eHealth, Inc.

Good afternoon, everyone, and welcome to eHealth Inc's conference call to discuss the company's first quarter 2026 financial results. At this time, all participants have been placed in a listen-only mode. The floor will open for your questions following the prepared remarks. If you would like to ask a question during that time, please press star 1 to raise your hand. To withdraw your question, simply press star 1 again. I'll now turn the floor over to Eli Newbrun-Mintz, Senior Investor. Senior Investor Relations Manager, please go ahead.

Good afternoon and thank you all for joining us. On the call today, Derek Duke, eHealth's Chief Executive Officer, and John Dolan, Chief Financial Officer, will discuss our first quarter 2026 financial results. Following these prepared remarks, we will open the line for a Q&A session with industry analysts. As a reminder, this call is being recorded and webcast from the investor relations section of our website. A replay of the call will be available on our website later today. Today's press release, our historical financial news releases and our filings with the SEC are also available on our investor relations website. We will be making forward looking statements on this call about certain matters that are based upon management's current beliefs and expectations relating to future events impacting the company and our future financial or operating performance. Forward-looking statements on this call represent e-health's views as of today, and actual results could differ materially. We undertake no obligation to publicly address or update any forward-looking statements except as required by law. The forward-looking statements we will be making during this call are subject to a number of uncertainties and risks, including but not limited to those described in today's press release and in our most recent annual report on Form 10-K and our subsequent filings with the SEC. We will also be discussing certain non-GAAP financial measures on this call. Management's definitions of these non-GAAP measures and reconciliations to the most directly comparable GAAP financial measures are included in today's press release, except where such reconciliation has been omitted in reliance on this unreasonable efforts exception provided under item 10E1 of Regulation SK. With that, I will turn the call over to Derek Duke. Thank you, Eli.

Good afternoon, and thank you for joining us today. We're pleased with our first quarter results, which came in ahead of expectations, driven by stronger than anticipated Medicare enrollment volume and favorable unit economics. During the quarter, we made meaningful progress towards the strategic initiatives we outlined on our last earnings call, including implemented targeted cost reductions and completing critical build and readiness work for initiatives that launched in April. Most notably, we prepared for the rollout of our lifetime advisory model and the introduction of our new final expense insurance product. We are also encouraged by recent industry developments. Last month, CMS finalized the 2027 Medicare Advantage rate, which came in above the initial proposal. While this is just one variable in the system, We believe it is an important signal that CMS leadership is responsive to industry feedback and focused on long-term program sustainability. That said, we are early in the planning cycle for the upcoming annual enrollment period. Carriers are currently developing their 2027 bids, including benefit structures and geographic market strategies. We anticipate gaining a more comprehensive understanding of the upcoming AEP cycle and individual carrier approaches once bids are submitted. While some carriers may prioritize market share capture this AEP, we believe margin will remain the primary focus for most, and the Medicare Advantage reset cycle will continue. This means further adjustments to plan benefits and service areas, as well as additional plan eliminations. As a result, we expect consumer demand to remain strong and carrier inventory dynamics to remain complex, similar to last year. We believe this environment underscores eHealth's value proposition as we help consumers navigate the evolving Medicare landscape. Against this backdrop, we are intentionally evolving eHealth's operating model to foster deeper, longer-lasting relationships between members and advisors. Our goal is to ensure consumers see eHealth not as a one-time enrollment platform, but as a trusted ally throughout their healthcare journey. Central to this evolution is our lifetime advisory model, which I will discuss shortly. From a financial standpoint, our priorities this year are achieving breakeven or better operating cash flow and positioning the company for sustainable, profitable growth once the Medicare Advantage reset cycle is complete. Our revised three-year outlook, which we published today in our earnings slides, reflects a return to revenue growth in 2027 alongside adjusted EBITDA margin expansion, positive operating cash flow, and breakeven or better, free cash flow. First quarter revenue was $88 million, ahead of our expectations. Gap net loss was 4.7 million, and adjusted EBITDA was 9 million, exceeding our internal plan. Revenue performance was driven by Medicare enrollment volume, as well as better than expected revenue outside of core MA agency sales, reflecting progress in our diversification efforts. This includes providing ancillary and post-enrollment services. During the quarter, we implemented headcount reductions and vendor consolidation initiatives. These actions are expected to reduce our fixed operating cost base by approximately $30 million in 2026 compared to 2025, representing roughly a 20% reduction. While we realized some savings in the first quarter, the full impact is expected to become more apparent as we move through the year. Order one results also reflect our strategic decision to reduce variable marketing and agent-related spend, focusing investment on our best-performing channels. First quarter MA LTV increased 3%, while total acquisition cost per MA equivalent approved member declined 10% compared to a year ago. In the first quarter, we moved with urgency to execute on our strategic plan and make the necessary preparations for the launch of our lifetime advisory model. This key initiative is supported by a set of newly released agent-facing technology tools designed to enhance the beneficiary experience. These tools leverage the data and institutional knowledge that we have built up over decades of working with a wide array of beneficiaries. Core components include a customer dashboard that provides a holistic view of the member relationship with eHealth, system generated recommendations that prompt advisors to engage at the right moments, and dynamic insight driven scripts embedded directly into the sales and service workflow. Together, these tools are intended to ensure more personalized, proactive conversations, while also driving consistency, scalability, and quality across the advisor experience as the model matures. As part of this strategy, we're expanding the scope of services we provide beyond core MA coverage. eHealth already offers ancillary plan options such as dental, vision, hearing, and hospital indemnity plans. Last month, we launched final expense insurance offerings. These products enrich our health-based inventory by providing beneficiaries with additional financial protection and ultimately peace of mind. Final expense sales also offer attractive unit economics and a compelling cash flow profile. Over time, we plan to add more products and services that will benefit our members based on findings from consumer focus groups and industry research. The lifetime advisory model is expected to support consistent year-round engagement and enables more effective cross-selling. Through this strategy, we believe we will increase member lifetime value, improve retention, strengthen unit economics, and build durable brand equity rooted in trust and loyalty. As part of today's earnings release, we're updating our three-year financial targets. I would first like to stress that our decision to pull back on growth in 2026 was intentional and strategic. In this environment, we had the ability to drive higher Medicare enrollment volume, but chose instead to prioritize operating cash flow by focusing on our most profitable marketing channels, building our lifetime advisory model and taking a focused and disciplined approach to our diversification initiatives. We believe this strategy positions us well to return to growth next year on a stronger foundation. Our three-year forecast reflects mid-single-digit revenue growth on a percentage basis for 2027. As we selectively dial up member acquisition spend, we expect our revenue growth rate to increase to the mid-teens in 2028 supported by our core MA business and a greater contribution from ancillary sales driven by our new operating model. Beginning in 2028, we also expect our E&I segment to contribute to growth with a focus on expanding employer coverage through partner-driven ICRA offerings. Adjusted EBITDA margins are expected to increase each year starting in 2027 to reach 20% by 2028. This translates to double digit percentage adjusted EBITDA growth in 27 and 28, reflecting the benefits of our fixed cost reductions and favorable Medicare unit economics. We forecast achieving break even or better free cash flow in 2027. Our revenue growth goals could be accelerated should we observe a more rapid stabilization of the Medicare Advantage market relative to our current outlook. We're pleased with our first quarter results and the progress we've made executing against the initiatives outlined on our fourth quarter earnings call. We believe eHealth is well positioned to continue delivering superior service and value for our customers and carrier partners, and we look forward to updating you on further milestones along our path towards sustainable, profitable growth. I will now turn the call over to our CFO, John Dolan, for his remarks. John?