Third quarter 2026
Filed Nov 4, 2026eHealth, Inc. Announces Third Quarter 2026 Results Significant improvement in operating cash flow AEP preparations successfully completed Lifetime Advisory Model demonstrates positive early impact on retention and cross-sell rates
Third-quarter revenue declined 60% year-over-year and GAAP net loss, loss from operations and adjusted EBITDA all worsened, while operating cash flow improved, operating costs fell 29%, and full-year guidance was reiterated.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $21.28M | – | (60) % |
| Commission revenue, three months ended September 30, 2026GAAP | $17.77M | – | (62) % |
| Other revenue, three months ended September 30, 2026GAAP | $3.52M | – | (47) % |
| Total revenue, nine months ended September 30, 2026GAAP | $142.9M | – | (37) % |
| Commission revenue, nine months ended September 30, 2026GAAP | $127.4M | – | (37) % |
| Other revenue, nine months ended September 30, 2026GAAP | $15.49M | – | (42) % |
| Marketing and advertising expense, three months ended September 30, 2026GAAP | $10.89M | – | (55) % |
| Customer care and enrollment expense, three months ended September 30, 2026GAAP | $28.81M | – | (22) % |
| Technology and content expense, three months ended September 30, 2026GAAP | $12.24M | – | 4 % |
| General and administrative expense, three months ended September 30, 2026GAAP | $15.68M | – | (28) % |
| Impairment, restructuring and other charges, three months ended September 30, 2026GAAP | — | – | (100) % |
| Total operating costs and expenses, three months ended September 30, 2026GAAP | $67.62M | – | (29) % |
| Non-GAAP total operating costs and expenses, three months ended September 30, 2026non-GAAP | $64.55M | – | – |
| Loss from operations, three months ended September 30, 2026GAAP | −$46.34M | – | (12) % |
| Interest expense, three months ended September 30, 2026GAAP | −$4.18M | – | (75) % |
| Loss before income taxes, three months ended September 30, 2026GAAP | −$49.73M | – | (16) % |
| Benefit from income taxes, three months ended September 30, 2026GAAP | −$13.81M | – | – |
| Net loss, three months ended September 30, 2026GAAP | −$35.92M | – | (13) % |
| Net loss attributable to common stockholders, three months ended September 30, 2026GAAP | −$50.41M | – | (13) % |
| Net loss per share attributable to common stockholders, basic and diluted, three months ended September 30, 2026GAAP | $ (1.57) | – | (8) % |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | −$39.90M | – | (17) % |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | (187) % | – | – |
| Total operating costs and expenses, nine months ended September 30, 2026GAAP | $219.5M | – | (24) % |
| Loss from operations, nine months ended September 30, 2026GAAP | −$76.68M | – | (28) % |
| Net loss, nine months ended September 30, 2026GAAP | −$64.23M | – | (36) % |
| Net loss attributable to common stockholders, nine months ended September 30, 2026GAAP | −$106.0M | – | (26) % |
| Net loss per share attributable to common stockholders, basic and diluted, nine months ended September 30, 2026GAAP | $ (3.35) | – | (21) % |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | −$52.66M | – | (48) % |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | (37) % | – | – |
| Net cash used in operating activities, three months ended September 30, 2026GAAP | −$11.24M | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $19.57M | – | – |
| Total Approved Members, three months ended September 30, 2026other | 24,394 | – | (47) % |
| Total Medicare Approved Members, three months ended September 30, 2026other | 12,671 | – | (59) % |
| Total Approved Members, nine months ended September 30, 2026other | 144,145 | – | (30) % |
| Total Estimated Membership, as of September 30, 2026other | 1,013,170 | – | (9) % |
| Total Medicare Estimated Membership, as of September 30, 2026other | 758,405 | – | (10) % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Medicare, three months ended September 30, 2026Variable marketing and advertising was $ (4,597), compared to $ (16,930); Medicare CC&E was $ (26,036), compared to $ (34,049); Medicare segment gross loss was $ (12,707), compared to $ (1,153). | $18.10M | – | (64) % |
| Employer and Individual, three months ended September 30, 2026Variable marketing and advertising was $ (767), compared to $ (723); E&I CC&E was $ (2,264), compared to $ (2,154); E&I segment gross profit was $ 108, compared to $ 973. | $3.18M | – | (19) % |
| Medicare, nine months ended September 30, 2026Medicare segment gross profit was $ 26,293, compared to $ 53,739. | $131.2M | – | (38) % |
| Employer and Individual, nine months ended September 30, 2026E&I segment gross profit was $ 2,964, compared to $ 6,704. | $11.69M | – | (27) % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full year ending December 31, 2026 outlook
- Revenue$405.0 million to $445.0 million
- NoteGAAP net income is expected to be in the range of $8.0 million to $25.0 million.
- NoteAdjusted EBITDA is expected to be in the range of $55.0 million to $75.0 million.
- NoteOperating cash flow is expected to be in the range of $(10.0) million to $12.0 million.
- NotePositive net adjustment revenue is expected to be in the range of $17 million to $20 million.
Capital returns
- Payments of preferred stock dividends, nine months ended September 30, 2026: $ (3,083).
- Repurchase of shares to satisfy employee tax withholding obligations, three months ended September 30, 2026: $ (47).
- Repurchase of shares to satisfy employee tax withholding obligations, nine months ended September 30, 2026: $ (255).
What drove it
- Total revenue declined 60% year-over-year, in line with the strategy of reducing variable marketing spend outside of major enrollment periods and focusing benefit advisors on existing member engagement.
