LIFE

Image source: The Motley Fool. Monday, Aug. 3, 2026 at 4:30 p.m. ET Speaker - Aaron Turner Ethos CEO - Peter Colis CFO - Chris Capozzi Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good day, and thank you for standing by. Welcome to the Ethos Technologies Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Aaron Turner. Please go ahead. Aaron Turner: Good afternoon, and welcome, everyone, to Ethos Technologies Second Quarter of Fiscal Year 2026 Earnings Call. We will be discussing the results announced in our press release issued after the market closed today. With me today are Ethos CEO, Peter Colis; and our CFO, Chris Capozzi. Today's call is being webcast and will also be available on the Investor Relations website at investors.ethos.com. A slide presentation accompanies this call and can be viewed in the Events section of our Investor Relations website. During this call, we will make forward-looking statements within the meaning of the federal securities laws, including statements regarding potential share repurchases, our financial outlook for the third quarter and fiscal year 2026, our expectations regarding financial and business trends, impacts from go-to-market initiatives, growth strategy and business aspirations and product initiatives, including future product releases and white label platform arrangements and the expected benefit of such initiatives. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends. These forward-looking statements are subject to a number of risks and other factors. For a discussion of these risks and other factors, please see the information under forward-looking statements in our financial results press release issued today and our presentation materials, as well as the more detailed discussion in our SEC filings available on our Investor Relations website and on the SEC website at www.sec.gov. Although we believe that the expectations reflected in the forward-looking statements are reasonable, our actual results may differ materially. All forward-looking statements made during this call are based on information available to us as of today, and we do not assume any obligation to update these statements as a result of new information or future events, except as required by law. In addition to the U.S. GAAP financials, we will discuss certain non-GAAP financial measures. While the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. A reconciliation to the most directly comparable U.S. GAAP measures is available in the presentation that accompanies this call, which can be found on our Investor Relations website. Now let me turn the call over to Peter. Peter Colis: Good afternoon, everyone, and welcome to our second quarter 2026 earnings call. Q2 was another exceptional one. We delivered $190 million in revenue, representing 113% year-over-year growth. Our second consecutive quarter of over 100% year-over-year growth. We're on pace for our fourth consecutive year of over 50% annual growth, and our full year 2026 guidance implies accelerating growth for 2026. We generated adjusted EBITDA of $35 million, and we achieved a Rule of 40 score of 132%, further demonstrating our ability to generate robust growth and profitability. We protected over 100,000 new families, bringing our cumulative total to over 700,000 activated policies to date. When we started Ethos, it took us 54 months to protect our first 100,000 families. Now, fast forward to today, at our current scale, we activated 100,000 new policies in just 3 months. And as one of the largest volumetric underwriters in the life insurance industry, we continue to amass an ever-increasing data moat that gives our carrier partners and ourselves great confidence in our risk management capabilities. Ethos gets better as it gets bigger. Our goal at Ethos is to become the largest provider of life insurance in the world. We built a vertically integrated platform that owns the full consumer journey from marketing and application through underwriting, policy issuance, policy administration, and long-term servicing. We believe that control enables us to deliver a level of speed, accessibility, and approval rates that simply do not exist in the legacy life insurance industry. Our automated data-driven underwriting engine processes hundreds of thousands of data points per application, leveraging pharmaceutical records, medical claims billing data, and more. The engine then applies over 1 million rules of logic and over 800 adaptive questions to make accurate, risk-adjusted pricing decisions in real time. Our 95% instant decisioning rate would be tremendously difficult to achieve without our proprietary engine and the logic IP developed over the previous 6 years. A sample of these automated underwriting decisions are then audited by the Ethos human underwriting team, and then many of those outcomes are re-audited by our carrier partners' human underwriting teams, providing further validation and optimization of our underwriting engine. Turning to the business highlights that drove this quarter's performance. In our direct channel, the virtuous data cycle of our product and marketing experimentation continues to spin faster and deliver gains. Increased user volumes allowed us to scale experimentation, driving more unit economic improvements, which build on each other quarter after quarter. We've been able to increase marketing spend on the back of these gains and continue to build our reputation and solidify our position as the leading D2C brand for the industry. This leads to more families protected, more learnings, and increased revenue. Q2's direct revenue growth of 131% reflects that compounding advantage. In our third-party channel, we're seeing continued growth from new and existing agencies driven by both an increase in the number of agents using the platform and improving agent productivity. Revenue in the third-party channel reached $73 million in Q2, representing 90% year-over-year growth. That makes two sequential quarters of material acceleration. And importantly, this growth is broad-based, coming from wide product adoption across our existing agents and continued recruitment of new ones. The combination of our agent technology and operating system, our instant transactional experience, and a differentiated product portfolio is what's driving the kind of product-market fit that we're seeing within our large market. On the product front, we deepened our relationship with North American Sammons by expanding our accumulation IUL product to include children. The first time Ethos has ever been able to support juveniles. This was one of the top product requests we received from our distribution network, and more importantly, we were able to take what we were hearing from those agents and quickly bring that product to market. Last quarter, we discussed that annuities were a key market we are interested in. And this quarter, we began investing in our nascent D2C annuities opportunity. We are optimizing the client experience, growing our sales team, and expanding our annuity carrier panel, allowing us to broaden our selection and increase conversions. We're still in the early days of this initiative, and we do not expect this product to materially contribute to our 2026 results. However, we believe annuities is a massive market opportunity, and we're optimistic about its long-term potential for Ethos. I want to briefly touch on the evolving AI landscape. As we look across the broader life insurance market, we view the potential future shift towards agentic commerce as a material tailwind. Because we own a vertically integrated, fully digital technology stack, and the leading direct-to-consumer distribution platform, we are uniquely positioned to benefit from AI-driven demand. We're already leaning into this transition, ensuring that our infrastructure integrates seamlessly into the emerging AI ecosystem. While traditional insurance models must spend heavily to learn and adapt to these new consumer habits, our digital foundation allows us to efficiently capture demand, expand our data moat, and continue taking outsized market share. As we look to the rest of 2026, we are focused on our three durable growth vectors: ecosystem, platform, and product. On ecosystem, we are bringing more consumers into our direct channel and recruiting more agents onto our platform. On platform, we are making our distribution network more productive and more of their sales, and on product, we're broadening our portfolio to reach a wider addressable audience. These three reinforce each other. Every new client sharpens our risk model and improves the experience for both clients and agents. And those same models train the machine learning that powers our advertising spend. More intelligent risk models mean better pricing and unit economics for our clients, our carriers, and for Ethos. That scale and underwriting experience is also what lets us expand our product portfolio and carrier panel. And a wider product portfolio helps us win more of an agent's business and recruit new types of agencies. All of it runs through one platform that captures granular data across the entire consumer and agent journey. The legacy industry is still running on-prem systems and manual processes. We have built a vertically integrated end-to-end platform specifically to make this cycle spin, and it keeps spinning faster. This compounding strength gives us the conviction to raise our full year outlook. I will now turn the call over to Chris to walk you through our Q2 results and the details of our updated guidance. Christopher Capozzi: Thanks, Peter, and good afternoon, everyone. I'll begin with a review of our second quarter results, then walk through our outlook for the third quarter and for the full year 2026 before opening it up for questions. As Peter noted, Q2 was another exceptional quarter. We more than doubled revenue year-over-year, maintained strong profitability, and raised full-year guidance. Before reviewing the details, I'd like to remind everyone that some of the financial measures and metrics that I'll discuss today are presented on a non-GAAP basis, which we believe provides additional insight into our performance. With that in mind, let me walk you through the details behind our results. In the second quarter, we delivered $189.6 million in revenue, representing 113% growth from the same period last year. In our direct channel, second quarter revenue was $116.5 million, representing 131% year-over-year growth, highlighting our ability to sustain the growth rate