EHTH

Good afternoon, everyone, and welcome to eHealth, Inc.'s conference call to discuss the company's first quarter 2026 financial results. At this time, all participants have been placed in a listen-only mode. The floor will open for your questions following the prepared remarks. If you would like to ask a question during that time, please press star one to raise your hand. To withdraw your question, simply press star one again. I'll now turn the floor over to Eli Newbrun-Mintz, Senior Investor, Senior Investor Relations Manager. Please go ahead.

Good afternoon, and thank you all for joining us. On the call today, Derrick Duke, eHealth's Chief Executive Officer, and John Dolan, Chief Financial Officer, will discuss our first quarter 2026 financial results. Following these prepared remarks, we will open the line for a Q&A session with industry analysts. As a reminder, this call is being recorded and webcast from the investor relations section of our website. A replay of the call will be available on our website later today. Today's press release, our historical financial news releases, and our filings with the SEC are also available on our investor relations website. We will be making forward-looking statements on this call about certain matters that are based upon management's current beliefs and expectations relating to future events impacting the company and our future financial or operating performance.

Forward-looking statements on this call represent eHealth's views as of today, and actual results could differ materially. We undertake no obligation to publicly address or update any forward-looking statements except as required by law. The forward-looking statements we will be making during this call are subject to a number of uncertainties and risks, including but not limited to those described in today's press release and in our most recent annual report on Form 10-K and our subsequent filings with the SEC. We will also be discussing certain non-GAAP financial measures on this call. Management's definitions of these non-GAAP measures and reconciliations to the most directly comparable GAAP financial measures are included in today's press release, except where such reconciliation has been omitted in reliance on this unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.

With that, I will turn the call over to Derrick Duke.

Thank you, Eli. Good afternoon, thank you for joining us today. We're pleased with our first quarter results, which came in ahead of expectations, driven by stronger than anticipated Medicare enrollment volume and favorable unit economics. During the quarter, we made meaningful progress towards the strategic initiatives we outlined on our last earnings call, including implemented targeted cost reductions and completing critical build and readiness work for initiatives that launched in April. Most notably, we prepared for the rollout of our lifetime advisory model and the introduction of our new final expense insurance product. We are also encouraged by recent industry developments. Last month, CMS finalized the 2027 Medicare Advantage rate, which came in above the initial proposal.

While this is just one variable in the system, we believe it is an important signal that CMS leadership is responsive to industry feedback and focused on long-term program sustainability. That said, we are early in the planning cycle for the upcoming annual enrollment period. Carriers are currently developing their 2027 bids, including benefit structures and geographic market strategies. We anticipate gaining a more comprehensive understanding of the upcoming AEP cycle and individual carrier approaches once bids are submitted. While some carriers may prioritize market share capture this AEP, we believe margin will remain the primary focus for most, and the Medicare Advantage reset cycle will continue. This means further adjustments to plan benefits and service areas, as well as additional plan eliminations. As a result, we expect consumer demand to remain strong and carrier inventory dynamics to remain complex, similar to last year.

We believe this environment underscores eHealth's value proposition as we help consumers navigate the evolving Medicare landscape. Against this backdrop, we are intentionally evolving eHealth's operating model to foster deeper, longer-lasting relationships between members and advisors. Our goal is to ensure consumers see eHealth not as a one-time enrollment platform, but as a trusted ally throughout their healthcare journey. Central to this evolution is our lifetime advisory model, which I will discuss shortly. From a financial standpoint, our priorities this year are achieving break-even or better operating cash flow and positioning the company for sustainable, profitable growth once the Medicare Advantage reset cycle is complete. Our revised three-year outlook, which we published today in our earnings slides, reflects a return to revenue growth in 2027, alongside adjusted EBITDA margin expansion, positive operating cash flow, and break-even or better free cash flow.

First quarter revenue was $88 million, ahead of our expectations. GAAP net loss was $4.7 million, and adjusted EBITDA was $9 million, exceeding our internal plan. Revenue performance was driven by Medicare enrollment volume, as well as better than expected revenue outside of Core MA agency sales, reflecting progress in our diversification efforts. This includes providing ancillary and post-enrollment services. During the quarter, we implemented headcount reductions and vendor consolidation initiatives. These actions are expected to reduce our fixed operating cost base by approximately $30 million in 2026 compared to 2025, representing roughly a 20% reduction. While we realize some savings in the first quarter, the full impact is expected to become more apparent as we move through the year. Q1 results also reflect our strategic decision to reduce variable marketing and agent-related spend, focusing investment on our best-performing channels.

First quarter MA LTV increased 3%, while total acquisition cost per MA equivalent approved member declined 10% compared to a year ago. In the first quarter, we moved with urgency to execute on our strategic plan and make the necessary preparations for the launch of our lifetime advisory model. This key initiative is supported by a set of newly released agent-facing technology tools designed to enhance the beneficiary experience. These tools leverage the data and institutional knowledge that we have built up over decades of working with a wide array of beneficiaries. Core components include a customer dashboard that provides a holistic view of the member relationship with eHealth, system-generated recommendations that prompt advisors to engage at the right moments, and dynamic insight-driven scripts embedded directly into the sales and service workflow.

Together, these tools are intended to ensure more personalized, proactive conversations while also driving consistency, scalability, and quality across the advisor experience as the model matures. As part of this strategy, we're expanding the scope of services we provide beyond core MA coverage, eHealth already offers ancillary plan options such as dental, vision, hearing, and hospital indemnity plans. Last month, we launched final expense insurance offerings. These products enrich our health-based inventory by providing beneficiaries with additional financial protection and ultimately peace of mind. Final expense sales also offer attractive unit economics and a compelling cash flow profile. Over time, we plan to add more products and services that will benefit our members based on findings from consumer focus groups and industry research. The lifetime advisory model is expected to support consistent year-round engagement and enables more effective cross-selling.

Through this strategy, we believe we will increase member lifetime value, improve retention, strengthen unit economics, and build durable brand equity rooted in trust and loyalty. As part of today's earnings release, we're updating our three-year financial targets. I would first like to stress that our decision to pull back on growth in 2026 was intentional and strategic. In this environment, we had the ability to drive higher Medicare enrollment volume, chose instead to prioritize operating cash flow by focusing on our most profitable marketing channels, building our lifetime advisory model, and taking a focused and disciplined approach to our diversification initiatives. We believe this strategy positions us well to return to growth next year on a stronger foundation. Our three-year forecast reflects mid-single-digit revenue growth on a percentage basis for 2027 as we selectively dial up member acquisition spend.

We expect our revenue growth rate to increase to the mid-teens in 2028, supported by our core MA business and a greater contribution from ancillary sales driven by our new operating model. Beginning in 2028, we also expect our E&I segment to contribute to growth, with a focus on expanding employer coverage through partner-driven ICHRA offerings. Adjusted EBITDA margins are expected to increase each year starting in 2027 to reach 20% by 2028. This translates to double-digit percentage adjusted EBITDA growth in 2027 and 2028, reflecting the benefits of our fixed cost reductions and favorable Medicare unit economics. We forecast achieving break-even or better free cash flow in 2027. Our revenue growth goals could be accelerated should we observe a more rapid stabilization of the Medicare Advantage market relative to our current outlook.

We're pleased with our first quarter results and the progress we've made executing against the initiatives outlined on our fourth quarter earnings call. We believe eHealth is well-positioned to continue delivering superior service and value for our customers and carrier partners, and we look forward to updating you on further milestones along our path towards sustainable, profitable growth. I will now turn the call over to our CFO, John Dolan, for his remarks. John?

Thank you, Derrick, and good afternoon, everyone. We delivered a strong start to the year, beating our revenue, earnings, and operating cash flow expectations and achieving a greater Medicare enrollment profitability compared to a year ago. Our results were driven by disciplined demand generation, strong sales execution, and a favorable year-over-year trend in lifetime values of Medicare products. We also saw early benefits from the fixed cost reductions implemented earlier this year. As I walk through our first quarter financial results, you will see a consistent theme, higher quality enrollments, greater operating efficiency, and a foundation that we believe will support enhanced cash flow generation over time. Please note all comparisons will be made on a year-over-year basis unless otherwise specified. First quarter 2026 total revenue was $88 million, representing a 22% decline.

Medicare segment revenue also declined 22% to $81.3 million, driven primarily by lower enrollment volume as we reduced variable marketing spend to focus on our best performing channels. Medicare submissions declined 24%, with the revenue impact partially offset by growth in lifetime values for Medicare Advantage, Medicare Supplement, and PDP products. In the first quarter, we recognized $8 million of positive net adjustment revenue, or tail revenue, compared to $10.5 million in the prior year. Tail revenue was driven by our Medicare and ancillary products and represents cash collections in excess of our original lifetime value estimates. Importantly, we continue to hold significant unrecognized positive adjustments related to our existing book of business. First quarter non-commission revenue was $8.2 million, which was ahead of our internal expectations and reflects lower carrier sponsorship revenue compared to a year ago.

Turning to Medicare enrollment profitability, the first quarter Medicare LTV to CAC ratio was 1.4x, representing a 17% improvement from 1.2x. First quarter total acquisition costs per MA equivalent approved member declined 10%, driven by a 28% reduction in variable marketing costs per MA equivalent approved member, partially offset by a 9% increase in customer care and enrollment costs per MA equivalent approved member. The reduction in variable marketing costs per MA equivalent approved member reflects our more disciplined marketing spend, improved channel mix, and the continued impact of branding initiatives, which have a proven record of enhancing enrollment quality. The year-over-year increase in customer care and enrollment costs per MA equivalent approved member reflects lower application volume and our decision to retain sufficient agent capacity to support the launch of our lifetime advisory model.

This model requires agents to dedicate a portion of their time to member engagement and cross-selling activities. We also plan to have a telesales organization with a higher mix of tenured advisors, which we expect to benefit conversions and enrollment quality. First quarter lifetime values increased 3% for Medicare Advantage, 19% for Medicare Supplement, and 78% for PDP products compared to a year ago. First quarter Medicare segment gross profit was $33 million, down 8%. At the same time, Medicare segment gross profit margin increased significantly from 34%-41%, reflecting improvements in the first quarter Medicare LTV to CAC ratio. Turning to retention, our most recent AEP cohorts, those enrolled in the fourth quarter of 2024 and the fourth quarter of 2025, continue to outperform each of their respective predecessor cohorts.

This progress reflects targeted improvements across our sales and marketing organizations, along with continuing innovation in our customer online experience resulting in stickier enrollments. Our overall commission receivable value continued to grow on a year-over-year basis, ending just over $1 billion compared to $923 million as of March 31st, 2025, or a 12% increase. Looking ahead, the launch of our lifetime advisory model is expected to both improve retention at a plan level and foster longer-term relationships with our members across multiple products. First quarter revenue in our Employer and Individual segment was $6.7 million, down 29% from $9.5 million a year ago. Segment gross profit was $3.7 million compared to $6 million last year. From a consolidated profitability perspective, first quarter GAAP net loss was $4.7 million compared to GAAP net income of $2 million.

The decline was primarily driven by restructuring charges related to our headcount reduction this quarter. First quarter adjusted EBITDA was $9 million, down from $12.5 million, and the adjusted EBITDA margin was 10% compared to 11% in the prior year. First quarter non-GAAP total operating expenses, which exclude stock-based compensation and restructuring charges, declined 21% to $82.3 million, reflecting organization-wide expense reductions. Non-GAAP marketing and advertising expense declined 38%, including a 44% reduction in variable marketing costs consistent with our lower enrollment volume targets. Non-GAAP customer care and enrollment expense declined 13%, reflecting lower advisor headcount. On the fixed cost side, non-GAAP technology and content expense declined 8%, and non-GAAP general and administrative expense declined 6% compared to a year ago.

We expect to see the full benefit of recent fixed cost initiatives as we progress through 2026. First quarter operating cash flow was $35.8 million compared to $77.1 million and ahead of internal expectations. We remain on track to achieve our full-year operating cash flow goals as reflected in our 2026 guidance. The year-over-year decline in first quarter operating cash flow primarily reflects the timing of several working capital items as well as severance and other one-time costs associated with our fixed cost reduction actions. In addition, carrier sponsorship revenue was lower year-over-year as the prior year quarter benefited from AEP-related sponsorship dollars that shifted into the first quarter. At the end of March 2026, eHealth had $110.8 million in cash equivalents, and short-term marketable securities.

Based on our execution year to date, with the annual enrollment period still ahead of us, we are maintaining our 2026 guidance ranges for revenue, GAAP net income, adjusted EBITDA, and operating cash flow. We are updating our outlook for 2026 net adjustment revenue, which is now expected to be in the range of $8 million-$20 million. We believe we are well-positioned to achieve our financial objectives for the year. Consistent with the framework Derrick outlined, we view 2026 as an intentional bridge year, one focused on improving the quality of our revenue, enhancing the efficiency of our operating model, and achieving cash flow generation rather than maximizing volume. Our actions this year, including disciplined demand generation, launching our lifetime advisory model, and rationalizing our cost structure, are designed to position eHealth to achieve the three-year financial targets we published today.

You can reference these targets on slide 10 of our earnings slides posted on eHealth's investor relations site. Our three-year forecast assumes a modest increase in Medicare marketing spending in our best performing channels starting in the fourth quarter of 2027. We expect to amplify the impact of this increased marketing investment through our lifetime advisory model, as growth in our core Medicare commission revenue is complemented by higher cross-sell rates of ancillary products, including hospital indemnity plans and final expense insurance. In addition, we expect to start seeing positive contributions from our ICHRA business in 2028. Given our planned revenue growth, we believe we will realize significant operating leverage from the recently implemented fixed cost reductions.

Cash flow profitability remains the central objective of our long-term financial strategy, and we believe the progress we're making in 2026 establishes a strong foundation for a return to growth while delivering on our cash flow goals. Macro assumptions behind our 3-year forecast are relatively conservative. There could be upside if the Medicare Advantage market recovers faster than we currently anticipate. With that, we would like to open the call for questions.

We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from line of Ben Hendrix of RBC Capital Markets.

Well, Marianne, for Ben. I appreciate you taking my questions. you know, appreciate your commentary on your revenue growth expectations for the next few years. I'm curious if you have any tail revenue embedded in these targets. If you do realize tail revenue this year, would that alter your targeted growth rate?

Hi, thanks for the, thanks for the question. John, you wanna take that?

Yeah, sure. Let me take that. Appreciate the question. Yeah, in our long range plan, we have assumed effectively flat tail revenue growth, so similar to what we've put into 2026 guidance, we similar assumptions into the outer years.

Okay. If you did realize, tail revenue this year, that would lower your growth rate targets for 2027, for instance?

Not necessarily. If you're looking at the growth will be flat on the tail, but it would obviously be offset by other growth, I think.

Yeah. Let's try again. The assumed tail revenue in our 2026 plan is consistent in the three-year LRP. The revenue growth in the out years is not coming from increased tail, if that's what you're asking.

Yeah.

Yeah.

We're already expecting tail this year, correct? We are expecting to recognize tail this year. You can look at our guidance of $8 million-$20 million. If you can think about somewhere at the midpoint of that guidance, you know, you can assume that as tail for 2025, and we are assuming flattish tail revenue for the forecast periods in the outer years as well. Are you saying if we were to recognize tail above and beyond current guidance in 2026?

Yeah. Say if you recognized it at the high end of your guidance range, would that lower your expected EBITDA growth in 2027?

I mean, I think if we were within the guidance range, no. If we saw a significant positive development above and beyond our current guidance, yes, obviously, you know, because you would look at 2027 over the higher base in 2026. If we are somewhere within our guidance range, no. That would imply similar growth rates and similar EBITDA growth rates.

Yeah. if you look at our three-year-

Okay

financial targets, yeah, the three-year financial targets that we provided, we're assuming zero growth on tail, but other revenue streams will be generating that growth. You know, as we said in 2027, it's single-digit percentage growth rate. In 2028 it's mid-teens.

Okay the tail is not contributing to that. Yes.

Okay, I got you.

That's helpful. Just shifting gears to cash flow. You know, first quarter's typically pretty strong cash collection quarter for you guys. It came in a little bit below last year's number. Obviously you maintained your cash flow guidance. Wanted to see if there's any timing related items in there, and why you have conviction just hitting that full year guidance. Thank you.

Yeah, sure. I'd say about 80% of the decline year-over-year is really driven by, you know, a couple things. Lower carrier sponsorship timing. We had some timing and one time items in the quarter, you know, such as we had severance related to our fixed cost reductions. Then there was some lower commission collections because of our lower volume. Those are the main drivers in the decline. You know, I'd say the cash flow did exceed our expectations and we're definitely on track for achieving our 2026 guidance ranges.

Yeah, just to reiterate, the, the bulk of it is timing and the one-time cost related to severance. That accounts for about 80% of that.

Okay. That's helpful. Thank you.

Your next question comes from the line of George Sutton, from Craig-Hallum. Your line is open.

Thank you. You mentioned 2026 would be a bridge year, and you were not going to necessarily chase growth. It sounded very similar to how 2025 came out for you. I just wanna make sure I understood the deltas year-over-year in terms of how you're going to market.

The deltas in revenue expectations and marketing spend? Like, just maybe give me a little bit more, George.

Actually, both. You sort of characterize it as we didn't chase growth in 2025, Try to be responsible about, you know, going after the right customers and using the right channels. Sounds like you're doing the same thing in 2026. I'm just trying to understand what's different.

Yeah. Well, the difference is the, you know, the commitment that we've made and the focus that we have on generating positive operating cash flow. That, you know, we did not achieve that in 2025. We believed it was important for us to focus on that in 2026 as we strengthen, again, as we characterize strengthening the foundation of the company. There's multiple ways that we've gone about that, George, including the Q4, you know, refinancing that we were able to secure to help strengthen the balance sheet. The next evolution of that is to be disciplined again in our approach in 2026 and, again, not chase growth at all costs. We think that's the responsible thing to do in light of the continued market disruption.

Again, I think we've been pretty clear in our communicating our view that what's happening in the market is a, is sort of one event that's occurring over multiple years as carriers make the important decisions that they're making to improve their own financial statements and their margin, and we're respective of that. We wanna position eHealth to be ready to take advantage of, you know, a return to growth in the future once the market stabilizes.

Just very quickly, George, I think that it is correct that a lot of what you are seeing in 2026 is continuation of what was started doing in 2025. For example, the marketing channels and the focus on brand and direct channels, you will see it being even more pronounced in the fourth quarter AEP as we're pulling back from the less profitable channels. That will continue for the three-year outlook as well, and that's why you see that pretty significant EBITDA growth that we're projecting. What is also different this year is the lifetime advisory model that we're implementing, and that will mean that in Q2 and Q3, really pulling back on what we're spending into the market. Those enrollments are not very high profit enrollments in the first place.

We're gonna use the time of agents to engage with our existing members and that will have downstream applications for retention and for ancillary sales. The ancillary sales this year will start contributing, but you will really start seeing much bigger impact in 2027 and 2028 in terms of the cross-sell rate impact. That's layering on what you started seeing in 2025, layering on top of that in 2026.

Could you just help me understand what the lifetime advisory model will look like from an engagement perspective? Obviously, we've had ancillary offerings before, and those were available to customers. Is it just simply more proactively marketing those to them, or how does the engagement change?

That's a great question, Craig. I'm gonna start, and then I'll ask Michelle to contribute as well. You know, it's important to understand that historically inside of the eHealth operating model, that as new products were put into the platform. The expectation from an operating model perspective was that that would need its own set of advisors, it would need its own demand generation, a budget effectively in order to drive growth. The lifetime advisory model doesn't rely on additional marketing spend, doesn't rely on additional agents to sell the product. It's really encouraging and supporting our current advisors to develop a holistic relationship with the member once they engage with the member.

It's not about more product versus what we've had in the past, although our future, you know, our future expectation is that we'll continue to add product and services as we see needs that beneficiaries have. The real change here is that we're supporting the advisor to engage with their member and to effectively be a one-stop shop, that that advisor is equipped to engage and meet the holistic needs of the member. Michelle?

Sure. I'll add on. I mean, we really think about this. It is about putting the consumer first. It's not just about, yes, we've done a lot to improve our brand, our marketing, that will continue, but it's really focused on that over 65 segment. As we bring that member in, how do we continue to cultivate that relationship not just to drive sort of the immediate enrollment, which, you know, is absolutely also really needed in this environment, in this, in what's going on in Medicare. It's also just doing right by the consumer, ensuring that we can use the time and the capacity that we have, so we really link that beneficiary to that advisor. Through that relationship, we cultivate what you asked about, right? What are those activities, the engagement?

It's follow-up on plan check-ins is going on right now. Do they have their PCP? Can we help with an annual wellness visit? Cross-sell, right, will come in as well. Are there referrals? Are there other people that are really satisfied with our service? It's not just relying on marketing, but really kind of setting this up for a long-term relationship.

Gotcha. Okay. Thanks, guys.

Again, if you have a question, please press star one on your telephone keypad to raise your hand and join the queue. Your next question comes from the line of George Hill of Deutsche Bank. Your line is open.

Yeah. Hi, this is Maxine for George. Thanks for taking the question. I want to ask about the shift toward higher margin branded marketing channels. Could you give us an update on how much of your Medicare enrollment mix in Q1 came from these branded channels, and how does it compare to last year?

Yeah. Michelle, you wanna take that? I think the question is, what % of our enrollment volume is coming from our branded channels, and how does that compare to a year ago?

Yeah. Yeah. I will tell you that we continue first off, when we look at sort of how do we maximize, you know, marketing spend, it is really guided on quality, on the return. Like LTV to CAC, right, as you saw in sort of the slide, is really the North Star. You then focus on what are the best performing channels. Also, even within the channels, you're looking at what are the top performing campaigns and how do you continue to optimize. We continue to lean into, yeah, our branded channels, with the right mix throughout Q1, Q2, Q3. You know, kinda similar to what we said earlier, you're gonna see that even continue to improve into Q4.

Got it. Just a quick follow-up. Could you give us some color on the unit economics of cross-selling ancillary products through the lifetime advisory model and ICHRA versus MA? How should we think about the company's overall margin profile as these products scale? How much of the mid-teens' revenue growth in 2028 is expected to be driven by ICHRA and ancillary products through this model? Thanks.

Yeah. The way again, I'll start, and then John and/or Michelle or others can chime in. The way, the way we think about the ancillary opportunity, again, it's really important to understand that in the lifetime advisory model, there's no additional marketing demand dollars that the company is spending in order to generate the revenue that we are expecting in the ancillary business. The ancillary bucket is a wide array of products. You know, each product has its own, sorta LTV profile based on, you know, the unit economics of each. The way I would just generally encourage you to think about this is that for each cross-sell opportunity, that we have the opportunity to add somewhere between maybe 15%-20% of LTV to the MA sale when we sell an ancillary plan.

That's how we think about the economics on ancillary. On ICHRA, we would just say it's certainly we have it modeled, but it's a little, probably a little early for us to share how we think about each of, you know, the unit economics of that. It's a small amount of the revenue growth that's in our three-year LRP at the moment, it's certainly not material in the plan at this point, as it relates to the 2028 revenue growth that's in the plan.

One of the other things I'd probably add to it is, you know, some of the ancillary products have a much more favorable cash flow profile, which is something that we've built into our plan.

Good afternoon, everyone, and welcome to eHealth, Inc.'s conference call to discuss the company's fourth quarter and fiscal year 2025 financial results. [Operator Instructions] I will now turn the floor over to Eli Newbrun-Mintz, Senior Investor Relations Manager. Please go ahead.

Good afternoon, and thank you all for joining us. On the call today, Derrick Duke, eHealth's Chief Executive Officer; and John Dolan, Chief Financial Officer, will discuss our fourth quarter and fiscal year 2025 financial results. Following these prepared remarks, we will open the line for a Q&A session with industry analysts. As a reminder, this call is being recorded and webcast from the Investor Relations section of our website. A replay of the call will be available on our website later today. Today's press release, our historical financial news releases and our filings with the SEC are also available on our Investor Relations site. We will be making forward-looking statements on this call about certain matters that are based upon management's current beliefs and expectations relating to future events impacting the company and our future financial or operating performance. Forward-looking statements on this call represent eHealth's views as of today, and actual results could differ materially. We undertake no obligation to publicly address or update any forward-looking statements, except as required by law. The forward-looking statements we will be making during this call are subject to a number of uncertainties and risks, including, but not limited to, those described in today's press release and in our most recent annual report on Form 10-K and our subsequent filings with the SEC. We will also be discussing certain non-GAAP financial measures on this call. Management's definitions of these non-GAAP measures and reconciliations to the most directly comparable GAAP financial measures are included in today's press release. With that, I will turn the call over to Derrick Duke.

Good afternoon, everyone. In 2025, eHealth delivered strong results, achieving meaningful earnings growth in a complex and rapidly evolving environment. We consistently exceeded expectations, raising annual guidance 3x. We closed the year with another highly successful annual enrollment period, helping hundreds of thousands of seniors navigate one of the most disruptive Medicare Advantage cycles in recent memory, an outcome that speaks to the differentiated value of our platform, brand and the trust that we've built with consumers and carrier partners. We've also strengthened our balance sheet entering 2026 with enhanced financial flexibility and a longer-term commitment of capital to execute our strategic priorities. The Medicare Advantage market is in the midst of a structural reset. Carriers continue to experience elevated medical cost trends and regulatory pressure, which has resulted in meaningful benefit changes, plan eliminations, carrier market exits and a more targeted approach to growth. Millions of Medicare customers were impacted by these changes in '24 and again last year. eHealth has provided crucial help to these populations as they've been forced to reassess their coverage options. On the distribution side, these trends have introduced pockets of commission suppression and reshaped carriers marketing sponsorship programs, among other changes. At the same time, carriers have been narrowing their distribution relationships, placing greater emphasis on quality, retention and other key measures of consumer experience. They are severing ties with brokers not performing to their standards and deepening relationships with distributors that provide the most value. eHealth has consistently ranked high on key quality metrics that are important to our carrier partners. These shifts have challenged the industry, but they also affirmed an important theme. When consumers face complexity, they seek trusted guidance. And when carriers need targeted high-quality growth, they value partners that can support their objectives. eHealth operates uniquely at that intersection. Now let me turn to our 2025 operational review. In 2025, annual revenue grew 4%. GAAP net income was almost 4x 2024 net income and adjusted EBITDA increased by 40%. These strong results were driven by focused execution throughout the year, but especially during AEP. We were exceptionally well positioned to enter the 2025 annual enrollment period. This included a more tenured adviser force, stronger branded channels and an expanded member retention program. Our AI screener piloted earlier in the year was scaled during AEP, bringing additional efficiency to our model and helping to reduce customer wait times. This technology was well received by our consumers and performed on par or better than human screeners in terms of transfer rates and conversions. We believe this technology further differentiates eHealth in the marketplace and opens the door for further consumer-facing AI applications in health insurance distribution. As anticipated, this AEP generated substantial consumer activity on par with the prior year. Demand on our platform was strong as our Medicare Matchmaker value proposition resonated with consumers. eHealth also successfully navigated changes in carrier inventory that resulted from plan eliminations, commission suppression and other key factors impacting product selection. We continue to offer quality, affordable plans in our key markets. During AEP, our direct branded channels exceeded enrollment expectations. In response, we strategically reduced spend on third-party affiliate leads. Direct channels typically deliver higher enrollment margins and stronger retention. Their increased share of our marketing mix positively impacted in-period earnings, and we expect that they will continue to strengthen financial performance beyond '25 by increasing book persistency and supporting LTV growth. We delivered on our 2025 annual plan for enrollment volume and revenue while significantly exceeding earnings expectations, driven by favorable LTV to CAC dynamics in our Medicare business and disciplined fixed cost management. We also demonstrated continued strength in our commissions receivable, which ended the year at a record high. Beyond Medicare Advantage, we made progress towards diversifying our revenue base. Our hospital indemnity plan, or HIP sales achieved exceptional growth with approved application volume surging over 400% year-over-year in the fourth quarter of 2025. Medicare Supplement also performed well during AEP, delivering 39% approved application growth in the fourth quarter. While carrier dedicated revenue and sponsorships declined year-over-year in the fourth quarter, reflecting broader market pressures, our core agency platform more than absorbed this impact through strong operational execution. As planned, after AEP completion, I initiated a comprehensive strategic review of the organization. Our macro outlook suggests that many of the conditions that shaped the past 2 years will persist into 2026. While we anticipate growth mandates reemerging in 2027, we believe that this year, carriers will continue pursuing targeted strategies and emphasizing margin protection. We expect to see further exits on the distribution side, consolidating sector leadership with platforms that have scale and strong carrier relationships that are able to deliver high-quality book of business. Additionally, it is our belief that brokers who are able to deliver consumer value beyond onetime enrollment support will be at a material advantage. We continue to hold conviction in the longer-term growth potential of the Medicare Advantage market. The number of Americans turning 65 will be peaking at over 4 million per year with the Medicare eligible population reaching over 80 million by 2034. MA penetration is also expected to increase, reaching over 60% by 2030 compared to approximately 54% in 2025. We believe eHealth is well positioned to lead this growth on the distribution side by leveraging the strength of our brand, deep carrier partnerships and our differentiated omnichannel platform. Seniors are becoming increasingly tech savvy, and this administration is placing a particular emphasis on the role of technology in modernizing and improving Medicare. We believe eHealth already has a lead as an industry technology innovator, which will provide us with a competitive advantage in this environment for years to come. With that, we view 2026 as a bridge year, a year to become more focused in our execution, maximize the return on our platform and improving operating cash flow generation to ensure that when the market shifts back to growth, we are in a strong position to accelerate. More specifically, our 2026 focus will include developing our lifetime advisory engagement model, concentrating Medicare enrollment efforts on our highest margin and persistency marketing channels, broadening our non-MA portfolio, including ancillaries and ICHRA and continued cost discipline, including the optimization initiatives we implemented last month. Let me expand on the lifetime advisory model, which is a major element of our strategy going forward. We are providing our licensed advisers with additional opportunities to solve consumer needs through an ongoing trusted relationship. This model blends the relationship-driven approach of local field agents with the scale, breadth and technology advantage of an omnichannel model. Based on consumer focus groups we conducted, beneficiaries place high value on engagement-based models that combine choice with access to a trusted adviser, someone who understands their personal situation and coverage needs. This model leverages eHealth's brand proposition and valuable beneficiary base and aligns with exactly where carriers are placing value, high-quality enrollments that persist. The seasonal nature of our business provides meaningful opportunities for advisers to deepen member engagement throughout the year, conducting need assessments, identifying gaps in coverage, managing plan changes proactively and offering relevant ancillary products. As part of this strategy, eHealth will be expanding the portfolio of ancillary products and services we offer to our beneficiaries, building on meaningful growth we achieved with hospital indemnity plans last year. In '26, we expect to add critical illness, final expense and similar products while driving greater attach rates with our existing ancillaries such as dental, vision and hearing. We plan to build on this effort in 2027 and '28 by adding additional adjacent services that leverage eHealth's core competencies and help Medicare beneficiaries maximize the value of their coverage. This strategy is expected to drive increased member lifetime value, improved retention and most importantly, build on eHealth's brand equity and member loyalty. Furthermore, the favorable cash flow dynamics of these ancillary products make them an important element of our diversification and overall financial goals. What does this mean for this year's financial outlook? Because we're prioritizing operating cash flow and quality, we expect Medicare enrollment volumes and noncommission revenue to decline relative to 2025. Despite lower revenue and enrollment volume, earnings, excluding net adjustment or tail revenue are expected to remain roughly flat and EBITDA margin ex tail is expected to improve year-over-year. This reflects the positive impact of our cost reduction efforts as well as focusing member acquisition spend in the highest margin marketing channels. On cost savings, we enacted headcount and vendor consolidation in January of this year. We expect these actions to lower our 2026 fixed operating cost by approximately $30 million compared to 2025, a decrease of roughly 20%. We also plan to reduce our variable spend by over $60 million for an overall year-over-year spend reduction greater than $90 million. As a result of strategic changes and significant cost measures we have implemented, we believe we can drive meaningful improvement in operating cash flow in 2026. Cash flow is our North Star, and we are committed to reaching breakeven operating cash flow this year, a $25 million year-over-year improvement with positive operating cash flow targeted for 2027. John will share our guidance ranges and key drivers in his prepared remarks. In diversification, our approach will be similarly focused and disciplined. We are prioritizing ICHRA, including a partner-driven SaaS model, which allows us to extend our platform to brokers with strong employer relationships. This strategy is capital efficient, leverages our core capabilities and positions us in a growing market where employers are increasingly looking for greater control over benefit expense and a personalized approach to coverage selection. During 2026, we are taking important steps to position us for success once the reset cycle has been completed in Medicare Advantage and as ICHRA continues to gain adoption with employers. We expect to continue to invest strategically and in a focused way in key capabilities required to grow profitably in these areas. Our technology remains an important differentiator and growth enabler. We see significant potential to improve our operational and financial performance by further scaling of AI screening and introducing additional AI applications in both our back and front office. The goal is to prioritize revenue growth in 2027 on a profitable and operating cash flow positive basis. It's important to note that while we are taking a more measured approach to demand generation this year, we expect our commissions receivable to remain around current levels in the beginning of 2027, driven by favorable retention trends and our relationship-driven approach to managing our book of business. We have also taken a measured approach to our capital structure by first augmenting our liquidity, extending maturities and lowering our cost of capital with the revolving credit facility that we entered into at the end of 2025. Our next priority is to unlock value for all of our stakeholders by addressing our convertible preferred equity. Further, as we have discussed in the past, our industry is dynamic, and there have been significant developments over the past several quarters. We regularly evaluate these developments and the strategic opportunities that may present themselves to us. To that end, we have had discussions with others in our industry, and we expect to continue to have discussions. Those discussions may not result in any meaningful developments, but we think it is important for us to be active in this regard. To summarize, our 2026 strategy will be focused on 3 priorities: reset Medicare into a cash flow generative relationship-driven business, deliver a broader set of products to customers and the advisers who serve them and pursue measured partner-driven ICHRA growth, including a SaaS-based model. And now I'll turn the call over to John, who will discuss our '25 results in greater detail and provide our 2026 annual guidance.

Thank you, Derrick, and good afternoon, everyone. In fiscal 2025, we significantly improved profitability, driven by greater enrollment margins in our Medicare business, the continued strength of our commissions receivable and cost savings across all expense categories. We leaned into elevated consumer demand during the first and fourth quarter enrollment periods and pulled back in the seasonally low middle quarters, deploying a more flexible operating structure in our telesales organization. I will now walk through our 2025 financials, followed by a discussion of our 2026 guidance and underlying assumptions. Please note that all comparisons I make will be on a year-over-year basis unless otherwise specified. Fourth quarter revenue was a company record $326.2 million, up 4%, driven by Medicare and ancillary product commissions, partially offset by lower noncommission revenue and individual and family product commissions. For the full year, total revenue of $554 million also increased 4%. Within our Medicare segment, we achieved fourth quarter revenue of $319.6 million or an increase of 5%. Underneath that, fourth quarter Medicare Advantage submissions in our agency model declined slightly at 3%, but were more than offset by a meaningful increase in the LTVs for all Medicare products. An 11% increase in our Medicare Advantage LTV was especially impactful, reflecting favorable retention, particularly the performance of the prior year's fourth quarter cohort, an indicator of the quality of our book. The 3% decline in fourth quarter Medicare Advantage agency submissions is reflective of our strategic decision to concentrate demand generation in our direct branded channels and decreasing marketing spend in channels with lower underlying margins. We're seeing encouraging early signs on retention. Based on current data, our January 2026 Medicare Advantage cohort is performing significantly better in year-to-date retention compared to last year's cohort. This continues the strong pattern of year-over-year improvement we've seen in early-stage retention. Over the past 2 years, retention in the key early weeks of January Medicare Advantage cohort has improved by a cumulative 700 basis points. On the ancillary product side, hospital indemnity plans, which are typically cross-sold as part of the Medicare sales process, grew significantly in the fourth quarter and full year. 2025 annual approved members exceeded 30,000 and was up more than 5x compared to 2024. For the full year, Medicare segment revenue of $531.2 million grew 6%. Fourth quarter positive net adjustment revenue or tail revenue was $3.9 million, almost all of which came from our Medicare segment. This compares to $7.6 million in total fourth quarter tail revenue last year, $5.9 million of which came from the Medicare segment. For the full year 2025, total tail revenue was $44.4 million compared to $22.7 million a year ago. The tail revenue we recognize reflects cash collections in excess of our original LTV estimates. There continues to be a significant unrecognized positive adjustments related to our Medicare book of business beyond our initial constraint. Turning to Medicare profitability. Fourth quarter LTV to CAC ratio was 2.2x, improving meaningfully from 2x in the fourth quarter of last year. We believe this is a clear indication that the marketplace is rewarding quality and that our multiyear investments in brand building, consumer experience and retention are delivering tangible returns. Fourth quarter Medicare gross profit of $178.3 million grew 12%, while for the full year, Medicare gross profit grew 21%. Our Employer and Individual segment revenue and profit decreased for both the fourth quarter and full year 2025. This segment is undergoing a transition from being primarily driven by individual and family plan sales to being focused on the employer market and specifically the ICHRA solution. On a consolidated basis, total fourth quarter operating expenses were $200 million, a decrease of 1%. Fourth quarter marketing and advertising and customer care and enrollment costs decreased 3%, while general and administrative and technology and content combined increased 6%. As I mentioned before, for the full year, our total operating expenses were down 4% with every category of fixed and variable spend declining compared to 2024. Fourth quarter GAAP net income was $87.2 million, a decrease from $97.5 million in the fourth quarter of 2024. This year-over-year reduction was primarily due to a higher effective tax rate during Q4 2025, partially offset by higher total revenue in the quarter. Full year 2025 GAAP net income was $40 million, an increase of almost 300% compared to $10.1 million a year ago. Fourth quarter adjusted EBITDA was $132.9 million, an increase of 10% and full year adjusted EBITDA was $97.3 million, an increase of 40%. We ended the year with $77.2 million in cash, cash equivalents and marketable securities compared to $82.2 million at the same point last year. This includes the net impact of the $125 million credit facility we announced in January after transaction costs and $70.7 million used to repay our existing term loan. As a reminder, the first quarter is our seasonally highest cash collection quarter as commission payments related to AEP enrollment cohorts mostly begin in January. Total commissions receivable as of December 31, 2025, were $1.1 billion, up 12% compared to December 31, 2024. Moving to our 2026 guidance. As Derrick outlined, this year, we are intentionally prioritizing operating and cash flow and margin over enrollment volume in line with our carrier partner strategies. We plan to continue concentrating our marketing spend on our highest quality channels, those with the strongest expected persistency and LTV to CAC profiles. Our demand generation strategy will also focus on the periods with the highest returns, the first quarter and most significantly, the fourth quarter. In the middle quarters, we plan for our licensed advisers to combine new enrollment activity with work towards deepening relationships with our existing members and ensuring member needs are fully met by offering ancillary products and services. On the cost side, in January, we implemented fixed cost reductions expected to generate approximately $30 million of fixed cost savings, combined with over $60 million of planned reductions in variable spend in 2026 versus 2025. As a result, the midpoint of our guidance reflects a year-over-year improvement in earnings margins, excluding tail revenue in both periods, even as revenue moderates. Importantly, our guidance also reflects our objective to achieve breakeven operating cash flow in 2026, representing roughly a $25 million year-over-year improvement at the midpoint. We expect to achieve this despite anticipated declines in BPO and sponsorship revenue in the current environment, which are fully baked into our 2026 guidance. As a reminder, the cash inflows of our business are largely driven by incoming commission payments from carrier partners, the timing of which can be difficult to control, which is reflected in the guidance range. We believe achieving operating cash flow breakeven this year will establish a critical foundation for positive operating cash flow in 2027 and positive free cash flow over the next 2 years. With that, we expect total revenue to be in the range of $405 million to $445 million. We expect GAAP net income to be in the range of $8 million to $25 million. We expect adjusted EBITDA to be in the range of $55 million to $75 million, and operating cash flow is expected to be in the range of negative $10 million to positive $12 million. These ranges include the assumption of positive net adjustment revenue in the range of $0 to $20 million. Taking a long-term view, the underlying goal of our financial strategy this year is to become increasingly targeted with our capital deployment. We plan to lean into the most profitable business opportunities and quarters, maximizing the return on our industry-leading omnichannel platform. We appreciate your continued support, and I'll now turn over the call for your questions. Operator, please open the line for Q&A.

[Operator Instructions] Your first question comes from Ben Hendrix from RBC Capital Markets.

This is Michael Murray on for Ben. There's obviously a major MA payer that's trying to limit membership growth this year, and that's impacted some of your peers. Is this what is causing your softer top line outlook? Or is it also related to your reduced investment in lower-margin third-party marketing channels? Any color would be helpful.

Yes. Thanks for the question. This is Derrick. I would say that our -- I think you have it right as it relates to your second point on our reduced revenue outlook for 2026. We're prioritizing our higher-margin branded marketing channels, which higher quality, higher retention as evidenced by the performance of our book. It also is in -- recognizes the difficult macro environment we're in and the difficult choices that carriers are making as it relates to improving their own margins. And so we're choosing to also focus on our margins in 2026 as we -- as I said in my remarks, as we consider this a bridge year.

Okay. That's helpful. And then your MA LTV saw a nice increase in 4Q on improved quality and retention. Were there any changes to your constraints or persistency assumptions there? And should we expect similar rates in 2026?

Michael, it's John Dolan. Thanks for the question. Yes, Yes. Sorry, just -- would you ask the question one more time?

Yes. Were there any changes to your constraints or persistency assumptions in your MA LTV? And should we expect similar rates in 2026?

Thanks for repeating the question. No, there's no change in our constraints for MA product or any products this quarter. We did make a change earlier in the year on product, but that was the only change that was made during the year. And as we look forward into 2026, we're expecting slightly improved LTVs.

Your next question comes from Jonathan Yong from UBS.

Just thinking about kind of what's embedded in your outlook, are you assuming that payers will continue to suppress commissions for the bulk of the year as you kind of move forward and as we get into the next AEP cycle? Or is this really just kind of the pullback that you are proactively taking because you're assuming that the payers will be focused more on margin and try not to grow their book?

Yes, it's a great question. Thank you. I don't -- the way we think about year-over-year commission suppression is that we believe again, as we said in our prepared remarks, that this year will be disruptive similar to the prior years. We don't have any indication at this point that it will be any more disruptive than what we've seen. So it's certainly not an indication that we think that it's worsening from that perspective. And again, our pullback really is more about what we're doing to address our own margins. And as we think about where to invest capital and focus again on those branded channels that we've proven now, right, over a period of time that are higher quality, higher persistency and will lead to a more meaningful relationship with our members.

Okay. And kind of on this pullback that you're doing, I guess it is a little surprising given over the last couple of years, you have successfully navigated kind of this dynamic environment. and now we seem to be downshifting in terms of the growth profile. I guess what's the reasoning for that, just given that you have successfully navigated the environment for why make this change now? And then is there any disruption that will occur from this in terms of members perhaps not utilizing eHealth kind of moving forward or some of your payer partners thinking that the pullback is a negative aspect from that perspective?

Yes. Thank you. So I'm going to answer the second part of the question first. We don't believe there's any potential adverse outcomes for members or our carrier partners. The way we view the pullback is it's a chance -- again, our carrier partners for 2 years running now, and again, we expect for a third year are making difficult choices to address their margins, and it's time for us to do a similar thing. And while -- by the way, thank you for your comment about successfully navigating prior periods. But I will say it hasn't been easy. Like it's been a difficult road for us to navigate. I've said on prior calls that size and scale matter. And I think our results prove that our size and scale has been one of the reasons that we have been able to successfully navigate those changes. But again, as we move forward with headwinds that we've talked about historically because of the disruption that we believe this was the right time to continue the move into the investment in our branded channels. Again, that's not new. We're just expanding the percentage of our spend into those branded channels versus prior years for -- again, for good reason. So it's calculated. We're doing this on purpose as we -- again, in my prepared remarks, as I said, as we focus on moving to a lifetime advisory model with our members that ultimately will allow us to achieve what we've laid out as it relates to higher attachment rates on ancillary products and services that meet the needs. I also think it's important to know and understand that at least at this point, we believe carriers in addressing their margin channels likely will reduce benefits. that will also give us an opportunity to add additional products and services to fill those voids or those gaps, if you will, as those MA product benefits change.

Your next question comes from George Hill from Deutsche Bank.

It's [ Maxi ] on for George. The CMS enrollment data in February showed continued slowdown in the growth of MA market, but SNP enrollment growth remained very strong and even accelerated significantly this year. Could you talk about the degree to which you serve SNP versus regular plan population? And are you guys over or underinvest here to capture the growth in the segment? And also please remind us if there is any different commission structure for the SNP population.

Yes. We don't break out and we haven't provided information publicly about those cohorts around how many SNP members versus non-SNP members we have. I think generally, again, we would say that we -- our broad platform, our broad carrier relationship and the number of MA plans on our platform. Again, as a reminder, we have, I think, roughly 50 different payers on our platform with thousands of individual plans across hundreds of geographic locations. So certainly, within there, we have those SNP plans available, and we'll continue to have them available, and we'll meet the need of the consumer. Whoever the consumer is and what their need is, our focus is on making sure that we align them with the right plan to meet those needs.

Your next question comes from George Sutton from Craig-Hallum.

I wondered if you could give us a little bit more granularity on the $30 million of fixed cost savings. What areas are being affected by that move? And then also any additional details on the $60 million reduction in variable spend? Is that purely the lower margin channel spend? Or is there more to it?

Sure. George, it's John Dolan. Thanks for the question. The $30 million of the cost savings is really coming from all areas of our fixed cost the fixed marketing and advertising technology and content and G&A functions. Nothing -- I wouldn't highlight any one area specifically. With respect to the variable spend, our focus was taking a look at the lower margin areas first and reducing those. So as I think Derrick covered in his prepared remarks, our goal is to spend into the areas that have the best persistency in LTV to CAC.

So Derrick, there was a suggestion that you had that you would look for 2027 to become another growth period. I'm just kind of curious, obviously, it sounds somewhat hopeful sitting here today. I'm curious what drives that thought process?

Yes. I think it's, George, based on demographics as agents continue to hit sort of their annual peak over the next couple of years in the 4 million to 4.1 million. We know from McKinsey data that roughly 70% of those new agents are choosing Medicare Advantage plans. CMS themselves believe the penetration rate for MA products will get to 60% by 2030. So we believe that, right? We believe that the value proposition is strong for consumers. And we believe that carriers will get their margins corrected, if you will, if that's the right way to think about it. And once they stabilize that, they'll be in a position to return to sort of a growth mode. And when they do, we'll be prepared to return to that growth mode with them.

Got you. You mentioned having active discussions with others in the space. I'm curious and many of whom are in a similar boat, what are you looking for? Are you looking for more capabilities through M&A/combinations? Are you looking to buy books of business? Just curious what the general plan would be there in terms of how you would benefit?

Yes. Thanks for the question. I would just say at a high level, sort of in the proverbial 30,000-foot view. It's my belief and our belief that when we're -- when any kind of market is in a period of volatility and disruption the way our market is today that it makes sense for us to be thoughtful about what those opportunities could be and how they present themselves. And so it could be yes to all of the types of things that you mentioned. And we're trying to be thoughtful and mindful to be able to take advantage of opportunities as they present themselves.

There are no further questions at this time. I will now turn the call over to management for closing remarks. Please go ahead.

Thank you for joining us. We appreciate the time that you spent with us today and that you invest in the coverage of eHealth. We're proud of the results for the fourth quarter of 2025 and the full year of 2025, and we're excited about the future. We're excited about where we're going to increase our capabilities to meet the needs of our members and to also meet the needs of our carrier partners. Look forward to speaking to you in the future. Have a great evening.

Ladies and gentlemen, this concludes today's conference call. Thank you all for your participation. You may now disconnect.