DALLAS, TX -- April, 16th 2026 -- GoHealth Inc. (NASDAQ: GOCO): Stonegate Capital Partners Updates Coverage on GoHealth Inc. (NASDAQ: GOCO). GoHealth’s 4Q25 results continued to reflect a Medicare Advantage environment shaped by tighter carrier discipline, with management prioritizing retention, member quality, and liquidity over volume. FY25 net revenue was $361.8M, implying a materially lower 4Q25 revenue base y/y as the intentional Medicare Advantage pullback continued through AEP. Management reiterated that carriers remain focused on margin stability, renewal durability, and disciplined unit economics over broad enrollment growth. Against that backdrop, GoHealth remains focused on protecting the durability of its back book and related ~$925M commissions receivable asset, preserving strategic flexibility, and investing selectively in SNPs, automation, and AI to improve efficiency and positioning when conditions normalize. Importantly, the emphasis on retention also supports the longterm value and durability of the commissions receivable. In our view, the quarter did little to alter the near-term thesis, but reinforced management’s focus on durability, cash discipline, and longer-term optionality.
Strategic Initiatives: During 4Q25 and FY25, GoHealth continued aligning the business around liquidity, capital structure flexibility, and strategic optionality rather than near-term top-line expansion. Management paired ongoing cost and cash optimization with a more formal strategic framework, including creation of a Board Transformation Committee to evaluate refinancings, securitizations, mergers, acquisitions, restructurings, and other strategic alternatives. The Company also continues to view the fragmented broker landscape as a consolidation opportunity, while selectively investing in automation, AI, and GoHealth Protect to improve efficiency, diversify the platform, and support longer-term flexibility. Overall, we view these actions as consistent with a management team focused on protecting the commissions receivable asset, preserving financial flexibility, and maintaining multiple strategic paths as broader Medicare Advantage conditions remain dynamic.
Unit Economics: In FY25, sales per submission declined 14.5% y/y to $668, reflecting the deliberate Medicare Advantage pullback, lower-value volume, and an evolving revenue mix. Submissions declined 47.4% to 534,657, while direct operating cost per submission increased 2.8% to $594, driving the Sales/Direct Operating Cost of Submission ratio down to 1.1x from 1.4x in FY24. Management attributed the weaker unit economics primarily to lower sales, partly offset by cost actions, as the intentional pullback reduced scale and pressured cost absorption. More broadly, the business appears to be repositioning around higher-quality cohorts, stronger renewal durability, and a more balanced mix over time, with GoHealth Protect helping diversify revenue beyond traditional Medicare commission streams and SNPs remaining a constructive area of focus. Management also continues targeting lower acquisition and servicing costs through automation, streamlined workflows, and broader operating discipline. In our view, that should support better unit economics over the long term, even as near-term margins remain pressured.
Valuation: We use a EV/EBITDA comp analysis to guide our valuation. We are using an EV/EBITDA range of 6.5x to 7.5x with a midpoint of 7.0x which moves GOCO closer to comp companies. Our EV/EBITDA valuation results in a range of $3.07 to $7.85 with a mid-point of $5.46.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.
SOURCE: Stonegate, Inc.
