eHealth, Inc.

Previous wording

Entering fiscal 2026, we aligned the organization around a clear strategic framework designed to leverage our core strengths to build a strong foundation for future growth, adapt to a structurally evolving Medicare market and prioritize sustainable operating cash flow generation. During the second quarter of 2026, we launched our lifetime advisory operating model, improved second quarter operating cash flow year-over-year, and advanced diversification initiatives such as Individual Coverage Health Reimbursement Arrangement (“ICHRA”) capabilities and ancillary product offerings.

Current wording

Entering fiscal 2026, we aligned the organization around a clear strategic framework designed to leverage our core strengths to build a strong foundation for future growth, adapt to a structurally evolving Medicare market and prioritize sustainable operating cash flow generation. During the second quarter of 2026, we launched our lifetime advisory operating model, and through the third quarter of 2026, we have improved our operating cash flow year-over-year and advanced diversification initiatives such as Custom Health Option and Individual Care Expense, or “CHOICE” arrangements (formerly Individual Coverage Health Reimbursement Arrangements or “ICHRAs”) and ancillary product offerings.

Previous wording

We believe our lifetime advisory model could over time drive improved member retention and increased member lifetime value, as well as build on consumer brand recognition and member loyalty for our Medicare segment. As part of this initiative, we are also focusing on broadening our ancillary product and service selection to offer more comprehensive coverage options to consumers. During the second quarter of 2026, we expanded our product portfolio with the introduction of our final expense insurance offering, which covers end-of-life insurance. We also observed encouraging early engagement trends related to ancillary product cross-sell activities through our lifetime advisory model. While still early, we believe this model could create opportunities to enhance cross-selling of ancillary products. Cross-sell rates represent advisor-assisted ancillary product applications submitted for consumers age 65 and older in relation to the number of advisor-assisted applications for major medical Medicare products, including Medicare Advantage and Medicare Supplement plans. Additionally, in the under 65 market, we continue to pursue measured investment in ICHRA capabilities that we believe will allow us to better serve the employer market and extend our platform to brokers with strong employer relationships.

Current wording

We believe our lifetime advisory model could over time drive improved member retention and increased member lifetime value, as well as build on consumer brand recognition and member loyalty for our Medicare segment. As part of this initiative, we are also focusing on broadening our ancillary product and service selection to offer more comprehensive coverage options to consumers. For example, during the second quarter of 2026, we expanded our product portfolio with the introduction of our final expense insurance offering, which covers end-of-life insurance. While still early, we observed encouraging ancillary product cross-selling trends during the second and third quarters of 2026, supporting our belief that the lifetime advisory model could expand cross-selling opportunities over time. Cross-sell rates represent advisor-assisted ancillary product applications submitted for consumers age 65 and older in relation to the number of advisor-assisted applications for major medical Medicare products, including Medicare Advantage and Medicare Supplement plans.

Previous wording

During the first quarter of 2026, we implemented a company-wide fixed cost expense reduction initiative in which we eliminated approximately 14% of our workforce and targeted reductions in vendor spend. We have recognized cost savings from this initiative during the first six months of 2026, and we expect to continue to recognize savings throughout the rest of the fiscal year.

Current wording

Additionally, during the first quarter of 2026, we implemented a company-wide fixed cost expense reduction initiative in which we eliminated approximately 14% of our workforce and targeted reductions in vendor spend. The

Previous wording

During the second quarter of 2026, enrollment volume in our Medicare products was lower than the second quarter of 2025. This was consistent with our expectations and our lifetime advisory model, which prioritizes marketing spend in the first and fourth quarters to maximize returns on investment and focuses on benefit advisor engagement with existing members during the second and third quarters.

Current wording

During the third quarter of 2026, enrollment volume in our Medicare products was lower than the third quarter of 2025. This was consistent with our expectations and our lifetime advisory model, which prioritizes marketing spend in the first and fourth quarters to maximize returns on investment and focuses on benefit advisor engagement with existing members during the second and third quarters. During the third quarter of 2026, we largely completed our preparations for the 2027 Annual Enrollment Period (“AEP”) and have achieved our benefit advisor hiring and training goals. We also continued to leverage artificial intelligence (“AI”) and automation to improve the efficiency of our technology platform and operations. As part of these efforts, we launched Content Genius, an AI-enabled platform that streamlines the collection, validation and publication of Medicare Advantage plan information used by our proprietary plan recommendation technology across our consumer- and advisor-facing experiences. The platform is designed to improve processing speed and accuracy and reduce the cost and manual effort associated with preparing plan content for AEP.

