Ethos Technologies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue grew 151% year-over-year to $235.2 million.
• Direct Channel revenue grew 112% year-over-year to $118.8 million.
• Third-Party Channel revenue grew 209% year-over-year to $116.4 million.
• Gross profit was $230.8 million, representing a 98% gross profit margin.
• Contribution profit was $66.4 million, representing a 28% contribution profit margin.
• Net income was $4.7 million, representing a 2% margin.
• Net income per share was $0.07 (basic and diluted).
• Non-GAAP net income was $33.8 million, representing a 14% margin.
• Non-GAAP net income per share was $0.53 (basic) and $0.49 (diluted).
• Adjusted EBITDA was $34.9 million, representing a 15% margin.
• Net cash provided by operating activities was $40.7 million.
• Cash and cash equivalents increased to $149.8 million as of September 30, 2026, from $91.1 million as of December 31, 2025.

Guidance and Future Outlook:

• Q4 2026 total revenue is expected to be between $220 million and $224 million, representing a 102% year-over-year increase at the midpoint.
• Q4 2026 Adjusted EBITDA is expected to be between $30 million and $32 million.
• Full fiscal year 2026 total revenue is expected to be between $838 million and $842 million, representing a 117% year-over-year increase at the midpoint.
• Full fiscal year 2026 Adjusted EBITDA is expected to be between $134 million and $136 million.
• Ethos noted that reconciliation of forward-looking Adjusted EBITDA to net income is not available without unreasonable efforts due to high variability in interest expense, interest income, and income tax expenses.

Business Segments and Product Lines:

• Activated 142,111 new policies in Q3, representing 189% year-over-year growth.
• Reported Average Revenue per Unit was $1,655, a 13% year-over-year decline attributed to a channel mix skewed more heavily towards the Third-Party channel.

Market and Competitive Landscape:

• Ethos reported its third consecutive quarter of triple-digit year-over-year growth.
• The company stated it protected more than 140,000 additional families in Q3 alone.

Risks and Challenges:

• Forward-looking statements are subject to risks including limited operating history at current scale, market growth rates, ability to manage and sustain growth, competition from existing and new entrants, ability to attract and retain carriers and agency counterparties, adoption by individual agents, brand awareness, reputation damage, and platform disruptions.
• Actual results may differ materially from forward-looking statements due to these factors.

Management Commentary and Tone:

• CEO Peter Colis described Q3 as a "record quarter" and stated that results illustrate the power of "growth at scale paired with disciplined execution."
• Management indicated that Ethos is a business that "gets better as it gets bigger."

Other Key Points:

• The Board of Directors authorized a share repurchase program of up to $100 million of Class A common stock during the third quarter; no shares have been repurchased since the announcement.
• Ethos is a life insurance technology company operating a three-sided technology platform for consumers, agents, and carriers.
• The company offers instant life insurance products requiring no medical exams.