📊 EHTH Key Takeaways
Is eHealth, Inc. (EHTH) a Good Investment?
eHealth demonstrates a paradoxical financial profile: unprofitable operations (net loss of $4.7M, -5.4% net margin) yet strong positive free cash flow of $35.6M with robust liquidity (7.59x current ratio). While 4.1% revenue growth is modest and EPS improvement of 71.4% YoY suggests movement toward breakeven, the company must achieve sustainable profitability to validate its business model.
eHealth’s fundamentals show a meaningful profitability rebound, with solid gross and operating margins, sharply improved net income, and a conservatively levered balance sheet. However, revenue growth remains modest and earnings quality is mixed because operating cash flow and free cash flow are still negative, which limits conviction until cash generation improves.
Why Buy eHealth, Inc. Stock? EHTH Key Strengths
- Exceptional liquidity with 7.59x current ratio and $75.1M cash against only $113.8M long-term debt (0.20x leverage)
- Positive operating cash flow of $35.8M and strong free cash flow of $35.6M (40.5% FCF margin) despite net losses
- Healthy gross margin of 41.7% demonstrates core business unit economics are viable
- Significant YoY EPS improvement of 71.4% (-$0.58 to less negative) indicates trajectory toward profitability
- Profitability has improved materially, with 12.0% operating margin and net income up 484.9% year over year
- Balance sheet appears healthy, supported by strong liquidity, low debt-to-equity of 0.19x, and high interest coverage of 23.7x
- Gross margin of 43.5% suggests the core business retains solid unit economics for an insurance distribution platform
EHTH Stock Risks: eHealth, Inc. Investment Risks
- Company is unprofitable with -$2.9M operating loss and -$4.7M net loss; negative ROE (-0.8%) and ROA (-0.4%) destroy shareholder value
- Negative interest coverage ratio of -1.0x means operating income cannot service debt obligations
- Slow revenue growth of 4.1% YoY is insufficient for growth-stage company; risks cash reserves if losses persist
- Sustained unprofitability despite cash generation suggests structural margin pressure; path to operating profitability unclear
- Negative operating cash flow and free cash flow indicate weak cash conversion despite reported net income
- Top-line growth of 4.1% is modest, raising questions about the durability of the earnings rebound
- The mismatch between positive net income and negative diluted EPS suggests potential complexity in per-share results or capital structure that warrants scrutiny
Key Metrics to Watch
- Operating margin trend (currently -3.3%) toward positive territory
- Revenue growth acceleration; threshold of >8% YoY needed to sustain business model
- Quarterly operating income trajectory; critical inflection point when EBIT turns positive
- Cash burn duration; months of positive FCF remaining before reserve depletion if losses widen
- Gross margin stability above 40% to ensure core unit economics persist
- Operating cash flow and free cash flow trend
- Revenue growth and operating margin sustainability
eHealth, Inc. (EHTH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 40.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 7.59x current ratio provides a solid financial cushion.
EHTH Profit Margin, ROE & Profitability Analysis
EHTH vs Finance Sector: How eHealth, Inc. Compares
How eHealth, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is eHealth, Inc. Stock Overvalued? EHTH Valuation Analysis 2026
Based on fundamental analysis, eHealth, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
eHealth, Inc. Balance Sheet: EHTH Debt, Cash & Liquidity
EHTH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: eHealth, Inc.'s revenue has remained relatively flat over the 5-year period, with a 5% decline. The most recent EPS of $-1.19 indicates the company is currently unprofitable.
EHTH Revenue Growth, EPS Growth & YoY Performance
EHTH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $88.0M | $2.0M | $-0.33 |
| Q3 2025 | $53.9M | $2.0M | $-1.46 |
| Q2 2025 | $60.8M | $2.0M | $-0.98 |
| Q1 2025 | $93.0M | $2.0M | $-0.33 |
| Q3 2024 | $58.4M | -$17.0M | $-1.68 |
| Q2 2024 | $65.9M | -$17.0M | $-1.18 |
| Q1 2024 | $73.7M | -$17.0M | $-0.96 |
| Q3 2023 | $53.4M | -$19.9M | $-1.68 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
eHealth, Inc. Dividends, Buybacks & Capital Allocation
EHTH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for eHealth, Inc. (CIK: 0001333493)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EHTH
What is the AI rating for EHTH?
eHealth, Inc. (EHTH) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EHTH's key strengths?
Claude: Exceptional liquidity with 7.59x current ratio and $75.1M cash against only $113.8M long-term debt (0.20x leverage). Positive operating cash flow of $35.8M and strong free cash flow of $35.6M (40.5% FCF margin) despite net losses. ChatGPT: Profitability has improved materially, with 12.0% operating margin and net income up 484.9% year over year. Balance sheet appears healthy, supported by strong liquidity, low debt-to-equity of 0.19x, and high interest coverage of 23.7x.
What are the risks of investing in EHTH?
Claude: Company is unprofitable with -$2.9M operating loss and -$4.7M net loss; negative ROE (-0.8%) and ROA (-0.4%) destroy shareholder value. Negative interest coverage ratio of -1.0x means operating income cannot service debt obligations. ChatGPT: Negative operating cash flow and free cash flow indicate weak cash conversion despite reported net income. Top-line growth of 4.1% is modest, raising questions about the durability of the earnings rebound.
What is EHTH's revenue and growth?
eHealth, Inc. reported revenue of $88.0M.
Does EHTH pay dividends?
eHealth, Inc. pays dividends, with $5.6M distributed to shareholders in the trailing twelve months.
Where can I find EHTH SEC filings?
Official SEC filings for eHealth, Inc. (CIK: 0001333493) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EHTH's EPS?
eHealth, Inc. has a diluted EPS of $-0.58.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EHTH a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, eHealth, Inc. has a HOLD rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EHTH stock overvalued or undervalued?
Valuation metrics for EHTH: ROE of -0.8% (sector avg: 12%), net margin of -5.4% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy EHTH stock in 2026?
Our dual AI analysis gives eHealth, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EHTH's free cash flow?
eHealth, Inc.'s operating cash flow is $35.8M, with capital expenditures of $155.0K. FCF margin is 40.5%.
How does EHTH compare to other Finance stocks?
Vs Finance sector averages: Net margin -5.4% (avg: 25%), ROE -0.8% (avg: 12%), current ratio 7.59 (avg: 1.2).