Ethos Reports Third Quarter Fiscal Year 2026 Financial Results
Ethos Technologies Inc. (LIFE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Ethos Reports Third Quarter Fiscal Year 2026 Financial Results • Q3 Revenue grew 151% year-over-year to $235 million • Q3 Direct Channel Revenue grew 112% year-over-year to $119 million • Q3 Third-Party Channel Revenue grew 209% year-over-year to $116 million Austin,
How this was made
The 30-second read
Why it matters
The earnings beat and forward‑looking guidance are likely to lift the stock, especially given the magnitude of revenue growth.
Market read
First‑report earnings with strong growth and guidance, making the news highly relevant for traders.
What to watch
The share repurchase program has not yet been executed, which may limit near‑term support.
Q3 Revenue grew 151% year-over-year to $235 million
Revenue grew 151% year-over-year, both Direct and Third-Party Channel Revenue grew by triple digits, and Ethos reported positive GAAP net income, non-GAAP net income, Adjusted EBITDA and operating cash flow.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 Commission revenue (in thousands)GAAP | $235.2M | – | 151% |
| Q3 2026 Total revenue (in thousands)GAAP | 235.2M | – | 151% |
| Q3 2026 Gross profit (in thousands)GAAP | $230.8M | – | – |
| Q3 2026 Gross profit marginGAAP | 98 % | – | – |
| Q3 2026 Sales and marketing expense (in thousands)GAAP | 169.4M | – | – |
| Q3 2026 General and administrative expense (in thousands)GAAP | 39.18M | – | – |
| Q3 2026 Technology expense, exclusive of amortization (in thousands)GAAP | 16.48M | – | – |
| Q3 2026 Cost of revenue (in thousands)GAAP | 4.45M | – | – |
| Q3 2026 Depreciation and amortization (in thousands)GAAP | 1.84M | – | – |
| Q3 2026 Total costs and expenses (in thousands)GAAP | 231.4M | – | – |
| Q3 2026 Income from operations (in thousands)GAAP | 3.85M | – | – |
| Q3 2026 Interest expense (in thousands)GAAP | −358K | – | – |
| Q3 2026 Interest income (in thousands)GAAP | 1.91M | – | – |
| Q3 2026 Other income, net (in thousands)GAAP | 65K | – | – |
| Q3 2026 Total other income, net (in thousands)GAAP | 1.61M | – | – |
| Q3 2026 Net income before income tax expense (in thousands)GAAP | 5.46M | – | – |
| Q3 2026 Income tax expense (in thousands)GAAP | 790K | – | – |
| Q3 2026 Net income (in thousands)GAAP | $4.67M | – | – |
| Q3 2026 Net income marginGAAP | 2 % | – | – |
| Q3 2026 Basic net income per shareGAAP | $ 0.07 | – | – |
| Q3 2026 Diluted net income per shareGAAP | $ 0.07 | – | – |
| Q3 2026 Weighted-average shares used in computing basic net income per shareGAAP | 64,396 | – | – |
| Q3 2026 Weighted-average shares used in computing diluted net income per shareGAAP | 69,207 | – | – |
| Q3 2026 Contribution profit (in thousands)non-GAAP | $66.42M | – | – |
| Q3 2026 Contribution profit marginnon-GAAP | 28 % | – | – |
| Q3 2026 Non-GAAP net income (in thousands)non-GAAP | $33.84M | – | – |
| Q3 2026 Non-GAAP net income marginnon-GAAP | 14 % | – | – |
| Q3 2026 Non-GAAP net income per share attributable to common stockholders, basicnon-GAAP | $ 0.53 | – | – |
| Q3 2026 Non-GAAP net income per share attributable to common stockholders, dilutednon-GAAP | $ 0.49 | – | – |
| Q3 2026 Adjusted EBITDA (in thousands)non-GAAP | $34.92M | – | – |
| Q3 2026 Adjusted EBITDA marginnon-GAAP | 15 % | – | – |
| Q3 2026 Net cash provided by operating activitiesGAAP | $40.7M | – | – |
| Nine months ended September 30, 2026 Total revenue (in thousands)GAAP | 617.9M | – | – |
| Nine months ended September 30, 2026 Income (loss) from operations (in thousands)GAAP | −141.3M | – | – |
| Nine months ended September 30, 2026 Net income (loss) (in thousands)GAAP | −$142.2M | – | – |
| Nine months ended September 30, 2026 Net income (loss) attributable to common stockholders (in thousands)GAAP | −$147.8M | – | – |
| Nine months ended September 30, 2026 Basic net income (loss) per shareGAAP | $ (2.52 ) | – | – |
| Nine months ended September 30, 2026 Diluted net income (loss) per shareGAAP | $ (2.52 ) | – | – |
| Nine months ended September 30, 2026 Contribution profit (in thousands)non-GAAP | $187.3M | – | – |
| Nine months ended September 30, 2026 Non-GAAP net income (in thousands)non-GAAP | $97.97M | – | – |
| Nine months ended September 30, 2026 Adjusted EBITDA (in thousands)non-GAAP | $103.7M | – | – |
| Nine months ended September 30, 2026 Net cash provided by operating activities (in thousands)GAAP | 107.6M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Direct Channel RevenueNot stated. | $118.8M | – | 112% |
| Third-Party Channel RevenueReported Average Revenue per Unit declined due to a channel mix that skewed more heavily towards Ethos' Third-Party channel. | $116.4M | – | 209% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fourth quarter of 2026 and full fiscal year 2026 outlook
