What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-05 compared with 2026-05-07 · 197 added, 129 removed, 399 unchanged (45% of the section changed)

10 unchanged sentences

This tool is supported by a unified data platform and is available to our ecommerce consumers and our benefit advisors.

We strive to be the most trusted, unbiased, transparent partner to consumers in their journeys through the health insurance market.

We strive to be the most trusted, unbiased and transparent partner to consumers in their journeys through the health insurance market.

Business Update

Entering fiscal 2026, we aligned the organization around a clear strategic framework designed to leverage our core strengths to build a strong foundation for future growth, adapt to a structurally evolving Medicare market and prioritize sustainable operating cash flow generation.

In the first quarter of 2026, we initiated the build of our lifetime advisory operating model, which was formally launched in the second quarter of 2026.

We released new advisor-facing technology tools that are expected to enhance the beneficiary experience and ultimately, our lifetime advisory operating model is expected to drive increased member lifetime value, improved retention and build on consumer brand recognition and member loyalty for our Medicare segment.

As part of this initiative, we are also broadening our ancillary product selection to offer more comprehensive coverage options to consumers.

During April of 2026, we expanded our product portfolio with the introduction of final expense insurance, which covers end-of-life insurance and supports our strategic initiative to expand our product and service offerings.

In the under 65 market, we are pursuing measured investment in the Individual Coverage Health Reimbursement Arrangement (“ICHRA”) capabilities that we believe will allow us to better serve the employer market and extend our platform to brokers with strong employer relationships.

During the first quarter of 2026, enrollment volume in our Medicare products was lower than the first quarter of 2025, which was consistent with our expectations and reflective of our decision to reduce demand generation spend and to focus it on our more profitable marketing channels.

At the same time, we observed improved estimated constrained lifetime value (“LTVs”) of commissions for all Medicare products as well as improved total acquisition cost per Medicare-equivalent approved member year-over-year.

During the first quarter of 2026, we also implemented a company-wide fixed cost expense reduction initiative in which we eliminated approximately 14% of

our workforce and targeted reductions in vendor spend.

While we recognized some cost savings from this initiative during the first quarter of 2026, we expect to deliver greater savings throughout the rest of the fiscal year.

During the second quarter of 2026, we launched our lifetime advisory operating model, improved second quarter operating cash flow year-over-year, and advanced diversification initiatives such as Individual Coverage Health Reimbursement Arrangement (“ICHRA”) capabilities and ancillary product offerings.

We believe our lifetime advisory model could over time drive improved member retention and increased member lifetime value, as well as build on consumer brand recognition and member loyalty for our Medicare segment.

As part of this initiative, we are also focusing on broadening our ancillary product and service selection to offer more comprehensive coverage options to consumers.

During the second quarter of 2026, we expanded our product portfolio with the introduction of our final expense insurance offering, which covers end-of-life insurance.

We also observed encouraging early engagement trends related to ancillary product cross-sell activities through our lifetime advisory model.

While still early, we believe this model could create opportunities to enhance cross-selling of ancillary products.

Cross-sell rates represent advisor-assisted ancillary product applications submitted for consumers age 65 and older in relation to the number of advisor-assisted applications for major medical Medicare products, including Medicare Advantage and Medicare Supplement plans.

Additionally, in the under 65 market, we continue to pursue measured investment in ICHRA capabilities that we believe will allow us to better serve the employer market and extend our platform to brokers with strong employer relationships.

During the first quarter of 2026, we implemented a company-wide fixed cost expense reduction initiative in which we eliminated approximately 14% of our workforce and targeted reductions in vendor spend.

We have recognized cost savings from this initiative during the first six months of 2026, and we expect to continue to recognize savings throughout the rest of the fiscal year.

During the second quarter of 2026, enrollment volume in our Medicare products was lower than the second quarter of 2025.

This was consistent with our expectations and our lifetime advisory model, which prioritizes marketing spend in the first and fourth quarters to maximize returns on investment and focuses on benefit advisor engagement with existing members during the second and third quarters.

Summary of Selected Metrics

5 unchanged sentences

Approved Members

Approved members represent the number of individuals on submitted applications, or submissions, which were approved by the relevant insurance carrier for the identified product during the current period for which we are the broker of record.

Approved members represent the number of individuals on submitted applications, or submissions, for which we are the broker of record, that were approved by the applicable insurance carrier for the identified product during the current period.

The applications may be submitted in either the current period or prior periods.

Not all approved members ultimately become paying members.

Approved members may not ultimately become paying members.

The following table shows approved members by product for the periods presented:

Three Months Ended

March 31, % Change

June 30, % Change Six Months Ended

June 30, % Change

2026 2025 2026 2025

Medicare Advantage 16,780 30,568 (45) % 80,202 113,239 (29) %

6 unchanged sentences

Total Approved Members 31,229 48,936 (36) % 119,751 160,746 (26) %

Three Months Ended March 31, 2026 and 2025 – Total approved members declined 21% during the three months ended March 31, 2026 compared to the same period in 2025, driven by:

Three Months Ended June 30, 2026 and 2025 – Total approved members declined 36% during the three months ended June 30, 2026 compared to the same period in 2025, driven by:

• a 46% decline in Medicare approved members, primarily due to:

◦ a 45% decline in Medicare Advantage and Medicare Supplement approved members resulting from an intentional reduction in variable marketing spend, and

◦ an 80% decline in Medicare Part D approved members due to the continuous impact of regulatory changes that adversely impacted standalone Medicare Part D plan economics and availability, resulting in beneficiaries shifting away from standalone Medicare Part D plans towards Medicare Advantage plans that include prescription drug coverage.

• a 28% decline in individual and family plan approved members primarily driven by lower qualified health plan approved members following the removal of government subsidies, which both reduced overall demand and drove a partial shift towards non-qualified health plans, along with an overall decline in variable marketing spend;

• a 13% decline in ancillary plan approved members across all products primarily driven by an intentional decrease in variable marketing spend;

• an 18% increase in small business health plan approved members primarily driven by a targeted increase in variable marketing spend toward employer plans as well as an increase in average group size for existing plans.

Six Months Ended June 30, 2026 and 2025 – Total approved members declined 26% during the six months ended June 30, 2026 compared to the same period in 2025, driven by:

• a 30% decline in Medicare approved members, primarily as a result of:

◦ a 23% decline in Medicare Advantage approved members due to a 25% decrease in Medicare Advantage broker of record submissions resulting from an intentional decrease in variable marketing spend;

◦ a 29% decline in Medicare Advantage approved members primarily due to an intentional decrease in variable marketing spend which resulted in a 31% decline in Medicare Advantage broker of record submissions;

◦ a 19% decline in Medicare Supplement approved members, primarily due to an intentional decrease in variable marketing spend, partially offset by the approval timing of certain applications that were submitted in the fourth quarter of 2025;

◦ a 69% decline in Medicare Part D approved members due to the continuous impact of regulatory changes that adversely impacted standalone Medicare Part D plan economics and

availability, resulting in beneficiaries shifting away from standalone Medicare Part D plans towards Medicare Advantage plans that include prescription drug coverage.

