GoHealth Posts Strong Q1 2025, Expands into Life Insurance with GoHealth Protect

GoHealth Inc. (NASDAQ: GOCO) reported a stellar first quarter in 2025, showcasing substantial growth and strategic expansion in the digital health marketplace. The company's net revenues increased 19.1% year-over-year to $221.0 million, driven by a 40.2% surge in submissions to 303,026.

The company's financial turnaround is highlighted by a shift from previous year's losses to an operating income of $6.7 million and an adjusted EBITDA growth of 56.4% to $45.1 million. This performance reflects GoHealth's strategic investments in technology and operational excellence.

A significant development this quarter is the launch of GoHealth Protect, the company's entry into the life insurance market. This strategic move aims to diversify revenue streams and mitigate earnings volatility while potentially offering stronger profit margins.

GoHealth's technological innovation continues to set it apart, with its AI-driven platform integrating machine learning algorithms and two decades of insurance purchasing data. This approach has enhanced plan recommendations and improved agent training and customer interactions.

The company demonstrated remarkable efficiency in customer acquisition, with direct operating costs per submission improving by 18.4% year-over-year to $522. This cost advantage stems from enhanced call center productivity, advanced agent training, and refined marketing strategies.

Despite experiencing some revenue mix challenges, including a decline in sales per submission and variations in agency versus non-agency sales, GoHealth remains focused on sustainable growth and market expansion.

Stonegate Capital Partners values the company using an EV/EBITDA analysis, projecting a stock price range between $25.68 and $31.13, with a midpoint of $28.41. This valuation reflects the company's potential and strategic positioning in the evolving digital health and insurance marketplace.