eHealth, Inc.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
EHTH$0.47-8.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001333493-25-000057
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001333493-25-000094
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 206 previous paragraphs and 254 current paragraphs.
117 unchanged; 66 reworded; 61 added; 17 removed; 6 previous and 10 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (61)
Current report
During the second quarter of 2025, Medicare enrollment volume was lower than the second quarter of 2024, which was consistent with our expectations. Our typical Medicare enrollment seasonality is heightened this year primarily as a result of the recent regulatory changes to enrollment rules for dual-eligible beneficiaries and those that receive Medicare Part D Low Income Subsidies (“LIS”). Beginning in 2025, the U.S. Centers for Medicare & Medicaid Services removed the special enrollment period that allowed dual-eligible and LIS beneficiaries to enroll in Medicare Advantage plans on a quarterly basis. As these regulatory changes limit eligibility to enroll into or between Medicare Advantage plans outside of the AEP for this large portion of Medicare beneficiaries, we experienced a decline in Medicare Advantage plan submissions during the second quarter of 2025. We successfully adjusted to this regulatory change by implementing a more flexible structure in our telesales organization, making it more agile and easier to flex advisor capacity up and down in alignment with anticipated enrollment volumes. We
Current report
Additionally, we began our preparations for the 2026 AEP. We expect to experience another dynamic AEP which will present the opportunity to drive strong consumer demand to our platform as beneficiaries face significant plan changes from Medicare Advantage insurance carriers. At the same time, we plan to focus on preserving our existing book of business through our continued retention efforts.
Current report
Executive Leadership Transition
Current report
On July 28, 2025, we announced the planned appointment of Derrick Duke as our next chief executive officer. Mr. Duke joined the Company on August 4, 2025 to begin the transition process prior to officially stepping into the chief executive officer role effective September 18, 2025. Fran Soistman will continue to serve in his current role until September 18, 2025 and will remain with the Company as an executive advisor until December 31, 2025 to assist with the transition. He will also remain as a member on the Company’s Board of Directors. It is expected that the Board of Directors will approve the appointment of Mr. Duke as a member of the Board on September 18, 2025. This leadership change is part of the Company’s long-term succession planning and is intended to ensure continuity in strategic direction and operational execution.
Current report
•an 18% decline in Medicare approved members, primarily resulting from:
Current report
◦a 19% decline in Medicare Advantage approved members due to a 23% decrease in Medicare Advantage broker of record submissions, primarily driven by an intentional decrease in variable marketing spend due to the 2025 regulatory changes that reduced the special enrollment period options for dual-eligible beneficiaries, which in the past represented a meaningful share of our second and third quarter Medicare Advantage enrollments;
Current report
◦an 11% decline in Medicare Supplement approved members due to certain Q1 2024 submissions that were approved subsequently in Q2 2024 due to a delay in approval, partially offset by a 6% increase in broker of record submissions during the three months ended June 30, 2025 compared to the same period in 2024, and
Current report
◦a 6% decline in Medicare Part D approved members due to the continued shift away from standalone Medicare Part D plans.
Current report
•12% growth in ancillary approved members primarily driven by targeted growth in hospital indemnity plans, partially offset by declines in short-term and dental plan approved members.
Current report
Six Months Ended June 30, 2025 and 2024 – Total approved members grew 4% during the six months ended June 30, 2025 compared to the same period in 2024, driven by:
Current report
◦a 10% increase in Medicare Advantage approved members due to a 5% increase in Medicare Advantage broker of record submissions due to the increased consumer demand during the first quarter of 2025 Medicare Advantage OEP, as well as improved telesales conversion rates year-over-year, slightly offset by decreased volume in the second quarter due to the dual-eligible regulations that became effective in 2025,
Current report
◦a 20% decline in Medicare Part D approved members due to the continued shift away from standalone Medicare Part D plans.
Current report
•a 29% increase in Medicare Supplement plans, primarily due to favorable carrier and contract mix, favorable retention assumptions for the Q2 2025 cohorts compared to the Q2 2024 cohorts and a decrease in the constraint from 9% to 4% due to observed LTV trends;
Current report
•a 7% decrease in non-qualified health plans, primarily due to a decline in enrollment quality as well as unfavorable retention trends;
Current report
•an 11% decrease in qualified health plans, primarily due to an increase in the constraint from 4% to 10% due to observed unfavorable retention trends;
Current report
•an 11%, 4% and 2% increase in vision, small business and dental plans, respectively.
Current report
•a 2% decline year-over-year in Medicare estimated membership primarily due to:
Current report
•a $65, or 11%, increase in CC&E cost per MA-equivalent approved member primarily due to:
Current report
◦the elevated seasonal decline in Medicare Advantage approved members driven by the dual-eligible regulations that became effective in 2025,
Current report
◦slightly offset by lower overall personnel and compensation costs, including cost savings as a result of our more flexible telesales organization structure which allows us to adjust capacity more efficiently to match the Medicare business seasonality.
Current report
•a $3.7 million, or 60%, decrease in our E&I segment commission revenue driven by:
Current report
◦net adjustment revenue from prior periods enrollments of $(1.3) million during the three months ended June 30, 2025 compared to $0.8 million in the same period in 2024,
Current report
◦a 41% and 9% decline in individual and family plan and small business approved members, respectively, partially offset by a 12% increase in ancillary approved members, and
Current report
◦lower constrained LTV of commissions per approved member for qualified health plans, non-qualified health plans and short-term health plans, slightly offset by higher constrained LTV of commissions per approved member for dental, vision and small business plans.
Current report
•a $1.6 million, or 3%, increase in our Medicare segment commission revenue driven by:
Current report
◦higher net adjustment revenue from prior periods enrollments, which was $19.1 million during the three months ended June 30, 2025 compared to $10.7 million during the same period in 2024, and
Current report
◦improved constrained LTV of commissions per approved member for Medicare Advantage and Medicare Supplement products,
Current report
◦partially offset by a 19%, 11%, and 6% decrease in Medicare Advantage, Medicare Supplement and Medicare Part D plan approved members, respectively.
Current report
Other revenue decreased $3.0 million, or 33%, during the three months ended June 30, 2025 compared to the same period in 2024 primarily due to a decrease in sponsorship and advertising revenue.
Current report
Six Months Ended June 30, 2025 and 2024 – Commission revenue increased $15.9 million, or 12%, during the six months ended June 30, 2025 compared to the same period in 2024 due to:
Current report
•a $20.6 million, or 17%, increase in our Medicare segment commission revenue driven by:
Current report
◦improved constrained LTV of commissions per approved member for Medicare Advantage and Medicare Supplement products, and
Current report
◦net adjustment revenue from prior periods of $27.1 million during the six months ended June 30, 2025 compared to $11.7 million in the same period in 2024.
Current report
•a $4.7 million, or 29%, decrease in our E&I segment commission revenue driven by:
Current report
◦a 26% and 21% decline in individual and family plan and small business plan approved members, respectively, slightly offset by an increase in ancillary approved members,
Current report
◦lower net adjustment revenue from prior periods enrollments, which was $1.2 million during the six months ended June 30, 2025 compared to $2.3 million in the same period in 2024, and
Current report
◦lower constrained LTV of commissions per approved member for qualified health plans, non-qualified health plans and short-term health plans, slightly offset by higher constrained LTV of commissions per approved member for dental, vision and small business plans.
Current report
Three Months Ended June 30, 2025 and 2024 – Marketing and advertising expenses decreased $5.4 million, or 20%, during the three months ended June 30, 2025 compared to the same period in 2024, primarily driven by a $4.4 million decrease in variable advertising costs and a $0.7 million decrease in personnel and compensation costs. The decrease in variable advertising costs was primarily due to an intentional decrease in affiliate partner channel spend due to the dual-eligible regulations that became effective in 2025, which contributed to decreased Medicare Advantage submissions.
Current report
Three Months Ended June 30, 2025 and 2024 – Customer care and enrollment expenses decreased $0.6 million, or 2%, during the three months ended June 30, 2025 compared to the same period in 2024, primarily due to a $0.9 million decrease in personnel and compensation costs as we implemented a more flexible structure in our telesales organization to adjust to anticipated enrollment volumes, partially offset by a $0.3 million increase in other operating expenses due to higher third-party recruiting and software costs.
Current report
Six Months Ended June 30, 2025 and 2024 – General and administrative expenses decreased $3.1 million, or 7%, during the six months ended June 30, 2025 compared to the same period in 2024, primarily driven by a $1.9 million decrease in stock based compensation expense, a $1.3 million decrease in professional fees and a $0.8 million decrease in facilities and other operating expenses, partly offset by an increase of $1.1 million in personnel and compensation costs.
Showing the first 40 of 61 passages. Open the source sections for the rest.
Removed paragraphs (17)
Previous report
During the first quarter of 2025, we invested in our post-enrollment retention strategy and nearly doubled the size of our retention and customer service team. Despite this investment, Medicare unit margins experienced meaningful expansion in Q1 2025, compared to the same period in 2024. Additionally, we began piloting the
Previous report
◦a 26% increase in Medicare Advantage approved members due to a 21% increase in Medicare Advantage broker of record submissions primarily as a result of the continued increase in consumer demand due to recent market disruptions, increased variable marketing spend and an increased number of benefit advisors with improved telesales conversion rates year-over-year,
Previous report
•a 5% decrease in Medicare Advantage plans, reflecting less favorable retention assumptions for the Q1 2025 cohorts compared to Q1 2024 cohorts, partly offset by lower constraint due to a decline in volatility and observed LTV trends;
Previous report
•a 3% increase in qualified health plans, primarily due to improved enrollment quality;
Previous report
•an 8%, 5% and 16% increase in dental, vision and small business plans, respectively, primarily driven by favorable carrier and contract mix.
