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Ehealth (EHTH)
NASDAQ:EHTH
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Ehealth
(NASDAQ:EHTH)
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Rating:56Neutral
Price Target:
$4.00
▼(-7.19% Downside)
Ehealth's overall stock score is driven by its strong gross profitability and stable balance sheet, but is weighed down by significant revenue decline and cash flow challenges. The technical indicators suggest a bearish trend, and the high P/E ratio points to potential overvaluation. The earnings call provided a cautiously optimistic outlook, and the recent corporate event is a positive step towards financial flexibility.
Positive Factors
Strong Gross Profitability
A high gross profit margin suggests efficient cost management and strong pricing power, supporting long-term financial health.
Stable Balance Sheet
A stable balance sheet with low leverage enhances financial stability and provides flexibility for future growth and investments.
Improved Financial Guidance
Improved financial guidance reflects strong execution and strategic positioning, indicating potential for sustained growth.
Negative Factors
Significant Revenue Decline
A significant revenue decline poses challenges to growth and may impact the company's ability to invest in future opportunities.
Cash Flow Challenges
Negative cash flow indicates potential liquidity issues, limiting the company's ability to fund operations and strategic initiatives.
Medicare Advantage Volume Challenges
Challenges in Medicare Advantage volume could affect revenue growth and market competitiveness in a key segment.
Ehealth (EHTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$138.44M
Dividend YieldN/A
Average Volume (3M)293.63K
Price to Earnings (P/E)116.2
Beta (1Y)0.93
Revenue Growth16.79%
EPS GrowthN/A
CountryUS
Employees1,773
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)-1.26
Shares Outstanding30,764,786
10 Day Avg. Volume260,682
30 Day Avg. Volume293,633
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)0.30
Price to Sales (P/S)0.52
P/FCF Ratio-8.83
Enterprise Value/Market Cap3.75
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit0.96
Enterprise Value/Ebitda7.26
Forecast
1Y Price Target
$8.50Price Target Upside97.22% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.99
Revenue Forecast (FY)$547.00M
Ehealth Business Overview & Revenue Model
Company DescriptionEhealth (EHTH) is a technology-driven company specializing in providing health insurance solutions and services to consumers in the United States. The company's platform connects individuals with various health insurance plans, including Medicare Advantage, Medicare Supplement, and individual and family plans. Ehealth leverages advanced technology to simplify the health insurance shopping experience, enabling users to compare plans, access educational resources, and receive personalized recommendations tailored to their specific health needs and financial situations.
How the Company Makes MoneyEhealth generates revenue primarily through commissions earned from insurance carriers for each policy sold through its platform. The company acts as an intermediary, facilitating the enrollment of customers into various health insurance plans and receiving a percentage of the premium paid by the insured. Additionally, Ehealth may earn revenue from lead generation services by providing potential customer data to insurance providers. The company's partnerships with numerous insurance carriers enhance its offerings and improve its competitive position in the market, while its online platform also allows for scalability and cost-efficiency in its operations.
Ehealth Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The earnings call had a mixed sentiment with significant highlights including improved financial guidance and advancements in technology and member retention strategies. However, these were countered by challenges in Medicare Advantage volume and a decline in overall revenue. The company's proactive strategies and optimistic guidance suggest a cautiously positive outlook.Q3-2025 Updates
Positive Updates
Medicare Performance and Strategy
eHealth reported that their Medicare performance is tracking in line with internal expectations, supported by strong consumer demand on their platform. They also noted early signs of a more favorable competitive environment and increased marketing efficiency.
Positive Financial Adjustments
The company recognized $12.1 million in positive net adjustment revenue (tail revenue) in Q3, compared to $1.1 million last year, leading to improved profitability.
Improved Guidance for 2025
eHealth raised their 2025 GAAP net income and adjusted EBITDA guidance ranges, reflecting improved performance through Q3. Net income is expected to be between $9 million to $30 million, up from a previous range of $5 million to $26 million.
Advancements in Technology
eHealth has deployed their AI screener at scale and introduced new features like click-to-call from adviser chat, aiming to enhance consumer experience and operational efficiency.
Retention Initiatives
The company has expanded its customer service and retention team, aiming to improve member retention, which has shown positive results in the latest Medicare Advantage cohort.
Negative Updates
Medicare Advantage Volume Challenges
Medicare Advantage volume came in below expectations due to a more pronounced impact from new dual-eligible enrollment rules, which led to a reduction in marketing spend in Q3.
Decline in Total Revenue
Total revenue for the third quarter was $53.9 million, down 8% year-over-year.
Reduced Revenue in Employer and Individual Segment
Revenue from the Employer and Individual segment decreased to $3.9 million from $5.2 million last year, attributed to shifts in market dynamics and marketing budget allocations.
Negative Operating Cash Flow
Operating cash flow was negative $25.3 million, though this was an improvement from negative $29.3 million last year.