- Q3 2026 positive net adjustment revenue was $1.4 million compared to $12.2 million in prior year.
- The lifetime advisory model showed improved 90-day retention for the Q2 2026 Medicare Advantage enrollment cohort and Q3 2026 ancillary product cross-sell rates nearly doubling compared to prior year.
- Total marketing and advertising expense declined 55% year-over-year, while Medicare segment variable marketing and advertising expense declined 73% year-over-year.
- The company is on track to achieve more than $60.0 million in annual variable spend reductions and approximately $30.0 million in annual fixed cost savings compared to prior year.
- The company cited strong consumer demand at attractive lead costs entering AEP.
Concerns
- Loss from operations was $ (46,342), compared to $ (41,525).
- GAAP net loss was $ (35,919), compared to $ (31,691), and GAAP net loss attributable to common stockholders was $ (50,405), compared to $ (44,581).
- Adjusted EBITDA was $ (39,897), compared to $ (34,007), and adjusted EBITDA margin was (187) %, compared to (63) %.
- Total Approved Members declined 47% year-over-year to 24,394, including a 59% decline in Total Medicare Approved Members to 12,671.
- Total Estimated Membership declined 9% year-over-year to 1,013,170.
- Interest expense was $ (4,179), compared to $ (2,384).
What to watch
- Execution during the most important weeks of AEP.
- Full-year delivery against reiterated total revenue guidance of $405.0 million to $445.0 million.
- Positive net adjustment revenue against the updated expected range of $17 million to $20 million.
- Retention and ancillary product cross-sell results from the lifetime advisory model.
- Progress toward more than $60.0 million in annual variable spend reductions and approximately $30.0 million in annual fixed cost savings.
- Operating cash flow against guidance of $(10.0) million to $12.0 million.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $ 57,307.
- Short-term marketable securities as of September 30, 2026: $ 30,817.
- Cash, cash equivalents & short-term marketable securities: $88.1M.
- Contract assets – commissions receivable – current as of September 30, 2026: $ 208,846.
- Contract assets – commissions receivable – non-current as of September 30, 2026: $ 761,781.
- Commissions Receivable: $970.6M.
- Long-term debt as of September 30, 2026: $ 115,494.
- Net cash used in investing activities, three months ended September 30, 2026: $ (1,200).
- Net cash used in financing activities, three months ended September 30, 2026: $ (47).
- Cash, cash equivalents and restricted cash at end of period: $ 59,937.
Analysis
eHealth reported a substantially smaller third-quarter revenue base as it reduced variable marketing spending outside major enrollment periods and shifted benefit-advisor activity toward existing-member engagement. Total revenue was $ 21,281, down 60%, led by a 64% decline in Medicare revenue to $ 18,101. Commission revenue declined 62% to $ 17,765. Approved Members declined 47% to 24,394, with Total Medicare Approved Members down 59% to 12,671.
Cost actions were material but did not offset the revenue decline in the quarter. Total operating costs and expenses decreased 29% to $ 67,623, including a 55% decline in marketing and advertising expense to $ 10,889 and a 28% decline in general and administrative expense to $ 15,677. However, technology and content expense increased 4% to $ 12,245, while Medicare segment gross loss widened to $ (12,707) from $ (1,153). Consolidated total segment gross loss was $ (12,599), compared with $ (180).
Profitability measures deteriorated. Loss from operations was $ (46,342), GAAP net loss was $ (35,919), and net loss attributable to common stockholders was $ (50,405). Adjusted EBITDA was $ (39,897), compared with $ (34,007), and adjusted EBITDA margin was (187) %, compared with (63) %. The nine-month trend was also weaker on reported earnings, with net loss of $ (64,228) and adjusted EBITDA of $ (52,663), although total operating costs and expenses declined 24% to $ 219,542.
Cash flow was the principal improvement. Net cash used in operating activities improved to $ (11,242) from $ (25,313) in the third quarter, and net cash provided by operating activities for the nine months was $ 19,568 versus $ 10,604. The balance sheet showed $ 57,307 of cash and cash equivalents, $ 30,817 of short-term marketable securities, $ 970.6M of commissions receivable, and $ 115,494 of long-term debt. Estimated Membership was 1,013,170 as of September 30, 2026, down 9%.
Management reiterated full-year 2026 guidance for total revenue, GAAP net income, adjusted EBITDA and operating cash flow. It updated expected positive net adjustment revenue to $17 million to $20 million from the previous range of $16 million to $20 million. The operating outlook rests on AEP execution, continued demand at attractive lead costs, early retention and cross-sell indicators from the lifetime advisory model, and delivery of planned variable and fixed cost reductions.
Management, verbatim
Our third-quarter results were in line with our expectations and demonstrate continued progress against our key priorities for 2026.
Derrick Duke, Chief Executive Officer of eHealth
Through the first nine months of the year, we improved operating cash flow by 85% year over year while implementing our lifetime advisory model and meaningfully reducing our cost structure.
Derrick Duke, Chief Executive Officer of eHealth
We entered AEP with a well-prepared organization and a differentiated consumer brand, and we are encouraged by the strong consumer demand we are seeing at attractive lead costs.
Derrick Duke, Chief Executive Officer of eHealth
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported operating metrics.
- Free cash flow.
- GAAP gross margin and non-GAAP gross margin.
- A reported tax rate.
- Common-stock repurchases as a capital-return program.
- Cash dividends paid to common stockholders.
- Previous-release outlook needed for metric-by-metric comparison with prior guidance.
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 is checked against the filing text, and a metric the filing does not print, or 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.