Ehealth (EHTH) AI Stock Analysis

• Market Cap: $78.76M
• Dividend Yield: N/A
• Average Volume (3M): 334.30K
• Price to Earnings (P/E): 69.0
• Beta (1Y): 0.89
• Revenue Growth: 16.79%
• EPS Growth: N/A
• Country: US
• Employees: 1,773
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): -1.26
• Shares Outstanding: 30,764,786
• 10 Day Avg. Volume: 505,524
• 30 Day Avg. Volume: 334,298
• PEG Ratio: -0.55
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -8.83
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 0.20
• Enterprise Value/Ebitda: 1.51
• 1Y Price Target: $9.67
• Price Target Upside: 277.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $3.00 ▲(17.19% Upside)

The score is primarily held back by weak cash flow and a steep revenue decline, alongside bearish technicals with the stock trading below key moving averages. Offsetting factors include a low-leverage balance sheet, raised profitability guidance on the earnings call, and a financing event that improves liquidity and flexibility, though valuation remains demanding with a high P/E and no dividend.

Positive Factors

High Gross Profitability

A 90% gross margin reflects durable unit economics from commission-based, tech-enabled distribution. High gross profitability supports reinvestment in marketing and AI, cushions SG&A variability, and gives room to improve net margins as scale and retention initiatives take hold over the next several quarters.

Conservative Leverage and Strong Equity Base

Very low leverage and an 84% equity ratio provide financial flexibility to fund strategic initiatives and absorb revenue volatility. This conservative balance sheet reduces refinancing risk and supports continued investment in technology and retention without immediate pressure to cut growth spend.

Improved Liquidity and Strategic Financing

Replacing a higher-cost loan with a $125M ABL, repaying ~$70M, and potential $50M capacity expansion materially improves liquidity and lowers near-term financing cost. The facility explicitly funds AI and omni-channel investments and aligns capital structure with longer-term value creation.

Negative Factors

Severe Revenue Decline

An ~83% TTM revenue decline is a structural concern: shrinking top line impairs operating leverage, limits reinvestment capacity, and lengthens the timeline to achieve scale benefits. Restoring durable revenue growth is essential for sustaining margins and reducing dependence on external financing.

Negative Operating Cash Flow

Persistent negative operating cash flow weakens self-funding ability and increases reliance on external liquidity. Even with new credit capacity, ongoing negative OCF raises refinancing and execution risk, constrains discretionary investment, and can pressure capital allocation over the coming quarters.

Medicare Advantage Volume and Regulatory Exposure

Material exposure to Medicare Advantage enrollment trends and rule changes creates structural revenue volatility. Regulatory shifts like dual-eligible rules can reduce marketing effectiveness and volumes, requiring sustained product, channel, and retention adjustments to stabilize top-line performance.

Ehealth Business Overview & Revenue Model

Company Description

eHealth, Inc. operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States. The company operates in two segments, Medicare; and Individual, Family and Small Business. Its ecommerce platforms organize and present health insurance information in various formats that enable individuals, families, and small businesses to research, analyze, compare, and purchase a range of health insurance plans. The company operates a marketplace that offers consumers a choice of insurance products, such as Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual and family, small business, and other ancillary health insurance products from health insurance carriers. It markets health insurance plans through its websites, including eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, PlanPrescriber.com, and GoMedigap.com, as well as through a network of marketing partners. The company also licenses its health insurance ecommerce technology that enables health insurance carriers to market and distribute health insurance plans online; and provides online sponsorship and advertising, and lead referral services. eHealth, Inc. was incorporated in 1997 and is headquartered in Santa Clara, California.

How the Company Makes Money

Ehealth 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 Financial Statement Overview

Summary

Strong gross profitability and a stable balance sheet with low leverage support the score, but it is materially weighed down by a sharp TTM revenue decline and negative operating/free cash flow, which raise execution and liquidity-risk concerns.

Income Statement

Ehealth's income statement shows a mixed performance. The TTM data reveals a gross profit margin of 90.08%, indicating strong profitability at the gross level. However, the net profit margin is relatively low at 9.27%, and revenue has declined significantly by 82.9% in the TTM period, highlighting potential challenges in maintaining revenue growth. Despite these issues, the company has improved its EBIT and EBITDA margins over the past year, suggesting better operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.10, indicating conservative leverage. Return on equity is modest at 5.51%, showing some profitability for shareholders. The equity ratio stands at 84.43%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis indicates challenges, with negative operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is positive at 1.18, but the negative operating cash flow to net income ratio of -0.33 highlights cash flow management issues. The decline in free cash flow growth by 13.19% further underscores the need for improved cash flow generation.

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

• Technical Analysis Sentiment: Negative
• Last Price: 2.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EHTH, the sentiment is Negative. The current price of 2.56 is below the 20-day moving average (MA) of 3.41, below the 50-day MA of 3.85, and below the 200-day MA of 4.20, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 21.81 is Positive, neither overbought nor oversold. The STOCH value of 5.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EHTH.

Ehealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EHTH	55 Neutral	$78.76M	69.00	5.88%	―	16.79%	―
SLQT	54 Neutral	$255.16M	-48.49	15.11%	―	13.16%	―
HUIZ	46 Neutral	$20.18M	8.02	4.56%	―	19.30%	-17.56%
GOCO	44 Neutral	$35.40M	-0.14	-142.05%	―	7.56%	-344.04%
TIRX	43 Neutral	$6.30M	-0.03	-11.18%	―	624.24%	85.46%

Ehealth Corporate Events

eHealth Secures New Credit Facility and Amends Preferred Stock

On January 6, 2026, eHealth announced that its subsidiary eHealthInsurance Services, Inc. entered into a new $125 million asset-based revolving credit facility with Manulife | Comvest Credit Partners, replacing its higher-cost term loan from Blue Torch Finance. The three-year facility, priced at SOFR plus 6.50%, features a flexible borrowing base with the potential to expand funding by up to $50 million, and part of the proceeds has already been used to fully repay roughly $70 million outstanding under the prior Blue Torch loan and related fees. The remaining capital is earmarked to support strategic growth initiatives, including investment in AI-driven capabilities, omni-channel technology and revenue diversification, while eHealth pursues further capital structure improvements, addresses its convertible Series A preferred stock, and enhances governance through a new Strategy Committee, underscoring a broader effort to strengthen its balance sheet and long-term competitive positioning. In connection with the facility, the company also amended its investment agreement with the holder of its convertible Series A preferred stock, signaling continued focus on aligning financing terms with its long-term value creation plans.

The most recent analyst rating on (EHTH) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Ehealth stock, see the EHTH Stock Forecast page.

EHealth Raises 2025 Guidance After Strong Medicare Enrollment

On December 16, 2025, eHealth’s board adopted amended and restated bylaws, effective immediately, that adjust shareholder meeting notice deadlines to Eastern Time, refine rules for stockholder director nominations, define “principal competitor” for disclosure purposes, and clarify the company’s ability to maintain insurance for its directors, officers, employees, and agents, along with other technical and conforming updates. On December 18, 2025, the company reported that its latest Medicare Annual Enrollment Period delivered enrollments and revenue in line with expectations but stronger-than-anticipated profitability, supported by a shift toward higher-quality direct branded channels and the deployment of AI screeners to improve marketing yield and sales efficiency, and it raised full-year 2025 guidance for total revenue, GAAP net income, and adjusted EBITDA, while modestly trimming the upper end of its operating cash flow outlook, signaling improved earnings power and tighter operational discipline for investors and other stakeholders.

The most recent analyst rating on (EHTH) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Ehealth stock, see the EHTH Stock Forecast page.