Overview of GoHealth’s Financial Performance

GoHealth, Inc. is a leading health insurance marketplace and Medicare-focused digital health company. In the first quarter of 2025, the company reported net revenues of $220.9 million, an increase of 19.1% compared to the same period in 2024. This growth was primarily driven by an $88.5 million increase in agency revenue, which offset a $54.1 million decrease in non-agency revenue.

The shift from non-agency to agency revenue reflects GoHealth’s strategic focus on expanding its agency contracts in light of changing industry dynamics. The company has evolved from a traditional Medicare enrollment company to a Medicare engagement company, emphasizing a more integrated and interactive approach to consumer care.

GoHealth reported a net loss of $9.8 million in the first quarter of 2025, compared to a net loss of $21.3 million in the same period in 2024. The company’s Adjusted EBITDA, a non-GAAP financial measure, increased to $42.1 million, up from $26.9 million in the prior year quarter. Adjusted EBITDA Margin, which represents Adjusted EBITDA as a percentage of net revenues, improved to 19.0% from 14.5% in the same period last year.

Revenue and Profit Trends

GoHealth’s revenue growth was driven by a significant increase in Submissions, which are counted when an individual completes an application that is approved by a health plan partner. Submissions increased by 40.2% to 303,026 in the first quarter of 2025, compared to 216,148 in the same period in 2024. This growth was primarily attributable to an increase in Submissions generated by GoHealth’s internal network of agents, powered by enhanced marketing efforts, investments in technology, and an increased agent headcount from the e-TeleQuote acquisition.

The shift from non-agency to agency revenue was influenced by a combination of factors, including carrier mix within the non-agency channel, consumer needs, and changing market dynamics. Non-agency revenue, which refers to enrollment and engagement services where GoHealth is not the agent of record, decreased from 46.4% of total Medicare revenue in the first quarter of 2024 to 14.5% in the first quarter of 2025.

While Submissions increased, Sales per Submission, which measures the average performance of Submissions, decreased by 15.4% to $724 in the first quarter of 2025 from $856 in the same period in 2024. This was primarily due to the shift from non-agency to agency revenue, as non-agency revenue typically has a higher Sales per Submission.

Direct Operating Cost per Submission, which measures the average cost of Submissions, decreased by 18.4% to $522 in the first quarter of 2025 from $640 in the same period in 2024. This improvement was driven by enhanced agent productivity through training programs and investments in technology.

The increase in Adjusted EBITDA and Adjusted EBITDA Margin reflects GoHealth’s focus on operational efficiency and cost management, as well as the benefits of its strategic shift towards the Medicare engagement model.

Strengths and Weaknesses

Strengths:

• Dominant position in the Medicare insurance market, with a substantial presence and scalable platform
• Shift towards a Medicare engagement model, emphasizing a more integrated and interactive approach to consumer care
• Investments in technology, such as PlanFit CheckUp and Customer 360, to improve the consumer experience and operational efficiency
• Successful integration of the e-TeleQuote acquisition, which has contributed to increased agent headcount and Submissions
• Improvements in agent productivity and cost management, as evidenced by the decrease in Direct Operating Cost per Submission

Weaknesses:

• Reliance on agency revenue, which can be impacted by changing carrier mix and market dynamics
• Ongoing legal proceedings, including a derivative action and a qui tam proceeding related to the company’s arrangements with insurance health plan partners
• Potential impact of changes in laws and regulations governing the health insurance market, which could materially affect the company’s business

Outlook for the Future

GoHealth is well-positioned to capitalize on the growing Medicare-eligible population, with its focus on providing a differentiated and engaging experience for consumers. The company’s investments in technology and the integration of the e-TeleQuote acquisition are expected to drive continued improvements in operational efficiency and the consumer experience.

However, the company faces some challenges, including the potential impact of changes in laws and regulations governing the health insurance market, as well as ongoing legal proceedings. Additionally, the shift from non-agency to agency revenue could introduce more volatility in the company’s financial performance, as agency revenue is more dependent on market dynamics and carrier mix.

Overall, GoHealth’s strategic shift towards the Medicare engagement model, combined with its technological advancements and focus on operational efficiency, suggest a positive outlook for the company’s future performance. However, the company will need to navigate the evolving regulatory landscape and address the ongoing legal issues to maintain its competitive position in the market.