Previous wording

Three Months Ended June 30, 2026 and 2025 – Total approved members declined 36% during the three months ended June 30, 2026 compared to the same period in 2025, driven by:

Current wording

Three Months Ended September 30, 2026 and 2025 – Total approved members declined 47% during the three months ended September 30, 2026 compared to the same period in 2025, driven by:

Previous wording

◦a 45% decline in Medicare Advantage and Medicare Supplement approved members resulting from an intentional reduction in variable marketing spend, and

Current wording

◦a 60% and 41% decline in Medicare Advantage and Medicare Supplement approved members, respectively, resulting from an intentional reduction in variable marketing spend which resulted in a 61% and 43% decline in Medicare Advantage and Medicare Supplement broker of record submissions, respectively; and

Previous wording

◦a 73% decline in Medicare Part D approved members due to the continuous impact of regulatory changes that adversely impacted standalone Medicare Part D plan economics and availability, resulting in beneficiaries shifting away from standalone Medicare Part D plans towards Medicare Advantage plans that include prescription drug coverage.

Current wording

◦a 75% decline in Medicare Part D approved members due to the continuous impact of regulatory changes that adversely impacted standalone Medicare Part D plan economics and availability, resulting in beneficiaries shifting away from standalone Medicare Part D plans towards Medicare Advantage plans that include prescription drug coverage.

Previous wording

•a 28% decline in individual and family plan approved members primarily driven by lower qualified health plan approved members following the removal of government subsidies, which both reduced overall demand and drove a partial shift towards non-qualified health plans, along with an overall decline in variable marketing spend;

Current wording

•a 28% decline in individual and family plan approved members primarily driven by an overall decline in variable marketing spend as well as a decrease in qualified health plan approved members following the removal of government subsidies, which both reduced overall demand and drove a partial shift towards non-qualified health plans;

Previous wording

•a 13% decline in ancillary plan approved members across all products primarily driven by an intentional decrease in variable marketing spend; and

Current wording

•a 23% decline in ancillary plan approved members across most products primarily driven by an intentional decrease in variable marketing spend; and

Previous wording

Six Months Ended June 30, 2026 and 2025 – Total approved members declined 26% during the six months ended June 30, 2026 compared to the same period in 2025, driven by:

Current wording

Nine Months Ended September 30, 2026 and 2025 – Total approved members declined 30% during the nine months ended September 30, 2026 compared to the same period in 2025, driven by:

Previous wording

•a 30% decline in Medicare approved members, primarily as a result of:

Current wording

•a 36% decline in Medicare approved members, primarily as a result of:

Previous wording

◦a 29% decline in Medicare Advantage approved members primarily due to an intentional decrease in variable marketing spend which resulted in a 31% decline in Medicare Advantage broker of record submissions;

Current wording

◦a 35% decline in Medicare Advantage approved members primarily due to an intentional decrease in variable marketing spend which resulted in a 38% decline in Medicare Advantage broker of record submissions;

Previous wording

◦a 19% decline in Medicare Supplement approved members, primarily due to an intentional decrease in variable marketing spend, partially offset by the approval timing of certain applications that were submitted in the fourth quarter of 2025; and

Current wording

◦a 24% decline in Medicare Supplement approved members, primarily due to an intentional decrease in variable marketing spend resulting in a 32% decline in Medicare Supplement broker of record submissions, partially offset by the approval timing of certain applications that were submitted in the fourth quarter of 2025, but approved in the first quarter of 2026; and

Previous wording

◦an 80% decline in Medicare Part D approved members due to the continuous impact of regulatory changes that adversely impacted standalone Medicare Part D plan economics and availability, resulting in beneficiaries shifting away from standalone Medicare Part D plans towards Medicare Advantage plans that include prescription drug coverage.

Current wording

◦a 73% decline in Medicare Part D approved members due to the continuous impact of regulatory changes that adversely impacted standalone Medicare Part D plan economics and

Previous wording

•a 36% decline in individual and family plan approved members primarily driven by lower qualified health plan approved members following the removal of government subsidies, which both reduced overall demand and drove a partial shift towards non-qualified health plans, along with an overall decline in variable marketing spend;

Current wording

•a 34% decline in individual and family plan approved members primarily driven by an overall decline in variable marketing spend as well as a decrease in lower qualified health plan approved members following the removal of government subsidies, which both reduced overall demand and drove a partial shift towards non-qualified health plans;

Previous wording

•a 6% decline in ancillary approved members year-over-year primarily due to decreases in short-term, dental and vision plan approved members, partially offset by targeted increases in hospital indemnity plan members; and

Current wording

•an 11% decline in ancillary approved members year-over-year primarily due to decreases in short-term, dental and vision plan approved members, partially offset by targeted increases in hospital indemnity plan members; and

Previous wording

•a 12% increase in small business health plan approved members primarily driven by an intentional increase in variable marketing spend toward employer plans as well as an increase in average group size for existing plans.

Current wording

•a 3% increase in small business health plan approved members primarily driven by an intentional increase in variable marketing spend toward employer plans as well as an increase in average group size for existing plans.

Previous wording

•a 1% decrease in Medicare Advantage plans, primarily due to unfavorable retention assumptions for the second quarter of 2026 cohorts compared to the second quarter of 2025 cohorts, partially offset by favorable carrier and contract mix;

Current wording

•a 2% decrease in Medicare Advantage plans, primarily due to unfavorable retention assumptions for the third quarter of 2026 cohorts compared to the third quarter of 2025 cohorts and an unfavorable cohort mix, partially offset by favorable carrier and contract mix;

Previous wording

•a 16% increase in Medicare Supplement plans, primarily due to favorable carrier and contract mix and favorable retention assumptions for the second quarter 2026 cohorts compared to the second quarter 2025 cohorts and an increase in the ratio of approved members who became paying members, partly offset by an unfavorable cohort mix;

Current wording

•a 55% increase in Medicare Part D plans, primarily driven by favorable carrier and contract mix, partially offset by unfavorable retention assumptions for the third quarter 2026 cohorts compared to the third quarter 2025 cohorts and a decrease in the ratio of approved members who became paying members;

Previous wording

•an 8% decrease in non-qualified health plans, primarily due to unfavorable retention assumptions for the second quarter 2026 cohorts compared to the second quarter 2025 cohorts;

Current wording

•an 18% decrease in non-qualified health plans, primarily due to a decrease in the ratio of approved members who became paying members and unfavorable retention assumptions for the third quarter 2026 cohorts compared to the third quarter 2025 cohorts, partially offset by favorable carrier and contract mix;

Previous wording

•a 13% decrease in qualified health plans, primarily due to a decrease in the ratio of approved members who became paying members and unfavorable retention assumptions for the second quarter 2026 cohorts compared to the second quarter 2025 cohorts;

Current wording

•a 16% decrease in qualified health plans, primarily due to a decrease in the ratio of approved members who became paying members and unfavorable retention assumptions for the third quarter 2026 cohorts compared to the third quarter 2025 cohorts, partially offset by favorable cohort mix;

Previous wording

•a 14% increase in short-term plans, primarily driven by favorable cohort mix;

Current wording

•a 4% increase in dental plans, primarily driven by favorable cohort mix; and

Previous wording

•a 31% increase in small business plans due to favorable carrier and contract mix.

Current wording

•a 12% increase in small business plans due to favorable carrier and contract mix, partially offset by a decrease in the ratio of approved members who became paying members.

Previous wording

After we have estimated membership as of a specified date, we may receive information from health insurance carriers that would have impacted the estimate if we had received the information prior to the date of estimation. We may receive commission payments or other information that indicates that a member who was not included in our estimates for a prior period was in fact an active member at that time, or that a member who was included in our estimates was in fact not an active member of ours. For instance, we reconcile information carriers provide to us and may determine that we were not historically paid commissions owed to us, which would cause us to have underestimated membership. Conversely, carriers may require us to return commission payments paid in a prior period due to policy cancellations for members we previously estimated as being active. We do not update our estimated membership numbers reported in previous periods. Instead, we reflect updated information regarding our historical membership in the membership estimate for the current period. If we experience a significant variance in historical membership as compared to our initial estimates, while we keep the prior period data consistent with previously reported amounts, we may provide the updated information in other communications or disclosures. As a result of the delay in our receipt of information from insurance carriers, actual trends in our membership are most discernible over periods longer than from one quarter to the next, making it difficult for us to determine with any certainty the impact of current conditions on our membership retention. Various circumstances could cause the assumptions and estimates that we make in connection with estimating our membership to be inaccurate, which would cause our membership estimates to be inaccurate.

Current wording

prior period due to policy cancellations for members we previously estimated as being active. We do not update our estimated membership numbers reported in previous periods. Instead, we reflect updated information regarding our historical membership in the membership estimate for the current period. If we experience a significant variance in historical membership as compared to our initial estimates, while we keep the prior period data consistent with previously reported amounts, we may provide the updated information in other communications or disclosures. As a result of the delay in our receipt of information from insurance carriers, actual trends in our membership are most discernible over periods longer than from one quarter to the next, making it difficult for us to determine with any certainty the impact of current conditions on our membership retention. Various circumstances could cause the assumptions and estimates that we make in connection with estimating our membership to be inaccurate, which would cause our membership estimates to be inaccurate.

Previous wording

•a 10%, 25% and 17% decline year-over-year in Medicare plan, individual and family plan and small business plan estimated membership, respectively, primarily as a result of fewer approved applications and heightened market volatility;

Current wording

•a 10%, 26% and 7% decline year-over-year in Medicare plan, individual and family plan and small business plan estimated membership, respectively, primarily as a result of fewer approved applications and heightened market volatility;

Previous wording

•partially offset by a 2% increase year-over-year in ancillary plan estimated membership primarily driven by an increase in hospital indemnity plan estimated membership.

