eHealth, Inc.
For the period ended Sep 30, 2025. Filed Nov 6, 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.
Sep 30, 2025 · Filed Nov 6, 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 2025-06-30; filed 2025-08-07.
0001333493-25-000094
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001333493-25-000111
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 254 previous paragraphs and 260 current paragraphs.
134 unchanged; 90 reworded; 27 added; 27 removed; 3 previous and 9 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 (27)
Current report
Additionally, enrollment volume in our Employer and Individual (“E&I”) segment continued to decline during the third quarter of 2025 due to shifts in our marketing channel mix and market conditions. We have experienced a significant decline in volume from certain marketing platforms, such as organic search engine optimization, and have intentionally reduced marketing spend for the E&I segment as a result of declining eligibility and rising premiums in response to the One Big Beautiful Bill Act (“OBBBA”), which was signed into law on July 4, 2025. As part of our diversification efforts, we continue to focus on supporting growth and enhancements for Individual Coverage Health Reimbursement Arrangement (“ICHRA”) opportunities. ICHRA involves business-to-business arrangements that entail building a growth pipeline with brokers and employers, which is expected to result in a longer execution lead time compared to our traditional direct-to-consumer arrangements.
Current report
◦a 3% decline in Medicare Supplement approved members primarily driven by an intentional decrease in variable marketing spend, partially offset by a 6% increase in Medicare Supplement broker of record submissions compared to the same period last year; and
Current report
•a 35% decline in individual and family plan approved members primarily due to a decline in volume from shifts in our marketing channel mix and current market conditions;
Current report
•an 8% increase in small business health insurance approved members primarily due to an increase in average group size for existing plans.
Current report
•a 2% decrease in Medicare Advantage plans, primarily due to a decline in the ratio of approved members who became paying members, partially offset by favorable carrier and contract mix;
Current report
•a 4% decrease in non-qualified health plans, primarily due to unfavorable retention trends for the third quarter 2025 cohorts compared to the third quarter 2024 cohorts;
Current report
•a 2% increase in small business plans due to favorable carrier and contract mix.
Current report
•a $22, or 4%, increase in variable marketing cost per MA-equivalent approved member primarily due to:
Current report
•a $14, or 12%, decrease in variable marketing cost per IFP-equivalent approved member, primarily driven by lower variable marketing spend year-over-year.
Current report
◦a 35% decline in individual and family plan approved members, partially offset by a 5% and 8% increase in ancillary and small business insurance plan approved members, respectively.
Current report
◦higher net adjustment revenue from prior periods enrollments, which was $12.1 million during the three months ended September 30, 2025 compared to $1.1 million during the same period in 2024; and
Current report
◦partially offset by an overall 27% decrease in Medicare plan approved members, as well as a decrease in constrained LTV of commissions per approved member for Medicare Advantage and Medicare Part D prescription plan approved members.
Current report
Other revenue decreased $3.5 million, or 35%, during the three months ended September 30, 2025 compared to the same period in 2024 primarily due to a $2.7 million decrease in sponsorship and advertising revenue.
Current report
◦higher net adjustment revenue from prior periods, which was $39.1 million during the nine months ended September 30, 2025 compared to $12.8 million during the same period in 2024; and
Current report
◦a 28% and 12% decline in individual and family plan and small business plan approved members, respectively;
Current report
◦lower net adjustment revenue from prior periods enrollments, which was $1.3 million during the nine months ended September 30, 2025 compared to $2.4 million in the same period in 2024;
Current report
◦partially offset by an increase in ancillary approved members and higher constrained LTV of commissions per approved member for dental and small business plans.
Current report
*Percentage calculated is not meaningful.
Current report
◦higher net adjustment revenue from prior periods enrollments, which was $12.1 million during the three months ended September 30, 2025 compared to $1.1 million during the same period in 2024; and
Current report
•partially offset by a $3.3 million decrease in Medicare segment revenue.
Current report
◦partially offset by an overall 4% decrease in Medicare plan approved members and a decline in constrained LTV of commissions per approved member for Medicare Advantage and Medicare Part D prescription plans.
