eHealth, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $21.3 million, a 60% decrease compared to $53.9 million in the prior year period.
• GAAP net loss for the quarter was $35.9 million, compared to a net loss of $31.7 million in the prior year.
• Adjusted EBITDA for the quarter was $(39.9) million, compared to $(34.0) million in the prior year.
• Operating cash flow for the quarter was $(11.2) million, an improvement of 56% (or $14.1 million) compared to $(25.3) million in the prior year.
• Year-to-date operating cash flow for the nine months ended September 30, 2026, was $19.6 million, an 85% improvement compared to the prior year.
• Total operating costs and expenses decreased 29% to $67.6 million from $95.4 million in the prior year.
• Cash, cash equivalents, and short-term marketable securities totaled $88.1 million as of September 30, 2026.
• Commissions receivable balance was $970.6 million as of September 30, 2026, representing 7% growth from September 30, 2025.
• Long-term debt was $115.5 million as of September 30, 2026, compared to $113.0 million as of December 31, 2025.

Guidance and Future Outlook:

• eHealth reiterated its full-year 2026 guidance as of November 4, 2026.
• Total revenue is expected to be between $405.0 million and $445.0 million for the full year.
• GAAP net income is expected to be between $8.0 million and $25.0 million for the full year.
• Adjusted EBITDA is expected to be between $55.0 million and $75.0 million for the full year.
• Operating cash flow is expected to be between $(10.0) million and $12.0 million for the full year.
• Positive net adjustment revenue is expected to be between $17 million and $20 million for the full year, updated from a previous range of $16 million to $20 million.
• Management expects to achieve more than $60.0 million in annual variable spend reductions and approximately $30.0 million in annual fixed cost savings compared to the prior year.

Business Segments and Product Lines:

• The Medicare segment reported total revenue of $18.1 million for the quarter, a 64% decrease year-over-year.
• The Employer and Individual (E&I) segment reported total revenue of $3.2 million for the quarter, a 19% decrease year-over-year.
• Medicare segment gross profit (loss) was $(12.7) million for the quarter, compared to $(1.2) million in the prior year.
• E&I segment gross profit was $0.1 million for the quarter, compared to $0.97 million in the prior year.
• Medicare Advantage commission revenue was $11.0 million for the quarter, a 71% decrease year-over-year.
• Medicare Supplement commission revenue was $2.5 million for the quarter, a 7% increase year-over-year.
• Medicare Part D commission revenue was $0.1 million for the quarter, a 95% decrease year-over-year.
• Ancillary product cross-sell rates nearly doubled compared to the prior year.
• The Lifetime Advisory Model showed improved 90-day retention for the Q2 2026 Medicare Advantage enrollment cohort.
• Total marketing and advertising expense declined 55% year-over-year; Medicare segment variable marketing and advertising expense declined 73% year-over-year.

Market and Competitive Landscape:

• Management noted strong consumer demand at attractive lead costs entering the Annual Enrollment Period (AEP).
• The company is focused on execution during the most important weeks of AEP.
• The company operates as a leading private online health insurance marketplace with access to plans from more than 180 health insurers.

Risks and Challenges:

• Risks include the ability to retain existing members and enroll new members during open enrollment periods.
• Changes in laws, regulations, and guidelines regarding healthcare reform or the marketing of Medicare plans could impact results.
• Competition from government-run health insurance exchanges and other sources remains a factor.
• Seasonality of the business and fluctuation of operating results are inherent risks.
• Risks associated with operations in China and restrictions in debt obligations are noted.
• The company faces risks regarding its ability to regain and maintain compliance with Nasdaq's continued listing requirements, including the Minimum Bid Price Requirement.
• A complaint filed by the U.S. Attorney's Office for the District of Massachusetts on May 1, 2025, alleging violation of the Federal False Claims Act, is a potential risk.

Management Commentary and Tone:

• Derrick Duke, CEO, stated that third-quarter results were in line with expectations and demonstrated continued progress against key priorities for 2026.
• Management highlighted the improvement in operating cash flow by 85% year-over-year through the first nine months of the year.
• The company successfully completed AEP preparations and entered the period with a well-prepared organization and a differentiated consumer brand.
• Management expressed encouragement regarding strong consumer demand seen at attractive lead costs.
• The tone indicates a focus on cost structure reduction and execution during the critical AEP period.

Other Key Points:

• Positive net adjustment revenue for the quarter was $1.4 million, compared to $12.2 million in the prior year.
• The company is on track to achieve significant cost reductions, including variable spend and fixed cost savings.
• The "Lifetime Advisory Model" is demonstrating early positive impacts on retention and cross-sell rates.
• The company holds a webcast and conference call for investors on November 4, 2026, at 5:00 p.m. Eastern Time.