EHTH · eHealth, Inc.

eHealth, Inc. delivered Q1 2026 results ahead of expectations despite a 22% YoY revenue decline to $88.0 million, primarily driven by lower Medicare approved members as the company strategically reduced variable marketing spend by 45% YoY in the Medicare segment to prioritize higher-ROI channels. This discipline improved Medicare unit economics significantly, with constrained LTV of commissions rising 3% for Medicare Advantage, 19% for Medicare Supplement, and 78% for Part D, alongside a 10% reduction in total acquisition cost per MA-equivalent approved member. Consequently, Medicare gross margin expanded 620 basis points to 41%, and the LTV-to-CAC ratio strengthened to 1.4x from 1.2x YoY. Total operating costs fell 16% to $90.9 million, with non-GAAP costs down 21%, supporting adjusted EBITDA of $9.0 million (10% margin) despite a GAAP net loss of $4.7 million due to $6.4 million in restructuring charges tied to workforce reductions. CEO Derrick Duke highlighted progress on FY 2026 initiatives, including cost cuts targeting $90 million savings, launch of the lifetime advisory model, and final expense insurance offering. The company posted strong operating cash flow of $35.8 million and ended the quarter with $110.8 million in cash and equivalents plus $1.0 billion in commissions receivable. Management reiterated full-year 2026 guidance, narrowing positive net adjustment revenue expectations to $8-20 million, signaling confidence in hitting revenue of $405-445 million, GAAP net income of $8-25 million, and adjusted EBITDA of $55-75 million. Separately, director Cesar Soriano's resignation ahead of the June 18 Annual Meeting, alongside Andrea Brimmer's term expiration, will shrink the Board to eight members without operational disagreements, as Soriano shifts focus to Confie Corporation.