FAQ on Stonegate Capital Partners' Coverage Update on GoHealth Inc. (NASDAQ: GOCO) for 2025 Q2

What were the key financial highlights for GoHealth Inc. in the second quarter of 2025?

GoHealth Inc. reported an 11.2% year-over-year decrease in net revenues to $94.0M, with significant declines in partner and non-agency revenues, partially offset by strong performance in other revenues, notably from GoHealth Protect.

What strategic initiatives has GoHealth Inc. undertaken to improve its financial position?

GoHealth secured a new senior secured super priority term loan facility, including $80.0M in new money, to support working capital and strategic flexibility, alongside amendments to its current debt facility to reset financial covenants and pause interest rate payments through 2026.

How did GoHealth Inc.’s sales perform in the second quarter of 2025?

Sales per submission declined by 4.8% year-over-year to $657, with agency revenue decreasing by 4.1% and non-agency revenue by 79.4%, though other revenues, particularly from GoHealth Protect, showed strong growth at $8.7M.

What is the significance of the GoHealth Protect initiative?

The GoHealth Protect initiative contributed significantly to other revenues, helping to offset declines in other areas and is expected to smooth out revenue lumpiness as its integration continues.

How has GoHealth Inc. managed its cost of customer acquisition?

The company maintained a competitive average cost of customer acquisition (CAC) of $613, a 4.8% improvement year-over-year, despite slight margin contractions, through initiatives like enhancing call center productivity and better agent training.

What is Stonegate Capital Partners’ valuation of GoHealth Inc.?

Using an EV/EBITDA comp analysis with a range of 7.0x to 8.0x, Stonegate values GoHealth Inc. between $11.45 and $15.40, with a midpoint of $13.43, based on FY26 expected EBITDA.

Why is the update on GoHealth Inc. by Stonegate Capital Partners significant?

The update provides insights into GoHealth Inc.’s financial health, strategic initiatives, and market position, offering investors and stakeholders a comprehensive view of the company’s challenges and opportunities in a challenging market environment.

What are the implications of GoHealth Inc.’s strategic financial moves?

These moves, including securing new financing and amending existing debt terms, provide GoHealth with the flexibility to navigate current market challenges, focus on upcoming opportunities like the AEP, and potentially pursue acquisitions, signaling confidence from lenders in the company’s growth prospects.