Previous report
•Medicare estimated membership remained flat year-over-year primarily due to:
Previous report
•a $58, or 14%, decrease in CC&E cost per MA-equivalent approved member due to:
Previous report
◦efficiencies resulting from a benefit advisor mix that is more tenured when compared to the same period in 2024 as well as the increased use of screeners to answer calls from beneficiaries, and
Previous report
◦continued optimization of our sales force operations driven by enhanced training protocols and new agent-facing sales tools.
Previous report
•a $19.0 million, or 27%, increase in commission revenue from our Medicare segment driven by:
Previous report
◦net adjustment revenue from prior periods of $8.0 million during the three months ended March 31, 2025 compared to $1.0 million in the same period in 2024.
Previous report
•a $0.9 million, or 9%, decrease in commission revenue from our E&I segment driven by:
Previous report
◦a 19% and 28% decline in individual and family plan and small business plan approved members, respectively,
Previous report
◦partially offset by higher net adjustment revenue from prior periods enrollments, which was $2.5 million during the three months ended March 31, 2025 compared to $1.5 million in the same period in 2024 along with improved constrained LTV of commissions per approved member for most products in our E&I segment.
Previous report
◦a $13.0 million increase in Medicare Advantage plan commission revenue, driven by 26% growth in Medicare Advantage plan approved members, and
Previous report
•a $21.3 million increase in Medicare segment revenue,
Previous report
•an increase of $0.4 million in variable marketing and advertising expenses mostly due to investments in our operational enhancements for our E&I segment that are underway.
Reworded paragraphs (66)
Previous wording
Our fiscal 2025 growth strategy is focused on pursuing deliberate revenue diversification and scaling of our business, evolving our brand awareness for all products and channels, improving member retention and conversions on our platform while continuing to evolve our telesales organization, advancing our digital technology leadership, and strengthening and expanding health insurance carrier partnerships.
Current wording
Our 2025 growth strategy is focused on the scaling of our core Medicare Advantage business and pursuing revenue diversification initiatives, evolving our brand awareness across all products and enrollment channels, and improving member retention on our platform while continuing to evolve our telesales organization, advancing our digital technology leadership, and strengthening and expanding health insurance carrier partnerships.
Previous wording
During the first quarter of 2025, we maintained the momentum we built during the most recent Annual Enrollment Period (“AEP”), which observed strong consumer demand driven by recent Medicare Advantage plan benefit and premium changes, plan cancellations and market exits due primarily to carriers facing higher medical costs and regulatory pressures. As a result, we delivered strong Medicare Advantage enrollment growth in Q1 2025, with 25% growth in total Medicare Advantage submissions, inclusive of our broker of record and fee-based business process outsourcing (“BPO”) arrangements, compared to the same period in 2024. Submissions describe applications that are submitted by individuals online through our eHealth platform or completed with the assistance of our benefit advisors where the individual provides authorization to the benefit advisor to submit the application to the insurance carrier partner. The individual may have additional actions to take before the application will be reviewed by the insurance carrier and not all submissions ultimately become approved members. Additionally, we observed improvements in our cash flow from operations for the three months ended March 31, 2025, compared to the same period in 2024, reflecting strong cash collections from new enrollments.
Current wording
During the first quarter of 2025, we generated strong Medicare Advantage enrollment growth during the Medicare Advantage Open Enrollment Period (“OEP”), maintaining the momentum we built during the most recent Annual Enrollment Period (“AEP”), which was characterized by elevated consumer demand driven by recent Medicare Advantage plan benefit and premium changes, plan cancellations and market exits due primarily to carriers facing higher medical costs and regulatory pressures.
Previous wording
integration of artificial intelligence across several components of our telephonic enrollment platform during the second quarter of 2025.
Current wording
also have been piloting the integration of artificial intelligence (“AI”) across several components of our telephonic enrollment platform and intend on leveraging AI to help us serve beneficiaries during the upcoming AEP.
Previous wording
Three Months Ended March 31, 2025 and 2024 – Total approved members grew 14% during the three months ended March 31, 2025 compared to the same period in 2024, driven by:
Current wording
Three Months Ended June 30, 2025 and 2024 – Total approved members declined 13% during the three months ended June 30, 2025 compared to the same period in 2024, driven by:
Previous wording
•a 14%, 2% and 8% decline year-over-year in individual and family plan, ancillary plan and small business plan estimated membership, respectively, primarily due to a decrease in approved applications as we focus on implementing operational enhancements in our E&I segment;
Current wording
•a 41% and 9% decline in individual and family plan and small business health insurance approved members, respectively, primarily due to a decrease in volume as we continue to focus on implementing operational enhancements in our Employer and Individual (“E&I”) segment, and
Previous wording
•16% growth in Medicare approved members, as a result of:
Current wording
•4% growth in Medicare approved members, primarily as a result of:
Previous wording
•21% growth in ancillary approved members primarily due to a targeted increase in hospital indemnity plan members and an increase in vision plan approved members, partially offset by declines in dental and short-term approved members;
Current wording
•17% growth in ancillary approved members primarily due to a targeted increase in hospital indemnity plan members and an increase in vision plan approved members, partially offset by declines in short-term and dental plan approved members;
Previous wording
•a 19% and 28% decline in individual and family plan and small business health insurance plan approved members, respectively, primarily due to a decrease in volume as we continued to focus on implementing operational enhancements in our E&I segment.
Current wording
•a 26% and 21% decline in individual and family plan and small business health insurance plan approved members, respectively, primarily due to a decrease in volume as we continue to focus on implementing operational enhancements in our E&I segment.
Previous wording
(2)The constraints applied to the total estimated lifetime value of commissions we expect to receive for selling the plan after the carrier approves an application in order to derive the constrained LTV of commissions for approved members recognized for Medicare Advantage, Medicare Supplement and Medicare Part D were 5.5%, 9% and 7%, respectively, for the three months ended March 31, 2025 and 7%, 9% and 7%, respectively, for the three months ended March 31, 2024.
Current wording
(2)The constraints applied to the total estimated lifetime value of commissions we expect to receive for selling the plan after the carrier approves an application in order to derive the constrained LTV of commissions for approved members recognized for Medicare Advantage, Medicare Supplement and Medicare Part D were 5.5%, 4% and 7%, respectively, for the three months ended June 30, 2025 and 5.5%, 9% and 7%, respectively, for the three months ended June 30, 2024.
Previous wording
•a 31% increase in Medicare Supplement plans, primarily due to favorable carrier and contract mix and favorable retention assumptions for the Q1 2025 cohorts compared to Q1 2024 cohorts;
Current wording
•a 1% increase in Medicare Advantage plans, primarily due to favorable carrier and contract mix, partially offset by less favorable retention assumptions for the Q2 2025 cohorts compared to the Q2 2024 cohorts;
Previous wording
•a 30% decrease in Medicare Part D plans, primarily driven by unfavorable carrier and contract mix, partially offset by improved retention assumptions for the Q1 2025 cohorts compared to Q1 2024 cohorts;
Current wording
•a 24% decrease in Medicare Part D plans, primarily driven by unfavorable carrier and contract mix;
Previous wording
•a 36% decrease in short-term plans, primarily driven by unfavorable retention assumptions year-over-year as a result of the regulatory change that decreased term limits for short-term health plans; and
Current wording
•a 35% decrease in short-term plans, primarily driven by unfavorable retention assumptions year-over-year as a result of the regulatory change that decreased term limits for short-term health plans; and
Previous wording
March 31, 2025 compared to March 31, 2024 – Total estimated membership declined 2% as of March 31, 2025 compared to March 31, 2024 due to:
Current wording
June 30, 2025 compared to June 30, 2024 – Total estimated membership declined 3% as of June 30, 2025 compared to June 30, 2024 due to:
Previous wording
◦partially offset by a 2% and 4% decrease in Medicare Supplement and Medicare Part D plans, respectively, as a result of decreased approved applications due to the shift of some broker of record arrangements to fee-based arrangements within our Amplify platform, which are not included in estimated membership, as well as a decline in Medicare Part D plan approved applications due to the shift away from standalone Medicare Part D plans.
Current wording
◦a 6% and 10% decrease in Medicare Supplement and Medicare Part D plans, respectively, as a result of decreased approved applications due to the decline in Medicare Supplement plan approved members as well as a decline in Medicare Part D plan approved members due to the shift away from standalone Medicare Part D plans,
Previous wording
◦a 1% increase in Medicare Advantage estimated membership as a result of increased approved applications,
Current wording
◦partially offset by a 2% increase in Medicare Advantage estimated membership as a result of increased Medicare Advantage approved member volume from the most recent AEP and OEP.
Previous wording
Marketing initiatives are an important component of our strategy to increase revenue and are primarily designed to encourage consumers to complete an application for health insurance. We calculate and evaluate the customer care and enrollment (“CC&E”) cost per approved member and the variable marketing cost per approved member. We incur CC&E expenses in assisting applicants during the enrollment process. Variable marketing costs represent costs incurred in member acquisition from our direct marketing and marketing partner channels. Variable marketing costs exclude fixed overhead costs, such as personnel related costs, consulting expenses and other operating costs allocated to the marketing and advertising department.
