Document eHealth, Inc. Announces First Quarter 2025 Results Strong first quarter results with 22% total revenue growth YoY 25% growth in Medicare Advantage submissions YoY Growth accompanied by Medicare unit margin expan

eHealth, Inc. Announces First Quarter 2025 Results

Strong first quarter results with 22% total revenue growth YoY

25% growth in Medicare Advantage submissions YoY

Growth accompanied by Medicare unit margin expansion YoY

AUSTIN, Texas - May 7, 2025 - eHealth, Inc. (Nasdaq EHTH), a leading private online health insurance marketplace, today announced its financial results for the first quarter ended March 31, 2025.

Q1 2025 total Medicare submissions(8) across our core agency and carrier-dedicated Amplify platforms grew 22% compared to Q1 2024, driven primarily by Medicare Advantage ("MA") submissions growth of 25% year-over-year.

Q1 2025 total Medicare approved members increased 16% year-over-year, driven mostly by a 26% increase in Q1 2025 MA approved members year-over-year.

Q1 2025 total revenue of $113.1 million increased 22% compared to Q1 2024 total revenue of $93.0 million, driven primarily by meaningful Medicare segment growth and greater positive net adjustment revenue year-over-year.

Q1 2025 positive net adjustment revenue of $10.5 million compared to $2.5 million in Q1 2024.

Q1 2025 Non-GAAP total revenue excluding net adjustment revenue(1) increased $12.1 million, or 13%, year-over-year.

Q1 2025 Medicare unit margin expansion year-over-year, primarily driven by a 10% decline in total acquisition cost per MA-equivalent approved member reflecting continued optimization of our sales and marketing operations resulting in improved lead quality and stronger year-over-year conversion rates.

Q1 2025 GAAP net income of $2.0 million increased significantly compared to Q1 2024 GAAP net loss of $17.0 million.

Q1 2025 Non-GAAP net loss(1) of $6.0 million, which excludes the post-tax impact of positive net adjustment revenue, improved $8.1 million, or 57%, year-over-year.

Q1 2025 adjusted EBITDA(1) of $12.5 million improved $14.2 million compared to adjusted EBITDA(1) of $(1.7) million in Q1 2024.

Q1 2025 adjusted EBITDA excluding net adjustment revenue(1) improved $6.2 million, or 149%, year-over-year, driven primarily by MA approved member growth, improved Medicare acquisition costs and lower fixed costs.

Operating cash flow of $77.1 million for the three months ended March 31, 2025 improved 9% compared to operating cash flow of $70.8 million for the three months ended March 31, 2024.

Cash, cash equivalents and marketable securities of $155.6 million as of March 31, 2025.

Commissions receivable balance of $923.3 million as of March 31, 2025.

Note See the tables at the end of this press release for a reconciliation of our GAAP financial measures to our non-GAAP financial measures for the relevant periods and footnote (1) on page 14 at the end of this press release for definitions of our non-GAAP financial measures. Additionally, see accompanying footnotes on page 14 for additional definitions.

Based on information available as of May 7, 2025, we are reiterating our guidance for the full year ending December 31, 2025. These expectations are forward-looking statements and we assume no obligation to update these statements. Actual results may be materially different and are affected by the risk factors and uncertainties identified in this press release and in eHealth's annual and quarterly reports filed with the Securities and Exchange Commission.

The following guidance is for the full year ending December 31, 2025

Total revenue is expected to be in the range of $510.0 million to $550.0 million.

GAAP net income (loss) is expected to be in the range of $(10.0) million to $15.0 million.

Adjusted EBITDA(1) is expected to be in the range of $35.0 million to $60.0 million.

Operating cash flow is expected to be in the range of $(25.0) million to $10.0 million.

The above guidance includes the expected impact of positive net adjustment revenue which has been updated to be in the range of $11 to $20 million to reflect the Q1 2025 positive net adjustment revenue, compared to the previous range of $0 to $20 million.

Note See accompanying footnotes on page 14.

Webcast and Conference Call Information

A webcast and conference call will be held today, Wednesday, May 7, 2025 at 8 30 a.m. Eastern Time 7 30 a.m. Central Time. Individuals interested in listening to the conference call may do so by dialing (800) 549-8228. The participant passcode is 75768. The live and archived webcast of the call will also be available under "Events Presentations" on the Investor Relations page of our website at https ir.ehealthinsurance.com.

We're Matchmakers. For over 25 years, eHealth has helped millions of Americans find the healthcare coverage that fits their needs at a price they can afford. As a leading independent licensed insurance agency and advisor, eHealth offers access to over 180 health insurers, including national and regional companies.

Forward-Looking Statements

This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding our expectations regarding 2025 annual guidance for total revenue, GAAP net income (loss), adjusted EBITDA and operating cash flow our estimates for positive net adjustment revenue and its expected impact on our 2025 annual guidance and other statements regarding our future operations, financial condition, prospects and business strategies.

These forward-looking statements are inherently subject to various risks and uncertainties that could cause actual results to differ materially from the statements made. In particular, we are required by Accounting Standards Codification 606 - Revenue from Contracts with Customers to make numerous assumptions that are based on historical trends and our management's judgment. These assumptions may change over time and have a material impact on our revenue recognition, guidance, and results of operations. Please review the assumptions stated in this press release carefully.

The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, our ability to retain existing members and enroll new members during the annual healthcare open enrollment period, the Medicare annual enrollment period, the Medicare Advantage open enrollment

period and other special enrollment periods changes in laws, regulations and guidelines, including in connection with healthcare reform or with respect to the marketing and sale of Medicare plans competition, including competition from government-run health insurance exchanges and other sources the seasonality of our business and the fluctuation of our operating results our ability to accurately estimate membership, lifetime value of commissions and commissions receivable changes in product offerings among carriers on our ecommerce platform and changes in our estimated conversion rate of an approved member to a paying member and the resulting impact of each on our commission revenue the concentration of our revenue with a small number of health insurance carriers our ability to execute on our growth strategy and other business initiatives changes in our senior management or other key employees our ability to recruit, train, retain and ensure the productivity of licensed insurance agents, or benefit advisors, and other personnel exposure to security risks and our ability to safeguard the security and privacy of confidential data our relationships with health insurance carriers the success of our carrier advertising and sponsorship program our success in marketing and selling health insurance plans and our unit cost of acquisition our ability to effectively manage our operations as our business evolves and execute on our business plan and other strategic initiatives the need for health insurance carrier and regulatory approvals in connection with the marketing of Medicare-related insurance products changes in the market for private health insurance consumer satisfaction of our service and actions we take to improve the quality of enrollments changes in member conversion rates changes in commission rates our ability to sell qualified health insurance plans to subsidy-eligible individuals and to enroll subsidy-eligible individuals through government-run health insurance exchanges our ability to derive desired benefits from investments in our business, including membership growth and retention initiatives our reliance on marketing partners the success and cost of our marketing efforts, including branding, online advertising, direct-to-consumer mail, email, social media, telephone, SMS text, television, radio and other marketing efforts timing of receipt and accuracy of commission reports payment practices of health insurance carriers dependence on our operations in China the restrictions in our debt obligations the restrictions in our investment agreement with our convertible preferred stock investor our ability to raise additional capital compliance with insurance, privacy, cybersecurity and other laws and regulations the outcome of litigation, government enforcement actions or regulatory inquiries in which we are or may from time to time be involved, including the complaint filed against us and certain defendants by the U.S. Attorney's Office for the District of Massachusetts on May 1, 2025 alleging the violation of the Federal False Claims Act the performance, reliability and availability of our information technology systems, ecommerce platform and underlying network infrastructure, including any new systems we may implement our ability to deploy new and evolving technologies, such as artificial intelligence public health crises, pandemics, natural disasters and other extreme events general economic and macroeconomic conditions, including inflation, recession, political events, instability or geopolitical tensions, tariffs and trade tensions or other international disputes, financial, banking and credit market disruptions our ability to effectively administer our self-insurance program and other risks and uncertainties related to our business. Other factors that could cause our operating, financial and other results to differ are described in our most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K filed with the Securities and Exchange Commission and available on the Investor Relations page of our website at https ir.ehealthinsurance.com and on the Securities and Exchange Commission's website at www.sec.gov.

All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Investor Relations Contact

Kate Sidorovich, CFA

Senior Vice President, Investor Relations Strategy

investors ehealth.com

https ir.ehealthinsurance.com

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts, unaudited)

Note See accompanying footnotes on page 14.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

(in thousands, unaudited)

We evaluate our business performance and manage our operations as two distinct reporting segments Medicare and Employer and Individual ("E I"). The Medicare segment consists primarily of commissions earned as the broker of record from our sale of Medicare-related health insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, and to a lesser extent, ancillary products sold to our Medicare-eligible beneficiaries, including but not limited to, dental and vision insurance. Our commissions may include certain bonus payments, which are generally based on attaining predetermined target sales levels or other objectives, as determined by the health insurance carriers. The Medicare segment also consists of amounts earned in connection with our advertising program for marketing and other services as well as amounts earned from our non-broker of record fee-based arrangements and our performance of various post-enrollment services for members. The E I segment consists primarily of commissions earned from our sale of individual and family plans ("IFP"), including qualified and non-qualified plans, small business health insurance plans and ancillary products sold to our non-Medicare-eligible consumers, including but not limited to, dental, vision and short-term insurance. To a lesser extent, the E I segment includes amounts earned from our online sponsorship program that allows carriers to purchase advertising space in specific markets on our website as well as our technology licensing activities.

We report segment information based on how our chief executive officer, who is our chief operating decision maker ("CODM"), regularly reviews our operating results, allocates resources and makes decisions regarding our business operation in the annual budget and forecasting process along with evaluation of actual performance. Our CODM considers budget-to-actual variances on a monthly basis for our segment performance measures when making decisions about allocating capital and personnel to our segments. These performance measures include total segment revenue and segment gross profit (loss). Prior to the fourth quarter of 2024, we reported our measure of segment profitability as segment profit (loss). Accordingly, prior period amounts have been reclassified to conform to the current period presentation, in all material respects.

Segment gross profit (loss) is calculated as total revenue for the applicable segment less variable marketing and advertising expenses, segment customer care and enrollment expenses ("CC E") and cost of revenue for the applicable segment. Variable marketing and advertising expenses represent costs incurred in member acquisition from our direct marketing and marketing partner channels and exclude fixed overhead costs, such as personnel related costs, consulting expenses and other operating costs allocated to the marketing and advertising department. Segment CC E expenses include expenses we incur in assisting applicants during the enrollment process and exclude operating costs allocated to the CC E department.

The results of our reportable segments are summarized for the periods presented below

(in thousands, unaudited)

A reconciliation of our segment gross profit to the Condensed Consolidated Statements of Operations for the periods presented is as follows

(1)Other marketing and advertising costs consist of fixed marketing and advertising, previously capitalized labor, depreciation and share-based compensation costs.

(2)Other CC E costs consist of previously capitalized labor, depreciation and share-based compensation costs.

(in thousands, unaudited)

Our commission revenue results from approval of an application from health insurance carriers, which we define as our customers under Accounting Standards Codification 606 - Revenue from Contracts with Customers ("ASC 606"). Our commission revenue is primarily comprised of commissions from health insurance carriers which is computed using the estimated constrained lifetime values of commission payments that we expect to receive. Our commissions may include certain bonus payments, which are generally based on our attaining predetermined target sales levels or other objectives, as determined by the health insurance carriers.

The following table presents commission revenue by product for the periods indicated

The following table presents a summary of commission revenue by segment for the periods indicated

(a) These amounts reflect our revised estimates of cash collections for certain members approved prior to the relevant reporting period that are recognized as adjustments to revenue within the relevant reporting period. The net commission revenue from members approved in prior periods, or net adjustment revenue, includes both increases in revenue for certain prior period cohorts as well as reductions in revenue for certain prior period cohorts.

SUMMARY OF SELECTED METRICS

(in thousands, except member and per member data, unaudited)

Selected Metrics - First Quarter of 2025

Note See accompanying footnotes on page 14.

SUMMARY OF SELECTED METRICS

(in thousands, except member and per member data, unaudited)

Note See accompanying footnotes on page 14.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Reconciliation of GAAP Operating Costs and Expenses to Non-GAAP Operating Costs and Expenses(1) (in thousands)

Reconciliation of GAAP Net Loss Attributable to Common Stockholders to Adjusted EBITDA(1) (in thousands) and Adjusted EBITDA Margin(1)

Note See accompanying footnotes on page 14.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Loss(1) and GAAP Net Income (Loss) to Adjusted EBITDA Excluding Net Adjustment Revenue(1) (in thousands)

Reconciliation of GAAP Total Revenue to Non-GAAP Total Revenue Excluding Net Adjustment Revenue(1) (in thousands)

Reconciliation of Guidance GAAP Net Loss Attributable to Common Stockholders to Adjusted EBITDA(1) (in millions)

Note See accompanying footnotes on page 14.

Footnotes to Preceding Financial Statements and Metrics

(1)Non-GAAP Financial Information

This press release includes financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). To supplement eHealth's condensed consolidated financial statements presented in accordance with GAAP, eHealth presents investors with non-GAAP financial measures, including non-GAAP total revenue excluding net adjustment revenue, non-GAAP operating costs and expenses, non-GAAP net income (loss), adjusted EBITDA, adjusted EBITDA margin and adjusted EBITDA excluding net adjustment revenue.

Non-GAAP total revenue excluding net adjustment revenue is calculated by excluding the effect of net commission revenue from members approved in prior periods ("net adjustment revenue") from total revenue.

Non-GAAP operating costs and expenses are calculated by excluding the effect of expensing stock-based compensation related to stock options, restricted stock awards, performance-based and market-based awards and employee stock purchase plan from the respective GAAP operating costs and expenses. Total non-GAAP operating costs and expenses is calculated by excluding the effect of expensing stock-based compensation related to stock options, restricted stock awards, performance-based and market-based awards and employee stock purchase plan and impairment, restructuring and other charges from GAAP total operating costs and expenses.