Current report
•a $16.8 million increase in Medicare segment revenue; and
Current report
•a $6.5 million decrease in variable marketing and advertising expenses;
Current report
◦the continued execution of our initiatives to attract and retain beneficiaries which resulted in a larger number of screeners and licensed benefit and retention advisors to support the consumer demand during the first quarter of 2025 Medicare Advantage OEP; and
Current report
◦an increased number of licensed benefit and retention advisors in preparation for the 2026 AEP;
Current report
•lower constrained LTV of commissions per approved member for qualified health plans, non-qualified health plans and short-term health plans, partially offset by higher constrained LTV of commissions per approved member for dental and small business plans.
Current report
Changes in timing of the Medicare or individual and family health plan enrollment periods, adoption of new or special enrollment periods, changes in eligibility and subsidies applicable to the purchase of health insurance, and changes in the laws and regulations that govern the sale of health insurance may occur from time to time, and any such change may change the seasonality of our business.
Removed paragraphs (27)
Previous report
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 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
Previous report
•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 report
•a 7% decrease in non-qualified health plans, primarily due to a decline in enrollment quality as well as unfavorable retention trends;
Previous report
•an 11%, 4% and 2% increase in vision, small business and dental plans, respectively.
Previous report
◦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 report
◦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 report
•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 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,
Previous 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
Previous 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
Previous report
◦improved constrained LTV of commissions per approved member for Medicare Advantage and Medicare Supplement products,
Previous report
◦partially offset by a 19%, 11%, and 6% decrease in Medicare Advantage, Medicare Supplement and Medicare Part D plan approved members, respectively.
Previous 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.
Previous report
◦improved constrained LTV of commissions per approved member for Medicare Advantage and Medicare Supplement products, and
Previous 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.
Previous 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,
Previous 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
Previous 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
Previous report
◦improved constrained LTV of commissions per approved member for Medicare Advantage and Medicare Supplement products,
Previous report
•partially offset by a $1.2 million decrease in Medicare segment revenue.
Previous report
◦a 10% increase in Medicare Advantage plan approved members, slightly offset by a decline in approved members for Medicare Supplement and Medicare Part D plans,
Previous report
◦improved constrained LTV of commissions per approved member for Medicare Advantage and Medicare Supplement products.
Previous report
•a $20.1 million increase in Medicare segment revenue and a $1.0 million decrease in variable marketing and advertising expenses,
Previous report
•a 26% and 21% decline in individual and family plan and small business plan approved members, respectively, compared to the same period in 2024; and
Previous report
•lower net adjustment revenue year-over-year, which was $1.2 million for the six months ended June 30, 2025 compared to $2.3 million in six months ended June 30, 2024;
Previous report
Six Months Ended June 30, 2024 – Net cash provided by operating activities was $38.6 million during the six months ended June 30, 2024, primarily driven by changes in net operating assets and liabilities of $59.5 million
Reworded paragraphs (90)
Previous wording
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 wording
During the second and third quarters of 2025, Medicare enrollment volume was lower compared to the same periods in 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 in 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 and third quarters 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.
Previous wording
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 wording
We expect to experience another dynamic AEP which will present an 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. During the third quarter of 2025, we largely completed our preparations for the 2026 AEP. We have achieved our benefit advisor hiring and training goals with a benefit advisor mix that is more tenured relative to last year and have continued to strengthen and expand our brand-driven marketing strategy, including integrating our brand message throughout our omni-channel platform. We have also integrated artificial intelligence (“AI”) across several components of our telephonic enrollment platform, enabling us to utilize AI in assisting beneficiaries during the AEP. Additionally, we are focusing on facilitating seamless transitions between our online and telephonic environments and have continued to expand our customer service and retention team to further improve the overall consumer experience.
Previous wording
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 wording
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 served as chief executive officer until September 18, 2025 and remains with the Company as an executive advisor until December 31, 2025 to assist with the transition. Mr. Soistman also continues to serve as a member of the Company’s Board of Directors. On September 18, 2025, the Board of Directors approved the appointment of Mr. Duke as a member of the Board, effective immediately. 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.
