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GoHealth (GOCO)
NASDAQ:GOCO
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GoHealth
(NASDAQ:GOCO)
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Rating:44Neutral
Price Target:
$2.50
▲(8.23% Upside)
GoHealth's overall stock score reflects significant financial challenges, bearish technical indicators, and a concerning valuation. The strategic shift towards retention and quality, along with investments in technology, provide some positive outlook, but the company must address its financial and operational issues to improve its stock performance.
Positive Factors
Strategic Shift Towards Retention
The strategic focus on retention and quality over quantity can lead to more stable revenue streams and improved customer satisfaction, enhancing long-term business sustainability.
Investment in Technology
Continued investment in technology enhances operational efficiency and customer experience, potentially leading to a competitive advantage and better market positioning.
Positioning for Industry Consolidation
By positioning for industry consolidation, GoHealth can capitalize on economies of scale and reduce costs, potentially improving profitability and market share.
Negative Factors
High Leverage
High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.
Declining Revenue
Declining revenue indicates challenges in maintaining market share and competitiveness, which can affect long-term profitability and business viability.
Cash Management and Liquidity Concerns
Tight liquidity and cash management issues can constrain operational flexibility and strategic investments, potentially hindering growth and financial stability.
GoHealth (GOCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.62M
Dividend YieldN/A
Average Volume (3M)54.81K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth7.56%
EPS Growth-344.04%
CountryUS
Employees2,261
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)-11.80
Shares Outstanding16,093,117
10 Day Avg. Volume90,134
30 Day Avg. Volume54,809
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)0.45
Price to Sales (P/S)0.17
P/FCF Ratio-3.78
Enterprise Value/Market Cap16.40
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit1.04
Enterprise Value/Ebitda-3.22
Forecast
1Y Price Target
$7.50Price Target Upside224.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
GoHealth Business Overview & Revenue Model
Company DescriptionGoHealth, Inc. operates as a health insurance marketplace and Medicare focused digital health company in the United States. It operates through four segments: Medicare—Internal; Medicare—External; Individual and Family Plans (IFP) and Other—Internal; and IFP and Other—External. The company operates a technology platform that leverages machine-learning algorithms of insurance behavioral data to optimize the process for helping individuals find the health insurance plan for their specific needs. Its products include Medicare Advantage, Medicare Supplement, Medicare prescription drug plans, and Medicare Special Needs Plans; and IFP, dental plans, vision plans, and other ancillary plans to individuals. The company sells its products through carriers and online platform, as well as independent and external agencies. GoHealth, Inc. was founded in 2001 and is headquartered in Chicago, Illinois with additional offices in Charlotte, North Carolina, Lindon, Utah, Bratislava, Slovakia, and Kosice, Slovakia.
How the Company Makes MoneyGoHealth generates revenue primarily through commissions and fees earned from insurance carriers when consumers purchase health insurance plans through its platform. The company acts as an intermediary, facilitating connections between consumers and insurers. Key revenue streams include commissions from individual and family health insurance plans, Medicare Advantage plans, and other supplemental insurance products. Additionally, GoHealth may earn performance-based incentives tied to the number of policies sold or renewal rates. Significant partnerships with various insurance carriers and a broad network of agents also contribute to its earnings, allowing GoHealth to offer a diverse array of plans to meet consumer needs.
GoHealth Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a strategic shift by GoHealth towards focusing on retention, quality, and strategic flexibility amid challenging health plan economics. The company is investing in technology and positioning for industry consolidation, but faces challenges with reduced Medicare Advantage volume and tight cash management.Q3-2025 Updates
Positive Updates
Focus on Strategic Flexibility and Retention
GoHealth has shifted its focus to prioritize retention, quality over quantity, and cash preservation. The company has reduced overhead and invested in AI and automation to improve agent effectiveness and consumer experience.
Continued Investment in Technology
The company has maintained its investments in technology, such as its AI-driven Plan GPT platform, which enhances the agent's ability to serve special needs populations effectively.
Positioning for Industry Consolidation
GoHealth is positioning itself to lead industry consolidation with a stronger balance sheet, lender support, and a refreshed board, aiming to reduce duplicative costs and enhance consumer experience.
Strong Position in Special Needs Plans
GoHealth continues to focus on special needs plans, aligning with health plans' priorities, and has developed technology and training to support this segment effectively.
Negative Updates
Reduction in Medicare Advantage Volume
The company has intentionally scaled back its Medicare Advantage activity in response to tightening health plan economics and reduced broker compensation.
Challenges with Health Plan Economics
Health plans have tightened plan economics, reduced prefunded marketing, and adjusted broker compensation, leading to GoHealth's decision to focus less on new enrollments.
Cash Management and Liquidity Concerns
GoHealth reported a cash balance of $32 million at the end of the third quarter and is managing liquidity carefully to maintain operations and strategic investments.