◦ a 73% decline in Medicare Part D approved members due to the continuous impact of regulatory changes that adversely impacted standalone Medicare Part D plan economics and availability, resulting in beneficiaries shifting away from standalone Medicare Part D plans towards Medicare Advantage plans that include prescription drug coverage.

• a 36% decline in individual and family plan approved members primarily driven by lower qualified health plan approved members following the removal of government subsidies, which both reduced overall demand and drove a partial shift towards non-qualified health plans, along with an overall decline in variable marketing spend;

• relatively flat ancillary approved members year-over-year primarily due to continued targeted increases in hospital indemnity plan members, which were offset by decreases in short-term, dental and vision plan approved members;

• an 8% increase in small business health plan approved members primarily driven by an intentional increase in variable marketing spend toward employer plans.

• a 6% decline in ancillary approved members year-over-year primarily due to decreases in short-term, dental and vision plan approved members, partially offset by targeted increases in hospital indemnity plan members;

• a 12% increase in small business health plan approved members primarily driven by an intentional increase in variable marketing spend toward employer plans as well as an increase in average group size for existing plans.

Estimated Constrained Lifetime Value of Commissions Per Approved Member

1 unchanged sentence

Three Months Ended

March 31, % Change

June 30, % Change

Medicare (1) (2)

16 unchanged sentences

For additional information on constrained LTV, see “ Critical Accounting Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2025.

(2) The constraints applied to the total estimated lifetime value of commissions we expect to receive for selling the plan after the carrier approves an application in order to derive the constrained LTV of commissions for approved members recognized for Medicare Advantage, Medicare Supplement and Medicare Part D were 5.5%, 4% and 7%, respectively, for the three months ended March 31, 2026 and 5.5%, 9% and 7%, respectively, for the three months ended March 31, 2025.

Three Months Ended March 31, 2026 and 2025 – The changes in constrained LTV of commissions per approved member primarily consisted of:

• a 3% increase in Medicare Advantage plans, primarily due to favorable carrier and contract mix;

• a 19% increase in Medicare Supplement plans, primarily due to favorable carrier and contract mix, a decrease in the constraint from 9% to 4% due to observed LTV trends, favorable retention assumptions for the first quarter 2026 cohorts compared to the first quarter 2025 cohorts and an increase in the ratio of approved members who became paying members, partly offset by an unfavorable cohort mix;

• a 78% increase in Medicare Part D plans, primarily driven by favorable carrier and contract mix;

• a 5% decrease in non-qualified health plans, primarily due to unfavorable carrier and contract mix, unfavorable retention trends for the first quarter 2026 cohorts compared to the first quarter 2025 cohorts and a decline in the ratio of approved members who became paying members;

• a 15% decrease in qualified health plans, primarily due to an increase in the LTV constraint from 4% to 10% due to observed unfavorable retention trends, unfavorable carrier and contract mix and unfavorable retention trends for the first quarter 2026 cohorts compared to the first quarter 2025 cohorts;

• a 14% increase in short-term plans, primarily driven by favorable carrier and contract mix, partly offset by unfavorable cohort mix;

• a 7% increase in dental plans due to favorable carrier and contract mix and favorable cohort mix;

• a 3% increase in vision plans due to favorable carrier and contract mix, partially offset by unfavorable retention trends for the first quarter 2026 cohorts compared to the first quarter 2025 cohorts;

Three Months Ended June 30, 2026 and 2025 – The changes in constrained LTV of commissions per approved member primarily consisted of:

• a 1% decrease in Medicare Advantage plans, primarily due to unfavorable retention assumptions for the second quarter of 2026 cohorts compared to the second quarter of 2025 cohorts, partially offset by favorable carrier and contract mix;

• a 16% increase in Medicare Supplement plans, primarily due to favorable carrier and contract mix and favorable retention assumptions for the second quarter 2026 cohorts compared to the second quarter 2025 cohorts and an increase in the ratio of approved members who became paying members, partly offset by an unfavorable cohort mix;

• a 52% increase in Medicare Part D plans, primarily driven by favorable carrier and contract mix, partially offset by unfavorable retention assumptions for the second quarter 2026 cohorts compared to the second quarter 2025 cohorts;

• an 8% decrease in non-qualified health plans, primarily due to unfavorable retention assumptions for the second quarter 2026 cohorts compared to the second quarter 2025 cohorts;

• a 13% decrease in qualified health plans, primarily due to a decrease in the ratio of approved members who became paying members and unfavorable retention assumptions for the second quarter 2026 cohorts compared to the second quarter 2025 cohorts;

• a 14% increase in short-term plans, primarily driven by favorable cohort mix;

• a 4% decrease in vision plans due to unfavorable carrier and contract mix;

• a 31% increase in small business plans due to favorable carrier and contract mix.

16 unchanged sentences

If we experience a significant variance in historical membership as compared to our initial estimates, while we keep the prior period data consistent with previously reported amounts, we may provide the updated information in other communications or disclosures.

result of the delay in our receipt of information from insurance carriers, actual trends in our membership are most discernible over periods longer than from one quarter to the next, making it difficult for us to determine with any certainty the impact of current conditions on our membership retention.

As a result of the delay in our receipt of information from insurance carriers, actual trends in our membership are most discernible over periods longer than from one quarter to the next, making it difficult for us to determine with any certainty the impact of current conditions on our membership retention.

Various circumstances could cause the assumptions and estimates that we make in connection with estimating our membership to be inaccurate, which would cause our membership estimates to be inaccurate.

The following table shows estimated membership by product as of the dates presented below:

As of March 31, % Change

As of June 30, % Change

Medicare Advantage 559,352 596,397 (6) %

19 unchanged sentences

We often are made aware of policy cancellations and group size changes at the time of annual renewal and update our membership statistics accordingly in the period they are reported.

March 31, 2026 compared to March 31, 2025 – Total estimated membership declined 8% as of March 31, 2026 compared to March 31, 2025 primarily due to:

June 30, 2026 compared to June 30, 2025 – Total estimated membership declined 9% as of June 30, 2026 compared to June 30, 2025 primarily due to:

• a 10%, 25% and 17% decline year-over-year in Medicare plan, individual and family plan and small business plan estimated membership, respectively, primarily as a result of fewer approved applications and heightened market volatility;

• partially offset by a 4% increase year-over-year in an ancillary plan estimated membership primarily driven by an increase in hospital indemnity plan estimated membership.

• partially offset by a 2% increase year-over-year in ancillary plan estimated membership primarily driven by an increase in hospital indemnity plan estimated membership.

Member Acquisition

4 unchanged sentences

Variable marketing costs exclude fixed overhead costs, such as personnel related costs, consulting expenses and other operating costs allocated to the marketing and advertising department.