acceleration that we unlocked in the fourth quarter. Our virtuous data cycle is accelerating top-line growth and rapidly expanding our market share. Because our platform is vertically integrated, we can refine everything from the initial user experience to our core underwriting algorithms, expanding our addressable market. We continue to pair this rapid expansion with highly disciplined unit economics, driving a sequential improvement in our return on advertising spend in the second quarter. In our third-party channel, second quarter revenue was $73.1 million, representing 90% year-over-year growth. This marks the second consecutive quarter of sequential acceleration in our year-over-year growth rates, up from 27% in the fourth quarter and 42% in the first quarter. This compelling growth was driven by contributions from both new and existing agencies, alongside enhancements to our agent portal and improved conversion rates and agent productivity. Moving to our non-financial metrics. We activated 107,847 policies in the second quarter. The average revenue per policy was $1,758. The sequential decline in ARPU was the result of a product mix that skewed more heavily towards our whole life products, which make up a growing portion of the policies written in our third-party channel. Our second quarter contribution profit grew 66% year-over-year to $62.3 million, representing a 33% contribution margin. A contribution margin is a function of our revenue mix between our two channels and the products sold within these channels. In Q2, we saw a higher mix of products sold in our third-party channel, which naturally shifted our blended contribution margin rate. As a reminder, all of our products are independently profitable, and we remain focused on scaling total contribution profit dollars and adjusted EBITDA dollars rather than optimizing for a specific margin rate. Our second quarter adjusted EBITDA was $35.2 million, representing a 19% margin. Combined with our 113% revenue growth, this quarter's Rule of 40 score was 132%. As of June 30, 2026, our cash, cash equivalents, and investments totaled $252.9 million. We ended the quarter with a commission receivable balance of $381.5 million, up 11% from the prior quarter and up 51% from the prior year, representing estimated future cash flows already earned but not yet received. This balance is a direct reflection of the scale and quality of our activated policy base, and we view it as an important indicator of the embedded cash generation potential of our platform. Our Q2 cash flow from operating activities was $35.7 million. Given the strength of our balance sheet and our confidence in the durability of our cash generation, our board has authorized a share repurchase program of up to $100 million of our Class A common stock. We intend to be opportunistic in how we deploy this authorization, repurchasing shares only when we believe the market price does not reflect the underlying value of the business. We expect to adopt this program under a Rule 10b5-1 trading plan following the filing of our 10-Q, and we'll disclose repurchase activity in our filings going forward. Turning now to our financial outlook. The momentum we generated in the first half of 2026 positions us exceptionally well for the remainder of the year. Our revised guidance reflects this sustained top-line acceleration, a higher revenue mix from our third-party channel, and strategic growth investments that we are actively pursuing. For the third quarter of 2026, we expect total revenue in the range of $160 million to $164 million. At the midpoint, this represents 73% year-over-year growth. We also expect adjusted EBITDA in the range of $23 million to $25 million. For the full year 2026, we are raising our total revenue guidance and now expect revenue in the range of $727 million to $731 million. At the midpoint, this represents 88% year-over-year growth, marking an acceleration over our 2025 growth rate and reinforcing the durability of our top-line momentum. We're also raising adjusted EBITDA to a range of $119 million to $123 million. In closing, our performance in the first half of 2026 shows the power of the Ethos platform. As we continue to scale, our structural advantages compound, allowing us to grow well above market rates while maintaining a strong profitability profile. As we look ahead to the second half, we believe we are well positioned to maintain this high rate of growth while scaling new products and partners well into the future. With that, I'll turn the call over to the operator to begin the Q&A session. Operator? Operator: [Operator Instructions] Our first question comes from Eric Sheridan with Goldman Sachs. Eric Sheridan: Maybe just one big picture one. You guys talked during your prepared remarks about the durability of growth. Can you talk a little bit about what you're most excited about that could sustain durability levels of growth well above industry levels of growth? And also, as you continue to lap accelerated growth rates that you've been putting up as a public company in the last couple of quarters, how should we just think about broadly more normalization of revenue growth as you run into tougher revenue comps as you move out of '26 and into '27, just so we understand the interplay between the durability theme against just the math of lapping revenue growth as you get further down the road. Thank you so much. Peter Colis: Hey, Eric. Thanks for the question. This is Peter. On the overall durability of growth, it's important to remember, every year, around 10 million Americans buy individual life insurance. And so we are a single-digit percentage of that market today. And that demand for life insurance really exists whether or not Ethos exists. And we have developed, obviously, a transformative client experience, which allows people to just take the initiative and buy it in a much easier and more streamlined fashion than anything else available in the market today. And I think equally important is we transform the agent selling experience, and our value proposition with agents is unmatched, both due to the transactional acceleration that we provide, but also the full range of features and benefits for agencies and agents to build and keep recruiting more agents on. So I think one is there's just a durable amount of people showing up to buy the product in the market every single year, and we have the best offering for, I think, the vast majority of them. And then second is our virtuous data cycle is really what allows us to continuously optimize our unit economics through improvements to our underwriting algorithms, persistency, mortality, client experiences, agent selling experiences, data infrastructure, marketing, and whatnot. And so we believe we'll be able to eat into a larger and larger percent of that 10 million people buying each year. And then there's the opportunity that we're driving incremental people to the market who otherwise wouldn't buy without us. And so we're equally excited to be protecting more families that way. Chris, do you have any other thoughts on growth rates? Christopher Capozzi: No, just in terms of the future outlook, Eric, yes, I would just note that the growth that you've seen us unlock over the past couple of quarters and the acceleration that we've seen in our year-over-year growth rates is very structural in nature, and we expect those benefits to carry through into the second half of the year here. That's, of course, reflected in our guidance for the third quarter and the full year. And then as we turn the corner in 2027, we'll provide an outlook in February for the full year 2027. Peter Colis: And then one additional thing I'll just add. On the third-party business, it's also quite recurring in nature where you recruit an agency, they roll you out to all their agents. Those agents sell repeat policies with Ethos. And then that agency is constantly recruiting more agents onto the platform at no incremental cost. And we can make those agents more productive through optimizing the agent experience so they go and sell more net new policies than they otherwise would. So there's a lot of embedded reoccurring nature to the revenue, both in the client demand and the agent model. Operator: One moment for our next question. Our next question comes from Ronald Josey with Citi. Ronald Josey: Maybe as a follow-up to Eric -- I mean, on Peter, you talked about on the call better. Let's see, as we get bigger, we get better. So I might have butchered that, but I think that's what you said specifically on the call. As we get bigger, we get better. And so I want to understand as you get bigger, sort of unpack that a little bit more in terms of experimentation with product, investing in distribution. Talk to us about sort of the methods and means to get bigger branding on the consumer side and on the agent side. And then Chris, as a follow-up to that, talk to us a little bit more about the top of funnel and the investments in marketing overall that might have led to this growth. I know we're investing more in branding, but then specifically we're also -- I'd love to hear how you're managing profitability with growth. Thank you. Peter Colis: Thanks, Ron. Great question. So as we get larger, we have more clients flowing through our systems, and we have more data to test on. And that testing unlocks gains up and down the vertical stack, as I mentioned before. The speed with which we can run a statistically significant test today is a fraction of what it was a couple of years ago. And so because of that, we can run many more net new tests up and down the funnel or deploy many more resources to optimizing underwriting. We can look at de-averaged data sets in underwriting and come to conclusions more quickly. So if you look at the industry, obviously everyone knows insurance is a data business, but the typical carrier model has so much friction in their virtuous data flywheel between the manual medical exams and blood tests that you have to go through when you buy, there always being an agent between them and their client, the back-end mainframe and on-prem technology infrastructure. And I think what we're observing is, by having eliminated so much of this friction in our data flywheel, it's really able to spin in a well-oiled and fast manner that allows us to accumulate this data, act on it with great tests, observe what is driving gains, institute that as our new baseline, reinvest those improved unit economics in incremental marketing spend at our target ROAS, drive even more data, and so on and so forth. And so financial services companies often improve as they get bigger. And I think within our industry, we're doing that at an accelerated rate. And we do so without the constraint of the typical balance sheet capacity constraint by working with a portfolio of carrier partners who are each strong in individual parts of the market, but allow our total product portfolio to be strong in almost all respects in the market. And carrier partners that are very well capitalized and have hungry demand for our premiums, it allows us to grow in a risk-conscious manner, much faster than a typical carrier learning their way into the market would. Christopher Capozzi: And then, Ron, in terms of how that's translated into capital deployment for us, if you look at this business over the past 3 or 4 years, you'll see as we continue to unlock unit economics, we have scaled marketing spend at the top of the funnel. Each year, top of the funnel as a percentage of total marketing spend is continuing to grow and scale. And that's really obviously allowed us to tap into much broader audiences, and we're really -- it's noteworthy, I think, that we've been able to do that while maintaining or improving unit economics. Here in the second quarter, as Peter noted earlier, we more than doubled our ad spend while maintaining year-over-year return on ad spend and saw a nice sequential improvement quarter-over-quarter. So we've been able to deliver this growth while also maintaining disciplined unit economics and profitability. Operator: Our next question comes from Pablo Singzon with JPMorgan. Pablo Singzon: First question, I was hoping you could unpack the EBITDA guide for the second half of it. Clearly, you're raising the revenue guide, but I guess compared to that, EBITDA is sort of flattish, and therefore, it seems like margins are going to compress first half versus second half. So if you sort of talk through that, what's driving that outlook from a margin perspective? Christopher Capozzi: Sure. Pablo, if you look at our Q2 reported results, you'll see from Q1, direct as a percentage of our total revenue mix, down 14 points. And as we've seen the significant acceleration in the third-party business, as we noted earlier, year-over-year growth rates in the fourth quarter were 27%, then accelerated up to 42% in the first quarter and then 90% here in the second quarter. That dynamic is just naturally causing margins to mix down with a significant acceleration of growth in third party. As we've noted in previous discussions with you, the unit economics in our third-party business are skinnier than the direct business, but we still like the business. We highlight for you that every one of the policies that we activate on our platform are independently profitable. Every one of those policies are variable cash flow positive within 60 days of activation. And, you know, our North Star from a capital allocation perspective has always been and will continue to be focused on scaling absolute contribution profit dollars and absolute EBITDA dollars. And that momentum is really what's reflected -- that momentum in the third-party business, in particular, is really what's reflected in the EBITDA guidance that you see in the second half. Pablo Singzon: And then for my second question, so cash flow from operations is better than what we had thought. Was there anything one-off in this quarter from, I guess, a working capital perspective or anything else? And just sort of broad expectations for the remainder of the year there on cash flow. Christopher Capozzi: Sure. For the quarter, the performance was largely organic. There's one callout. There was an $8 million timing benefit related to a settlement with one of our carrier partners that we expect will reverse here in the third quarter. But other than that, performance was very much organic and linked to operations. As we've noted, cash conversion continues to improve in this business. It's tough to see it necessarily on a quarter-by-quarter basis. But when you look at it over the years, I track it from 2023 forward, you see strong sequential improvements. We continue to see that on an LTM basis. If you were to measure us at the end of the second quarter, we've seen 37% cash flow conversion, a number, as I mentioned, that has continued to improve year-over-year. And we think that trend likely continues to the back end of the year and then, as you look out over the next couple years. Operator: Our next question comes from Ross Sandler with Barclays. Ross Sandler: Could you talk a little bit more about the uptick in growth in the agent business? I mean, obviously, really strong uptick there, even stronger, kind of factoring in that adjustment from a year ago. So was there any, like, additional products, additional agencies, anything going on in that channel that would describe that big uptick that you saw? Thanks a lot. Peter Colis: Hey, Ross, thanks for the question. It's Peter. There is nothing -- no one individual thing that drove it. It's coming from a broad base of newer and longer-term partners. A lot of new agency partners who joined the platform in 2025 and 2026 are contributing very nicely to the growth. And then we have a robust pipeline of more agencies in the onboarding funnel as well. Just as a reminder, we have a fairly organic process of agency-to-agency or agent-to-agent referrals, and our fully loaded agency recruitment costs are really a low single-digit percentage of the third-party revenue. Our agency model, I would say there's just a lot of product-market fit where the product portfolio is clicking, the agent operating system is clicking, the features and benefits are clicking, the word is getting out that Ethos really helps agencies sell many more policies per agent than they otherwise would, and that improvement in an agent's livelihood and career is allowing agencies to go and recruit more agents than they otherwise would, boosting and benefiting both the writing agent and the agency managers and owners. Our operational systems have improved significantly over the last couple of years. The ability to handle very complex payments, commissions, debt, fraud management, all of it is really clicking and maturing. And there's a lot more room to run in improving the platform. And as we've said before, we have a single-digit percentage of the industry's estimated life insurance agents on our platform selling. And so there's a lot more market share to go out and take, not only from agencies that we're not yet partnered with, but also from the existing agencies we partner with, there's more wallet share to gain into the future. Operator: Our next question comes from Colin Sebastian with Baird. Your line is open. Colin Sebastian: Congratulations on the quarter, guys. I know you cited being, I think, one of the top sources of new policies for at least several of your carrier partners. My first question is, I guess, does the pace of growth have any implications for any of those carriers in terms of their appetite or their capacity limit as they work with you, either on a product basis or as you look to expand the portfolio? And I have a follow-up. Peter Colis: Thanks for the question. With our existing panel of carrier partners, there's currently much more demand and capacity for our premiums than there is supply of premiums. We've got six partners today, 13 products, with multiple term life products, multiple whole life products, multiple indexed universal life products. So there's a fair amount of redundancy built into the existing portfolio. Now, we're always, in the carrier market, speaking with prospective carriers about potential growth opportunities together, both in net new product categories and potential added redundancy to the platform. But it's important to remember we don't want a panel of 30 off-the-shelf carrier products. We've intentionally built a very focused panel of carriers where we work to co-develop custom proprietary products with deep operational integrations from the carriers into our unified platform. And then importantly, scale with our carrier partners really provides us the necessary position for getting the best unit economics and it helps us get our priorities to the front of the carriers' IT and operational road maps, where oftentimes we have to dislodge some other important work on the road map related to maintaining a legacy IT system. And then importantly, remember that we have extended notice of cancellation periods on our key contracts, which last well beyond the time required for us to build a new product with a new partner. But we expect to continue building more products with more partners into the future. We're hard at work on products today and excited to keep broadening the portfolio. Colin Sebastian: And then maybe just a follow-up on the incremental margin question. I guess how much of the current margin profile is launch cycle investment and R&D and marketing as you launch and scale new products that reverse as those products mature, if that makes sense, versus maybe a structurally different margin mix? Christopher Capozzi: Colin, the costs are marginal relative to launching new products. The platform is incredibly extensible, and we've gotten a lot of volume leverage on the technology spend over the years and would expect that trend to continue into the future. Operator: Our next question comes from Kunal Madhukar with Deutsche Bank. Kunal Madhukar: There has been a lot of discussion during the Q&A, especially about the market opportunity and about the appetite for growth. You guys are a very young company with a very small market share in a very, very large market growing 100-plus percent, throwing out -- generating a significant amount of cash, 0 debt on the balance sheet, your ROAS is increasing and is very, very strong already. Why not invest more on marketing and grow faster when you're thinking of share buybacks? Peter Colis: That's a great question, Kunal. Thank you for it. This is Peter. We historically have targeted first-year cash profitability on a fully burdened variable basis as a unit economic threshold that we hold ourselves to in both our direct and our third-party channel. We've -- as a recently public company, we felt it's been important to deliver both a combination of growth and healthy margins and to grow profitably as we build out our investor reputation. So it's something we always stay open-minded about and consider, but right now we feel like we have the right balance of unit economics and growth. Kunal