Current wording
We calculate and evaluate the customer care and enrollment (“CC&E”) cost per approved member and the variable marketing cost per approved member. We incur CC&E expenses in assisting applicants during the enrollment process. Marketing initiatives are an important component of our strategy to increase revenue and are primarily designed to encourage consumers to complete an application for health insurance. Variable marketing costs represent costs incurred in member acquisition from our direct marketing and marketing partner channels. Variable marketing costs exclude fixed overhead costs, such as personnel related costs, consulting expenses and other operating costs allocated to the marketing and advertising department.
Previous wording
Three Months Ended March 31, 2025 and 2024 – Total acquisition cost per MA-equivalent approved member decreased $80, or 10%, during the three months ended March 31, 2025 compared to the same period in 2024, driven by:
Current wording
Three Months Ended June 30, 2025 and 2024 – Total acquisition cost per MA-equivalent approved member increased $31, or 3%, during the three months ended June 30, 2025 compared to the same period in 2024, driven by:
Previous wording
•a $22, or 5%, decrease in variable marketing cost per MA-equivalent approved member, primarily due to continued marketing efficiencies as our brand continues to scale, enabling improvement in our marketing channel mix.
Current wording
•a $34, or 7%, decrease in variable marketing cost per MA-equivalent approved member, primarily due to an intentional reduction in spend during a lower volume quarter as a result of the dual-eligible regulations that became effective in 2025, a more favorable marketing channel mix and continued marketing efficiencies as our brand continues to scale, enabling enhanced lead quality, and strong conversion rates, including improved conversion rates in our online unassisted channel.
Previous wording
Three Months Ended March 31, 2025 and 2024 – Total acquisition cost per IFP-equivalent approved member increased $89, or 41%, during the three months ended March 31, 2025 compared to the same period in 2024, driven by:
Current wording
Three Months Ended June 30, 2025 and 2024 – Total acquisition cost per IFP-equivalent approved member increased $178, or 52%, during the three months ended June 30, 2025 compared to the same period in 2024, driven by:
Previous wording
•a $28, or 17%, increase in CC&E cost per IFP-equivalent approved member due to the overall decline in individual and family plan and short-term plan approved members; and
Current wording
•a $138, or 49%, increase in CC&E cost per IFP-equivalent approved member due to the overall decline in individual and family plan and short-term plan approved members; and
Previous wording
•a $61, or 105%, increase in variable marketing cost per IFP-equivalent approved member, primarily driven by an increase in marketing spend as we pursue growth in the E&I segment as well as the decline in individual and family plan and short-term plan approved members.
Current wording
•a $40, or 68%, increase in variable marketing cost per IFP-equivalent approved member, primarily driven by the overall decline in individual and family plan and short-term plan approved member.
Previous wording
There have been no changes to our critical accounting policies and estimates described in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on February 27, 2025, that have had a significant impact on our condensed consolidated financial statements and related notes. Please refer to Management’s Discussion and Analysis of Financial Condition and Results of
Current wording
There have been no changes to our critical accounting policies and estimates described in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on February 27, 2025, that have had a significant impact on our condensed consolidated financial statements and related notes. Please refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024, for a complete discussion of our other critical accounting policies and estimates.
Previous wording
Three Months Ended March 31, 2025 and 2024 – Commission revenue increased $18.0 million, or 22%, during the three months ended March 31, 2025 compared to the same period in 2024 due to:
Current wording
Three Months Ended June 30, 2025 and 2024 – Commission revenue decreased $2.1 million, or 4%, during the three months ended June 30, 2025 compared to the same period in 2024 due to:
Previous wording
◦a 16% increase in overall Medicare plan approved members, specifically driven by 26% growth in Medicare Advantage approved members, and
Current wording
◦an overall 4% increase in Medicare plan approved members, specifically driven by 10% growth in Medicare Advantage approved members,
Previous wording
Other revenue increased $2.1 million, or 18%, during the three months ended March 31, 2025 compared to the same period in 2024 due to a $4.2 million increase in fee-based revenue driven by the expansion of our fee-based BPO arrangements, partially offset by a $2.0 million decline in sponsorship and advertising revenue.
Current wording
Other revenue decreased $0.8 million, or 4%, during the six months ended June 30, 2025 compared to the same period in 2024 due to a $4.8 million decrease in sponsorship and advertising revenue, partially offset by a $4.1 million increase in fee-based revenue driven by the expansion of our fee-based BPO arrangements.
Previous wording
increases. We recognize these expenditures in the period when a marketing partner’s referral results in the submission of a health insurance application. Advertising costs for our marketing partner channels are expensed as incurred. Increases in submitted applications resulting from marketing partner referrals or visitors to our website from our direct marketing channel have in the past, and could in the future, result in marketing and advertising expenses being significantly higher than our expectations.
