behavioral data to optimize the process for helping individuals find the health insurance plan for their specific needs.Its products include Medicare Advantage, Medicare Supplement, Medicare prescription drug plans, and Medicare Special Needs Plans; and IFP, dental plans, vision plans, and other ancillary plans to individuals.The company sells its products through carriers and online platform, as well as independent and external agencies.


GoHealth, Inc.was founded in 2001 and is headquartered in Chicago, Illinois with additional offices in Charlotte, North Carolina, Lindon, Utah, Bratislava, Slovakia, and Kosice, Slovakia.

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1.b. Last Insights on GOCO

Here is a 90-word analysis of the positive drivers behind GoHealth, Inc.'s recent performance: GoHealth's strong Q4 2024 earnings, with EPS of $2.41 beating estimates of $1.16, drove the company's recent performance. The successful annual enrollment period contributed to the robust results. The company's Medicare-focused digital health business and health insurance marketplace segments demonstrated strength. The positive earnings surprise was driven by solid execution and a favorable operating environment. The company's management team, led by CEO Vijay Kotte, delivered on its growth strategy, positioning GoHealth for continued success.

1.c. Company Highlights

2. GoHealth's Q3 Results: Navigating a Complex Medicare Advantage Landscape

GoHealth reported revenue of $55.6 million, a significant decline from the same period last year, primarily due to the company's intentional scaling back of its Medicare Advantage activity. The actual EPS came out at -$0.19, beating estimates of -$2.06. The company's adjusted EBITDA margin was -17.1%, an improvement from the previous quarter. As Vijay Kumar Kotte, GoHealth's CEO, cited during the earnings call, "We've taken a concerted effort to focus on our existing membership rather than burning cash on general marketing."

Publication Date: Nov -25

📋 Highlights
  • Market Strategy Shift: Prioritizing retention (75%+ stable members) and quality over new enrollments, aligning with health plans’ focus on unit economics and profitability.
  • Cash Position & Efficiency: Ended Q3 with $32M cash, $40M super-priority lender facility, and reduced agent onboarding time from 16 weeks to 2 weeks via AI/automation.
  • Special Needs Plan Leadership: Leveraging proprietary tools like PLANFit and expertise in complex populations, supporting health plans’ differentiated compensation models for SNPs.
  • Consolidation Opportunity: Positioning for industry consolidation by maintaining a strong member book (retention rate > market average) and strategic flexibility in a $180B Medicare Advantage market.
  • Product Diversification: Balancing Medicare Advantage growth with GoHealthProtect’s complementary offerings, focusing on AEP/SEP cycles to optimize cash flow and risk-adjusted returns.

Strategic Priorities

GoHealth has focused on three key priorities: quality over quantity, retention over short-term submissions, and cash preservation and strategic flexibility. The company retained its highest-quality agents, shifted marketing towards retention, and adjusted compensation to reinforce objective guidance. GoHealth reduced overhead while investing in AI and automation to improve agent effectiveness and consumer experience.

Medicare Advantage Landscape

The Medicare Advantage landscape remains complex and dynamic, with health plans prioritizing retention, stable member profiles, and unit economics over broad expansion. GoHealth is aligning its strategy accordingly, protecting its leadership position in special needs plans, high-quality member book, and retention and engagement model. The company believes the current environment supports consolidation, positioning GoHealth to lead integration where it creates value.

Valuation Metrics

With a P/S Ratio of 0.11 and an EV/EBITDA of 0.57, GoHealth's valuation multiples indicate a cautious market outlook. The company's ROE and ROIC are -163.28% and -35.18%, respectively, reflecting the challenges in the Medicare Advantage landscape. Analysts estimate next year's revenue growth at -13.5%, suggesting a continued challenging environment.

Cash Management and Strategy

GoHealth is taking a disciplined approach to cash management, prioritizing high-confidence, risk-adjusted cash on cash returns over aggressive growth. The company has a strong cash position, with approximately $32 million in cash at the end of the third quarter, and access to an additional $40 million through a super-priority lender facility. This allows GoHealth to maintain its capabilities, pursue consolidation opportunities, and remain nimble in response to market shifts.

Special Needs Plans

GoHealth has developed proprietary technology, including the PLANFit tool, to support agents through the shopping process for special needs plans. The company's infrastructure and technology facilitate a thoughtful, AI-driven rating and matching system to ensure special consumers get trained and knowledgeable agents. This strategic alignment with health plans' goals is why GoHealth is well-positioned to serve this population.