Previous 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:
Current wording
Three Months Ended September 30, 2025 and 2024 – Total approved members declined 21% during the three months ended September 30, 2025 compared to the same period in 2024, driven by:
Previous wording
•an 18% decline in Medicare approved members, primarily resulting from:
Current wording
•a 27% decline in Medicare approved members, primarily resulting from:
Previous wording
◦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 wording
◦a 29% decline in Medicare Advantage approved members due to a 29% decrease in Medicare Advantage broker of record submissions as a result of intentionally decreased variable marketing spend in response to the 2025 regulatory changes that reduced the special enrollment period options for dual-eligible beneficiaries, which previously represented a meaningful share of our second and third quarter Medicare Advantage enrollments;
Previous wording
◦a 6% decline in Medicare Part D approved members due to the continued shift away from standalone Medicare Part D plans.
Current wording
◦a 13% decline in Medicare Part D approved members due to the continued shift away from standalone Medicare Part D plans.
Previous wording
•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 wording
•a 5% increase 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; and
Previous wording
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 wording
Nine Months Ended September 30, 2025 and 2024 – Total approved members declined 3% during the nine months ended September 30, 2025 compared to the same period in 2024, driven by:
Previous wording
•4% growth in Medicare approved members, primarily as a result of:
Current wording
•a 4% decline in Medicare approved members, primarily as a result of:
Previous wording
◦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 wording
◦a 1% decline in Medicare Advantage approved members due to a 5% decrease in Medicare Advantage broker of record submissions primarily due to decreased volume in the second and third quarters as the result of the 2025 regulations impacting dual-eligible enrollment rules, partially offset by increased consumer demand during the Medicare Advantage OEP in the first quarter of 2025 as well as improved online unassisted conversion rates year-over-year;
Previous wording
◦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 wording
◦a 41% decline in Medicare Supplement approved members, primarily caused by the shift—beginning in the second quarter of 2024—of some Medicare Supplement broker of record arrangements to fee-based arrangements within our Amplify platform, which are not reflected as approved members; and
Previous wording
◦a 20% decline in Medicare Part D approved members due to the continued shift away from standalone Medicare Part D plans.
Current wording
◦a 19% decline in Medicare Part D approved members due to the continued shift away from standalone Medicare Part D plans.
Previous 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.
Current wording
•a 28% and 12% decline in individual and family plan and small business health insurance plan approved members, respectively, primarily due to a decline in volume from shifts in our marketing channel mix and current market conditions; and
Previous 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;
Current wording
•a 13% increase 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 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 wording
•a 33% increase in Medicare Supplement plans, primarily due to favorable carrier and contract mix, favorable retention assumptions for the third quarter 2025 cohorts compared to the third quarter 2024 cohorts and a decrease in the constraint from 9% to 4% due to observed LTV trends;
Previous wording
•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 wording
•a 14% decrease in qualified health plans, primarily due to an increase in the constraint from 4% to 10% due to observed unfavorable retention trends as well as unfavorable carrier and contract mix;
Previous 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
Current wording
•a 24% 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;
Previous 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;
Current wording
•a 6% increase in dental plans due to favorable retention assumptions for third quarter 2025 cohorts compared to the third quarter 2024 cohorts; and
Previous 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:
Current wording
September 30, 2025 compared to September 30, 2024 – Total estimated membership declined 4% as of September 30, 2025 compared to September 30, 2024 due to:
Previous wording
•a 2% decline year-over-year in Medicare estimated membership primarily due to:
Current wording
•a 3% decline year-over-year in Medicare estimated membership, primarily due to a decrease in approved applications for all Medicare products, and
Previous wording
The numerator used to calculate each member acquisition metric discussed above is the portion of the respective operating expenses for CC&E and marketing and advertising that is directly related to member acquisition for our sale of Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans (collectively, “Medicare Plans”) and for all individual and family major medical plans and short-term health insurance plans (collectively, “IFP Plans”), respectively, for which we are the broker of record. The denominator used to calculate each metric is based on a derived metric that represents the relative value of the new members acquired. For Medicare Plans, we call this derived metric Medicare Advantage (“MA”)-equivalent approved members, and for IFP Plans, we call this derived metric IFP-equivalent approved members. The calculations for MA-equivalent approved members and for IFP-equivalent approved members are based on the weighted number of approved members for Medicare Plans and IFP Plans during the period, with the number of approved members adjusted based on the relative LTV of the product they are purchasing. Since the LTV for any product fluctuates from period to period, the weight given to each product was determined based on their relative LTVs at the time of our adoption of Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers.
