Ethos Revenue Rises 209% in Third-Party Channel, Driving Third-Quarter Expansion
Key Facts
Ethos Technologies, listed on Nasdaq under the ticker LIFE, reported results for the third quarter ended September 30, 2026, on November 2, with third-party channel revenue rising 209% year over year to $116.4 million. Direct distribution channel revenue increased 112% to $118.8 million, according to the company’s statement. The figures show expansion in both channels during the quarter, with the third-party channel posting the higher growth rate. Gross profit was $230.8 million, equivalent to a gross margin of 98%. Net income was $4.7 million, with a 2% margin.
New policy volumes supported business growth, with Ethos activating 142,111 new insurance policies in the quarter, up 189% year over year. But average revenue per unit was $1,655, down 13% from the year-earlier period. The company attributed the decline to its channel mix, which shifted more toward the third-party channel. That places growth in policy count alongside a decline in average revenue per unit, amid different growth rates between the two distribution channels. The statement also showed that the company generated $40.7 million in net cash provided by operating activities during the quarter.
For comparison, Ethos reported revenue of $190 million in the second quarter of 2026, up 113% year over year. The chief executive at the time said the company had posted its second consecutive quarter of revenue growth above 100% year over year. The third-quarter result for the third-party channel shows continued rapid growth in one distribution route, while the direct channel also recorded a strong annual increase. In the current results, gross profit exceeded net income by a margin reflecting the difference between the reported margins: 98% for gross profit versus 2% for net income. The available statement did not provide further details explaining this difference.
The company’s board authorized a program to repurchase up to $100 million of Class A shares during the third quarter. The company said it had not repurchased shares since announcing the program. The authorization sets a ceiling for the program, while the announcement does not mean the company made purchases during the period. The decision accompanies the release of operating results and the company’s outlook for the rest of the fiscal year. Market data also showed that LIFE shares closed the November 2 session at $42.62, down 1.77% in regular trading. After the close, the shares rose 11.8% to $47.65.
Ethos forecast fourth-quarter 2026 revenue of between $220 million and $224 million, and adjusted earnings before interest, taxes, depreciation and amortization of between $30 million and $32 million. For full-year 2026, it forecast revenue of between $838 million and $842 million, and adjusted earnings before interest, taxes, depreciation and amortization of between $134 million and $136 million. The quarterly outlook sets the company’s framework for the immediately following period, while the annual forecast covers the rest of the fiscal year. The available earnings statement did not include further details about the assumptions behind these estimates. These figures mark the next milestone the company set after results for the quarter ended September 30.