eHealth (EHTH) Q4 2024 earnings summary

Executive summary

• Achieved record revenue and net income in Q4 2024, with strong Medicare Advantage enrollment growth and significant improvement in unit economics, including a 23% decline in acquisition cost per approved member.

• Outperformed revised FY 2024 guidance for revenue, earnings, and Adjusted EBITDA, driven by high consumer demand, operational execution, and enhanced brand recognition.

• Ended FY 2024 with a record $1.0 billion in commissions receivable, reflecting strong operational execution and favorable Medicare market dynamics.

• Strategic investments in marketing, technology, and AI initiatives supported scale, member retention, and digital engagement.

• Benefited from industry disruption, plan changes, and competitor exits, leveraging a broad carrier-agnostic platform.

Financial highlights

• Q4 2024 revenue grew 27% year-over-year to $315.2 million; full-year revenue up 18% to $532.4 million.

• Q4 2024 GAAP net income increased 87% to $97.5 million; full-year net income was $10.1 million, reversing a prior year net loss.

• Q4 2024 Adjusted EBITDA rose 74% to $121.3 million (38% margin); full-year Adjusted EBITDA was $69.3 million (13% margin).

• Q4 2024 Non-GAAP total revenue excluding net adjustment revenue increased 33% year-over-year.

• Commissions receivable at year-end 2024 was $1.0 billion, up 9% from prior year.

Outlook and guidance

• FY 2025 revenue guidance: $510–$550 million; GAAP net income (loss): -$10 million to $15 million; Adjusted EBITDA: $35–$60 million.

• Operating cash flow expected between -$25 million and $10 million.

• 2023–2025 revenue CAGR expected at 8%; Adjusted EBITDA margin guidance at 9% midpoint, tracking ahead of 3-year targets.

• Q1 2025 expected to be primary growth quarter; Q2 and Q3 volumes to decline due to DSNP rule changes.

• 2025 guidance reflects an 84% adjusted EBITDA CAGR.