EHTH: Company introduces prudent three-year plan starting with purposeful restructuring in 2026

Research evidence excerpt

EHTH: Company introduces prudent three-year plan starting with purposeful restructuring in 2026

A 326.2A model. Adjusted EBITDA margin is expected to expand each year, 2026 88.0A 34.7E 35.2E 267.1E

reaching 20% by 2028, with double-digit adjusted EBITDA growth in both Prev. 86.1E 36.4E 36.7E 266.1E

2027 and 2028. On cash flow, management targets positive operating

cash flow and breakeven free cash flow in 2027, followed by positive AllPricedvaluesas ofin priorUSD unlesstradingotherwiseday's marketnoted.close, EST (unless otherwise noted).

operating and free cash flow in 2028. Notably, the plan assumes flat tail

revenue across the out-years (consistent with 2026 guidance), meaning

all projected revenue growth is organic and operationally driven, with

potential for acceleration on MA market improvement.

• EHTH launched its lifetime advisory model in April, which management

describes as the central operating model evolution underpinning the

three-year plan. The model links beneficiaries to individual advisors and

uses newly released agent-facing technology tools to foster proactive,

personalized relationships beyond the initial enrollment event. Critically,

the model does not require incremental marketing spend or additional

agent headcount to generate ancillary revenue; rather, the model

leverages existing advisor capacity by redirecting time in the off-peak

enrollment season (Q2/Q3) toward member check-ins, cross-selling

ancillary products, and referral cultivation. Management estimates that

each ancillary cross-sell opportunity can add approximately 15–20% of

the value of the underlying MA sale in incremental LTV. The company

expects the model's financial impact to be modest in 2026 but to ramp

meaningfully in 2027 and 2028 as attach rates scale, representing a key