Document eHealth, Inc. Announces First Quarter 2026 Results Q1 2026 results ahead of expectations Strong Medicare segment profitability and operating expense improvements YoY Launches lifetime advisory model and final ex

eHealth, Inc. Announces First Quarter 2026 Results

Q1 2026 results ahead of expectations

Strong Medicare segment profitability and operating expense improvements YoY

Launches lifetime advisory model and final expense insurance offering

On track to reduce total FY 2026 operating costs by approximately $90M

INDIANAPOLIS - May 6, 2026 - eHealth, Inc. (Nasdaq EHTH), a leading private online health insurance marketplace, today announced its financial results for the first quarter ended March 31, 2026.

Q1 2026 total revenue of $88.0 million decreased 22% compared to Q1 2025 total revenue of $113.1 million, reflecting lower Medicare approved members, consistent with our strategy to reduce variable and fixed expenses in fiscal 2026 and focus demand generation on our more profitable marketing channels.

Q1 2026 positive net adjustment revenue of $8.0 million compared to $10.5 million in Q1 2025.

Q1 2026 constrained lifetime value ("LTV") of commissions improved across all Medicare products year-over-year, reflecting

a 3% increase in Medicare Advantage ("MA") plans

a 19% increase in Medicare Supplement plans and

a 78% increase in Medicare Part D plans.

Q1 2026 total operating costs and expenses decreased 16% to $90.9 million compared to $108.3 million in Q1 2025.

Variable marketing spend within our Medicare segment declined 45% year-over-year.

Q1 2026 non-GAAP total operating costs and expenses(1) decreased 21% year-over-year.

Significant expansion in Q1 2026 Medicare segment gross margin to 41% from 34% in Q1 2025.

Q1 2026 Medicare unit economics improved year-over-year, driven by higher MA constrained LTV of commissions and a 10% reduction in total acquisition cost per MA-equivalent approved member.

Medicare LTV-to-CAC ratio(8) of 1.4x, up from 1.2x in Q1 2025.

Q1 2026 GAAP net loss of $4.7 million compared to Q1 2025 GAAP net income of $2.0 million primarily due to Q1 2026 restructuring charges of $6.4 million.

Q1 2026 GAAP net loss margin of 5% compared to Q1 2025 GAAP net income margin of 2%.

Q1 2026 adjusted EBITDA(1) of $9.0 million declined 28% compared to Q1 2025 adjusted EBITDA(1) of $12.5 million.

Q1 2026 adjusted EBITDA margin(1) of 10% compared to Q1 2025 adjusted EBITDA margin(1) of 11%.

Operating cash flow of $35.8 million for the three months ended March 31, 2026 on-track to achieve operating cash flow guidance for FY 2026.

Cash, cash equivalents and short-term marketable securities of $110.8 million as of March 31, 2026.

Commissions receivable balance of $1.0 billion as of March 31, 2026.

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 6, 2026, we are reiterating guidance for the full year ending December 31, 2026. 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, 2026

Total revenue is expected to be in the range of $405.0 million to $445.0 million.

GAAP net income is expected to be in the range of $8.0 million to $25.0 million.

Adjusted EBITDA(1) is expected to be in the range of $55.0 million to $75.0 million.

Operating cash flow is expected to be in the range of $(10.0) million to $12.0 million.

The above guidance includes the expected impact of positive net adjustment revenue which has been updated to be in the range of $8 million to $20 million to reflect the Q1 2026 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 6, 2026 at 5 00 p.m. Eastern Time. Individuals interested in listening to the conference call may do so by dialing (833) 461-5787. The participant passcode is 615629308. 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.

Forward-Looking Statements

This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. These include statements regarding our expectations regarding our business, financial condition, operations and strategy our estimates regarding approved members and estimated memberships, in the aggregate and by product category our estimates regarding constrained lifetime values of commissions per approved member by product category our estimates regarding commissions receivable collection our estimates regarding costs per approved member our expectations regarding our profitability and our strategic plans and initiatives, including our lifetime advisory model, product diversification efforts, cost management and cash flow generation, and our ability to execute our operational and strategic plans and initiatives our 2026 annual guidance for total revenue, GAAP net income, adjusted EBITDA and operating cash flow, and our ability to achieve our financial targets our estimates for positive net adjustment revenue and its expected impact on our 2026 annual guidance our expectations regarding our industry and market trends, including market opportunity, consumer demand and our competitive advantage 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 marketplaces, 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 and marketplaces 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 our ability to contact our consumers or market our products through specific channels timing of receipt and accuracy of commission reports payment practices of health insurance carriers risks associated with 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, including debt or equity financings, on terms acceptable to us or at all 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 and our ability to maintain and improve such 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 the risks of potential delays, reductions or disruptions in payments from a prolonged government shutdown, 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.

We have based these forward-looking statements on our current expectations about future events, and these statements are not guarantees of future performance. 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 Corporate Development

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)

* Percentage calculated is not meaningful.

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 and hospital indemnity plans. Our commissions may also 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 programs, including other services such as marketing 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, including both qualified and non-qualified plans, employer plans, including small business health insurance plans and Individual Coverage Health Reimbursement Arrangements ("ICHRAs"), 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 operations 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).

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

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

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

* Percentage calculated is not meaningful.

(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)For all existing cohorts approved in prior periods, we reassess assumptions for our constrained LTV of commissions on a quarterly basis and compare to the current constrained LTV recognized on these cohorts. To the extent there is an indication of a change to expected cash collections for these cohorts, net commission revenue from members approved in prior periods, also referred to as net adjustment revenue, is recorded to adjust revenue previously recognized for the affected cohorts. Net adjustment revenue includes both increases and reductions to revenue however, adjustments increasing revenue are only recognized when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur.

SUMMARY OF SELECTED METRICS

Selected Metrics - First Quarter of 2026

Note See accompanying footnotes on page 14.

SUMMARY OF SELECTED METRICS

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 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

(dollars in thousands, unaudited)

(1)Non-GAAP Financial Information