Current wording
acquisition for our sale of Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans (collectively, “Medicare Plans”) and for all individual and family major medical plans and short-term health insurance plans (collectively, “IFP Plans”), respectively, for which we are the broker of record. The denominator used to calculate each metric is based on a derived metric that represents the relative value of the new members acquired. For Medicare Plans, we call this derived metric Medicare Advantage (“MA”)-equivalent approved members, and for IFP Plans, we call this derived metric IFP-equivalent approved members. The calculations for MA-equivalent approved members and for IFP-equivalent approved members are based on the weighted number of approved members for Medicare Plans and IFP Plans during the period, with the number of approved members adjusted based on the relative LTV of the product they are purchasing. Since the LTV for any product fluctuates from period to period, the weight given to each product was determined based on their relative LTVs at the time of our adoption of Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers.
Previous 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:
Current wording
Three Months Ended September 30, 2025 and 2024 – Total acquisition cost per MA-equivalent approved member increased $233, or 19%, during the three months ended September 30, 2025 compared to the same period in 2024, driven by:
Previous wording
•a $65, or 11%, increase in CC&E cost per MA-equivalent approved member primarily due to:
Current wording
•a $211, or 29%, increase in CC&E cost per MA-equivalent approved member primarily due to:
Previous wording
◦the elevated seasonal decline in Medicare Advantage approved members driven by the dual-eligible regulations that became effective in 2025,
Current wording
◦the decline in the number of Medicare Advantage approved members driven by the dual-eligible regulations that became effective in 2025;
Previous 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.
Current wording
◦partially offset by 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 improved conversion rates in our online unassisted channel.
Previous 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:
Current wording
Three Months Ended September 30, 2025 and 2024 – Total acquisition cost per IFP-equivalent approved member increased $60, or 13%, during the three months ended September 30, 2025 compared to the same period in 2024, driven by:
Previous 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
Current wording
•a $74, or 21%, 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
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:
Current wording
Three Months Ended September 30, 2025 and 2024 – Commission revenue decreased $1.0 million, or 2%, during the three months ended September 30, 2025 compared to the same period in 2024 due to:
Previous wording
•a $3.7 million, or 60%, decrease in our E&I segment commission revenue driven by:
Current wording
•a $1.1 million, or 22%, decrease in our E&I segment commission revenue driven by:
Previous wording
◦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 wording
◦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 and small business plans; and
Previous wording
•a $1.6 million, or 3%, increase in our Medicare segment commission revenue driven by:
Current wording
•a $0.1 million increase in our Medicare segment commission revenue driven by:
Previous wording
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 wording
Nine Months Ended September 30, 2025 and 2024 – Commission revenue increased $14.9 million, or 8%, during the nine months ended September 30, 2025 compared to the same period in 2024 due to:
Previous wording
•a $20.6 million, or 17%, increase in our Medicare segment commission revenue driven by:
Current wording
•a $20.6 million, or 13%, increase in our Medicare segment commission revenue driven by:
Previous wording
◦an overall 4% increase in Medicare plan approved members, specifically driven by 10% growth in Medicare Advantage approved members,
Current wording
◦partially offset by an overall 4% decrease in Medicare plan approved members, specifically driven by 41% decline in Medicare Supplement plan approved members.
