eHealth raises 2025 guidance after annual enrollment performance

eHealth Inc. (NASDAQ: EHTH) updated its fiscal year 2025 financial guidance following its Annual Enrollment Period performance, according to a company statement.

The online health insurance marketplace raised its total revenue guidance to $540 million to $560 million, up from the previous range of $525 million to $565 million. The company also increased its GAAP net income guidance to $30 million to $45 million, compared to the prior range of $9 million to $30 million.

Adjusted EBITDA guidance was raised to $80 million to $95 million from the previous $60 million to $80 million range. Operating cash flow guidance was adjusted to negative $25 million to break-even, compared to the prior range of negative $25 million to positive $10 million.

The company reported that Medicare Advantage enrollment volume was in line with the previous year. Direct branded channels contributed a larger share of total Medicare Advantage enrollments during the enrollment period compared to a year ago. eHealth deployed artificial intelligence screeners during the enrollment period to enhance marketing efficiency.

The company expects a year-over-year increase in fourth quarter Medicare Advantage constrained lifetime value of commissions, reflecting higher commission rates for plan year 2026 and improved customer retention trends.

The updated guidance includes positive net adjustment revenue expected to be in the range of $40 million to $45 million, compared to the previous range of $40 million to $43 million.

Chief Executive Officer Derrick Duke stated that the company's "brand strength, best-in-class telesales organization, and broad carrier portfolio positioned eHealth to deliver another outstanding AEP."

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