Madhukar: And then a quick one on the quarter, the 50 bps impact on the gross margins, is that basically channel mix? Christopher Capozzi: Yes, I don't think there's anything particularly noteworthy to call out there, Kunal. Operator: Our next question comes from Michael McGovern with Bank of America. Michael McGovern: Just following up on Peter's comments on AI and agentic commerce, you were among the early partners for ChatGPT's native app ecosystem. Have there been any important learnings so far in terms of customer behavior or engagement or conversion, and have the results been consistent with your expectations? Peter Colis: Thanks for the question. It's still early days for the LLM-driven insurance distribution. So I would say that there haven't really been any kind of significant changes in how we go to market and acquire clients. We have been very active in our GEO initiative to ensure to take advantage of the shift when it does occur. As the end-to-end digital buying platform, we believe we're best positioned to capture any change in the consumer behavior. And at the minimum, we assume that LLMs will play a bigger role in consumer research ahead of a purchase and could be a material source of client origination. To date, that has not been the case. We'll have to wait and observe how the LLMs' monetization strategy evolves and if they start charging for client origination, but we think that we would win at that game just given the sophistication of our data models and our intelligent acquisition engine and our fully digital end-to-end transactional experience. I do think at this point, life insurance funnels are so complex with identity verification, reflexive questioning, third-party data pulls for underwriting, and they're lengthy enough that it's not intuitive that the entire transactional process is going to shift into an LLM or that a chat format is best for it. But we remain aggressively focused on being on the leading edge in whatever ways clients want to buy. Michael McGovern: And then one more follow-up on the acceleration from new agents and partners. Can you just talk about the sort of efficiency curves that you're seeing by cohort of agents and partners and whether your more seasoned cohorts continue to improve their efficiency and productivity and how much runway they still have to be more efficient in the future? Christopher Capozzi: Mike, as Peter noted, you know, we're seeing broad strength across our full slate of agency partners in terms of what's driving the growth acceleration here. And those have two contributing factors, of course, new agents coming onto the platform, as well as increasing agent productivity. And we saw contributions from both growth factors here in the quarter, both volumetrically and from a productivity perspective. But I think as you noted in your question, yes, we generally do see the trend where the more seasoned, experienced agents tend to ramp and deliver higher productivity over time. So that could be, and we would expect to be, a bigger part of the forward growth story. Operator: I'm not showing any further questions at this time. I’d like to turn the call back to Aaron for any further remarks. Aaron Turner: Great. Well, thank you, everyone, for joining us today, and we will speak with you again next quarter. Operator: Thank you, ladies and gentlemen. That concludes today's presentation. Thank you for your participation. You may now disconnect and have a wonderful day. Before you buy stock in Ethos Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ethos Technologies wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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This article first appeared on GuruFocus. Release Date: August 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ethos Technologies Inc (NASDAQ:LIFE) delivered exceptional Q2 2026 results with revenue of $190 million, representing 113% year-over-year growth, marking the second consecutive quarter of over 100% growth. The company achieved a Rule of 40 score of 132, demonstrating a strong balance of robust growth and profitability, with adjusted EBITDA of $35 million. Ethos Technologies Inc (NASDAQ:LIFE) continues to scale efficiently, activating over 100,000 new policies in just three months, bringing its cumulative total to over 700,000 activated policies. The third-party channel showed significant acceleration, with revenue growing 90% year-over-year to $73 million, driven by broad-based growth from new and existing agencies. The company raised its full-year 2026 revenue guidance to $727-$731 million, representing 88% year-over-year growth, and authorized a $100 million share repurchase program, reflecting confidence in its cash generation and balance sheet strength. Ethos Technologies Inc (NASDAQ:LIFE) expects margin compression in the second half of 2026 due to a higher revenue mix from its third-party channel, which has skinnier unit economics compared to its direct channel. The company's average revenue per policy (ARPU) declined sequentially to $1,758, driven by a product mix skewed more heavily toward whole life products in the third-party channel. Q2 cash flow from operations included an $8 million one-time timing benefit related to a settlement with a carrier partner, which is expected to reverse in the third quarter. The nascent D2C annuities initiative is still in early stages and is not expected to materially contribute to 2026 results, indicating a potential delay in realizing this market opportunity. The company's growth is partially dependent on the evolving AI and LLM-driven distribution landscape, which has not yet materialized as a significant source of client origination, leaving some uncertainty about future demand channels. Warning! GuruFocus has detected 3 Warning Signs with ON. Is LIFE fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss the durability of growth and how we should think about revenue growth normalization as you lap tougher comps moving into 2027?A: Peter Kolas (CEO) highlighted that roughly 10 million Americans buy individual life insurance annually, and Ethos holds only a single-digit market share. The company's transformative client and agent experiences, combined with its "virtuous data cycle" that continuously optimizes unit economics, position it to capture a larger share of this durable demand. Chris Capozzi (CFO) added that the recent growth acceleration is structural and expected to carry through the second half of 2026, with a full-year 2027 outlook to be provided in February. Q: Can you unpack the EBITDA guidance for the second half, as margins appear to compress despite a raised revenue guide?A: Chris Capozzi (CFO) explained that the margin compression is driven by a significant acceleration in the third-party channel, which grew 90% year-over-year in Q2 versus 27% in Q4 and 42% in Q1. This channel has inherently skinnier unit economics than the direct channel, causing a natural mix-down in margins. However, every policy activated is independently profitable and variable cash flow positive within 60 days, and the company's North Star remains scaling absolute contribution profit and EBITDA dollars. Q: What is driving the significant uptick in growth in the agent/third-party business?A: Peter Kolas (CEO) attributed the growth to a broad base of new and existing agency partners, with no single driver. New agencies joining in 2025 and 2026 are contributing strongly, and there is a robust pipeline of agencies in onboarding. The company benefits from organic agent-to-agent referrals, with recruitment costs at a low single-digit percentage of third-party revenue. The product-market fit is strong, as Ethos helps agencies sell more policies per agent, and the company still has a single-digit percentage of the industry's estimated agents on its platform, leaving significant room for market and wallet share expansion. Q: Does the pace of growth have implications for carrier partners' appetite or capacity limits?A: Peter Kolas (CEO) stated that there is currently much more demand and capacity from carrier partners than there is supply of premiums. Ethos has six partners and 13 products with built-in redundancy. The company intentionally maintains a focused carrier panel to co-develop custom proprietary products with deep integrations, rather than offering 30 off-the-shelf products. Scale provides leverage for better unit economics and prioritization on carriers' IT roadmaps, and extended notice of cancellation periods on key contracts provide protection. Q: Why not invest more in marketing to grow faster given the strong cash generation, zero debt, and increasing ROAS, instead of initiating a share buyback?A: Peter Kolas (CEO) explained that Ethos historically targets first-year cash profitability on a fully burdened variable basis as a unit economic threshold in both channels. As a recently public company, it is important to deliver a combination of growth and healthy margins to build investor reputation. The company remains open-minded about this balance but currently believes it has the right mix of unit economics and growth. Q: What are the learnings so far from the AI and agentic commerce initiatives, particularly as an early partner in ChatGPT's native app ecosystem?A: Peter Kolas (CEO) noted it is still early days for LLM-driven insurance distribution, with no significant changes in client acquisition yet. Ethos is actively working on its GEO initiative to capture any shift in consumer behavior. While LLMs may play a larger role in consumer research, the complexity of life insurance funnelsincluding identity verification and underwriting data pullsmakes it unintuitive for the entire transaction to shift to a chat format. Ethos believes its sophisticated data models and fully digital experience position it to win if LLM monetization evolves. Q: Can you discuss the efficiency curves by cohort of agents and whether seasoned cohorts continue to improve productivity?A: Chris Capozzi (CFO) confirmed that growth is driven by both new agents joining the platform and increasing agent productivity. The company generally observes that more seasoned, experienced agents ramp and deliver higher productivity over time, and this trend is expected to be a bigger part of the forward growth story. Q: Was there anything one-off in the strong cash flow from operations this quarter, and what are the expectations for the remainder of the year?A: Chris Capozzi (CFO) noted that Q2 cash flow performance was largely organic, with one $8 million timing benefit related to a settlement with a carrier partner that is expected to reverse in Q3. Cash conversion continues to improve, reaching 37% on an LTM basis at the end of Q2, and this trend is expected to continue through the back end of the year and beyond. Q: How much of the current margin profile is launch cycle investment in R&D and marketing versus a structurally different margin mix?A: Chris Capozzi (CFO) stated that the costs of launching new products are marginal relative to their benefits. The platform is highly extensible, and the company has achieved significant volume leverage on technology spend over the years, a trend expected to continue. Q: Can you elaborate on how "getting bigger makes you better" in terms of experimentation and distribution investment?A: Peter Kolas (CEO) explained that larger scale allows for more data to test on, enabling faster statistically significant tests and more resources for optimizing underwriting. By eliminating friction in the data flywheelsuch as manual medical exams and legacy ITEthos can accumulate data, act on it, and reinvest improved unit economics into marketing spend. This creates a compounding advantage that traditional carriers cannot replicate, allowing Ethos to grow faster in a risk-conscious manner with well-capitalized carrier partners. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Ethos Technologies Inc. Class A Common Stock? Here are five stocks we like better. Strong growth continued: Second-quarter revenue rose 113% year over year to $189.6 million, driven by 131% growth in direct-channel revenue and 90% growth in third-party channels. Ethos activated 107,847 policies and generated $35.2 million in adjusted EBITDA. Full-year outlook raised: Ethos now expects fiscal 2026 revenue of $727 million to $731 million and adjusted EBITDA of $119 million to $123 million, while forecasting third-quarter revenue of $160 million to $164 million. Capital allocation and expansion: The board authorized up to $100 million in share repurchases. Ethos also expanded its IUL product to juvenile policies and began investing in direct-to-consumer annuities as a longer-term growth opportunity. Ethos Technologies Inc. Class A Common Stock (NASDAQ:LIFE) reported second-quarter fiscal 2026 revenue of $189.6 million, up 113% from a year earlier, as growth accelerated across its direct-to-consumer and third-party agency channels. The company also raised its full-year revenue and adjusted EBITDA outlook and authorized a share repurchase program of up to $100 million. CEO Peter Colis called the quarter “another exceptional one,” noting that Ethos generated $35.2 million in adjusted EBITDA and a Rule of 40 score of 132, based on 113% revenue growth and a 19% adjusted EBITDA margin. The company activated 107,847 policies during the quarter, surpassing 700,000 cumulative activated policies. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now Ethos said direct-channel revenue reached $116.5 million in the second quarter, an increase of 131% year over year. Third-party channel revenue rose 90% to $73.1 million, marking the second consecutive quarter of accelerating growth in that business after year-over-year growth of 27% in the fourth quarter and 42% in the first quarter. Colis attributed direct-channel momentum to increased experimentation in marketing, product design and underwriting, supported by a growing volume of customer data. He said the company’s vertically integrated platform covers the consumer journey from marketing and applications through underwriting, policy issuance, administration and servicing. → MarketBeat Week in Review – 07/27- 07/31 The company’s automated underwriting engine processes hundreds of thousands of data points per application and applies more than 1 million rules of logic and more than 800 adaptive questions, according to Colis. He said Ethos has a 95% instant-decisioning rate, while certain automated decisions are audited internally and by carrier partners. In the third-party business, management said growth came from both new and existing agencies, more agents using the platform, and improved agent productivity and conversion rates. Colis said the company has a “robust pipeline” of agencies in onboarding and that its recruitment costs for agents and agencies are in the low single-digit percentage range of third-party revenue. → GE HealthCare Stock Climbs on Vital Diagnostics Demand Ethos’ average revenue per policy was $1,758, down sequentially due to a greater mix of whole-life policies, which are becoming a larger part of the third-party channel’s sales mix, CFO Chris Capozzi said. Second-quarter contribution profit rose 66% year over year to $62.3 million, representing a 33% contribution margin. Capozzi said the margin rate was affected by a higher mix of third-party revenue, where unit economics are “skinnier” than in the direct business. However, he emphasized that each activated policy is independently profitable and variable cash-flow positive within 60 days of activation. Management said it is prioritizing growth in absolute contribution profit and adjusted EBITDA dollars rather than targeting a specific contribution-margin percentage. Cash flow from operating activities totaled $35.7 million in the quarter. Capozzi said results included an $8 million timing benefit tied to a settlement with a carrier partner that is expected to reverse in the third quarter. Excluding that item, he said cash-flow performance was largely organic and tied to operations. As of June 30, Ethos had $252.9 million in cash equivalents and investments. Commission receivables were $381.5 million, up 11% sequentially and 51% from the prior year. The balance reflects estimated future cash flows already earned but not yet received, according to the company. Given its balance sheet and cash-generation outlook, Ethos’ board authorized a repurchase program of up to $100 million of Class A common stock. The company said it intends to deploy the authorization opportunistically when it believes its market price does not reflect the underlying value of the business. Ethos expects to adopt a Rule 10b5-1 trading plan after filing its quarterly report. Ethos expanded its Accumulation IUL product with North American Sammons to include children, marking the first time the company has supported juvenile policies. Colis said the capability had been one of the most common requests from its distribution network. The company also began investing in a direct-to-consumer annuities opportunity, including efforts to optimize the customer experience, expand its sales team and add carrier partners. Management said annuities are not expected to contribute materially to fiscal 2026 results, though it views the category as a significant longer-term opportunity. Colis also discussed the potential impact of artificial intelligence and agentic commerce on life-insurance distribution. He said Ethos’ digital infrastructure could position it to benefit from AI-driven consumer demand, though the company has not yet seen meaningful changes in client acquisition from large language model-driven distribution. “It’s still early days for the LLM-driven insurance distribution,” Colis said, adding that life-insurance purchasing involves identity verification, adaptive questioning and third-party underwriting data that may limit the extent to which the full transaction shifts into a chat-based experience. For the third quarter, Ethos expects revenue of $160 million to $164 million, representing 73% year-over-year growth at the midpoint. It expects adjusted EBITDA of $23 million to $25 million. For full-year fiscal 2026, the company raised its revenue outlook to $727 million to $731 million, implying 88% growth at the midpoint. It also raised projected adjusted EBITDA to $119 million to $123 million. Capozzi said the updated outlook reflects sustained top-line acceleration, a higher revenue mix from the third-party channel and strategic growth investments. While the third-party mix is expected to weigh on margins relative to the direct channel, management said it believes the business can continue expanding while maintaining profitability. Ethos Technologies Inc operates a technology-driven, direct-to-consumer platform for the distribution of life insurance products. Through its digital underwriting, data analytics, and proprietary technology, it enables consumers to explore, compare, and purchase life insurance policies online. The platform serves consumers, agents, and insurance carriers, and supports the application and policy issuance process through an online interface. The company works with insurance carriers to offer life insurance products in the United States through digital channels and independent agents. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ethos Technologies Inc. Class A Common Stock Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Q2 Revenue grew 113% year-over-year to $190 million Q2 Direct Channel Revenue grew 131% year-over-year to $116 million Q2 Third-Party Revenue grew 90% year-over-year to $73 million Board of Directors authorized a share repurchase program of up to $100 million of Ethos’ Class A common stock AUSTIN, Texas, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Ethos (Nasdaq: LIFE), a leading life insurance technology company on a mission to democratize access to life insurance, today announced its financial results for the second quarter ended June 30, 2026. "Q2 was our second consecutive quarter of over 100% year-over-year growth, extending a streak of durable, multi-year growth we've built quarter over quarter," said Peter Colis, CEO and Co-Founder of Ethos. "In Q2 alone, we protected more than 100,000 additional families at a pace that shows just how fast our growth is compounding." In addition to the release of financial results, Ethos announced today that its Board of Directors has authorized a share repurchase program of up to $100 million of the Company’s outstanding Class A common stock. Second Quarter 2026 Financial Highlights Revenue: Grew 113% year-over-year to $189.6 million Direct Channel Revenue: Grew 131% year-over-year to $116.5 million with similar year-over-year unit economics Third-Party Channel Revenue: Grew 90% year-over-year to $73.1 million Net Income: $19.5 million, representing a 10% margin Non-GAAP Net Income: $35.0 million, representing an 18% margin Adjusted EBITDA: $35.2 million, representing a 19% margin Gross Profit: $185.5 million, representing a 98% gross profit margin Contribution Profit: $62.3 million, a 33% contribution profit margin Net Income per Share: basic was $0.31 and diluted was $0.30 per share Non-GAAP Net Income per Share: diluted was $0.53 per share Cash Flow: $35.7 million net cash provided by operations Second Quarter 2026 Business Highlights Families Protected: Activated 107,847 new policies in Q2, representing 133% year-over-year growth Reported Average Revenue per Unit: $1,758, representing an 8% year-over-year decline due to channel/product mix Product Innovation: Launched Juvenile IUL with North American Financial Outlook For the third quarter of 2026, Ethos expects the following: Total Revenue: Between $160 million and $164 million, representing a 73% increase year-over-year at the midpoint Adjusted EBITDA: Between $23 million and $25 million For the full fiscal year 2026, Ethos expects the following: Total Revenue: Between $727 million and $731 million, representing an 88% increase year-over-year at the midpoint Adjusted EBITDA: Between $119 million and $123 million Ethos’ financial outlook for the third quarter and full fiscal year 2026 are forward-looking, and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause the company's actual results to differ materially from these forward-looking statements. Reconciliation of Adjusted EBITDA on a forward-looking basis to net income, the most directly comparable GAAP measure, is not available without unreasonable efforts due to high variability and complexity and low visibility with respect to certain charges excluded from this non-GAAP measure, including interest expense, interest income, and income tax expenses. Ethos expects the variability of these items could have a significant, and potentially unpredictable, impact on its future GAAP financial results.Conference Call Information Ethos will host a conference call for analysts and investors to discuss its earnings results for the second quarter 2026 and outlook for its third fiscal quarter and fiscal year 2026 today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time). A live webcast and accompanying presentation can be accessed through the events section of the Ethos investor relations website at investors.ethos.com. A recorded webcast of the event will also be available on the Ethos Investor Relations website. Non-GAAP Financial Information Ethos has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). We believe that non-GAAP financial measures, among others, provide important supplemental information to management and investors, help evaluate our business, identify trends affecting our performance, formulate business plans, and make strategic decisions. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below. Adjusted EBITDA - Ethos defines Adjusted EBITDA as net income excluding interest expense, interest income, income tax expense (benefit), depreciation and amortization, and stock-based compensation expense and related taxes as set forth in the table below. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period. Ethos uses Adjusted EBITDA and Adjusted EBITDA Margin to assess performance, to inform the preparation of its annual operating budget and quarterly forecasts, to evaluate the effectiveness of its business strategies, and to assist its board of directors in monitoring its business and financial performance. Ethos believes that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors about its business and financial performance, enhance their overall understanding of its past performance and future prospects, including by providing consistency and comparability with its past financial performance, and allow for greater transparency with respect to measures used by its management in investors’ financial and operational decision-making. In addition, Ethos believes Adjusted EBITDA is widely used by investors, securities analysts, and other parties in evaluating companies in its industry as a measure of operational performance. Contribution Profit - Ethos defines Contribution Profit as gross profit less sales and marketing expense, which includes agent payments and underwriting costs for non-activated policies, plus stock-based compensation and related taxes related to its employees and overhead costs allocated to sales and marketing expenses. Gross profit is defined as revenue less cost of revenue. Cost of revenue primarily consists of underwriting costs associated with activated policies. Overhead costs allocated to sales and marketing expenses include professional fees, technology expenses, and other related expenses. Contribution Margin is calculated by dividing Contribution Profit for a period by revenue for the same period. Non-GAAP Net Income and Non-GAAP Net Income Per Share, Basic and Diluted - Ethos defines non-GAAP net income as net income/(loss), adjusted to exclude stock-based compensation and related taxes, to provide investors and management with greater visibility into the underlying performance of its recurring core business operations. Ethos defines non-GAAP net income per share, basic, as non-GAAP net income divided by the weighted-average shares outstanding. Ethos defines non-GAAP net income per share, diluted, as non-GAAP net income divided by the weighted-average shares outstanding, which includes the dilutive effect of potentially diluted common stock equivalents outstanding during the period, if any. About Ethos Ethos is a leading life insurance technology company on a mission to protect families by democratizing access to life insurance and empowering agents at scale. With its robust three-sided technology platform, Ethos is transforming the life insurance experience for consumers, agents, and carriers alike. Ethos offers instant, accessible products and a seamless online process that requires no medical exams and just a few health questions; it eliminates traditional barriers, making it easier than ever for everyone to protect their families. Ethos is redefining how life insurance is bought, sold, and underwritten. Learn more at ethos.com. Investor Relations Contact:Aaron [email protected] Press Contact:Allyson [email protected] Forward-Looking Statements This press release and the related conference call contain express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding potential share repurchases, Ethos’ financial outlook for the fiscal quarter ending September 30, 2026 and the fiscal year ending December 31, 2026, the size of Ethos’ market opportunity, market trends, and Ethos’ business and financial strategy and plans. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” or similar expressions. Such statements are subject to risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements. These include, but are not limited to: Ethos’ limited operating history at its current scale, scope and complexity; the growth rate of the markets in which Ethos competes; Ethos’ ability to effectively manage and sustain its growth; Ethos’ ability to compete with existing competitors and new market entrants; Ethos’ ability to attract new and retain existing carriers and agency counterparties; adoption of and engagement with Ethos’ platform by individual agents; Ethos’ brand awareness and the success of its marketing efforts to grow its business; potential damage to Ethos’ reputation; disruptions or other business interruptions that affect the availability of Ethos’ platform. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements contained herein are included in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Ethos’ most recent filings with the Securities and Exchange Commission, including in its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2026.  Except as required by law, Ethos undertakes no obligation, and does not intend, to update these forward-looking statements.

Over the last 7 days, the United States market has dropped by 2.5%, yet it has risen by 23% over the past year, with earnings expected to grow by 17% annually in the coming years. In this context of fluctuating performance and anticipated growth, stocks with high insider ownership can be appealing as they often signal confidence from those closest to the company's operations and potential for substantial earnings growth. Click here to see the full list of 176 stocks from our Fast Growing US Companies With High Insider Ownership screener. Below we spotlight a couple of our favorites from our exclusive screener. Simply Wall St Growth Rating: ★★★★★☆ Overview: ImmunityBio, Inc. is a biotechnology company dedicated to developing and commercializing advanced immunotherapies aimed at enhancing the immune system's response to cancer and infectious diseases, with a market cap of approximately $7.25 billion. Operations: The company generates revenue of $140.98 million from its segment focused on developing next-generation therapies. Insider Ownership: 28.2% Earnings Growth Forecast: 64.1% p.a. ImmunityBio, a growth-focused company with significant insider ownership, is advancing its ANKTIVA treatment for BCG-unresponsive non-muscle invasive bladder cancer. Recent FDA acceptance of its supplemental Biologics License Application could expand ANKTIVA's indications. Despite expected revenue growth of 47.8% annually, ImmunityBio faces financial challenges with less than a year of cash runway and recent shareholder dilution. Analysts agree on potential stock price appreciation, though the company currently trades significantly below estimated fair value. Unlock comprehensive insights into our analysis of ImmunityBio stock in this growth report. Upon reviewing our latest valuation report, ImmunityBio's share price might be too pessimistic. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Li Auto Inc. operates in the energy vehicle market in the People’s Republic of China with a market cap of approximately $14.48 billion. Operations: Li Auto generates revenue primarily from its auto manufacturing segment, totaling CN¥109.37 billion. Insider Ownership: 33% Earnings Growth Forecast: 61.6% p.a. Li Auto, characterized by high insider ownership, is navigating growth amid challenges. The company forecasts a 13% annual revenue increase, outpacing the US market. However, recent earnings revealed a net loss of CNY 2.29 billion for Q1 2026 despite vehicle deliveries reaching over 1.7 million year-to-date. Li Auto's strategic moves include a US$1 billion share buyback and launching new models like the Li L9 to bolster its position in the competitive electric vehicle sector. Take a closer look at Li Auto's potential here in our earnings growth report. Our expertly prepared valuation report Li Auto implies its share price may be too high. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Ethos Technologies Inc. operates as a third-party administrator for insurance policies in the United States and has a market cap of approximately $1.06 billion. Operations: The company generates revenue primarily from its insurance broker services, amounting to $485.82 million. Insider Ownership: 22% Earnings Growth Forecast: 94.5% p.a. Ethos Technologies, with significant insider ownership, is expanding its digital life insurance offerings through strategic partnerships and technological advancements. Recent collaborations with Liberty Mutual and Banner Life Insurance enhance Ethos' reach and product portfolio. Despite a Q1 2026 net loss of US$166.39 million, revenue surged to US$193.1 million from the previous year. The launch of a ChatGPT app signifies their innovative approach to consumer engagement in the evolving insurance landscape, although insider selling has been noted recently. Navigate through the intricacies of Ethos Technologies with our comprehensive analyst estimates report here. Upon reviewing our latest valuation report, Ethos Technologies' share price might be too optimistic. Click this link to deep-dive into the 176 companies within our Fast Growing US Companies With High Insider Ownership screener. Curious About Other Options? This technology could replace computers: discover the 30 stocks are working to make quantum computing a reality. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years. Companies discussed in this article include IBRX LI and LIFE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Q1 Revenue grew 104% year-over-year to $193 million Q1 Direct Channel Revenue grew 136% year-over-year to $146 million Q1 Third-Party Revenue grew 42% year-over-year to $47 million AUSTIN, Texas, May 06, 2026 (GLOBE NEWSWIRE) -- Ethos (Nasdaq: LIFE), a leading life insurance technology company on a mission to democratize access to life insurance, today announced its financial results for the first quarter ended March 31, 2026. “Q1 is our seasonally strongest quarter, and this was an exceptional one,” said Peter Colis, CEO and Co-Founder of Ethos. “Our results reflect both the velocity of our growth and the discipline of our execution. We are committed to protecting families at scale, and in Q1 we protected more than 88,000 additional families.” First Quarter 2026 Financial Highlights Revenue: Grew 104% year-over-year to $193.1 million Direct Channel Revenue: Grew 136% year-over-year to $146.0 million with similar year-over-year unit economics Third-Party Channel Revenue: Grew 42% year-over-year to $47.1 million Net Loss: $(166.4) million, representing a (86)% margin Non-GAAP Net Income: $29.1 million, representing a 15% margin Adjusted EBITDA: $33.6 million, representing a 17% margin Gross Profit: $189.9 million, representing a 98% gross profit margin Contribution Profit: $58.6 million, a 30% contribution profit margin Net Loss per Share: basic and diluted, was $(3.57) per share Non-GAAP Net Income per Share: diluted was $0.38 per share Cash Flow: $31.2 million net cash provided by operations First Quarter 2026 Business Highlights Families Protected: Activated 88,373 new policies in Q1, representing 84% year-over-year growth Reported Average Revenue per Unit: $2,185, representing 11% year-over-year growth Product Innovation: Launched two new Whole Life products with Banner Life Agent Payments Update During Q1, Ethos updated its third-party agent compensation and persistency estimates to reflect both maturing cohort experience and the impact of recent operational improvements. As these cohorts matured and additional observed experience accumulated, Ethos identified that early-stage policy persistency was better than originally projected. Together with the impact of recent operational improvements, these factors resulted in lower agent compensation clawbacks and, therefore, higher agent compensation expense than originally projected for policies activated through the company's Third-Party channel in the second half of 2024 and throughout 2025. The resulting change in estimate resulted in a one-time, non-cash charge of $16.5 million in Q1. Financial Outlook For the second quarter of 2026, Ethos expects the following: Total Revenue: Between $114.0 million and $118.0 million, representing a 31% increase year-over-year at the midpoint Adjusted EBITDA: Between $20.0 million and $22.0 million For the full fiscal year 2026, Ethos expects the following: Total Revenue: Between $561.0 million and $565.0 million, representing a 45% increase year-over-year at the midpoint Adjusted EBITDA: Between $103.0 million and $107.0 million Ethos’ financial outlook for the second quarter and full fiscal year 2026 are forward-looking, and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause the company's actual results to differ materially from these forward-looking statements. Reconciliation of Adjusted EBITDA on a forward-looking basis to net income, the most directly comparable GAAP measure, is not available without unreasonable efforts due to high variability and complexity and low visibility with respect to certain charges excluded from this non-GAAP measure, including interest expense and interest income and income tax expenses. Ethos expects the variability of these items could have a significant, and potentially unpredictable, impact on its future GAAP financial results. Conference Call Information Ethos will host a conference call for analysts and investors to discuss its earnings results for the first quarter 2026 and outlook for its second fiscal quarter and fiscal year 2026 today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time). A live webcast and accompanying presentation can be accessed through the events section of the Ethos investor relations website at investors.ethos.com. A recorded webcast of the event will also be available on the Ethos Investor Relations website. Non-GAAP Financial Information Ethos has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). We believe that non-GAAP financial measures, among others, provide important supplemental information to management and investors, help evaluate our business, identify trends affecting our performance, formulate business plans, and make strategic decisions. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below. Adjusted EBITDA - Ethos defines Adjusted EBITDA as net income excluding interest expense, interest income, income tax expense, depreciation and amortization, and stock-based compensation expense and related taxes as set forth in the table below. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period. Ethos uses Adjusted EBITDA and Adjusted EBITDA Margin to assess performance, to inform the preparation of its annual operating budget and quarterly forecasts, to evaluate the effectiveness of its business strategies, and to assist its board of directors in monitoring its business and financial performance. Ethos believes that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors about its business and financial performance, enhance their overall understanding of its past performance and future prospects, including by providing consistency and comparability with its past financial performance, and allow for greater transparency with respect to measures used by its management in investors’ financial and operational decision making. In addition, Ethos believes Adjusted EBITDA is widely used by investors, securities analysts, and other parties in evaluating companies in its industry as a measure of operational performance. Contribution Profit - Ethos defines Contribution Profit as gross profit less sales and marketing expense, which includes agent payments and underwriting costs for non-activated policies, plus stock-based compensation and related taxes related to its employees and overhead costs allocated to sales and marketing expenses. Gross profit is defined as revenue less cost of revenue. Cost of revenue primarily consists of underwriting costs associated with activated policies. Overhead costs allocated to sales and marketing expenses include professional fees, technology expenses, and other related costs. Contribution Margin is calculated by dividing Contribution Profit for a period by revenue for the same period. Non-GAAP Net Income and Non-GAAP Net Income Per Share, Basic and Diluted - Ethos defines non-GAAP net income as net income, adjusted to exclude stock-based compensation and related taxes, in order to provide investors and management with greater visibility to the underlying performance of its recurring core business operations. Ethos defines non-GAAP net income per share, basic, as non-GAAP net income divided by the weighted-average shares outstanding. Ethos defines non-GAAP net income per share, diluted, as non-GAAP net income divided by the weighted-average shares outstanding, which includes the dilutive effect of potentially diluted common stock equivalents outstanding during the period, if any. About Ethos Ethos is a leading life insurance technology company on a mission to protect families by democratizing access to life insurance and empowering agents at scale. With its robust three-sided technology platform, Ethos is transforming the life insurance experience for consumers, agents, and carriers alike. Ethos offers instant, accessible products and a seamless online process that requires no medical exams and just a few health questions; it eliminates traditional barriers, making it easier than ever for everyone to protect their families. Ethos is redefining how life insurance is bought, sold, and underwritten. Learn more at ethos.com. Investor Relations Contact: Aaron Turner [email protected] Press Contact: Allyson Savage [email protected] Forward-Looking Statements This press release and the related conference call contain express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding Ethos’ financial outlook for the fiscal quarter ending June 30, 2026 and the fiscal year ending December 31, 2026, the size of Ethos’ market opportunity, market trends, and Ethos’ business and financial strategy and plans. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” or similar expressions. Such statements are subject to risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements. These include, but are not limited to: Ethos’ limited operating history at its current scale, scope and complexity; the growth rate of the markets in which Ethos competes; Ethos’ ability to effectively manage and sustain its growth; Ethos’s ability to compete with existing competitors and new market entrants; Ethos’ ability to attract new and retain existing carriers and agency counterparties; adoption of and engagement with Ethos’ platform by individual agents; Ethos’ brand awareness and the success of its marketing efforts to grow its business; potential damage to Ethos’ reputation; disruptions or other business interruptions that affect the availability of Ethos’ platform. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements contained herein are included in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Ethos’ most recent filings with the Securities and Exchange Commission, including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Except as required by law, Ethos undertakes no obligation, and does not intend, to update these forward-looking statements.

$193 million in Q1 revenue (up 104% YoY) and $34 million adjusted EBITDA, with management raising full‑year 2026 guidance to $561–565 million revenue and $103–107 million adjusted EBITDA. They recorded a one‑time non‑cash charge of $16.5 million tied to updated third‑party agent compensation and clawback estimates (driven by a $60.5 million reduction in a prepaid asset), and said the revised assumptions are embedded in forward guidance with blended contribution margins expected in the mid‑30% range. Growth was led by the direct channel—$146 million in direct revenue (+136%)—and Ethos highlighted product and distribution expansion, including a partnership with Liberty Mutual, new whole‑life and IUL offerings, and a dedicated experience inside ChatGPT. Interested in Ethos Technologies Inc. Class A Common Stock? Here are five stocks we like better. Ethos Technologies Inc. Class A Common Stock (NASDAQ:LIFE) reported what CEO Peter Colis called an “exceptional” first quarter of fiscal 2026, citing triple-digit revenue growth, positive adjusted EBITDA, and an increase to full-year guidance, while also addressing a one-time non-cash charge tied to third-party agent compensation estimates. Colis said Ethos generated $193 million in Q1 revenue, up 104% year-over-year, and produced adjusted EBITDA of $34 million. The company also “protected over 88,000 new families,” bringing the cumulative total to “over 600,000 activated policies to date.” → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries CFO Chris Capozzi added detail on operating metrics, reporting 88,373 policies activated in the quarter and an average revenue per policy of $2,185. Contribution profit was $59 million, representing a 30% contribution margin, which included the impact of a one-time non-cash charge discussed later in the call. Capozzi also highlighted profitability and growth together, noting adjusted EBITDA margin of 17% and saying the company posted a Rule of 40 score of 121 for the quarter. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Ethos attributed a large share of Q1 growth to its direct-to-consumer business. Capozzi said direct channel revenue rose to $146 million, up 136% year-over-year, while third-party channel revenue was $47 million, up 42% year-over-year. Colis pointed to Ethos’ “vertically integrated platform” and what he called the company’s “Virtuous Data Cycle,” saying refinements across the stack—from user experience to underwriting algorithms—have improved conversion rates and supported “strong unit economics at higher levels of ad spend.” → Tyson Foods' Total Returns: Tasty Treats for Income Investors? On the Q&A, Colis told Baird analyst Colin Sebastian that the Q2 outlook reflected seasonality and prudence rather than a ceiling on marketing scale. “Q1 is 1 of our strongest seasonal quarters, and Q2 1 of the less strong ones,” he said, adding that the company had seen “continued strength and momentum throughout April and early May.” Colis also said Ethos does not believe it is “encountering the upper bounds of spend.” Capozzi said Ethos more than doubled advertising spend versus Q4 2025 while maintaining “consistent efficiency.” In response to Barclays analyst Ross Sandler, management said the company plans to disclose return on ad spend annually, and Capozzi characterized Q1 return on ad spend as consistent on both sequential and year-over-year bases. Asked about the quarter-to-quarter increase in average revenue per policy, Colis said the change was “primarily attributed to channel mix,” with direct representing a larger percentage of revenue in Q1 compared with Q4. He added that Ethos has seen early signs of fit for its accumulation IUL product but said it was “still too nascent to materially impact ARPU at this point.” Ethos discussed multiple product and distribution developments during the quarter. Colis said the company saw early indicators of product-market fit for its “accumulation indexed universal life insurance product,” which is growing in the third-party channel. He also said Ethos and Banner Life launched two new whole life products—“a simplified issue whole life and guaranteed issue whole life”—to expand coverage in the final expense market. Colis emphasized speed to market, saying the company went “from concept to launching end market in under five months,” and noted that Ethos now offers “12 products across six carriers.” On the product pipeline, Colis told Goldman Sachs analyst Eric Sheridan that the company has a track record of launching “around 3 to 4 new products per year,” but he said Ethos “ascribe[s] very little revenue” in forecasts to newer, less proven products until results are visible. He referenced the accumulation IUL product and a recently launched cancer insurance product with Aflac, describing the latter as “still in the early innings of testing and iteration.” Ethos also announced a partnership with Liberty Mutual. Colis said Liberty Mutual will leverage Ethos’ underwriting engine and platform to offer a digital-first life insurance experience with instant decisions and no medical exams. In Q&A with Bank of America’s Michael McGovern, Colis said the partnership was “early days” but “contributing nicely,” and described the model as “fairly replicable,” adding the company will seek more partnerships like it. Citizens analyst Carol Jamil asked about exclusivity, and management said “there is not exclusivity around this deal.” Separately, Colis said Ethos became “the first life insurance provider to build a dedicated experience directly inside” ChatGPT. In response to Barclays’ Sandler, Colis said large language models (LLMs) could play an increasing role in consumer research and “could be one day a material source of client origination,” though he cautioned that life insurance purchasing involves complex steps and “it’s not necessarily intuitive that the entire transactional process will move into LLMs as the default.” A key topic on the call was a one-time, non-cash expense related to third-party agent compensation and clawback estimates. Capozzi said Q1 contribution profit included a $16.5 million one-time non-cash charge recorded in sales and marketing expense, driven by updates to agent compensation expense and persistency estimates. Capozzi explained that as cohorts matured, Ethos observed better early-stage policy persistency than originally projected and improved the precision of its clawback billing and methodology for estimating clawback events. Those changes resulted in lower expected clawbacks—which, under the accounting mechanics described on the call, leads to higher agent compensation expense. The update required a $60.5 million reduction in a prepaid asset balance, which he said was the “source” of the one-time non-cash charge. In response to JPMorgan’s Pablo Singzon, Capozzi said the updated persistency assumptions had a “small favorable” impact on revenue in the quarter—described as a “low single-digit % effect”—but it was not material enough to call out separately. Capozzi added that the updated agent compensation expense estimate is embedded in forward guidance, and for modeling purposes, Ethos expects blended contribution margins to be in the “mid 30% range” going forward. Capozzi said that as of March 31, 2026, Ethos had $224 million in cash, cash equivalents, and investments, including $33.5 million in net IPO proceeds. Stock-based compensation and related taxes totaled $196 million in Q1, including $183 million related to a vesting condition satisfied upon completion of the IPO in January. The company ended the quarter with a $345 million commission receivable balance, up 19% sequentially, which Capozzi described as estimated future cash flows earned but not yet received and an indicator of “embedded cash generation potential.” Cash flow from operating activities was $31 million, up 189% year-over-year. Capozzi said the result included a one-time $13.9 million timing benefit from amended payment terms with a carrier partner; excluding that item, operating cash flow would have been approximately $17 million. Looking ahead, Ethos raised full-year guidance. For Q2 2026, Capozzi said the company expects: Revenue of $114 million to $118 million (31% year-over-year growth at the midpoint) Adjusted EBITDA of $20 million to $22 million For the full year 2026, Ethos now expects: Revenue of $561 million to $565 million (45% year-over-year growth at the midpoint) Adjusted EBITDA of $103 million to $107 million Addressing questions about implied growth deceleration after the Q1 outperformance, Capozzi said there was “nothing to call out on the macro front,” and attributed the cadence to seasonal patterns moving from Q1 into Q2 and “an appropriate level of prudence” in the company’s forward guidance. Ethos ended the call by reiterating its focus on growing its ecosystem, enhancing its platform for agents and customers, and expanding its product portfolio, with Colis describing a strategy built around a vertically integrated digital platform and data-driven underwriting and acquisition. Ethos Technologies Inc operates a technology-driven, direct-to-consumer platform for the distribution of life insurance products. Through its digital underwriting, data analytics, and proprietary technology, it enables consumers to explore, compare, and purchase life insurance policies online. The platform serves consumers, agents, and insurance carriers, and supports the application and policy issuance process through an online interface. The company works with insurance carriers to offer life insurance products in the United States through digital channels and independent agents. The article "Ethos Technologies Inc. Class A Common Stock Q1 Earnings Call Highlights" was originally published by MarketBeat.