eHealth Reports 22% Revenue Growth to $113.1 Million in Q1 2025

eHealth, Inc. reported a significant improvement in its financial performance for the first quarter of 2025, with total revenue reaching $113.1 million, a 22% increase from $93.0 million in the same period last year. The company's commission revenue, which constitutes the majority of its income, rose by 22% to $98.9 million, driven primarily by a 27% increase in commission revenue from its Medicare segment. This growth was attributed to a 16% rise in approved Medicare plan members, particularly a 26% increase in Medicare Advantage approved members. The company also reported a net income of $1.95 million, a notable turnaround from a net loss of $17.0 million in the prior year.

In terms of operational metrics, eHealth saw a 14% increase in total approved members, totaling 111,810 as of March 31, 2025. The Medicare segment accounted for the majority of this growth, with 87,878 approved members, reflecting a 16% increase year-over-year. However, the company experienced declines in its individual and family plans, as well as small business health insurance plans, which saw decreases of 19% and 28%, respectively. The overall estimated membership also declined by 2% compared to the previous year, primarily due to reduced approved applications in the Employer and Individual segment.

Strategically, eHealth has focused on enhancing its customer retention efforts, nearly doubling the size of its retention and customer service team during the quarter. The company is also piloting the integration of artificial intelligence into its telephonic enrollment platform, aiming to improve operational efficiency. Additionally, eHealth has maintained a strong cash position, with cash and cash equivalents increasing to $121.1 million as of March 31, 2025, compared to $39.2 million at the end of 2024.

The company’s operational costs were closely monitored, with total operating expenses decreasing slightly to $108.3 million from $110.9 million in the previous year. Notably, eHealth did not incur any impairment or restructuring charges in the first quarter of 2025, contrasting with $6.3 million in such charges in the same period of 2024. This reduction in costs, combined with increased revenue, contributed to a gross profit of $41.7 million, a 42% increase from the previous year.

Looking ahead, eHealth's management expressed optimism about sustaining growth through strategic investments in technology and marketing, as well as expanding partnerships with health insurance carriers. The company aims to leverage its strong cash flow and operational improvements to navigate the evolving health insurance landscape and enhance its market position.