Document eHealth, Inc. Announces Fourth Quarter and Fiscal Year 2024 Results Reports record-high total revenue and net income quarter in Company's history Outperforms FY'24 revenue and profitability guidance driven by 42

eHealth, Inc. Announces Fourth Quarter and Fiscal Year 2024 Results

Reports record-high total revenue and net income quarter in Company's history

Outperforms FY'24 revenue and profitability guidance driven by 42% growth in Medicare Advantage submissions and 16% Medicare unit margin expansion in fourth quarter

Ends FY'24 with highest ever commissions receivable balance of $1.0 billion

AUSTIN, Texas - February 26, 2025 - eHealth, Inc. (Nasdaq EHTH), a leading private online health insurance marketplace, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2024.

Q4 2024 total Medicare submissions(a) across our core agency and carrier-dedicated Amplify platforms grew 38% compared to Q4 2023, driven primarily by Medicare Advantage ("MA") submissions growth of 42% year-over-year.

Q4 2024 total Medicare approved members increased 33% year-over-year, driven mostly by a 39% increase in Q4 2024 MA approved members year-over-year.

Q4 2024 total revenue of $315.2 million increased 27% compared to Q4 2023 total revenue of $247.7 million, driven primarily by meaningful Medicare segment growth year-over-year, partially offset by lower positive net adjustment revenue.

Q4 2024 positive net adjustment revenue of $7.6 million compared to $15.6 million in Q4 2023.

Q4 2024 Non-GAAP total revenue excluding net adjustment revenue(1) increased $75.5 million, or 33%, year-over-year.

Q4 2024 Medicare unit margin expansion of 16%, year-over-year primarily driven by

a 23% decline in total acquisition cost per MA-equivalent approved member as a result of enhanced lead quality and significantly higher conversions, and

a 2% increase in MA constrained lifetime value ("LTV") of commissions.

Q4 2024 GAAP net income of $97.5 million increased 87% compared to Q4 2023 GAAP net income of $52.2 million.

Q4 2024 Non-GAAP net income(1) of $91.8 million, which excludes the post-tax impact of positive net adjustment revenue and asset impairment charges, improved $51.4 million, or 127%, year-over-year.

Q4 2024 adjusted EBITDA(1) of $121.3 million improved 74% compared to adjusted EBITDA(1) of $69.6 million in Q4 2023.

Q4 2024 adjusted EBITDA excluding net adjustment revenue(1) improved $59.7 million, or 110%, year-over-year, driven primarily by MA approved member growth, improved Medicare acquisition costs and continued fixed cost reduction efforts.

FY 2024 total Medicare submissions across our core agency and carrier-dedicated Amplify platforms grew 29% year-over-year.

FY 2024 total Medicare approved members grew 21% year-over-year.

FY 2024 total revenue of $532.4 million increased 18% compared to FY 2023 total revenue of $452.9 million.

FY 2024 net income of $10.1 million increased 136% compared to FY 2023 net loss of $28.2 million.

FY 2024 adjusted EBITDA(1) of $69.3 million increased significantly compared to FY 2023 adjusted EBITDA(1) of $14.1 million.

Commissions receivable balance of $1.0 billion as of December 31, 2024 grew 9% compared to $918.2 million as of December 31, 2023.

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 15 at the end of this press release for definitions of our non-GAAP financial measures.

(a) Submissions describe applications that are submitted by individuals online through our eHealth platform or completed with the assistance of our benefit advisors where the individual provides authorization to the benefit advisor to submit the application to the insurance carrier partner. The individual may have additional actions to take before the application will be reviewed by the insurance carrier and not all submissions ultimately become approved members.

Based on information available as of February 26, 2025, we are providing 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.

"Our guidance ranges reflect the dynamic nature of our sector. It is important to note that while 2024 was somewhat of an outlier in terms of market environment and resulting performance, our underlying trajectory remains strong, reflecting the operational improvements we have made. We are tracking ahead of the three-year financial targets that we provided in May of last year. Based on the mid-points of our 2025 guidance ranges, our 23-25 revenue CAGR is expected to be 8% with an implied 2025 adjusted EBITDA margin(1) of 9%. It also implies an impressive adjusted EBITDA(1) CAGR of 84%."- John Dolan, Chief Financial Officer

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 in the range of $0 to $20 million.

Note See accompanying footnotes on page 15.

Webcast and Conference Call Information

A webcast and conference call will be held today, Wednesday, February 26, 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 72156. 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 or government enforcement actions in which we may from time to time be involved 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, trade 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)

* Percentage calculated is not meaningful.

Note See accompanying footnotes on page 15.

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 both qualified and non-qualified, 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 (loss) to the Condensed Consolidated Statements of Operations for the periods presented is as follows

* Percentage calculated is not meaningful.

(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. The total reductions to revenue from members approved in prior periods were $0.8 million and $0.6 million for the three months ended December 31, 2024 and 2023, respectively, and $5.3 million and $4.3 million for the year ended December 31, 2024 and 2023, respectively. These reductions to revenue primarily relate to the Medicare segment.

SUMMARY OF SELECTED METRICS

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

Selected Metrics - Fourth Quarter of 2024

Note See accompanying footnotes on page 15.

SUMMARY OF SELECTED METRICS

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

Selected Metrics - Year Ended December 31, 2024

Note See accompanying footnotes on page 15.

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 Income (Loss) Attributable to Common Stockholders to Adjusted EBITDA(1) (in thousands) and Adjusted EBITDA Margin(1)

Note See accompanying footnotes on page 15.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

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