Current wording
Some of our marketing partners have tiered arrangements where the amount we pay the marketing partner per submitted application increases as the volume of submitted applications we receive from the marketing partner increases. We recognize these expenditures in the period when a marketing partner’s referral results in the submission of a health insurance application. Advertising costs for our marketing partner channels are expensed as incurred. Increases in submitted applications resulting from marketing partner referrals or visitors to our website from our direct marketing channel have in the past, and could in the future, result in marketing and advertising expenses being significantly higher than our expectations.
Previous wording
Three Months Ended March 31, 2025 and 2024 – Marketing and advertising expenses increased $2.5 million, or 6%, during the three months ended March 31, 2025 compared to the same period in 2024, primarily driven by a $3.9 million increase in variable advertising costs, partly offset by a $1.0 million decrease in fixed marketing costs. The increase in variable advertising costs was due to an increased investment in our direct marketing channels and an increase in affiliate partner channels.
Current wording
Six Months Ended June 30, 2025 and 2024 – Marketing and advertising expenses decreased $2.9 million, or 4%, during the six months ended June 30, 2025 compared to the same period in 2024, driven by a $0.7 million decrease in operating costs due to lower software and consulting expenses, a $0.7 million decrease in fixed marketing costs, a $0.6 million decrease in cost of revenue and a $0.5 million decrease in variable advertising costs. The decrease in variable advertising costs was due to a decreased spend in our affiliate partner channels partially offset by increased investment in direct marketing channels.
Previous wording
Three Months Ended March 31, 2025 and 2024 – Customer care and enrollment expenses increased $4.3 million, or 13%, during the three months ended March 31, 2025 compared to the same period in 2024. This increase was primarily due to a $5.8 million increase in personnel and compensation costs associated with a higher number of screeners, licensed benefit advisors and retention advisors, partially offset by a $1.3 million decrease in other operating expenses due to lower consulting and licensing costs.
Current wording
Six Months Ended June 30, 2025 and 2024 – Customer care and enrollment expenses increased $3.7 million, or 6%, during the six months ended June 30, 2025 compared to the same period in 2024. This increase was primarily due to a $5.0 million increase in personnel and compensation costs associated with a higher number of screeners, licensed benefit advisors and retention advisors to support the continued momentum in consumer demand during the first quarter of 2025 Medicare Advantage OEP, partially offset by a $1.0 million decrease in other operating expenses due to lower recruiting and licensing costs, offset by higher software costs, and a $0.4 million decrease in stock based compensation expense.
Previous wording
Three Months Ended March 31, 2025 and 2024 – Technology and content expenses decreased $0.7 million, or 5%, during the three months ended March 31, 2025 compared to the same period in 2024, primarily driven by a $0.4 million decrease in amortization of internally developed software, a $0.3 million decrease in personnel and compensation costs and a $0.3 million decrease in stock-based compensation expense, partly offset by an increase of $0.4 million in other operating costs, particularly consulting expenses.
Current wording
Six Months Ended June 30, 2025 and 2024 – Technology and content expenses decreased $2.4 million, or 9%, during the six months ended June 30, 2025 compared to the same period in 2024, primarily driven by a $1.9 million decrease in personnel and compensation costs, a $1.2 million decrease in amortization of internally developed software and a $0.4 million decrease in stock-based compensation expense, partly offset by an increase of $1.1 million in other operating costs, particularly consulting expenses.
Previous wording
General and administrative expenses include compensation and benefits costs for personnel working in our executive, finance, investor relations, government affairs, legal, compliance, human resources, facilities and internal information technology departments. These expenses also include fees paid for outside professional services, including audit, tax, legal, government affairs and information technology fees.
Current wording
General and administrative expenses include compensation and benefits costs for personnel working in our executive, finance, investor relations, government affairs, legal, compliance, human resources, facilities and internal
Previous wording
Three Months Ended March 31, 2025 and 2024 – General and administrative expenses decreased $2.3 million, or 12%, during the three months ended March 31, 2025 compared to the same period in 2024, primarily driven by a $1.1 million decrease in professional fees and a $1.1 million decrease in stock-based compensation expense.
Current wording
Three Months Ended June 30, 2025 and 2024 – General and administrative expenses decreased $0.8 million, or 4%, during the three months ended June 30, 2025 compared to the same period in 2024, primarily driven by a $0.8 million decrease in stock based compensation expense and a $0.5 million decrease in facilities and other operating expenses, partly offset by an increase of $0.6 million in personnel and compensation costs.
Previous wording
Three Months Ended March 31, 2025 and 2024 – We incurred no impairment, restructuring and other charges for the three months ended March 31, 2025 compared to $6.3 million of impairment, restructuring and other charges for the same period in 2024. These charges in 2024 consisted of $5.5 million of impairment related to several of our leased office spaces, which comprised of $5.1 million of operating lease right-of-use asset impairments and $0.4 million of property and equipment impairments. We also incurred $0.8 million of restructuring charges which were primarily related to employee termination benefits as a result of our cost-reduction efforts during the first quarter of fiscal 2024.