Current wording

•partially offset by a slight increase year-over-year in ancillary plan estimated membership primarily driven by an increase in hospital indemnity plan estimated membership, partially offset by declines in most other ancillary products.

Previous 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.

Current 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.

Previous wording

Three Months Ended June 30, 2026 and 2025 – Total acquisition cost per MA-equivalent approved member increased $179, or 16%, during the three months ended June 30, 2026 compared to the same period in 2025, driven by:

Current wording

Three Months Ended September 30, 2026 and 2025 – Total acquisition cost per MA-equivalent approved member increased $667, or 45%, during the three months ended September 30, 2026 compared to the same period in 2025, driven by:

Previous wording

•a $277, or 42%, increase in CC&E cost per MA-equivalent approved member primarily due to:

Current wording

•an $857, or 92%, increase in CC&E cost per MA-equivalent approved member primarily due to:

Previous wording

◦partially offset by lower overall personnel and compensation costs, primarily driven by fewer benefit advisors and screeners year-over-year as well as our flexible telesales organization structure;

Current wording

◦partially offset by lower overall personnel and compensation costs, resulting from fewer benefit advisors and screeners year-over-year and our flexible telesales organization structure, partially offset by higher advisor costs associated with our lifetime advisory model;

Previous wording

•partially offset by a $98, or 23%, decrease in variable marketing cost per MA-equivalent approved member primarily due to more disciplined marketing spend, improved marketing channel mix and continued marketing efficiencies from our branding initiatives that enhanced lead quality and conversion rates in our online unassisted channels.

Current wording

•partially offset by a $190, or 34%, decrease in variable marketing cost per MA-equivalent approved member primarily due to more disciplined marketing spend, improved marketing channel mix and continued marketing efficiencies from our branding initiatives that enhanced lead quality.

Previous wording

Three Months Ended June 30, 2026 and 2025 – Total acquisition cost per IFP-equivalent approved member increased $53, or 10%, during the three months ended June 30, 2026 compared to the same period in 2025, driven by:

Current wording

Three Months Ended September 30, 2026 and 2025 – Total acquisition cost per IFP-equivalent approved member increased $241, or 45%, during the three months ended September 30, 2026 compared to the same period in 2025, driven by:

Previous wording

•a $68, or 16%, 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;

Current wording

•a $245, or 57%, 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;

Previous wording

•partially offset by a $15, or 15%, decrease in variable marketing cost per IFP-equivalent approved member, primarily driven by our intentional decrease in variable marketing spend year-over-year.

Current wording

•partially offset by a $4, or 4%, decrease in variable marketing cost per IFP-equivalent approved member, primarily driven by our intentional decrease in variable marketing spend year-over-year.

Previous wording

Three Months Ended June 30, 2026 and 2025 – Commission revenue decreased $24.9 million, or 46%, during the three months ended June 30, 2026 compared to the same period in 2025 due to:

Current wording

Three Months Ended September 30, 2026 and 2025 – Commission revenue decreased $29.5 million, or 62%, during the three months ended September 30, 2026 compared to the same period in 2025 due to:

Previous wording

•a $24.0 million, or 46%, decrease in our Medicare segment commission revenue driven by:

Current wording

•a $28.7 million, or 66%, decrease in our Medicare segment commission revenue driven by:

Previous wording

◦a $14.0 million decline in commission revenue from members approved during the period primarily due to a 45%, 45%, and 80% decrease in Medicare Advantage, Medicare Supplement and Medicare Part D plan approved members, respectively; and

Current wording

◦an $18.1 million decline in commission revenue from members approved during the period primarily due to a 60%, 41%, and 75% decrease in Medicare Advantage, Medicare Supplement and Medicare Part D plan approved members, respectively; and

Previous wording

•a $0.9 million, or 37%, decrease in our E&I segment commission revenue driven by:

Current wording

•a $0.8 million, or 20%, decrease in our Employer and Individual (“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 vision plans, slightly offset by higher constrained LTV of commissions per approved member for short-term, dental and small business plans; and

Current wording

◦lower constrained LTV of commissions per approved member for qualified health plans and non-qualified health plans, slightly offset by higher constrained LTV of commissions per approved member for short-term, dental and small business plans; and

Previous wording

Six Months Ended June 30, 2026 and 2025 – Commission revenue decreased $44.1 million, or 29%, during the six months ended June 30, 2026 compared to the same period in 2025 due to:

Current wording

Nine Months Ended September 30, 2026 and 2025 – Commission revenue decreased $73.5 million, or 37%, during the nine months ended September 30, 2026 compared to the same period in 2025 due to: