Curated News
By: NewsRamp Editorial Staff
November 17, 2025
GoHealth Navigates Medicare Shift as Revenue Drops 71% in Q3
TLDR
- GoHealth's strategic focus on margin integrity and renewal stability positions it to capitalize on market stabilization with a diversified revenue stream from GoHealth Protect.
- GoHealth reported 3Q25 net revenues of $34.2M, down from $118.3M, due to intentional Medicare Advantage volume reduction and $80M new loan facility supporting working capital compliance.
- GoHealth's focus on retention and quality member care aims to provide stable healthcare coverage during industry transitions, benefiting consumers through reliable service.
- GoHealth Protect revenue grew meaningfully while traditional agency revenue dropped 71.5%, showing a strategic pivot toward diversified income streams beyond commission models.
Impact - Why it Matters
This development matters because GoHealth's performance reflects broader challenges in the Medicare Advantage sector that could affect millions of Americans' healthcare choices and costs. As one of the largest health insurance marketplaces, GoHealth's strategic pullback from certain Medicare Advantage plans signals potential reductions in consumer options and increased competition among remaining providers. The company's focus on margin integrity over volume growth may lead to higher premiums or reduced benefits for consumers, while their diversification into GoHealth Protect indicates a shift toward supplemental coverage products. For investors, the valuation analysis provides crucial insight into how financial markets are pricing healthcare intermediaries amid regulatory changes and evolving consumer preferences in the post-ACA landscape.
Summary
Stonegate Capital Partners has updated its coverage on GoHealth Inc. (NASDAQ: GOCO), revealing a challenging third quarter for the health insurance marketplace company. GoHealth reported significant revenue declines, with net revenues dropping to $34.2 million from $118.3 million a year ago, reflecting an intentional pullback in Medicare Advantage volume and reduced non-agency activity. The company is navigating a transformed Medicare Advantage environment while focusing on margin integrity and renewal stability. Both Medicare agency and non-agency revenues declined substantially year-over-year, though other revenue streams showed growth as GoHealth Protect and related offerings continued to scale and diversify the company's revenue base.
The company's strategic initiatives during 3Q25 centered around capital management and operational efficiency. GoHealth advanced its capital initiatives, building on the super priority term loan facility finalized earlier in the year, which included $80 million of new money to support working capital and enhance strategic flexibility. The company refreshed its Board of Directors and continues to evaluate integration opportunities across the fragmented broker landscape. Sales metrics showed significant pressure, with sales per submission declining 34.3% year-over-year to $461, while the cost of customer acquisition increased 14.0% to $716 per customer, reflecting the challenging operating environment and intentional volume reduction.
Despite the near-term challenges, Stonegate Capital Partners maintains a constructive outlook on GoHealth's valuation, using a combined historical and projected EBITDA approach that normalizes to approximately $85 million in medium-term EBITDA. Applying an EV/EBITDA multiple range of 9.0x to 11.0x results in a valuation range of $7.46 to $14.32 per share, with a midpoint of $10.89. Management remains focused on retention, quality member acquisition, and disciplined execution through the current Annual Enrollment Period, positioning the company for potential re-acceleration when market conditions stabilize and Medicare Advantage dynamics improve.
Source Statement
This curated news summary relied on content disributed by Reportable. Read the original source here, GoHealth Navigates Medicare Shift as Revenue Drops 71% in Q3