- NoteFourth quarter of 2026 Total Revenue: Between $220 million and $224 million, representing a 102% increase year-over-year at the midpoint
- NoteFourth quarter of 2026 Adjusted EBITDA: Between $30 million and $32 million
- NoteFull fiscal year 2026 Total Revenue: Between $838 million and $842 million, representing a 117% increase year-over-year at the midpoint
- NoteFull fiscal year 2026 Adjusted EBITDA: Between $134 million and $136 million
Capital returns
- During the third quarter ended September 30, 2026, the Board of Directors authorized a share repurchase program of up to $100 million of the Company’s outstanding Class A common stock.
- Since the announcement of such program no shares have been repurchased.
What drove it
- Activated 142,111 new policies in Q3, representing 189% year-over-year growth.
- Reported Average Revenue per Unit was $1,655, representing a 13% year-over-year decline due to a channel mix that skewed more heavily towards Ethos' Third-Party channel.
- 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.
Concerns
- Reported Average Revenue per Unit declined 13% year-over-year due to channel mix skewing more heavily towards the Third-Party channel.
- Q3 contribution profit margin was 28 % versus 39 % in the prior-year period.
- Q3 net income margin was 2 % versus 17 % in the prior-year period.
- Q3 Adjusted EBITDA margin was 15 % versus 20 % in the prior-year period.
- Nine-month net income (loss) was $ (142,188 ) and nine-month income (loss) from operations was (141,348 ) (In Thousands).
What to watch
- Fourth quarter of 2026 Total Revenue guidance of between $220 million and $224 million.
- Fourth quarter of 2026 Adjusted EBITDA guidance of between $30 million and $32 million.
- Full fiscal year 2026 Total Revenue guidance of between $838 million and $842 million.
- Full fiscal year 2026 Adjusted EBITDA guidance of between $134 million and $136 million.
- Execution of the share repurchase program of up to $100 million, for which no shares have been repurchased since announcement.
- Channel mix and Reported Average Revenue per Unit.
Balance sheet and cash flow
- Cash and cash equivalents: $ 149,800 at September 30, 2026 and $ 91,091 at December 31, 2025 (In Thousands)
- Short-term investments: 71,656 at September 30, 2026 and 34,876 at December 31, 2025 (In Thousands)
- Accounts receivable, net: 83,464 at September 30, 2026 and 36,498 at December 31, 2025 (In Thousands)
- Commissions receivable-current, net: 33,936 at September 30, 2026 and 28,786 at December 31, 2025 (In Thousands)
- Long-term commissions receivable, net: 315,389 at September 30, 2026 and 224,219 at December 31, 2025 (In Thousands)
- Long-term investments: 68,613 at September 30, 2026 and 31,468 at December 31, 2025 (In Thousands)
- Total assets: $ 808,519 at September 30, 2026 and $ 515,337 at December 31, 2025 (In Thousands)
- Total current liabilities: 276,823 at September 30, 2026 and 113,190 at December 31, 2025 (In Thousands)
- Total long-term liabilities: 19,547 at September 30, 2026 and 22,266 at December 31, 2025 (In Thousands)
- Total liabilities: 296,370 at September 30, 2026 and 135,456 at December 31, 2025 (In Thousands)
- Total stockholders’ equity (deficit): 512,149 at September 30, 2026 and (24,116 ) at December 31, 2025 (In Thousands)
- Net cash provided by operating activities: 107,604 for the nine months ended September 30, 2026 and 31,281 for the nine months ended September 30, 2025 (In Thousands)
- Net cash provided by (used in) investing activities: (81,595 ) for the nine months ended September 30, 2026 and 23,115 for the nine months ended September 30, 2025 (In Thousands)
- Net cash provided by (used in) financing activities: 32,808 for the nine months ended September 30, 2026 and (5,183 ) for the nine months ended September 30, 2025 (In Thousands)
- Net increase in cash and cash equivalents: 58,817 for the nine months ended September 30, 2026 and 49,213 for the nine months ended September 30, 2025 (In Thousands)
- Cash and cash equivalents, end of period: $ 149,800 for the nine months ended September 30, 2026 and $ 84,269 for the nine months ended September 30, 2025 (In Thousands)
- Proceeds from issuance of Class A common stock in initial public offering, net of underwriting discounts and commissions: 91,580 for the nine months ended September 30, 2026 (In Thousands)
- Taxes paid related to net share settlement of restricted stock units: (49,085 ) for the nine months ended September 30, 2026 (In Thousands)
Analysis
Ethos reported Q3 revenue of $235.2 million, up 151% year-over-year. Direct Channel Revenue reached $118.8 million and grew 112%, while Third-Party Channel Revenue reached $116.4 million and grew 209%. The company activated 142,111 new policies, a 189% year-over-year increase, demonstrating that policy activation growth exceeded reported revenue growth.