Company Guidance
During the GoHealth Third Quarter 2025 Earnings Conference Call, CEO Vijay Kumar Kotte outlined the company's strategic focus on maintaining quality over quantity, emphasizing retention, and preserving cash and strategic flexibility. Amidst tightening health plan economics, GoHealth intentionally scaled back Medicare Advantage (MA) volume in favor of retention-oriented strategies, prioritizing their GoHealthProtect platform. This decision aligns with health plans' current priorities, which favor stable member profiles and retention over broad expansion. By concentrating on high-quality member retention and strategic flexibility, GoHealth also aims to lead consolidation efforts in a fragmented broker landscape. The company maintains confidence in its platform's efficiency, backed by continued investment in AI and automation, and enhanced governance with a refreshed board and a new senior secured super-priority term loan facility to support strategic opportunities.GoHealth Financial Statement Overview
Summary
GoHealth faces significant financial challenges, including declining revenue, negative profitability, high leverage, and cash flow management issues. The company needs to focus on revenue growth, cost control, and reducing its debt burden to improve financial stability.Income Statement
GoHealth's income statement reveals a challenging financial position. The company has experienced a decline in revenue, with a negative revenue growth rate of -10.23% in the TTM period. Despite a strong gross profit margin of 85.07%, the net profit margin is negative at -3.21%, indicating profitability issues. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. The company needs to address its declining revenue and improve cost management to enhance profitability.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 3.39, indicating significant leverage and potential financial risk. The return on equity is negative at -10.09%, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio is relatively low, highlighting a reliance on debt financing. These factors suggest a need for improved financial stability and risk management.40
Negative
Cash Flow
The cash flow statement indicates some positive trends, with a free cash flow growth rate of 30.80% in the TTM period. However, the operating cash flow to net income ratio is negative, reflecting challenges in converting earnings into cash. The free cash flow to net income ratio is positive at 1.26, suggesting that the company is generating cash flow relative to its net income, but overall cash flow management needs improvement.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 738.34M | 798.89M | 734.67M | 631.67M | 1.06B | 877.35M |
| Gross Profit | 610.08M | 668.28M | 575.71M | 444.00M | 823.08M | 678.15M |
| EBITDA | -197.05M | 173.71M | 24.10M | -211.55M | -393.21M | 34.36M |
| Net Income | -199.02M | -2.93M | -63.26M | -148.71M | -189.36M | -44.27M |
Balance Sheet | ||||||
| Total Assets | 1.03B | 1.49B | 1.50B | 1.66B | 2.07B | 2.11B |
| Cash, Cash Equivalents and Short-Term Investments | 32.08M | 40.92M | 90.81M | 16.46M | 84.36M | 144.23M |
| Total Debt | 672.60M | 527.97M | 543.05M | 557.42M | 696.29M | 400.57M |
| Total Liabilities | 1.04B | 1.03B | 1.04B | 1.07B | 1.18B | 709.64M |
| Stockholders Equity | 68.17M | 294.80M | 280.32M | 318.06M | 353.10M | 380.42M |
Cash Flow | ||||||
| Free Cash Flow | -78.30M | -35.34M | 95.41M | 47.39M | -318.81M | -128.74M |
| Operating Cash Flow | -67.84M | -21.61M | 109.14M | 60.90M | -299.01M | -114.22M |
| Investing Cash Flow | -10.47M | 3.81M | -13.73M | -13.51M | -19.80M | -14.52M |
| Financing Cash Flow | 74.69M | -32.03M | -21.11M | -115.05M | 259.09M | 260.66M |
GoHealth Technical Analysis
Negative
2.31
Price Trends
2.78
Negative
3.75
Negative
5.51
Negative
Market Momentum
-0.15
Negative
41.27
Neutral
60.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOCO, the sentiment is Negative. The current price of 2.31 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.78, and below the 200-day MA of 5.51, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 60.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOCO.
GoHealth Risk Analysis
GoHealth disclosed 65 risk factors in its most recent earnings report. GoHealth 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
GoHealth 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% | |
58 Neutral | $123.06M | 102.70 | 5.88% | ― | 16.79% | ― | |
54 Neutral | $302.67M | -51.17 | 15.11% | ― | 13.16% | ― | |
46 Neutral | $21.94M | 8.86 | 4.56% | ― | 19.30% | -17.56% | |
44 Neutral | $38.62M | -0.15 | -142.05% | ― | 7.56% | -344.04% | |
44 Neutral | $5.09M | -0.22 | -146.43% | ― | -6.84% | 97.23% | |
43 Neutral | $11.96M | -0.10 | -11.18% | ― | 624.24% | 85.46% |
* Financial Sector Average
GOCO
GoHealth
2.31
-11.41
-83.16%
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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.