Current wording
Six Months Ended June 30, 2025 and 2024 – We incurred $1.6 million impairment, restructuring and other charges for the six months ended June 30, 2025 compared to $9.3 million for the same period in 2024. The charges in 2025 consisted of $0.4 million of impairment charges related to our operating lease right-of-use assets. We also incurred $1.1 million of restructuring charges which were primarily related to employee termination benefits as a result of macroeconomic changes and internal restructuring initiatives. The charges in 2024 consisted of $7.4 million of impairment related to several of our leased office spaces, specifically consisting of $6.9 million of operating lease right-of-use asset impairments and $0.5 million of property and equipment impairments. We also incurred $1.9 million of restructuring charges which were primarily related to employee termination benefits as a result of cost-reduction efforts during the first quarter of 2024.
Previous wording
Three Months Ended March 31, 2025 and 2024 –Interest expense decreased by $0.2 million, or 6%, during the three months ended March 31, 2025 compared to the same period in 2024, primarily driven by lower interest rates.
Current wording
Three Months Ended June 30, 2025 and 2024 –Interest expense decreased by $0.5 million, or 18%, three months ended June 30, 2025 compared to the same period in 2024, primarily driven by a $0.2 million decrease in debt interest expense as a result of lower interest rates.
Previous wording
Three Months Ended March 31, 2025 and 2024 – Other income, net, was $1.6 million during the three months ended March 31, 2025, compared to $2.4 million during the three months ended March 31, 2024. The change was primarily due to a $0.8 million decrease in interest income as a result of less favorable short-term investment returns and a decline in average short-term investment balances during the three months ended March 31, 2025.
Current wording
Three Months Ended June 30, 2025 and 2024 – Other income, net, was $1.3 million during the three months ended June 30, 2025, compared to other income, net, of $2.3 million during the three months ended June 30, 2024. The change was primarily due to a $0.9 million decrease in interest income as a result of less favorable short-term investment returns and a decline in average short-term investment balances during the three months ended June 30, 2025.
Previous wording
Provision for (Benefit from) Income Taxes
Current wording
Benefit from Income Taxes
Previous wording
Our provision for (benefit from) income taxes is summarized as follows (dollars in thousands):
Current wording
Our benefit from income taxes is summarized as follows (dollars in thousands):
Previous wording
Three Months Ended March 31, 2025 and 2024 – Our effective tax rate of 47.7% for the three months ended March 31, 2025 was higher than our 7.3% effective tax rate for the three months ended March 31, 2024 primarily due to fluctuations in stock-based compensation adjustments, research and developments credits and state taxes. Our effective tax rate for the three months ended March 31, 2025 was higher than the statutory federal tax rate due primarily to state taxes, nondeductible stock-based compensation, lobbying expenses and prior year discrete adjustments, partially offset by research and development credits.
Current wording
Three Months Ended June 30, 2025 and 2024 – Our effective tax rate of 27.7% for the three months ended June 30, 2025 was higher than our 1.8% effective tax rate for the three months ended June 30, 2024 primarily due to a change from using the actual effective tax rate method to calculate our provision for income taxes for the period ended June 30, 2024 to using an annualized effective tax rate method for the period ended June 30, 2025 and changes in valuation allowance during the period ended June 30, 2024. Our effective tax rate for the three months ended June 30, 2025 was higher than the statutory federal tax rate due primarily to state taxes, nondeductible stock-based compensation, and lobbying expenses, partially offset by research and development credits and discrete adjustments.
Previous wording
The Medicare segment consists primarily of commissions earned as the broker of record from our sale of Medicare-related health insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, and to a lesser extent, ancillary products sold to our Medicare-eligible beneficiaries, including but not limited to, dental and vision insurance and hospital indemnity plans. Our commissions may include certain bonus payments, which are generally based on attaining predetermined target sales levels or other objectives, as determined by the health insurance carriers. The Medicare segment also consists of amounts earned in connection with our advertising program that allows Medicare-related carriers to purchase advertising on a separate website developed, hosted and maintained by us or pursuant to which we perform other services as marketing and our delivery and sale to third parties of Medicare-related health insurance leads generated by our ecommerce platforms and our marketing activities. The Medicare segment also generates revenue from our fee-based BPO services where we are not the broker of record and cash is collected in advance or in close proximity to when revenue is recognized.