Previous wording
•a $4.7 million, or 29%, decrease in our E&I segment commission revenue driven by:
Current wording
•a $5.7 million, or 27%, decrease in our E&I segment commission revenue driven by:
Previous 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.
Current wording
Other revenue decreased $4.4 million, or 14%, during the nine months ended September 30, 2025 compared to the same period in 2024 due to a $7.4 million decrease in sponsorship and advertising revenue, partially offset by a $3.4 million increase in fee-based revenue driven by the expansion of our fee-based business process outsourcing services (“BPO”) arrangements.
Previous wording
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 wording
Three Months Ended September 30, 2025 and 2024 – Marketing and advertising expenses decreased $5.3 million, or 18%, during the three months ended September 30, 2025 compared to the same period in 2024, primarily driven by a $5.8 million decrease in variable advertising costs, partly offset by an increase of $0.4 million 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.
Previous 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.
Current wording
Nine Months Ended September 30, 2025 and 2024 – Marketing and advertising expenses decreased $8.2 million, or 9%, during the nine months ended September 30, 2025 compared to the same period in 2024, driven by a $6.3 million decrease in variable advertising costs, a $0.8 million decrease in fixed marketing costs, a $0.7 million decrease in operating costs due to lower consulting and software expenses and a $0.5 million decrease in cost of revenue. The decrease in variable advertising costs was primarily due to decreased spend in our affiliate partner channels partially offset by increased investment in direct marketing channels.
Previous wording
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 wording
Three Months Ended September 30, 2025 and 2024 – Customer care and enrollment expenses decreased $2.5 million, or 6%, during the three months ended September 30, 2025 compared to the same period in 2024, primarily due to a $3.3 million decrease in personnel and compensation costs, partly offset by a $1.0 million increase in other operating expenses due to higher consulting costs. The decline in personnel and compensation costs was due to the implementation of a more flexible structure in our telesales organization to adjust for anticipated enrollment volumes, partially offset by costs associated with a more tenured benefit advisor group and an increased number of retention advisors ahead of the 2026 AEP.
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Current report — wording carried from elsewhere
The numerator used to calculate each member acquisition metric discussed above is the portion of the respective operating expenses for CC&E and marketing and advertising that is directly related to member
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◦the decline in the number of Medicare Advantage approved members driven by the dual-eligible regulations that became effective in 2025;
Current report — wording carried from elsewhere
◦lower constrained LTV of commissions per approved member for qualified health plans, non-qualified health plans and short-term health plans; and
Current report — wording carried from elsewhere
◦partially offset by cost reduction efforts supported by our more flexible telesales organization structure during the second and third quarters of 2025.
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•a $1.3 million decrease in E&I segment revenue;
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•partially offset by a $0.2 million decrease in variable marketing expense and a $0.2 million decrease in segment CC&E expense.
Current report — wording carried from elsewhere
As part of the Credit Agreement, we incur a $0.3 million fee per annum, payable annually. The loans under the Credit Agreement bear interest, at our option, at either a rate based on the Adjusted Term SOFR or a base rate, in each case plus a margin. The base rate is the highest of the prime rate, the federal funds rate plus 0.50% and the
Current report — wording carried from elsewhere
three-month Adjusted Term SOFR plus 1.00%. The Second Amendment reduced the margin from 7.50% to 7.00% for Adjusted Term SOFR loans and from 6.50% to 6.00% for base rate loans. As of September 30, 2025, the interest rate was 11.46%. For the three and nine months ended September 30, 2025 we incurred interest expense of $2.0 million and $6.1 million, respectively. For the three and nine months ended September 30, 2024 we incurred $2.3 million and $6.9 million, respectively. As of September 30, 2025, the carrying value of the loan under the Credit Agreement was$69.4 million and we were in compliance with our loan covenants. See Note 12 –Debtin our Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information regarding the Credit Agreement.
Current report — wording carried from elsewhere
receipts associated with new and continuing members may be less than the cash outlays to acquire new members and could adversely impact our operating cash flows.
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Previous report — wording carried elsewhere
◦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.
Previous report — wording carried 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
Previous report — wording carried 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.