eHealth Reports Q2 2025 Revenue Decline of 8% to $60.8 Million

eHealth, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $60.8 million, a decrease of 8% compared to $65.9 million in the same period last year. The company's commission revenue, which constitutes the majority of its income, fell by 4% to $54.7 million from $56.8 million year-over-year. The decline in revenue was attributed to a significant drop in the Employer and Individual (E&I) segment, which saw a 59% decrease in revenue, primarily due to a reduction in approved members for individual and family plans and small business plans.

In contrast, the Medicare segment experienced a slight revenue decline of 2%, totaling $58.1 million, but showed a notable increase in gross profit, which rose by 26% to $19.1 million. This improvement was driven by a reduction in variable marketing and customer care expenses, as well as higher net adjustment revenue from prior periods. The overall net loss for the quarter was $17.4 million, a decrease from a net loss of $28.0 million in the prior year, indicating a 29% improvement in loss performance.

Operationally, eHealth reported a total of 48,936 approved members for the quarter, reflecting a 13% decline from 56,568 in the previous year. The decrease was primarily driven by an 18% drop in Medicare approved members, particularly in the Medicare Advantage category, which saw a 19% decline. The company noted that regulatory changes affecting dual-eligible beneficiaries contributed to this decline. However, the total approved members for the first half of 2025 increased by 4% compared to the same period in 2024, driven by a 10% increase in Medicare Advantage approved members.

In terms of strategic developments, eHealth is preparing for the upcoming Annual Enrollment Period (AEP) and has implemented a more flexible telesales structure to adapt to anticipated enrollment volumes. The company is also integrating artificial intelligence into its telephonic enrollment platform to enhance service delivery. Additionally, eHealth announced a leadership transition, with Derrick Duke set to become the new CEO in September 2025, succeeding Fran Soistman, who will remain as an executive advisor.

Looking ahead, eHealth anticipates continued challenges in the Medicare enrollment landscape due to regulatory changes but remains focused on scaling its core Medicare Advantage business and diversifying revenue streams. The company expects to leverage its technology and partnerships to drive growth and improve member retention, while also preparing for a dynamic AEP in 2026.