GoHealth (GOCO) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue increased 41% year-over-year to $389.1M, with Adjusted EBITDA up 107% to $117.8M and full-year revenue rising 9% to $798.9M; operational excellence was driven by technology, agent productivity, and e-TeleQuote integration.

• Submissions grew 67% in Q4 and 23% for the year, supported by proprietary tools and e-TeleQuote integration.

• Enhanced consumer experience through PlanFit and Encompass, focusing on long-term engagement and retention.

• Operational efficiency gains and cost-effectiveness improvements drove better unit economics in both Q4 and FY 2024.

• Q4 net income was $58.0M, a $60.3M improvement year-over-year; full-year net loss narrowed to $7.3M, improving by $144.0M.

Financial highlights

• Q4 2024 Adjusted EBITDA margin reached 30.3%, up from 20.6% in Q4 2023; full-year Adjusted EBITDA margin improved to 15.1% from 10.2%.

• Q4 net income margin was 14.9%; full-year net loss margin improved to (0.9)% from (20.6)% year-over-year.

• Q4 operating income was $80.3M, up from $15.1M in Q4 2023; full-year operating loss was $7.0M, a significant improvement.

• Direct operating cost per submission (CAC) fell 27% year-over-year in Q4 to $501; full-year was $578, down 15%.

• Cash flow from operations improved from -$21.6M in FY 2023 to $109.1M in FY 2024; cash and cash equivalents at year-end were $40.9M.

Outlook and guidance

• Management expects favorable market dynamics and meaningful revenue growth through at least the first three quarters of 2025, with cautious optimism for Q4.

• Expects less market disruption in 2025 AEP than 2024, but efficiency will depend on process and automation progress.

• Regulatory and market factors, including CMS rules and health plan funding, remain key variables for 2025 performance.

• Focus remains on sustainable, profitable growth, consumer experience, and continued innovation.