Current wording
The Medicare segment consists primarily of commissions earned as the broker of record from our sale of Medicare-related health insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, and to a lesser extent, ancillary products sold to our Medicare-eligible beneficiaries, including but not limited to, dental and vision insurance and hospital indemnity plans. Our commissions may include certain bonus payments, which are generally based on attaining predetermined target sales levels or other objectives, as determined by the health insurance carriers. The Medicare segment also consists of amounts earned in connection with our advertising program that allows Medicare-related carriers to purchase advertising on a separate website developed, hosted and maintained by us or pursuant to which we perform other services as marketing and our delivery and sale to third parties of Medicare-related health insurance leads generated by our
Previous wording
A reconciliation of our segment gross profit to the Condensed Consolidated Statements of Comprehensive Income (Loss) for the periods presented is as follows (in thousands):
Current wording
A reconciliation of our segment gross profit to the Condensed Consolidated Statements of Comprehensive Loss for the periods presented is as follows (in thousands):
Previous wording
Our Medicare segment gross profit was $35.7 million for the three months ended March 31, 2025, an increase of $13.7 million or 62%, compared to the same period in 2024 primarily driven by:
Current wording
Our Medicare segment gross profit was $19.1 million for the three months ended June 30, 2025, an increase of $3.9 million or 26%, compared to the same period in 2024 primarily driven by:
Showing the first 40 of 66 pairs. Open the source sections for the rest.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
◦a 47% decline in Medicare Supplement approved members, primarily caused by the shift of some Medicare Supplement broker of record arrangements to fee-based arrangements within our Amplify platform, which are not reflected as approved members, and
Current report — wording carried from elsewhere
•a 17% and 11% decline year-over-year in individual and family plan and small business plan estimated membership, respectively, primarily due to a decrease in approved applications and unfavorable retention trends in individual and family plans.
Current report — wording carried from elsewhere
Three Months Ended June 30, 2025 and 2024 – Technology and content expenses decreased $1.7 million, or 13%, during the three months ended June 30, 2025 compared to the same period in 2024, primarily driven by a $1.5 million decrease in personnel and compensation costs and a $0.8 million decrease in amortization of internally developed software, partly offset by an increase of $0.8 million in other operating costs, particularly consulting expenses.
Current report — wording carried from elsewhere
information technology departments. These expenses also include fees paid for outside professional services, including audit, tax, legal, government affairs and information technology fees.
Current report — wording carried from elsewhere
Three Months Ended June 30, 2025 and 2024 – We incurred $1.6 million in impairment, restructuring and other charges for the three months ended June 30, 2025 compared to $3.0 million for the same period in 2024. The charges in 2025 consisted of $0.4 million of pre-tax operating lease right-of-use asset impairment charges related to certain vacated leased office spaces. We also incurred $1.1 million of restructuring charges which were primarily related to employee termination benefits as a result of macroeconomic changes and internal restructuring initiatives. The charges in 2024 consisted of $1.9 million of impairment charges related to our leased office spaces, specifically related to our operating lease right-of-use assets. We also incurred $1.1 million of restructuring charges which were primarily related to employee termination benefits as a result of continued cost reduction efforts since the beginning of 2024.
Current report — wording carried from elsewhere
Six Months Ended June 30, 2025 and 2024 – Other income, net, was $2.9 million during the six months ended June 30, 2025, compared to $4.7 million during the six months ended June 30, 2024. The change was primarily due to a $1.7 million decrease in interest income as a result of less favorable short-term investment returns and a decline in average short-term investment balances during the six months ended June 30, 2025.
Current report — wording carried from elsewhere
ecommerce platforms and our marketing activities. The Medicare segment also generates revenue from our fee-based BPO services where we are not the broker of record and cash is collected in advance or in close proximity to when revenue is recognized.
Current report — wording carried from elsewhere
•a $2.8 million decrease in Medicare segment other revenue driven by a $2.7 million decline in sponsorship and advertising revenue,
Current report — wording carried from elsewhere
Pursuant to an investment agreement dated February 17, 2021 with Echelon Health SPV, LP (“H.I.G.”) (the “H.I.G. Investment Agreement”), we issued and sold 2,250,000 shares of Series A convertible preferred stock
Current report — wording carried from elsewhere
enrollment period as a result of certain qualifying events, such as losing employer-sponsored health insurance or moving to another state. Extended open enrollment or special enrollment periods may change the seasonality of our individual and family health insurance business.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
◦partially offset by a 59% and 26% decline in Medicare Supplement and Medicare Part D approved members, respectively, primarily caused by the shift of some Medicare Supplement
Previous report — wording carried elsewhere
broker of record arrangements to fee-based arrangements within our Amplify platform and a shift away from standalone Medicare Part D plans.
Previous report — wording carried elsewhere
Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024, for a complete discussion of our other critical accounting policies and estimates.
Previous report — wording carried elsewhere
Some of our marketing partners have tiered arrangements where the amount we pay the marketing partner per submitted application increases as the volume of submitted applications we receive from the marketing partner
Previous report — wording carried elsewhere
•a $1.1 million decrease in E&I segment revenue; and
Previous report — wording carried elsewhere
another Medicare Advantage plan or disenroll from their Medicare Advantage plan and return to the Original Medicare program. Any changes to or additional enrollment periods may change the seasonality of our business.