3. NewsRoom

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Stonegate Capital Partners Updates Coverage on GoHealth Inc. (GOCO) 2025 Q3

Nov -17

Source: newsfilecorp.com

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GoHealth, Inc. (GOCO) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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GoHealth (GOCO) Reports Q3 Loss, Lags Revenue Estimates

Nov -13

Source: zacks.com

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GoHealth to Announce Third Quarter 2025 Results on November 13, 2025

Nov -11

Source: globenewswire.com

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Reviewing GoHealth (NASDAQ:GOCO) and Kansas City Life Insurance (OTCMKTS:KCLI)

Oct -22

Source: defenseworld.net

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GoHealth Helps Medicare Consumers Navigate Another Disruptive Annual Enrollment Period (AEP) With Personalized Guidance

Oct -14

Source: globenewswire.com

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Go Metals Initiates Metallurgical Testing at KM98 Fe-Ti-V Project

Sep -29

Source: newsfilecorp.com

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GoHealth, Inc. (GOCO) Q2 2025 Earnings Call Transcript

Aug -08

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.73%)

6. Segments

Medicare - Agency - Commission

Expected Growth: 2.8%

Medicare agency commission growth driven by increasing demand for health insurance, GoHealth's expanding agent network, and rising Medicare enrollment. Additionally, the company's technology-driven platform and strategic partnerships contribute to the 2.8% growth rate.

Medicare - Non - Agency

Expected Growth: 2.5%

Medicare - Non - Agency growth of 2.5% driven by increasing Medicare Advantage enrollment, expansion into new markets, and strategic partnerships. Additionally, GoHealth's proprietary technology and data analytics capabilities enhance customer engagement, leading to higher conversion rates and revenue growth.

Medicare - Agency - Partner Marketing and Other

Expected Growth: 3.2%

Medicare growth driven by increasing demand for health insurance among seniors, Agency partnerships expanding reach, and effective Partner Marketing strategies. Additionally, Other revenue streams, such as ancillary services, contribute to the 3.2% growth rate, further solidifying GoHealth's position in the market.

Other

Expected Growth: 2.2%

GoHealth's 2.2% growth is driven by increasing demand for Medicare Advantage plans, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital platforms and data analytics enhances customer engagement, leading to higher conversion rates and revenue growth.

Non-Encompass BPO Services

Expected Growth: 2.9%

GoHealth's Non-Encompass BPO Services growth of 2.9% is driven by increasing demand for outsourced healthcare services, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital transformation and process automation has improved operational efficiency, leading to cost savings and enhanced customer experience.

7. Detailed Products

Medicare Advantage

GoHealth offers Medicare Advantage plans that provide additional benefits beyond traditional Medicare, such as dental, vision, and hearing coverage.

Medicare Supplement

GoHealth offers Medicare Supplement plans that help cover out-of-pocket expenses not covered by traditional Medicare.

Individual and Family Plans

GoHealth offers individual and family health insurance plans that provide coverage for individuals and families who are not eligible for group coverage.

Short-Term Health Insurance

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

Dental and Vision Insurance

GoHealth offers dental and vision insurance plans that provide coverage for routine and preventive care.

Telehealth Services

GoHealth offers telehealth services that provide virtual access to healthcare professionals for non-emergency medical care.

8. GoHealth, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

GoHealth, Inc. operates in a highly competitive market, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

GoHealth, Inc. customers have a high bargaining power due to the availability of alternative insurance providers, which can lead to price sensitivity and high customer acquisition costs.

Bargaining Power Of Suppliers

GoHealth, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers, and the company's scale and market position also give it negotiating power.

Threat Of New Entrants

While there are barriers to entry in the health insurance market, new entrants can still disrupt the market, and GoHealth, Inc. needs to continuously innovate to stay competitive.

Intensity Of Rivalry

The health insurance market is highly competitive, with many established players, and GoHealth, Inc. needs to differentiate itself through its products and services to gain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 70.53%
Debt Cost 11.72%
Equity Weight 29.47%
Equity Cost 12.67%
WACC 12.00%
Leverage 239.29%

11. Quality Control: GoHealth, Inc. passed 3 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

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John Marshall Bancorp

A-Score: 4.7/10

Value: 5.7

Growth: 4.7

Quality: 6.1

Yield: 2.0

Momentum: 4.0

Volatility: 5.7

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A-Score: 4.5/10

Value: 9.3

Growth: 6.4

Quality: 6.9

Yield: 0.0

Momentum: 3.5

Volatility: 1.0

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eHealth

A-Score: 4.4/10

Value: 9.3

Growth: 4.6

Quality: 7.6

Yield: 0.0

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Volatility: 1.0

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Quality: 4.2

Yield: 2.0

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A-Score: 3.8/10

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Growth: 6.4

Quality: 1.8

Yield: 0.0

Momentum: 5.0

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GoHealth

A-Score: 3.5/10

Value: 9.6

Growth: 4.8

Quality: 4.0

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

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

2.95$

Current Price

2.96$

Potential

-0.00%

Expected Cash-Flows