eHealth Revenue Falls 45% to $33.566 Million in Second Quarter
Key Facts
eHealth, Inc., listed on Nasdaq under the ticker EHTH, said on August 4, 2026, that revenue was $33.566 million in the second quarter ended June 30, down 45% from $60.782 million in the same period a year earlier. The company attributed the decline to fewer Medicare enrollments, as it reduced variable marketing spend outside major enrollment periods and directed advisers to engage with existing members. Revenue was close to analysts’ estimate of $33.62 million, according to Investing.com. Meanwhile, the GAAP net loss widened to $23.595 million from $17.398 million a year earlier. Basic and diluted loss per share attributable to common stockholders was $1.18, compared with $0.98.
The decline extended across revenue components, with commission revenue falling 46% to $29.804 million from $54.731 million in the second quarter of 2025. Other revenue fell 38% to $3.762 million, compared with $6.051 million a year earlier. Positive net adjustment revenue also declined to $7.6 million from $17.8 million. These figures reflect less reliance on new enrollments during the period, consistent with the company’s stated reduction in marketing outside major enrollment periods. Revenue contracted across more than one line item, rather than in total sales alone.
The Medicare segment recorded revenue of $31.799 million in the second quarter, down 45% from $58.059 million a year earlier. For the first half of 2026, segment revenue fell 30% to $113.070 million from $161.728 million in the same period of 2025. The number of newly approved Medicare members declined 46% to 18,019, compared with 33,676 in the year-earlier quarter. The company said lower enrollment volume drove the revenue decline, while benefits advisers focused on engaging existing members. In another indication of its business model, eHealth said cross-selling rates for additional products doubled in the second quarter from a year earlier, and described early signs from its lifetime advisory model as encouraging.
Adjusted EBITDA loss narrowed to $21.776 million, compared with a loss of $14.142 million in the second quarter of 2025. Net cash used in operating activities was $4.955 million in the quarter, versus $41.204 million a year earlier. The first half of 2026 generated positive operating cash flow of $30.810 million. The results highlight a divergence between the wider accounting loss and lower quarterly cash use, alongside positive operating cash flow year to date. In its first-quarter results, the company reported that the Medicare lifetime value-to-customer acquisition cost ratio rose to 1.4 times from 1.2 times a year earlier, while the cost to acquire an approved Medicare Advantage-equivalent member fell 10%.
eHealth reaffirmed its 2026 outlook, projecting revenue of $405 million to $445 million and GAAP net income of $8 million to $25 million. It also expects operating cash flow to range from $10 million used to $12 million generated. Chief Executive Derek Duke said the company is building an operational and financial foundation to return to sustainable growth beginning in 2027. As part of its cost reductions, the company is targeting annual savings of more than $60 million in variable spending and about $30 million in fixed costs compared with the prior year. These targets place expense reductions and improved member acquisition economics within the company’s stated path back to growth.
The stock moved higher during the August 4 session, closing at $1.45, up 5.07% from the previous close of $1.38. It then fell 4.23% in after-hours trading to $1.36, according to Investing.com. Another page on the site said the stock rose 5.07% in regular trading and then fell 8.45% after hours to $1.30. The site’s two pages gave different readings for after-hours trading, while agreeing on the regular-session gain. The share-price move came on the day the company announced results showing revenue close to analysts’ estimates and a wider net loss.