Ehealth (EHTH) AI Stock Analysis

• Market Cap: $53.53M
• Dividend Yield: N/A
• Average Volume (3M): 564.12K
• Price to Earnings (P/E): 50.9
• Beta (1Y): 0.97
• Revenue Growth: 16.79%
• EPS Growth: N/A
• Country: US
• Employees: 1,773
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 2.69
• Shares Outstanding: 30,764,786
• 10 Day Avg. Volume: 872,576
• 30 Day Avg. Volume: 564,123
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.16
• Enterprise Value/Ebitda: 1.23
• 1Y Price Target: $2.00
• Price Target Upside: 5.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.7
• Revenue Forecast (FY): $544.25M

• Rating: 51 Neutral
• Price Target: $2.00 ▲(5.82% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held back mainly by persistent negative operating/free cash flow and a bearish technical setup with the stock trading well below major moving averages. Offsetting factors include an earnings turnaround with manageable leverage, raised profit/EBITDA guidance from the latest call, and positive liquidity improvements from the new credit facility, though valuation remains demanding with a high P/E and no dividend.

Positive Factors

Improved Profitability

Earnings and margins materially improved in 2025 versus prior loss years, showing the business can generate operating profitability at scale. Sustained margins and positive ROE signal structural progress in unit economics and pricing power if management maintains channel mix and cost discipline.

Technology & Retention

Scaled AI screening and adviser chat features bolster conversion and lower acquisition costs over time. Coupled with expanded retention teams, tech-driven lead quality improvements should raise lifetime value and create a durable advantage versus legacy brokers reliant on higher-cost channels.

Stronger Liquidity & Credit

The $125M revolver replaced a higher-cost loan and repaid ~$70M, extending runway and lowering financing risk. Enhanced facility and potential $50M expansion give flexibility to fund AI, omnichannel investments and pursue diversification without immediate equity dilution.

Negative Factors

Persistent Negative Cash Flow

Despite reported profits, the company still fails to convert earnings into consistent positive cash flow. Persistent FCF deficits constrain self-funding of growth, elevate refinancing and liquidity risk, and mean the business relies on external capital or credit to sustain investments.

Earnings & Balance Sheet Volatility

A swing from profit to deep losses (2021–2023) then rebound shows earnings instability. The prior equity decline reduces the margin of safety and increases the chance that an adverse cycle would force dilutive financing or spending cuts, complicating long-term planning and investor confidence.

Medicare Volume & Regulatory Pressure

Business concentration in Medicare channels makes revenue sensitive to enrollment rule changes and competitive dynamics. Reduced MA volumes and related marketing pullbacks can materially compress commissions and revenue predictability, creating structural top-line risk absent diversification.

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

Income statement and balance sheet show a meaningful profitability turnaround and manageable leverage, but persistent negative operating and free cash flow (including 2025) is a major constraint and raises questions about earnings quality and durability.

Income Statement

Profitability has improved materially versus the 2021–2023 loss period, with 2024 returning to positive earnings and 2025 expanding margins further (net margin ~7.2% vs ~1.9% in 2024; EBITDA margin ~12.0% vs ~8.8%). Revenue growth also accelerated sharply in 2025 (+203.6%), though that step-change looks unusual versus the prior, steadier growth rates and warrants monitoring for sustainability. A key weakness is inconsistency over time (strong profit in 2020, deep losses in 2021–2022, then recovery), indicating earnings volatility.

Balance Sheet

Leverage appears manageable, with debt-to-equity staying relatively low (about 0.23 in 2025 and ~0.16 in 2024), supporting financial flexibility. Returns on equity have improved from negative in 2021–2023 to positive in 2024–2025 (~6.8% in 2025), consistent with the earnings recovery. The main concern is the notable drop in equity from 2023 to 2024 (despite improving profitability), which suggests balance-sheet volatility and reduces the margin of safety if operating results soften.

Cash Flow

Cash generation is the weakest area: operating cash flow and free cash flow are negative across all shown years, including 2025 (operating cash flow about -$25.3M; free cash flow about -$25.3M). While the size of the cash burn is smaller than the very weak 2020–2021 period, it still indicates the business is not yet consistently converting reported profits into cash. Free cash flow growth is also negative in 2025 and 2024, signaling deterioration rather than stabilization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	542.95M	554.01M	532.41M	452.87M	405.36M	538.20M
Gross Profit	542.95M	0.00	530.62M	451.10M	403.71M	536.21M
EBITDA	71.61M	66.49M	46.81M	295.00K	-77.65M	-105.18M
Net Income	50.34M	40.04M	10.06M	-28.21M	-88.72M	-104.38M
Balance Sheet
Total Assets	1.05B	1.26B	1.16B	1.11B	1.11B	1.15B
Cash, Cash Equivalents and Short-Term Investments	75.30M	77.22M	82.24M	121.65M	144.40M	123.23M
Total Debt	92.73M	134.35M	96.92M	103.16M	106.80M	41.37M
Total Liabilities	162.95M	288.82M	567.00M	209.26M	461.66M	399.77M
Stockholders Equity	884.47M	591.60M	588.43M	904.08M	650.96M	749.52M
Cash Flow
Free Cash Flow	-29.85M	-25.34M	-31.22M	-17.47M	-42.38M	-183.48M
Operating Cash Flow	-17.06M	-25.34M	-18.37M	-6.69M	-26.87M	-162.62M
Investing Cash Flow	27.04M	25.43M	-48.42M	-15.89M	25.86M	-12.63M
Financing Cash Flow	-10.80M	34.29M	-9.67M	-6.22M	63.84M	213.24M

Ehealth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.89 is below the 20-day moving average (MA) of 2.07, below the 50-day MA of 3.26, and below the 200-day MA of 3.93, indicating a bearish trend. The MACD of -0.48 indicates Negative momentum. The RSI at 34.76 is Neutral, neither overbought nor oversold. The STOCH value of 55.29 is Neutral, 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%
SLQT	55 Neutral	$155.54M	-14.07	16.44%	―	13.16%	―
EHTH	51 Neutral	$53.53M	50.94	5.88%	―	16.79%	―
HUIZ	46 Neutral	$18.56M	7.74	4.56%	―	19.30%	-17.56%
GOCO	44 Neutral	$23.50M	-0.09	-142.05%	―	7.56%	-344.04%
TIRX	43 Neutral	$5.72M	-0.02	-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.