eHealth (EHTH) Stock Forecast & Price Target

eHealth Inc experienced a significant increase in approved members, rising 13.8% year-over-year to 111.8K, largely driven by a 25.7% growth in Medicare Advantage approved members. The company's revenue grew 21.7% year-over-year to $113.1 million, exceeding both its own projections and consensus estimates. This growth can be attributed to effective marketing strategies and enhancements in telephonic and online conversion rates, indicating a robust framework for future performance within the private health insurance marketplace.

eHealth Inc. has experienced a decline in its Medicare Lifetime Value (LTV), which decreased by 4.7% year-over-year to $907, suggesting reduced long-term profitability per customer. The company's reliance on the Medicare segment as its primary revenue source might pose risks, particularly if turnover rates exceed expectations during the upcoming Annual Enrollment Period (AEP), adversely affecting customer retention and associated revenue. Although there have been positive trends in operating expenses with significant reductions in technology and general administrative costs, the potential impacts of high turnover cast uncertainty on management’s reaffirmed financial guidance for 2025.