The numerator used to calculate each member acquisition metric discussed above is the portion of the respective operating expenses for CC&E and marketing and advertising that is directly related to member acquisition for our sale of Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans (collectively, “Medicare Plans”) and for all individual and family major medical plans and short-term health insurance plans (collectively, “IFP Plans”), respectively, for which we are the broker of record.

acquisition for our sale of Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans (collectively, “Medicare Plans”) and for all individual and family major medical plans and short-term health insurance plans (collectively, “IFP Plans”), respectively, for which we are the broker of record.

The denominator used to calculate each metric is based on a derived metric that represents the relative value of the new members acquired.

4 unchanged sentences

Three Months Ended

March 31, % Change

June 30, % Change

CC&E cost per MA-equivalent approved member (1)

7 unchanged sentences

Variable marketing cost per IFP-equivalent approved member (2)

92 119 (23) %

Total acquisition cost per IFP-equivalent approved member $ 574 $ 521 10 %

2 unchanged sentences

(2) We calculate the number of IFP-equivalent approved members by adding the total number of approved qualified and non-qualified health plan members and 33% of the total number of short-term approved members during the periods presented.

Three Months Ended March 31, 2026 and 2025 – Total acquisition cost per MA-equivalent approved member decreased $78, or 10%, during the three months ended March 31, 2026 compared to the same period in 2025, driven by:

• a $110, or 28%, decrease in variable marketing cost per MA-equivalent approved member primarily due to more disciplined marketing spend, improved marketing channel mix and continued marketing efficiencies from our branding initiatives that enhance lead quality and conversion rates in both our telesales and online unassisted channels;

• partially offset by a $32, or 9%, increase in CC&E cost per MA-equivalent approved member primarily due to:

◦ a decline in the number of Medicare Advantage approved members driven by our intentional decrease in variable marketing spend;

◦ partially offset by lower overall personnel and compensation costs, primarily driven by fewer benefit advisors and screeners year-over-year, despite retaining benefit advisors to support the launch of our lifetime advisory model in the second quarter of 2026.

Three Months Ended June 30, 2026 and 2025 – Total acquisition cost per MA-equivalent approved member increased $179, or 16%, during the three months ended June 30, 2026 compared to the same period in 2025, driven by:

• a $277, or 42%, increase in CC&E cost per MA-equivalent approved member primarily due to:

◦ a decline in the number of approved members across all Medicare products, driven by our intentional decrease in variable marketing spend as we focused on existing member engagement outside of the key enrollment periods;

◦ partially offset by lower overall personnel and compensation costs, primarily driven by fewer benefit advisors and screeners year-over-year as well as our flexible telesales organization structure;

• partially offset by a $98, or 23%, decrease in variable marketing cost per MA-equivalent approved member primarily due to more disciplined marketing spend, improved marketing channel mix and continued marketing efficiencies from our branding initiatives that enhanced lead quality and conversion rates in our online unassisted channels.

Individual and Family

Three Months Ended March 31, 2026 and 2025 – Total acquisition cost per IFP-equivalent approved member increased $67, or 22%, during the three months ended March 31, 2026 compared to the same period in 2025, driven by:

Three Months Ended June 30, 2026 and 2025 – Total acquisition cost per IFP-equivalent approved member increased $53, or 10%, during the three months ended June 30, 2026 compared to the same period in 2025, driven by:

• a $68, or 16%, increase in CC&E cost per IFP-equivalent approved member due to the overall decline in individual and family plan and short-term plan approved members;

• a $27, or 23%, decrease in variable marketing cost per IFP-equivalent approved member, primarily driven by our intentional decrease in variable marketing spend year-over-year.

• partially offset by a $15, or 15%, decrease in variable marketing cost per IFP-equivalent approved member, primarily driven by our intentional decrease in variable marketing spend year-over-year.

Critical Accounting Policies and Estimates

13 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Commission $ 29,804 89 % $ 54,731 90 % $ 109,611 90 % $ 153,677 88 %

8 unchanged sentences

Total operating costs and expenses 61,023 182 % 83,826 138 % 151,919 125 % 192,147 110 %

Income (loss) from operations (2,878) (3) % 4,798 4 %

Loss from operations (27,457) (82) % (23,044) (38) % (30,335) (25) % (18,246) (10) %

Interest expense (4,054) (12) % (2,348) (4) % (8,089) (7) % (4,996) (3) %

Other income, net 832 2 % 1,340 2 % 1,672 1 % 2,916 2 %

Income (loss) before income taxes (6,073) (7) % 3,726 3 %

Provision for (benefit from) income taxes (1,359) (2) % 1,776 2 %

Net income (loss) $ (4,714) (5) % $ 1,950 2 %

Loss before income taxes (30,679) (91) % (24,052) (40) % (36,752) (30) % (20,326) (12) %

Benefit from income taxes (7,084) (21) % (6,654) (11) % (8,443) (7) % (4,878) (3) %

Net loss $ (23,595) (70) % $ (17,398) (29) % $ (28,309) (23) % $ (15,448) (9) %

(1) Operating costs and expenses include the following amounts of stock-based compensation expense (in thousands):

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Marketing and advertising $ 380 $ 585 $ 648 $ 1,082

5 unchanged sentences

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

2026 2025 $ % 2026 2025 $ %

4 unchanged sentences

Total revenue $ 33,566 $ 60,782 $ (27,216) (45) % $ 121,584 $ 173,901 $ (52,317) (30) %

Three Months Ended March 31, 2026 and 2025 – Commission revenue decreased $19.1 million, or 19%, during the three months ended March 31, 2026 compared to the same period in 2025 due to:

Three Months Ended June 30, 2026 and 2025 – Commission revenue decreased $24.9 million, or 46%, during the three months ended June 30, 2026 compared to the same period in 2025 due to:

• a $24.0 million, or 46%, decrease in our Medicare segment commission revenue driven by:

◦ a $14.0 million decline in commission revenue from members approved during the period primarily due to a 45%, 45%, and 80% decrease in Medicare Advantage, Medicare Supplement and Medicare Part D plan approved members, respectively;

◦ lower net adjustment revenue from prior period enrollments, which was $9.1 million during the three months ended June 30, 2026 compared to $19.1 million during the same period in 2025.

• a $0.9 million, or 37%, decrease in our E&I segment commission revenue driven by:

◦ a 28% and 13% decline in individual and family plan and ancillary plan approved members, respectively, partially offset by an 18% increase in small business plan approved members;

◦ lower constrained LTV of commissions per approved member for qualified health plans, non-qualified health plans and vision plans, slightly offset by higher constrained LTV of commissions per approved member for short-term, dental and small business plans;

◦ lower net adjustment revenue from prior period enrollments of $(1.5) million during the three months ended June 30, 2026 compared to $(1.3) million in the same period in 2025.

Other revenue decreased $2.3 million, or 38%, during the three months ended June 30, 2026 compared to the same period in 2025 primarily due to a decrease in sponsorship and advertising revenue.

Six Months Ended June 30, 2026 and 2025 – Commission revenue decreased $44.1 million, or 29%, during the six months ended June 30, 2026 compared to the same period in 2025 due to:

• a $40.5 million, or 29%, decline in commission revenue from the Medicare segment driven by:

◦ a 23% and 2% decline in Medicare Advantage and Medicare Supplement plan approved members, respectively, partially offset by a 54% increase in hospital indemnity plan approved members;

◦ lower net adjustment revenue from prior period enrollments, which was $6.8 million during the three months ended March 31, 2026 compared to $8.0 million during the three months ended March 31, 2025;

◦ partially offset by improved constrained LTV of commissions per approved member across all Medicare products.

◦ a $29.3 million decline in commission revenue from members approved during the period primarily due to a 30% decline in overall Medicare approved members;

◦ lower net adjustment revenue from prior period enrollments, which was $15.9 million during the six months ended June 30, 2026 compared to $27.1 million during the same period in 2025.

• a $3.6 million, or 30% decrease in commission revenue from the E&I segment primarily driven by:

◦ declines in individual and family plan and dental, short-term and vision plan approved members;

◦ lower constrained LTV of commissions for individual and family plan products, partially offset by improved constrained LTV of commissions for short-term, dental and vision plans;

◦ lower net adjustment revenue from prior period enrollments, which was $1.2 million during the three months ended March 31, 2026 compared to $2.5 million during the three months ended March 31, 2025.

Other revenue decreased $6.0 million, or 42%, due to a $6.5 million decline in sponsorship and advertising revenue, partially offset by a $0.5 million increase in fee-based and other revenue.

◦ declines in individual and family plan, short-term, vision and dental plan approved members;

◦ lower net adjustment revenue from prior period enrollments, which was $(0.2) million during the six months ended June 30, 2026 compared to $1.2 million during the same period in 2025.

Other revenue decreased $8.3 million, or 41%, due to an $8.9 million decline in sponsorship and advertising revenue, partially offset by a $0.7 million increase in fee-based and other revenue.

See Summary of Selected Metrics above and Segment Information below for further discussion.

10 unchanged sentences

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

2026 2025 $ % 2026 2025 $ %

1 unchanged sentence

% of total revenue 35 % 35 % 31 % 36 %

Three Months Ended March 31, 2026 and 2025 – Marketing and advertising expenses decreased $15.8 million, or 38%, during the three months ended March 31, 2026 compared to the same period in 2025, driven by a $15.4 million decrease in variable advertising costs as we strategically reduced our overall marketing budget and focused on our higher margin marketing channels.

Three Months Ended June 30, 2026 and 2025 – Marketing and advertising expenses decreased $9.6 million, or 45%, during the three months ended June 30, 2026 compared to the same period in 2025, primarily driven by a $8.1 million decrease in variable advertising costs, a $0.9 million decrease in fixed marketing costs and a $0.5 million decrease in personnel and compensation costs.

The decrease in variable advertising costs was primarily due to an intentional reduction in affiliate partner and direct channels spend as we strategically reduced our overall marketing budget to prioritize marketing spend in the first and fourth quarters of the fiscal year to maximize returns on investment.

Six Months Ended June 30, 2026 and 2025 – Marketing and advertising expenses decreased $25.4 million, or 41%, during the six months ended June 30, 2026 compared to the same period in 2025, primarily driven by a $23.5 million decrease in variable advertising costs, a $1.1 million decrease in fixed marketing costs, a $0.6 million decrease in personnel and compensation costs and a $0.4 million decrease in stock-based compensation expense.

The decrease in variable advertising costs was primarily a result of our intentionally reduced overall marketing budget and our focus on our higher margin marketing channels.

Customer Care and Enrollment

2 unchanged sentences

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

2026 2025 $ % 2026 2025 $ %

1 unchanged sentence

% of total revenue 66 % 46 % 45 % 37 %

Three Months Ended March 31, 2026 and 2025 – Customer care and enrollment expenses decreased $4.9 million, or 13%, during the three months ended March 31, 2026 compared to the same period in 2025, primarily due to a $5.5 million decrease in personnel and compensation costs due to lower headcount, reflecting our strategic decision to reduce benefit advisor spend as we planned for lower investment in member acquisition activities, partly offset by a $0.6 million increase in other operating expenses due to higher consulting and software costs.

Three Months Ended June 30, 2026 and 2025 – Customer care and enrollment expenses decreased $5.6 million, or 20%, during the three months ended June 30, 2026 compared to the same period in 2025, primarily due to a $5.1 million decrease in personnel and compensation costs and a $0.4 million decrease in other operating expenses due to lower consulting costs.

The decrease in personnel and compensation costs was primarily due to lower headcount as we strategically planned for lower investment in member acquisition activities and continued to use a more flexible structure in our telesales organization to adjust to anticipated enrollment volumes.

Six Months Ended June 30, 2026 and 2025 – Customer care and enrollment expenses decreased $10.5 million, or 16%, during the six months ended June 30, 2026 compared to the same period in 2025, primarily due to a $10.6 million decrease in personnel and compensation costs due to lower headcount, reflecting our strategic decision to reduce benefit advisor spend as we planned for lower investment in member acquisition activities and continued to use a more flexible structure in our telesales organization to adjust to anticipated enrollment volumes.

Technology and Content

3 unchanged sentences

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

2026 2025 $ % 2026 2025 $ %

1 unchanged sentence

% of total revenue 34 % 19 % 19 % 14 %

Three Months Ended March 31, 2026 and 2025 – Technology and content expenses decreased $1.3 million, or 10%, during the three months ended March 31, 2026 compared to the same period in 2025, primarily driven by a $0.7 million decrease in amortization of internally developed software, a $0.4 million decrease in stock-based compensation expense and $0.3 million decrease in other operating costs, particularly consulting expenses.

These decreases reflect the initial impact from our company-wide fixed cost expense reduction initiative implemented in January of 2026.

Three Months Ended June 30, 2026 and 2025 – Technology and content expenses decreased less than $0.1 million, or less than 1%, during the three months ended June 30, 2026 compared to the same period in 2025, primarily driven by a $0.3 million decrease in other operating costs, particularly consulting expenses, a $0.3 million decrease in stock-based compensation expense and a $0.2 million decrease in depreciation and amortization expense, primarily offset by a $0.8 million increase in personnel and compensation costs.

Six Months Ended June 30, 2026 and 2025 – Technology and content expenses decreased $1.3 million, or 6%, during the six months ended June 30, 2026 compared to the same period in 2025, primarily driven by a $0.9 million decrease in amortization of internally developed software, a $0.7 million decrease in stock-based compensation expense and a $0.6 million decrease in other operating costs, particularly consulting expenses, partly offset by a $0.8 million increase in personnel and compensation costs.

General and Administrative

3 unchanged sentences

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

2026 2025 $ % 2026 2025 $ %

1 unchanged sentence

% of total revenue 46 % 36 % 26 % 22 %

Three Months Ended March 31, 2026 and 2025 – General and administrative expenses decreased $1.8 million, or 10%, during the three months ended March 31, 2026 compared to the same period in 2025, primarily driven by a $1.3 million, $0.9 million and $0.3 million decrease in personnel and compensation costs, stock-based compensation expense and facilities and other operating expenses, respectively, all reflective of the initial impact from our company-wide fixed cost expense reduction initiative implemented in January of 2026, partly offset by an increase of $0.9 million in professional fees.

Three Months Ended June 30, 2026 and 2025 – General and administrative expenses decreased $6.0 million, or 28%, during the three months ended June 30, 2026 compared to the same period in 2025, primarily driven by a $3.7 million decrease in personnel and compensation costs, a $0.9 million decrease in stock-based compensation expense, a $0.6 million decrease in facilities and other operating expenses, a $0.4 million decrease in professional fees and a $0.3 million decrease other operating costs.

These decreases were all reflective of the initial impact from our company-wide fixed cost expense reduction initiative implemented in January of 2026.

Six Months Ended June 30, 2026 and 2025 – General and administrative expenses decreased $7.8 million, or 20%, during the six months ended June 30, 2026 compared to the same period in 2025, primarily driven by a $4.9 million decrease in personnel and compensation costs, a $1.8 million decrease in stock-based compensation expense and a $0.9 million decrease in facilities and other operating expenses.

These decreases were all reflective of the initial impact from our company-wide fixed cost expense reduction initiative implemented in January of 2026.

Impairment, Restructuring and Other Charges

2 unchanged sentences

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

2026 2025 $ % 2026 2025 $ %

2 unchanged sentences

* Percentage calculated is not meaningful.

Three Months Ended March 31, 2026 and 2025 – We incurred $6.4 million of impairment, restructuring and other charges for the three months ended March 31, 2026 compared to no impairment, restructuring and other charges for the same period in 2025.

The $6.4 million of restructuring charges recognized during 2026 were related to employee termination benefits resulting from a workforce reduction of approximately 14% across the organization, implemented as part of cost reduction efforts to support our strategic initiatives.

Three Months Ended June 30, 2026 and 2025 – We incurred $0.1 million in impairment, restructuring and other charges for the three months ended June 30, 2026 compared to $1.6 million for the same period in 2025.

The charges in 2026 consisted of $0.2 million related to abandoned internally developed software projects and $0.1 million related to operating lease right-of-use asset impairments for certain vacated leased office spaces.

We also incurred $(0.2) million of restructuring charge adjustments.

Six Months Ended June 30, 2026 and 2025 – We incurred $6.4 million of impairment, restructuring and other charges for the six months ended June 30, 2026 compared to $1.6 million impairment, restructuring and other charges for the same period in 2025.

During 2026, we recognized $6.1 million of restructuring charges related to

employee termination benefits associated with a workforce reduction affecting approximately 14% of our workforce as part of our cost reduction efforts to support strategic initiatives.

Interest Expense

3 unchanged sentences

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

2026 2025 $ % 2026 2025 $ %

1 unchanged sentence

% of total revenue (12) % (4) % (7) % (3) %

Three Months Ended March 31, 2026 and 2025 – Interest expense increased by $1.4 million, or 52%, during the three months ended March 31, 2026 compared to the same period in 2025, primarily driven by a $1.1 million increase in debt interest expense as a result of higher outstanding debt principal balance following the our entry into a new asset-based revolving credit facility on December 31, 2026.

Three Months Ended June 30, 2026 and 2025 – Interest expense increased by $1.7 million, or 73%, during the three months ended June 30, 2026 compared to the same period in 2025, primarily driven by a $2.0 million increase in debt interest expense as a result of higher outstanding debt principal balance following our entry into a new asset-based revolving credit facility on December 31, 2026.

Six Months Ended June 30, 2026 and 2025 – Interest expense increased by $3.1 million, or 62%, during the six months ended June 30, 2026 compared to the same period in 2025, primarily driven by a $2.3 million increase in debt interest expense as a result of higher outstanding debt principal balance following our entry into a new asset-based revolving credit facility on December 31, 2026.

Other Income, Net

2 unchanged sentences

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

2026 2025 $ % 2026 2025 $ %

1 unchanged sentence

% of total revenue 2 % 2 % 1 % 2 %

Three Months Ended March 31, 2026 and 2025 – Other income, net, was $0.8 million during the three months ended March 31, 2026, compared to $1.6 million during the three months ended March 31, 2025.

The change was primarily due to a $0.5 million decrease in interest income as a result of less favorable short-term investment returns and lower average short-term investment balances during the three months ended March 31, 2026.

Provision For (Benefit from) Income Taxes

Our provision for (benefit from) income taxes is summarized as follows (dollars in thousands):

Three Months Ended June 30, 2026 and 2025 – Other income, net, was $0.8 million during the three months ended June 30, 2026, compared to $1.3 million during the three months ended June 30, 2025.

The change was primarily due to a $0.3 million decrease in interest income as a result of less favorable short-term investment returns and a decline in average short-term investment balances during the three months ended June 30, 2026.

Six Months Ended June 30, 2026 and 2025 – Other income, net, was $1.7 million during the six months ended June 30, 2026, compared to $2.9 million during the six months ended June 30, 2025.

The change was primarily due to a $0.9 million decrease in interest income as a result of less favorable short-term investment returns and lower average short-term investment balances during the six months ended June 30, 2026.

Benefit from Income Taxes

Our benefit from income taxes is summarized as follows (dollars in thousands):

Three Months Ended

March 31, Change

June 30, Change Six Months Ended

June 30, Change

2026 2025 $ % 2026 2025 $ %

Provision for (benefit from) income taxes $ (1,359) $ 1,776 $ (3,135) (177) %

Benefit from income taxes $ (7,084) $ (6,654) $ (430) 6 % $ (8,443) $ (4,878) $ (3,565) 73 %

Effective tax rate 23.1 % 27.7 % 23.0 % 24.0 %

Three Months Ended March 31, 2026 and 2025 – Our effective tax rate of 22.4% for the three months ended March 31, 2026 was lower than our 47.7% effective tax rate for the three months ended March 31, 2025 primarily due to fluctuations in stock-based compensation adjustments, research and development credits, state taxes and prior year discrete adjustments.

Our effective tax rate for the three months ended March 31, 2026 was higher than the statutory federal tax rate primarily due to state taxes, nondeductible stock-based compensation and lobbying expenses, partially offset by research and development credits.

Three Months Ended June 30, 2026 and 2025 – Our effective tax rate of 23.1% for the three months ended June 30, 2026 was lower than our 27.7% effective tax rate for the three months ended June 30, 2026 primarily due to fluctuations in stock-based compensation adjustments, research and development credits and state taxes.

Our effective tax rate for the three months ended June 30, 2026 was higher than the statutory federal tax rate due primarily to state taxes, stock-based compensation adjustments and non-deductible lobbying expenses, partially offset by research and development credits.

Six Months Ended June 30, 2026 and 2025 – Our effective tax rate of 23.0% for the six months ended June 30, 2026 was lower than our 24.0% effective tax rate for the six months ended June 30, 2025 primarily due to fluctuations in stock-based compensation adjustments, research and development credits, state taxes and prior year discrete adjustments.

Our effective tax rate for the six months ended June 30, 2026 was higher than the statutory federal tax rate primarily due to state taxes, nondeductible stock-based compensation and lobbying expenses, partially offset by research and development credits.

Segment Information

9 unchanged sentences

The E&I segment consists primarily of commissions earned from our sale of individual and family plans, including both qualified and non-qualified plans, employer plans, which include small business health insurance plans and ICHRAs, and ancillary products sold to our non-Medicare-eligible consumers, including but not limited to, dental, vision and short-term insurance.

To a lesser extent, the E&I segment includes amounts earned from our online sponsorship program that allows carriers to purchase advertising space in specific markets on our website as well as our technology licensing activities.

To a lesser extent, the E&I segment also includes amounts earned from our

online sponsorship program that allows carriers to purchase advertising space in specific markets on our website as well as our technology licensing activities.

Segment gross profit (loss) is calculated as total revenue for the applicable segment less variable marketing and advertising expenses, segment CC&E expenses and cost of revenue for the applicable segment.

3 unchanged sentences

Three Months Ended

2026 2025 % Change

June 30, Six Months Ended

2026 2025 % Change 2026 2025 % Change

Total revenue

7 unchanged sentences

Three Months Ended

2026 2025 % Change

June 30, Six Months Ended

2026 2025 % Change 2026 2025 % Change

Employer and Individual:

6 unchanged sentences

(55) (62) 11 % (121) (154) 21 %

E&I segment gross profit $ 3,696 $ 5,988 (38) %

E&I segment gross profit (loss) $ (840) $ (257) (227) % $ 2,856 $ 5,731 (50) %

Three Months Ended

2026 2025 % Change

June 30, Six Months Ended

2026 2025 % Change 2026 2025 % Change

Consolidated:

7 unchanged sentences

Total segment gross profit $ 5,124 $ 18,888 (73) % $ 41,856 $ 60,623 (31) %

A reconciliation of our segment gross profit to the Condensed Consolidated Statements of Comprehensive Income (Loss) for the periods presented is as follows (in thousands):

A reconciliation of our segment gross profit to the Condensed Consolidated Statements of Comprehensive Loss for the periods presented is as follows (in thousands):

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Total segment gross profit $ 5,124 $ 18,888 $ 41,856 $ 60,623

2 unchanged sentences

Other CC&E (2)

(527) (631) (1,057) (1,203)

Technology and content (11,301) (11,354) (22,636) (23,955)

3 unchanged sentences

Other income, net 832 1,340 1,672 2,916

Income (loss) before income taxes $ (6,073) $ 3,726

Loss before income taxes $ (30,679) $ (24,052) $ (36,752) $ (20,326)

(1) Other marketing and advertising costs consist of fixed marketing and advertising, previously capitalized labor, depreciation and share-based compensation costs.

1 unchanged sentence

Medicare Segment

Three Months Ended March 31, 2026 and 2025 – Revenue from our Medicare segment decreased $22.4 million, or 22%, during the three months ended March 31, 2026 compared to the same period in 2025, primarily driven by:

Three Months Ended June 30, 2026 and 2025 – Revenue from our Medicare segment decreased $26.3 million, or 45%, during the three months ended June 30, 2026 compared to the same period in 2025, primarily driven by:

• a $24.0 million decrease in Medicare segment commission revenue primarily due to:

◦ a 24% decrease in Medicare plan approved members;

◦ lower net adjustment revenue, which was $6.8 million for the three months ended March 31, 2026 compared to $8.0 million during the same period in 2025;

◦ partially offset by higher constrained LTV of commissions per approved member across all Medicare plans.

◦ a $14.0 million decline in commission revenue from members approved during the period driven by a decrease in approved members across all Medicare products;

◦ lower net adjustment revenue from prior period enrollments, which was $9.1 million during the three months ended June 30, 2026 compared to $19.1 million during the same period in 2025.

• a $2.3 million decrease in Medicare segment other revenue driven by a $2.4 million decline in sponsorship and advertising revenue.

Our Medicare segment gross profit was $6.0 million for the three months ended June 30, 2026, a decrease of $13.2 million or 69%, compared to the same period in 2025 primarily driven by:

• a $26.3 million decrease in Medicare segment revenue;

• partially offset by an $8.0 million and $5.2 million decrease in variable marketing and advertising and segment CC&E expenses, respectively, primarily due to targeted cost reduction efforts in 2026.

Six Months Ended June 30, 2026 and 2025 – Revenue from our Medicare segment decreased $48.7 million, or 30%, during the six months ended June 30, 2026 compared to the same period in 2025, primarily driven by:

• a $40.5 million decrease in Medicare segment commission revenue primarily due to:

◦ a $29.3 million decline in commission revenue from members approved during the period primarily driven by a 30% decrease in Medicare plan approved members;

◦ lower net adjustment revenue from prior period enrollments, which was $15.9 million for the six months ended June 30, 2026 compared to $27.1 million during the same period in 2025.

• a $8.2 million decrease in Medicare segment other revenue driven by a $8.9 million decrease in sponsorship and advertising revenue, partly offset by a $0.7 million increase in fee-based revenue.

Our Medicare segment gross profit was $33.0 million for the three months ended March 31, 2026, a decrease of $2.7 million, or 8%, compared to the same period in 2025 primarily driven by:

Our Medicare segment gross profit was $39.0 million for the six months ended June 30, 2026, a decrease of $15.9 million, or 29%, compared to the same period in 2025 primarily driven by:

• a $48.7 million decrease in Medicare segment revenue;

• partially offset by a decrease of $15.0 million in variable marketing and advertising expenses, driven by our intentional decision to decrease marketing spend;

• a $4.9 million decrease in segment CC&E expenses primarily due to fewer licensed benefit and retention advisors year-over-year.

• partially offset by a decrease of $23.0 million and $10.1 million in variable marketing and advertising and segment CC&E expenses, respectively, driven by our targeted cost reduction effort in 2026.

Employer and Individual Segment

Three Months Ended March 31, 2026 and 2025 – Revenue from our E&I segment decreased $2.7 million, or 29%, during the three months ended March 31, 2026 compared to the same period in 2025, primarily driven by a $2.6 million decrease in commission revenue as a result of:

• a 38% decline in individual and family plan approved members and lower constrained LTV of commissions per approved members for both qualified and non-qualified health plans;

• lower net adjustment revenue year-over-year, which was $1.2 million for the three months ended March 31, 2026 compared to $2.5 million in three months ended March 31, 2025;

• partially offset by an 8% increase in small business plan approved members and an increase in all ancillary plan and small business plan constrained LTV of commissions per approved member.

Our E&I segment gross profit was $3.7 million for the three months ended March 31, 2026, a decrease of $2.3 million, or 38%, compared to the same period in 2025 primarily driven by a $2.7 million decrease in E&I segment revenue, partly offset by lower variable marketing spend of $0.3 million.

Three Months Ended June 30, 2026 and 2025 – Revenue from our E&I segment decreased $1.0 million, or 35%, during the three months ended June 30, 2026 compared to the same period in 2025, primarily driven by a $0.9 million decrease in commission revenue due to:

• a $0.6 million decline in commission revenue from members approved during the period driven by:

◦ a decline in individual and family plan and ancillary plan approved members, respectively, partially offset by an increase in small business plan approved members;

◦ lower constrained LTV of commissions per approved member for qualified, non-qualified and vision plans, partially offset by improved constrained LTV of commissions per approved member for small business, short-term and dental plans compared to the same period in 2025.

• lower net adjustment revenue from prior period enrollments, which was $(1.5) million for the three months ended June 30, 2026 compared to $(1.3) million in three months ended June 30, 2025.

Our E&I segment gross loss was $0.8 million for the three months ended June 30, 2026, compared to gross loss of $0.3 million for the three months ended June 30, 2025, primarily driven by a $1.0 million decrease in E&I segment revenue, partially offset by a $0.3 million decrease in segment CC&E expenses.

Six Months Ended June 30, 2026 and 2025 – Revenue from our E&I segment decreased $3.7 million, or 30%, during the six months ended June 30, 2026 compared to the same period in 2025, primarily driven by a $3.6 million decrease in commission revenue as a result of:

• a $1.9 million decline in commission revenue from members approved during the period driven by:

◦ a decline in individual and family plan and ancillary approved members, respectively, partially offset by an increase in small business plan approved members;

◦ lower constrained LTV of commissions per approved members for qualified, non-qualified and vision plans, partially offset by an increase in small business plan, short-term and dental plan constrained LTV of commissions per approved member.

• lower net adjustment revenue from prior period enrollments, which was $(0.2) million for the six months ended June 30, 2026 compared to $1.2 million in six months ended June 30, 2025.

Our E&I segment gross profit was $2.9 million for the six months ended June 30, 2026, a decrease of $2.9 million, or 50%, compared to the same period in 2025 primarily driven by a $3.7 million decrease in E&I segment revenue, partly offset by lower variable marketing spend of $0.3 million and segment CC&E expenses of $0.3 million.

Liquidity and Capital Resources

As of March 31, 2026, we had cash, cash equivalents and short-term marketable securities of $110.8 million.

During the three months ended March 31, 2026, we generated net operating cash flow of $35.8 million as summarized below.

As of June 30, 2026, we had cash, cash equivalents and short-term marketable securities of $101.0 million.

During the six months ended June 30, 2026, we generated net operating cash flow of $30.8 million as summarized below.

We have historically financed our operations primarily through cash generated from our operations, equity issuances and debt financing.

2 unchanged sentences

Our cash, cash equivalents and short-term marketable securities are summarized as follows (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cash and cash equivalents $ 69,681 $ 73,725

1 unchanged sentence

Total cash, cash equivalents and short-term marketable securities $ 101,048 $ 77,220

Cash equivalents, which are comprised of financial instruments with an original maturity of 90 days or less from the date of purchase, primarily consist of money market funds, commercial paper and government securities.

We also maintained $3.1 million in restricted cash as of March 31, 2026 and December 31, 2025.

Cash equivalents, which are comprised of financial instruments with an original maturity of 90 days or less from the date of purchase, primarily consist of money market funds and commercial paper.

We also maintained $2.6 million and $3.1 million in restricted cash as of June 30, 2026 and December 31, 2025, respectively.

Material Cash Requirements

5 unchanged sentences

See Note 8 – Commitments and Contingencies in our Notes to Condensed Consolidated Financial Statements.

Short-term obligations were $7.9 million for leases and $8.3 million for service and licensing as of March 31, 2026.

Long-term obligations were $13.4 million for leases and $2.5 million for service and licensing as of March 31, 2026.

Short-term obligations were $7.4 million for leases and $8.0 million for service and licensing as of June 30, 2026.

Long-term obligations were $11.7 million for leases and $2.2 million for service and licensing as of June 30, 2026.

We expect to fund these obligations through our existing cash and cash equivalents and cash generated from operations.

8 unchanged sentences

Investment Agreement Amendment, plus in the case of refinancings, certain additional amounts, and add a liquidity covenant substantially similar to the covenant provided for in the Revolving Credit Facility, with the sole remedy for breach of the liquidity covenant being a 2.00% increase in the paid-in-kind dividend rate.

As of March 31, 2026, we have accrued $1.5 million for cash dividends.

During the second quarter of 2026, we made a cash dividend payment of $3.1 million.

Investment Agreement also provides certain redemption rights on or after April 2027.

11 unchanged sentences

to accelerate the redemption of the Series A Preferred Stock nor is it expected to materially impact our ability to generate and obtain adequate amounts of cash to meet our short-term or long-term requirements.

As of March 31, 2026, we were in compliance with the additional liquidity covenant required in the H.I.G.

As of June 30, 2026, we were in compliance with the additional liquidity covenant required in the H.I.G.

Investment Agreement Amendment.

14 unchanged sentences

Financial covenants in the Revolving Credit Agreement require that we maintain a maximum total leverage ratio, a minimum unrestricted cash balance and a minimum lifetime value to acquisition cost ratio, each as defined in the Revolving Credit Agreement.

Additionally, the Revolving Credit Agreement contains customary affirmative and negative covenants that limit the ability of the Borrower and its subsidiaries or the Guarantors, as applicable, to, among other things:

Additionally, the Revolving Credit Agreement contains customary affirmative and

negative covenants that limit the ability of the Borrower and its subsidiaries or the Guarantors, as applicable, to, among other things:

(i) incur additional debt or issue certain preferred stock;

8 unchanged sentences

Upon the occurrence and during the continuance of an event of default, the Agent is entitled to take various actions, including the acceleration of all amounts due under the Revolving Credit Agreement.

There are significant restrictions over eHealth, Inc.’s ability to obtain funds from certain of its subsidiaries through dividends, loans or

advances as contained in the Revolving Credit Agreement.

As of March 31, 2026, the interest rate was 10.17%.

For the three months ended March 31, 2026, we incurred interest expense of $3.2 million.

As of March 31, 2026, the carrying value of the loan under the Revolving Credit Facility was $113.8 million and we were in compliance with our Revolving Credit Agreement covenants.

There are significant restrictions over eHealth, Inc.’s ability to obtain funds from certain of its subsidiaries through dividends, loans or advances as contained in the Revolving Credit Agreement.

As of June 30, 2026, the interest rate was 10.14%.

For the three and six months ended June 30, 2026, we incurred interest expense of $3.2 million and $6.4 million, respectively.

As of June 30, 2026, the carrying value of the loan under the Revolving Credit Facility was $114.6 million and we were in compliance with our Revolving Credit Agreement covenants.

See Note 12 – Debt in our Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information regarding the Revolving Credit Agreement.

7 unchanged sentences

Cash Activities

Our cash flows for the three months ended March 31, 2026 and 2025 are summarized as follows (in thousands):

Three Months Ended

Our cash flows for the six months ended June 30, 2026 and 2025 are summarized as follows (in thousands):

Six Months Ended

Net cash provided by operating activities $ 30,810 $ 35,917

Net cash provided by (used in) investing activities (34,359) 5,472

Net cash used in investing activities (32,434) (4,647)

Net cash used in financing activities (3,189) (4,543)

2 unchanged sentences

Collection of commissions receivable depends upon the timing of our receipt of commission payments and associated commission reports from health insurance carriers.

If we were to experience a delay in receiving a commission payment from a significant health insurance carrier within a quarter, our operating cash flows for that quarter could be adversely impacted.

If we were to experience a delay in receiving a

commission payment from a significant health insurance carrier within a quarter, our operating cash flows for that quarter could be adversely impacted.

While we recognize constrained LTV as revenue at the time applications are approved, our collection of the cash commissions resulting from approved applications generally occurs over a number of years.

3 unchanged sentences

Our fee-based BPO arrangements generate fee-based revenue, which is recorded in other revenue, and cash is collected in advance or in close proximity to when revenue is recognized.

Three Months Ended March 31, 2026 – Net cash provided by operating activities was $35.8 million during the three months ended March 31, 2026 driven by changes in net operating assets and liabilities of $36.1 million and adjustments for non-cash items of $4.3 million, partially offset by a net loss of $4.7 million.

Cash provided by changes in net operating assets and liabilities during the three months ended March 31, 2026 primarily consisted of decreases of $86.4 million in contract assets – commissions receivable and $6.2 million in accounts receivable, partially offset by decreases of $23.1 million in accounts payable, $19.9 million in accrued compensation and benefits, $11.5 million in accrued marketing expenses, and $2.8 million in deferred revenue.

Six Months Ended June 30, 2026 – Net cash provided by operating activities was $30.8 million during the six months ended June 30, 2026 driven by changes in net operating assets and liabilities of $55.4 million and adjustments for non-cash items of $3.7 million, partially offset by a net loss of $28.3 million.

Cash provided by changes in net operating assets and liabilities during the six months ended June 30, 2026 primarily consisted of decreases of $115.5 million in contract assets – commissions receivable and $5.9 million in accounts receivable, partially offset by decreases of $25.4 million in accounts payable, $26.1 million in accrued compensation and benefits, $13.4 million in accrued marketing expenses, and $2.5 million in deferred revenue.

Adjustments for non-cash items primarily consisted of $5.6 million of amortization of internally developed software and $4.6 million of stock-based compensation expense, partially offset by a $8.7 million decrease due to the change in deferred income taxes.

Three Months Ended March 31, 2025 – Net cash provided by operating activities was $77.1 million during the three months ended March 31, 2025 driven by changes in net operating assets and liabilities of $66.2 million, adjustments for non-cash items of $8.9 million and net income of $2.0 million.

Cash provided by changes in net operating assets and liabilities during the three months ended March 31, 2025 primarily consisted of decreases of $77.0 million in contract assets – commissions receivable and $13.4 million in accounts receivable, partially offset by decreases of $16.0 million in accounts payable and $7.5 million in accrued marketing expenses.

Adjustments for non-cash items primarily consisted of $3.8 million of stock-based compensation expense, $3.5 million of amortization of internally developed software and a $1.5 million increase due to the change in deferred income taxes.

Six Months Ended June 30, 2025 – Net cash provided by operating activities was $35.9 million during the six months ended June 30, 2025 driven by changes in net operating assets and liabilities of $41.7 million and adjustments for non-cash items of $9.7 million, partially offset by net loss of $15.4 million.

Cash provided by changes in net operating assets and liabilities during the six months ended June 30, 2025 primarily consisted of decreases of $83.5 million in contract assets – commissions receivable and $15.0 million in accounts receivable, partially offset by decreases of $26.8 million in accrued compensation and related expenses, $17.6 million in accounts payable and $12.6 million in accrued marketing expenses.

Adjustments for non-cash items primarily consisted of $7.7 million of stock-based compensation expense, $6.5 million of amortization of internally developed software, partially offset by a $5.2 million decrease due to the change in deferred income taxes.

Investing Activities

Our investing activities primarily consist of purchases and redemption of marketable securities, purchases of computer hardware and software to enhance our website and advisor enrollment center operations and capitalized internal-use software.

Three Months Ended March 31, 2026 – Net cash used in investing activities of $34.4 million for the three months ended March 31, 2026 mainly consisted of $35.6 million used to purchase marketable securities and $2.2 million in capitalized internal-use software and website development costs, partially offset by $3.5 million in proceeds from the maturities and redemptions of marketable securities.

Three Months Ended March 31, 2025 – Net cash provided by investing activities of $5.5 million for the three months ended March 31, 2025 mainly consisted of $36.3 million in proceeds from the maturities and redemptions of marketable securities, partially offset by $27.4 million used to purchase marketable securities and $3.1 million in capitalized internal-use software and website development costs

Six Months Ended June 30, 2026 – Net cash used in investing activities of $32.4 million for the six months ended June 30, 2026 mainly consisted of $48.6 million used to purchase marketable securities and $4.3 million in capitalized internal-use software and website development costs, partially offset by $21.1 million in proceeds from the maturities and redemptions of marketable securities.

Six Months Ended June 30, 2025 – Net cash used in investing activities of $4.6 million for the six months ended June 30, 2025 mainly consisted of $61.9 million used to purchase marketable securities and $7.4 million in capitalized internal-use software and website development costs, partially offset by $66.5 million in proceeds from the maturities and redemptions of marketable securities.

Financing Activities

Three Months Ended March 31, 2026 – Net cash used in financing activities of $0.2 million for the three months ended March 31, 2026 was due to $0.2 million in repurchases of shares to satisfy employee tax withholding obligations.

Three Months Ended March 31, 2025 – Net cash used in financing activities of $0.7 million for the three months ended March 31, 2025 was due to $0.7 million in repurchases of shares to satisfy employee tax withholding obligations.

Six Months Ended June 30, 2026 – Net cash used in financing activities of $3.2 million for the six months ended June 30, 2026 was due to a $3.1 million preferred stock dividend payment.

Six Months Ended June 30, 2025 – Net cash used in financing activities of $4.5 million for the six months ended June 30, 2025 was due to a $2.9 million preferred stock dividend payment and $1.8 million in repurchases of shares to satisfy employee tax withholding obligations.

Open enrollment periods drive the seasonality of our business.

8 unchanged sentences

Full-time internal benefit advisors represent the majority of our telesales capacity.

We aim to maintain our internal benefit advisor workforce year-round, net of natural attrition, and expect to increase utilization outside of the enrollment periods by expanding ancillary products offerings and carrier call center outsourcing programs.

We aim to maintain our internal benefit advisor workforce year-round, net of natural attrition, and expect to increase utilization outside of the enrollment periods with our lifetime advisory model, by expanding ancillary products offerings and carrier call center outsourcing programs.

We typically begin ramping up our telesales capacity during the second quarter in preparation for the fourth quarter AEP.

9 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis