Ehealth (EHTH)
NASDAQ:EHTH
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Ehealth
(NASDAQ:EHTH)
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Rating:59Neutral
Price Target:
$1.50
▼(-18.48% Downside)
Action:Reiterated
Date:05/09/26
The score is driven by mixed fundamentals: profitability and leverage have improved, but persistent negative operating/free cash flow remains the biggest risk. The latest earnings call adds support via maintained guidance, cost cuts, and improving unit economics with a stated path toward cash-flow breakeven, while technicals are only mildly constructive (better short-term trend but still weak longer-term). Valuation cannot be meaningfully supported with the provided P/E and missing dividend yield.
Positive Factors
Improving profitability and margins
The company moved from multi-year losses to positive EBIT and net income in 2025 and TTM, showing durable operating improvement. Sustained positive margins indicate the core distribution model and pricing/mix changes can generate profit, enabling reinvestment and reducing structural insolvency risk.
Negative Factors
Persistent negative operating and free cash flow
Chronic negative operating and free cash flow across reported periods is a core structural risk: it heightens dependency on external financing or receivable monetization and casts doubt on earnings quality. Until cash generation is sustainably positive, capital allocation and growth plans remain constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and margins
The company moved from multi-year losses to positive EBIT and net income in 2025 and TTM, showing durable operating improvement. Sustained positive margins indicate the core distribution model and pricing/mix changes can generate profit, enabling reinvestment and reducing structural insolvency risk.
Read all positive factors
Ehealth (EHTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.15M
Dividend YieldN/A
Average Volume (3M)409.56K
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth-4.28%
EPS Growth-1.93%
CountryUS
Employees1,773
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)-0.63
Shares Outstanding31,741,018
10 Day Avg. Volume261,170
30 Day Avg. Volume409,556
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.14
Price to Sales (P/S)0.25
P/FCF Ratio-5.08
Enterprise Value/Market Cap2.16
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit0.21
Enterprise Value/Ebitda1.46
Forecast
1Y Price Target
$2.50Price Target Upside35.87% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.52
Revenue Forecast (FY)$429.27M
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 Bu...
How the Company Makes Money
eHealth makes money primarily by acting as a sales and enrollment channel for insurance carriers. When a consumer enrolls in an insurance plan through eHealth’s websites or call centers, the company generally earns carrier-paid commissions that ca...
Ehealth Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call balanced near-term execution challenges with clear progress on unit economics, cost reductions and strategic product/operating-model initiatives. While revenue and submissions declined materially year-over-year and GAAP results swung to a loss due to restructuring and timing, management highlighted improved Medicare LTV-to-CAC (1.4x, +17%), wider Medicare gross margins (34% to 41%), reduced marketing spend with lower CAC, a positive adjusted EBITDA ($9M) and a plan to achieve breakeven free cash flow in 2027. The team framed 2026 as an intentional, cash-flow-focused bridge year and provided a 3-year outlook targeting margin expansion and revenue growth, supported by the lifetime advisory model and ancillary product cross-sell. On balance, the operational improvements, cost actions and a credible multi-year plan offset the near-term declines.Positive Updates
Revenue Ahead of Expectations
First quarter 2026 revenue of $88.0 million came in ahead of company expectations despite year-over-year pressure; management emphasized quality over volume for 2026.
Negative Updates
Significant Year-over-Year Revenue Decline
Total revenue declined 22% year-over-year to $88.0 million; Medicare segment revenue also declined 22% to $81.3 million as the company intentionally pulled back on variable marketing spend.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Ahead of Expectations
First quarter 2026 revenue of $88.0 million came in ahead of company expectations despite year-over-year pressure; management emphasized quality over volume for 2026.
Read all positive updates
Company Guidance
Management maintained its 2026 guidance ranges for revenue, GAAP net income, adjusted EBITDA and operating cash flow while updating net adjustment (tail) revenue to $8M–$20M and positioning 2026 as a bridge year focused on achieving breakeven-or-better operating cash flow and setting the company up for breakeven-or-better free cash flow in 2027. The refreshed three‑year outlook calls for mid‑single‑digit revenue growth in 2027 and mid‑teens in 2028, double‑digit adjusted EBITDA growth in 2027–28 and adjusted EBITDA margin expansion to ~20% by 2028, assuming flat tail revenue in the outer years and a modest uptick in Medicare marketing in Q4 2027. Key drivers include an expected ~$30M fixed cost reduction in 2026 (roughly a 20% cut), greater contribution from ancillary sales and future ICHRA revenue, and continued focus on higher‑quality enrollments. The plan is supported by Q1 results of $88M revenue, $4.7M GAAP net loss, $9M adjusted EBITDA (10% margin), $35.8M operating cash flow, $110.8M cash and equivalents, Medicare LTV improvements (MA +3%, MedSupp +19%, PDP +78%), a 10% decline in total acquisition cost per MA‑equivalent approved member and a 28% decline in variable marketing cost per MA‑equivalent approved member.Ehealth Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
74
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 528.91M | 554.01M | 532.41M | 452.87M | 405.36M | 538.20M |
| Gross Profit | 522.44M | 540.25M | 530.62M | 451.10M | 403.71M | 536.21M |
| EBITDA | 74.16M | 83.25M | 46.81M | 295.00K | -77.65M | -105.18M |
| Net Income | 33.38M | 40.04M | 10.06M | -28.21M | -88.72M | -104.38M |
Balance Sheet | ||||||
| Total Assets | 1.20B | 1.26B | 1.16B | 1.11B | 1.11B | 1.15B |
| Cash, Cash Equivalents and Short-Term Investments | 110.81M | 77.22M | 82.24M | 121.65M | 144.40M | 123.23M |
| Total Debt | 133.20M | 134.35M | 96.92M | 103.16M | 106.80M | 41.37M |
| Total Liabilities | 231.46M | 288.82M | 567.00M | 209.26M | 461.66M | 399.77M |
| Stockholders Equity | 969.65M | 973.65M | 588.43M | 904.08M | 650.96M | 749.52M |
Cash Flow | ||||||
| Free Cash Flow | -75.47M | -27.59M | -31.22M | -17.47M | -42.38M | -183.48M |
| Operating Cash Flow | -65.70M | -25.34M | -18.37M | -6.69M | -26.87M | -162.62M |
| Investing Cash Flow | -14.40M | 25.43M | -48.42M | -15.89M | 25.86M | -12.63M |
| Financing Cash Flow | 33.83M | 34.29M | -9.67M | -6.22M | 63.84M | 213.24M |
Ehealth Technical Analysis
Negative
1.84
Price Trends
1.64
Negative
2.14
Negative
3.16
Negative
Market Momentum
-0.01
Positive
38.57
Neutral
12.11
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 1.84 is below the 20-day moving average (MA) of 1.84, above the 50-day MA of 1.64, and below the 200-day MA of 3.16, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 38.57 is Neutral, neither overbought nor oversold. The STOCH value of 12.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EHTH.
Ehealth Risk Analysis
Ehealth disclosed 41 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% | |
65 Neutral | $176.35M | 0.73 | 15.28% | ― | 10.29% | ― | |
60 Neutral | $17.69M | 2.52 | 4.56% | ― | 19.30% | -17.56% | |
59 Neutral | $50.15M | -2.11 | 3.57% | ― | -4.28% | -1.93% | |
40 Underperform | $19.18M | -0.16 | -135.15% | ― | -81.69% | -9884.70% |
* Financial Sector Average
EHTH
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Ehealth Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresShareholder Meetings
eHealth Posts Q1 Results Amid Strategic Shift, Maintains Outlook
Neutral
May 6, 2026
On May 3, 2026, eHealth director Cesar Soriano informed the board he will resign from the board and its committees immediately before the company’s June 18, 2026 annual meeting, citing the growing demands of his role as CEO of Confie Corpora...
Executive/Board ChangesShareholder Meetings
eHealth Announces Planned Board Refresh as Director Departs
Neutral
Apr 1, 2026
On March 26, 2026, eHealth director Andrea C. Brimmer informed the company she would not stand for re-election and will leave the board when her current term ends at the annual meeting scheduled for June 18, 2026. The company emphasized that her d...
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.