Quick Summary:
The following tables set forth the components of our results of operations for the periods indicated (unaudited): Three months ended Dec.31, (in thousands, except percentages and per share amounts) 2024 2023 Dollars % of Net Revenues Dollars % of Net Revenues $ Change % ChangeNet revenues $389,132 100.0% $276,697 100.0% $112,435 40.6%Operating expenses: Revenue share 52,236 13.4% 41,085 14.8% 11,151 27.1%Marketing and advertising expense 99,647 25.6% 80,614 29.1% 19,033 23.6%Consumer care and enrollment 89,683 23.0% 75,199 27.2% 14,484 19.3%Technology expense 12,125 3.1% 11,596 4.2% 529 4.6%General and administrative 31,659 8.1% 19,629 7.1% 12,030 61.3%Amortization of intangible assets 23,515 6.0% 23,514 8.5% 1 —%Intangible asset impairment charges — —% 10,000 3.6% (10,000) (100.0)%Total operating expenses 308,865 79.4% 261,637 94.6% 47,228 18.1%Income (loss) from operations 80,267 20.6% 15,060 5.4% 65,207 433.0%Interest expense 17,735 4.6% 17,751 6.4% (16) (0.1)%Gain on bargain purchase (7,129) (1.8)% — —% (7,129) NM Loss on extinguishment of debt 10,463 2.7% — —% 10,463 NM Other (income) expense, net (1,166) (0.3)% (776) (0.3)% (390) 50.3%Income (loss) before income taxes 60,364 15.5% (1,915) (0.7)% 62,279 (3252.2)%Income tax expense (benefit) 2,389 0.6% 379 0.1% 2,010 530.3%Net income (loss) 57,975 14.9% (2,294) (0.8)% 60,269 (2627.2)%Net income (loss) attributable to noncontrolling interests 32,466 8.3% (1,068) (0.4)% 33,534 (3139.9)%Net income (loss) attributable to GoHealth, Inc. $25,509 6.6% $(1,226) (0.4)% $26,735 (2180.7)%Net income (loss) per share: Net income (loss) per share of Class A common stock — basic $2.42 $(0.22) Net income (loss) per share of Class A common stock — diluted $1.56 $(0.22) Weighted-average shares of Class A common stock outstanding — basic 10,152 9,582 Weighted-average shares of Class A common stock outstanding —diluted 16,370 9,582 Non-GAAP financial measures: EBITDA $105,026 $42,684 Adjusted EBITDA $117,839 $57,000 Net income (loss) margin 14.9% (0.8)% Adjusted EBITDA margin 30.3% 20.6% NM = Not meaningful Twelve months ended Dec.31, (in thousands, except percentages and per share amounts) 2024 2023 Dollars % of Net Revenues Dollars % of Net Revenues $ Change % ChangeNet revenues $798,894 100.0% $734,671 100.0% $64,223 8.7%Operating expenses: Revenue share 130,612 16.3% 158,961 21.6% (28,349) (17.8)%Marketing and advertising expense 235,696 29.5% 205,042 27.9% 30,654 15.0%Consumer care and enrollment 222,414 27.8% 209,234 28.5% 13,180 6.3%Technology expense 41,046 5.1% 43,302 5.9% (2,256) (5.2)%General and administrative 82,116 10.3% 93,069 12.7% (10,953) (11.8)%Amortization of intangible assets 94,057 11.8% 94,057 12.8% — —%Operating lease impairment charges — —% 2,687 0.4% (2,687) (100.0)%Intangible asset impairment charges — —% 10,000 1.4% (10,000) (100.0)%Total operating expenses 805,941 100.9% 816,352 111.1% (10,411) (1.3)%Income (loss) from operations (7,047) (0.9)% (81,681) (11.1)% 74,634 (91.4)%Interest expense 72,868 9.1% 69,472 9.5% 3,396 4.9%Gain on bargain purchase (84,492) (10.6)% — —% (84,492) NM Loss on extinguishment of debt 10,463 1.3% — —% 10,463 NM Other (income) expense, net (834) (0.1)% (37) —% (797) 2154.1%Income (loss) before income taxes (5,052) (0.6)% (151,116) (20.6)% 146,064 (96.7)%Income tax expense (benefit) 2,267 0.3% 154 —% 2,113 1372.1%Net income (loss) (7,319) (0.9)% (151,270) (20.6)% 143,951 (95.2)%Net income (loss) attributable to noncontrolling interests (4,391) (0.5)% (88,013) (12.0)% 83,622 (95.0)%Net income (loss) attributable to GoHealth, Inc. $(2,928) (0.4)% $(63,257) (8.6)% $60,329 (95.4)%Net income (loss) per share: Net income (loss) per share of Class A common stock — basic and diluted $(0.66) $(7.19) Weighted-average shares of Class A common stock outstanding — basic and diluted 9,980 9,292 Non-GAAP financial measures: EBITDA $173,706 $24,104 Adjusted EBITDA $120,319 $75,091 Net income (loss) margin (0.9)% (20.6)% Adjusted EBITDA margin 15.1% 10.2% NM = Not meaningful The following table sets forth the reconciliations of GAAP net income (loss) to EBITDA and Adjusted EBITDA for the periods indicated (unaudited): Three months ended Dec.31, Twelve months ended Dec.31,(in thousands) 2024 2023 2024 2023 Net revenues $389,132 $276,697 $798,894 $734,671 Net income (loss) 57,975 (2,294) (7,319) (151,270)Interest expense 17,735 17,751 72,868 69,472 Income tax expense (benefit) 2,389 379 2,267 154 Depreciation and amortization expense 26,927 26,848 105,890 105,748 EBITDA 105,026 42,684 173,706 24,104 Gain on bargain purchase1 (7,129) — (84,492) — Loss on extinguishment of debt2 10,463 — 10,463 — Share-based compensation expense3 4,747 3,405 11,281 19,564 Professional services4 2,853 335 3,671 1,548 Legal fees5 1,586 148 2,917 14,840 Other (income) loss related to the adjustment of liabilities under the Tax Receivable Agreement6 293 428 293 428 Severance costs7 — — 2,480 1,920 Intangible asset impairment charges8 — 10,000 — 10,000 Operating lease impairment charges9 — — — 2,687 Adjusted EBITDA $117,839 $57,000 $120,319 $75,091 Net income (loss) margin 14.9% (0.8)% (0.9)% (20.6)%Adjusted EBITDA margin 30.3% 20.6% 15.1% 10.2% (1)Represents the excess of the acquisition-date fair value of the net assets acquired over the acquisition-date fair value of the consideration transferred related to the acquisition of e-TeleQuote.(2)Represents the loss on debt extinguishment related to the write-down of deferred debt discount and debt issuance costs in conjunction with the refinancing of the Term Loan Facilities.(3)Represents non-cash share-based compensation expense relating to equity awards as well as share-based compensation expense relating to liability classified awards that will be settled in cash.(4)Represents costs primarily associated with non-routine consulting fees and other professional services.(5)Represents legal fees, settlement accruals and other expenses related to certain acquisitions, litigation, Credit Agreement amendments and other non-routine legal or regulatory matters.(6)Represents expense related to the measurement of our Tax Receivable Agreement obligation.(7)Represents severance costs and other fees associated with a reduction in workforce unrelated to restructuring activities.(8)Represents an indefinite-lived intangible asset impairment charge for the twelve months ended December 31, 2023.(9)Represents operating lease impairment charges, reducing the carrying value of the associated ROU assets and leasehold improvements to the estimated fair values. The table below depicts the disaggregation of revenue and is consistent with how the Company evaluates its financial performance (unaudited): Three months ended Dec.31, Twelve months ended Dec.31,(in thousands) 2024 2023 2024 2023Medicare Revenue Agency Revenue Commission Revenue1 $278,362 $94,405 $506,516 $355,918Partner Marketing and Other Revenue 27,234 16,093 75,160 87,712Total Agency Revenue 305,596 110,498 581,676 443,630Non-Agency Revenue 81,566 165,383 212,289 271,969Total Medicare Revenue 387,162 275,881 793,965 715,599Other Revenue Non-Encompass BPO Services Revenue — — — 9,322Other Revenue 1,970 816 4,929 9,750Total Other Revenue 1,970 816 4,929 19,072Total Net Revenue $389,132 $276,697 $798,894 $734,671 (1)Commission revenue excludes commissions generated through Non-Encompass BPO Services as well as from the sale of individual and family plan insurance products. The following table sets forth our balance sheets for the periods indicated (unaudited): Dec.31,(in thousands, except per share amounts) 2024 2023 Assets Current assets: Cash and cash equivalents $40,921 $90,809 Accounts receivable, net of allowance for doubtful accounts of $1 in 2024 and $27 in 2023 4,452 250 Commissions receivable - current 320,399 336,215 Prepaid expense and other current assets 34,639 49,166 Total current assets 400,411 476,440 Commissions receivable - non-current 733,161 575,482 Operating lease ROU asset 19,317 21,995 Property, equipment, and capitalized software, net 29,320 26,843 Intangible assets, net 302,497 396,554 Other long-term assets 3,717 2,256 Total assets $1,488,423 $1,499,570 Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity Current liabilities: Accounts payable $14,591 $17,705 Accrued liabilities 121,346 86,254 Commissions payable - current 98,771 127,265 Short-term operating lease liability 5,705 5,797 Deferred revenue 53,720 52,403 Current portion of long-term debt 39,500 75,000 Other current liabilities 4,419 5,589 Total current liabilities 338,052 370,013 Non-current liabilities: Commissions payable - non-current 177,656 203,255 Long-term operating lease liability 34,900 39,547 Long-term debt, net of current portion 447,865 422,705 Deferred tax liability 22,350 — Other non-current liabilities 9,200 9,095 Total non-current liabilities 691,971 674,602 Commitments and Contingencies Series A redeemable convertible preferred stock — $0.0001 par value; 50 shares authorized; 50 shares issued and outstanding as of both December 31, 2024 and December 31, 2023.
Liquidation preference of $54.6 million and $50.9 million as of December 31, 2024 and December 31, 2023, respectively. 52,962 49,302 Stockholders’ equity: Class A common stock – $0.0001 par value; 1,100,000 shares authorized; 10,614 and 9,823 shares issued; 10,292 and 9,651 shares outstanding as of December 31, 2024 and December 31, 2023, respectively. 1 1 Class B common stock – $0.0001 par value; 615,917 shares authorized; 12,711 and 12,814 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively. 1 1 Preferred stock – $0.0001 par value; 20,000 shares authorized (including 50 shares of Series A redeemable convertible preferred stock authorized and 200 shares of Series A-1 convertible preferred stock authorized); 50 shares issued and outstanding as of both December 31, 2024 and December 31, 2023. — — Series A-1 convertible preferred stock— $0.0001 par value; 200 shares authorized; no shares issued and outstanding as of both December 31, 2024 and December 31, 2023. — — Treasury stock – at cost; 322 and 173 shares of Class A common stock as of December 31, 2024 and December 31, 2023, respectively. (4,150) (2,640)Additional paid-in capital 669,346 654,059 Accumulated other comprehensive income (loss) (151) (127)Accumulated deficit (423,208) (420,280)Total stockholders’ equity attributable to GoHealth, Inc. 241,839 231,014 Non-controlling interests 163,599 174,639 Total stockholders’ equity 405,438 405,653 Total liabilities, redeemable convertible preferred stock and stockholders’ equity $1,488,423 $1,499,570 The following table sets forth the net cash provided by (used in) operating activities for the periods presented (unaudited): Net cash provided by (used in) operating activities Twelve months ended Dec.31, 2024 2023 $ (21,607) $109,141 In addition to traditional financial metrics, we rely upon certain business and operating metrics to evaluate our business performance and facilitate our operations.
These forward-looking statements speak only as of the date of this press release and are subject to a number of important factors that could cause actual results to differ materially from those in the forward-looking statements, including the factors described in the sections titled "Summary Risk Factors,” "Risk Factors” and "Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 ("2023 Annual Report on Form 10-K”) and our forthcoming Annual Report on Form 10-K for the fiscal year ended December 31, 2024 ("2024 Annual Report on Form 10-K”), as well as our other filings with the Securities and Exchange Commission.
