eHealth revenue falls 60% as marketing spending declines

eHealth reported third-quarter revenue of $21.3 million, down 60% from $53.9 million a year earlier, as the online insurance marketplace reduced marketing spending outside major enrollment periods and shifted benefit advisors toward serving existing members.

Net loss widened to $35.9 million from $31.7 million, while its adjusted EBITDA loss increased to $39.9 million from $34 million.

Operating costs and expenses fell 29% to $67.6 million. Marketing and advertising expenses declined 55%, including a 73% reduction in variable marketing spending within the Medicare segment. The company said it remains on track to reduce annual variable spending by more than $60 million and fixed costs by approximately $30 million compared with 2025.

Operating cash outflow narrowed to $11.2 million from $25.3 million. For the first nine months of 2026, operating cash flow totaled positive $19.6 million, an 85% improvement year over year.

eHealth said its lifetime advisory model showed early signs of improving member retention and cross-selling. Ancillary product cross-sell rates nearly doubled from a year earlier, while 90-day retention improved for its second-quarter Medicare Advantage enrollment cohort.

The company maintained its full-year outlook for revenue of $405 million to $445 million, net income of $8 million to $25 million, and adjusted EBITDA of $55 million to $75 million.