eHealth (NASDAQ:EHTH) Issues Quarterly Earnings Results, Misses Expectations By $0.32 EPS

eHealth (NASDAQ:EHTH) released its earnings results on Wednesday. The financial services provider reported $2.06 earnings per share for the quarter, missing analysts’ consensus estimates of $2.38 by ($0.32), FiscalAI reports. The firm had revenue of $326.24 million for the quarter, compared to analyst estimates of $318.25 million. eHealth had a net margin of 8.14% and a return on equity of 5.62%.

Here are the key takeaways from eHealth’s conference call:

• 2025 profitability meaningfully improved — revenue grew 4%, GAAP net income was nearly four times 2024, and Adjusted EBITDA rose ~40%, driven by higher Medicare LTVs and stronger enrollment margins.
• Balance sheet and receivables strength — commissions receivable reached a record $1.1 billion and a new $125M credit facility improved liquidity and capital flexibility for strategic execution.
• 2026 is a “bridge” year prioritizing cash flow over growth — company expects revenue of $405–445M, Adjusted EBITDA $55–75M, operating cash flow of -$10M to +$12M and anticipates lower enrollment and non?commission revenue while targeting operating cash flow break?even.
• Strategic shift to lifetime advisory and product diversification — eHealth will expand ancillaries (HIP, critical illness, final expense, dental/vision/hearing), pursue ICHRA/SaaS partner growth, and deepen year?round advisor engagement to boost LTV and retention.
• Significant cost and marketing reallocation — planned reductions of about $30M in fixed costs and over $60M in variable spend (>$90M total) plus focus on higher?margin branded channels and scaled AI screening to improve margins and cash generation.

eHealth Stock Down 26.4%

EHTH traded down $0.50 during midday trading on Thursday, reaching $1.39. 483,351 shares of the company were exchanged, compared to its average volume of 559,785. The company has a market cap of $42.79 million, a price-to-earnings ratio of -5.42 and a beta of 1.21. eHealth has a one year low of $1.41 and a one year high of $9.40. The company’s fifty day moving average price is $3.21 and its 200 day moving average price is $3.84. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.23 and a current ratio of 2.23.

Analysts Set New Price Targets

A number of brokerages have commented on EHTH. Royal Bank Of Canada cut their price target on shares of eHealth from $10.00 to $9.00 and set a “sector perform” rating on the stock in a research report on Tuesday, November 25th. Weiss Ratings restated a “sell (d+)” rating on shares of eHealth in a research report on Monday, December 29th. Finally, Craig Hallum cut eHealth from a “buy” rating to a “hold” rating and set a $2.00 target price for the company. in a research note on Thursday. Three analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, eHealth has a consensus rating of “Reduce” and an average price target of $5.33.

Institutional Investors Weigh In On eHealth

Several institutional investors have recently bought and sold shares of the stock. Virtu Financial LLC purchased a new position in eHealth during the 4th quarter worth $155,000. Wells Fargo & Company MN lifted its position in shares of eHealth by 46.2% during the fourth quarter. Wells Fargo & Company MN now owns 32,267 shares of the financial services provider’s stock valued at $148,000 after purchasing an additional 10,200 shares in the last quarter. Algert Global LLC boosted its holdings in eHealth by 36.6% during the third quarter. Algert Global LLC now owns 32,963 shares of the financial services provider’s stock worth $142,000 after purchasing an additional 8,840 shares during the last quarter. New York State Common Retirement Fund bought a new stake in eHealth in the 2nd quarter worth about $103,000. Finally, Bank of America Corp DE grew its position in eHealth by 106.9% in the 3rd quarter. Bank of America Corp DE now owns 23,143 shares of the financial services provider’s stock worth $100,000 after purchasing an additional 11,957 shares in the last quarter. Institutional investors own 79.54% of the company’s stock.

eHealth Company Profile

eHealth, Inc operates one of the largest online private health insurance exchanges in the United States. The company’s platform enables consumers to compare, select and enroll in individual, family and small-group health insurance plans offered by a broad network of licensed insurance carriers. In addition to Affordable Care Act–compliant offerings, eHealth provides dedicated services for Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, helping seniors navigate the complexities of Medicare coverage.

Through its digital marketplace, eHealth delivers real-time quotes, detailed plan comparisons and enrollment processing.