GoHealth Inc. (NASDAQ:GOCO) Reports Q2 2025 Earnings Miss Amid Revenue Decline and Strategic Restructuring

GoHealth Inc. (NASDAQ:GOCO) reported its second-quarter 2025 financial results, missing analyst estimates on both revenue and earnings per share (EPS). The company posted revenue of $94.05 million, falling short of the consensus estimate of $116.8 million. Meanwhile, its adjusted EPS came in at -$1.23, better than the anticipated -$2.63 but still reflecting ongoing challenges in profitability.

Key Financial Highlights

• Revenue Miss: Reported revenue of $94.05M vs. $116.8M expected, marking a 19.5% decline year-over-year.
• EPS Performance: Adjusted EPS of -$1.23, an improvement from estimates but still negative.
• Net Loss: Net loss attributable to GoHealth widened to -$54.3M compared to -$26.0M in Q2 2024.
• Adjusted EBITDA: Improved to -$11.3M from -$12.3M in the prior-year quarter.

Market Reaction

The stock is down ~0.95% in pre-market trading, reflecting investor disappointment over the revenue miss despite the narrower-than-expected loss. Over the past month, shares have been relatively flat (+0.96%), suggesting muted expectations ahead of earnings.

Strategic Moves & Liquidity Update

The earnings release highlighted several strategic capital and governance actions aimed at improving financial flexibility:

• New Debt Facility: Secured an $80M senior secured term loan, with an additional $35M in roll-up loans, to support working capital ahead of Medicare’s annual enrollment period.
• Debt Covenant Adjustments: Amended credit agreements to defer principal payments through 2026 and reset financial covenants.
• Board Changes: Appointed three new directors while three existing directors resigned, signaling a governance overhaul.

CEO Vijay Kotte emphasized the company’s focus on “long-term stockholder value creation” and positioning for potential “transformative transactions.” CFO Brendan Shanahan noted the amended credit agreement provides “important financial flexibility” to pursue strategic opportunities.

Outlook vs. Analyst Estimates

While the press release did not provide explicit forward guidance, analysts currently expect:

• Q3 2025 Revenue: $127.6M (vs. $105.9M in Q2 2024).
• Full-Year 2025 Revenue: $866.9M (implying a stronger second half).

Given the Q2 revenue shortfall, investors may question whether GoHealth can meet these projections, particularly amid ongoing operational restructuring.

Conclusion

GoHealth’s Q2 results reflect persistent revenue pressures, though cost controls helped mitigate losses. The strategic financing moves suggest management is shoring up liquidity, but the market reaction indicates skepticism about near-term growth.

For more detailed earnings estimates and historical performance, see GoHealth’s earnings estimates.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making decisions.