eHealth (EHTH) Stock Forecast & Price Target

eHealth Inc. reported a 13.8% year-over-year increase in approved members, reaching a total of 111.8K, driven primarily by a notable 25.7% growth in Medicare Advantage approved members. The company also achieved a revenue increase of 21.7% year-over-year, totaling $113.1 million, surpassing both internal and consensus estimates. This positive financial performance is attributed to effective marketing strategies and enhancements in telephonic and online conversion rates, suggesting a strengthened market position.

eHealth Inc is facing a negative outlook primarily due to a projected increase in turnover during the upcoming 2025 Annual Enrollment Period (AEP), which raises concerns about the company's long-term value (LTV) assumptions. Notably, the company has reported a year-over-year decline in Medicare Average Lifetime Value (MA LTV) of 4.7%, now standing at $907, indicating reduced profitability from its primary revenue-generating segment. Despite management's efforts to reduce operating expenses, with technology and content expenses down 3.4% and general and administrative (G&A) expenses decreasing by 7.7% year-over-year, the overall financial health remains overshadowed by potential revenue instability stemming from anticipated customer turnover.