Company Guidance
During the conference call discussing eHealth Inc.'s third quarter financial results for 2025, the company provided updated guidance reflecting strong performance and strategic positioning. eHealth anticipates 2025 total revenue to range between $525 million and $565 million. The company raised its GAAP net income guidance to $9 million to $30 million, up from $5 million to $26 million, and adjusted EBITDA is expected between $60 million and $80 million, compared to a previous range of $55 million to $75 million. Operating cash flow is projected to be between negative $25 million to positive $10 million. The company also expects positive net adjustment revenue to be in the range of $40 million to $43 million, an increase from the prior range of $29 million to $32 million. These adjustments reflect eHealth's strong execution and strategic decisions, especially in the Medicare Advantage market, as well as the company's focus on leveraging technology and retaining members in a disruptive environment.Ehealth Financial Statement Overview
Summary
Ehealth's financial performance is mixed. The income statement shows improved profitability but declining revenue growth. The balance sheet is stable with low debt, but cash flow issues persist with negative operating and free cash flows. Overall, while profitability is a positive, revenue contraction and cash flow challenges are significant concerns.Income Statement
Ehealth's income statement shows a mixed performance. The TTM data reveals a decline in revenue growth rate, indicating a contraction in sales. However, there is an improvement in profitability with a positive net profit margin and EBIT margin compared to previous periods. The gross profit margin remains strong, suggesting efficient cost management. Overall, while profitability metrics have improved, the negative revenue growth is a concern.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio is healthy, showing a strong capital base. Return on equity has improved but remains modest. Overall, the balance sheet suggests financial stability with limited risk from debt.70
Positive
Cash Flow
Cash flow analysis highlights challenges with negative operating and free cash flows, although there is an improvement in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow issues despite reported net income. The free cash flow to net income ratio is high, suggesting reliance on non-operating cash flows. Overall, cash flow management remains a concern.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 542.95M | 532.41M | 452.87M | 405.36M | 538.20M | 582.77M |
| Gross Profit | 542.95M | 530.62M | 451.10M | 403.71M | 536.21M | 578.69M |
| EBITDA | 71.61M | 46.81M | 295.00K | -77.65M | -105.18M | 66.27M |
| Net Income | 50.34M | 10.06M | -28.21M | -88.72M | -104.38M | 45.45M |
Balance Sheet | ||||||
| Total Assets | 1.05B | 1.16B | 1.11B | 1.11B | 1.15B | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 75.30M | 82.24M | 121.65M | 144.40M | 123.23M | 93.38M |
| Total Debt | 92.73M | 96.92M | 103.16M | 106.80M | 41.37M | 46.56M |
| Total Liabilities | 162.95M | 567.00M | 209.26M | 461.66M | 399.77M | 202.46M |
| Stockholders Equity | 884.47M | 588.43M | 904.08M | 650.96M | 749.52M | 837.56M |
Cash Flow | ||||||
| Free Cash Flow | -29.85M | -31.22M | -17.47M | -42.38M | -183.48M | -131.62M |
| Operating Cash Flow | -17.06M | -18.37M | -6.69M | -26.87M | -162.62M | -107.86M |
| Investing Cash Flow | 27.04M | -48.42M | -15.89M | 25.86M | -12.63M | -73.28M |
| Financing Cash Flow | -10.80M | -9.67M | -6.22M | 63.84M | 213.24M | 201.25M |
Ehealth Technical Analysis
Positive
4.31
Price Trends
4.42
Negative
4.12
Positive
4.75
Negative
Market Momentum
-0.04
Negative
54.79
Neutral
78.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EHTH, the sentiment is Positive. The current price of 4.31 is above the 20-day moving average (MA) of 3.89, below the 50-day MA of 4.42, and below the 200-day MA of 4.75, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 78.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EHTH.
Ehealth Risk Analysis
Ehealth disclosed 43 risk factors in its most recent earnings report. Ehealth reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ehealth Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | $35.81M | 12.80 | 4.56% | ― | 19.30% | -17.56% | |
56 Neutral | $138.44M | 116.17 | 5.88% | ― | 16.79% | ― | |
50 Neutral | $260.44M | -46.49 | 15.11% | ― | 13.16% | ― | |
45 Neutral | $6.54M | -0.27 | -146.43% | ― | -6.84% | 97.23% | |
43 Neutral | $16.43M | -0.20 | -11.18% | ― | 624.24% | 85.46% | |
41 Neutral | $48.28M | -0.18 | -142.05% | ― | 7.56% | -344.04% |
* Financial Sector Average
EHTH
Ehealth
4.31
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Ehealth Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
eHealth Amends Credit Agreement with Blue Torch Finance
Positive
Oct 7, 2025
On October 6, 2025, eHealth, Inc. announced an amendment to its credit agreement with Blue Torch Finance LLC, extending the maturity date of its term loan to January 29, 2027. This extension is part of eHealth’s strategy to enhance its capital structure, providing financial flexibility to support its strategic initiatives and long-term success. The company aims to leverage its commissions receivable asset to increase capital access and address its convertible Series A preferred stock instrument, demonstrating a commitment to optimizing its capital structure and maximizing shareholder value.
Executive/Board Changes
Ehealth Announces Board Changes with New Appointments
Neutral
Sep 19, 2025
On September 17, 2025, Aaron Tolson resigned from the Board of Directors of eHealth, Inc., along with its various committees, and was replaced by Todd Arden, a designee of Echelon Health SPV, LP, under the terms of an existing Investment Agreement. Additionally, Derrick Duke was appointed as a new director, increasing the total number of directors from nine to ten. Both appointments are effective immediately and will last until the 2028 annual meeting of stockholders. These changes are part of the company’s ongoing governance adjustments, with no disagreements or undisclosed relationships involved.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.