GoHealth Reports Significant Revenue Decline Amid Medicare Advantage Market Shifts
TL;DR
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.
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GoHealth Inc. reported a difficult third quarter as the company continues to navigate a materially different Medicare Advantage environment. Net revenues declined to $34.2 million from $118.3 million a year ago, reflecting an intentional pullback in Medicare Advantage volume, reduced non-agency activity, and a broader industry shift toward margin integrity and renewal stability.
The company's strategic initiatives during the quarter built on the super priority term loan facility finalized earlier in the year. As detailed in the Stonegate Capital Partners coverage update, the senior secured super priority term loan, including $80.0 million of new money, continues to support working capital and enhance strategic flexibility while keeping the company in compliance with its debt covenants. This financial maneuvering provides room for future consolidation as the company evaluates integration opportunities across a fragmented broker landscape.
Sales performance showed significant challenges, with sales per submission declining by 34.3% year-over-year to $461. This reflected both the deliberate volume pullback and evolving revenue mix. Agency revenue decreased by 71.5% while non-agency revenue declined by 96.5% year-over-year. However, other revenue grew meaningfully, supported by continued momentum in GoHealth Protect, which is becoming a more important contributor to the business model and helping to diversify revenue beyond traditional commission streams.
The company faced additional pressure in customer acquisition costs, with average CAC increasing 14.0% year-over-year to $716. While near-term margins remain compressed given the intentional pullback in volume and higher quarterly unit costs, management maintains a disciplined approach to acquisition efficiency, focusing on agent productivity, enhanced training, and data-driven marketing strategies.
Results were further pressured by significant non-cash impairment charges, which weighed on reported margins even as management focused on preserving liquidity, platform efficiency, and a high-quality member base. The Sales/Direct Operating Cost of Submission ratio moved down to 0.6x from 1.1x as lower scale and mix shifts weighed on leverage.
As 2025 progresses, management remains focused on retention, quality, and disciplined execution through the current Annual Enrollment Period, with an eye toward re-accelerating when market conditions stabilize. The company's refreshed Board of Directors and ongoing evaluation of integration opportunities position GoHealth to navigate the challenging Medicare Advantage landscape while building toward more stable future performance.
Curated from Reportable