The revenue mix shifted more heavily toward the Third-Party channel. Ethos reported Average Revenue per Unit of $1,655, down 13% year-over-year, and specifically attributed the decline to the channel mix. Gross profit was $230.8 million with a 98% gross profit margin, unchanged from the prior-year quarter in the reconciliation table. Contribution profit was $66.4 million and contribution profit margin was 28%, compared with 39% in the prior-year quarter.
GAAP net income was $4.7 million, or $0.07 per basic and diluted share, compared with $15.9 million in the prior-year quarter. Non-GAAP net income was $33.8 million, or $0.53 per basic share and $0.49 per diluted share. Adjusted EBITDA was $34.9 million, with a 15% margin versus 20% in the prior-year quarter. Q3 net cash provided by operations was $40.7 million. For the nine months ended September 30, 2026, net cash provided by operating activities was 107,604 (In Thousands), while net income (loss) was $ (142,188 ) (In Thousands).
Ethos ended September 30, 2026 with cash and cash equivalents of $149,800 (In Thousands), short-term investments of 71,656 (In Thousands), and long-term investments of 68,613 (In Thousands). The board authorized a share repurchase program of up to $100 million during the quarter, although no shares have been repurchased since its announcement. For the fourth quarter, the company expects Total Revenue between $220 million and $224 million and Adjusted EBITDA between $30 million and $32 million. Full fiscal year 2026 guidance calls for Total Revenue between $838 million and $842 million and Adjusted EBITDA between $134 million and $136 million.
Management, verbatim
Q3 was a record quarter for Ethos. We grew revenue 151% year-over-year and delivered our third consecutive quarter of triple digit year-over-year growth.
Peter Colis, CEO and Co-Founder of Ethos
In Q3 alone, we protected more than 140,000 additional families. Our results illustrate the power of growth at scale paired with disciplined execution, and continue to show that Ethos is a business that gets better as it gets bigger.
Peter Colis, CEO and Co-Founder of Ethos
Not in the filing
stated, not guessed- Previous outlook was not provided, so no comparison of actual results with prior guidance is available.
- Q3 free cash flow was not reported.
- Fourth quarter and full fiscal year 2026 guidance for gross margin, operating expenses and tax rate was not reported.
- Prior-quarter comparisons were not reported for the listed Q3 metrics.
- A conventional debt balance was not separately reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Ethos Technologies (Nasdaq:LIFE) filed an 8‑K reporting its Q3 2026 earnings and outlook.
Ticker impact
Ethos Technologies reported Q3 2026 results with 151% revenue growth and issued guidance for Q4 and FY 2026.
likely upside as the market prices in the strong growth and issued guidance
Revenue surged 151% YoY and the company provided guidance indicating 102% YoY revenue growth for Q4, which should drive buying interest.
Market effects
Life‑insurance technology sector may see broader rally on Ethos' growth story.
U.S. market participants focused on fintech and insurtech could be influenced.
Limited to U.S. and global insurtech investors.
Counterpoint
If the growth is driven by low‑margin third‑party channels, profitability could be pressured later.
Key entities
- ExecutivePeter Colis
CEO and Co‑Founder of Ethos, quoted on the results.
