Open the filing on EDGAREthos Reports Third Quarter Fiscal Year 2026 Financial Results
Q3 Revenue grew 151% year-over-year to $235 million
Q3 Direct Channel Revenue grew 112% year-over-year to $119 million
Q3 Third-Party Channel Revenue grew 209% year-over-year to $116 million
Austin, TX - November 2, 2026 - Ethos (Nasdaq: LIFE), a leading life insurance technology company on a mission to democratize access to life insurance, today announced its financial results for the third quarter ended September 30, 2026.
"Q3 was a record quarter for Ethos. We grew revenue 151% year-over-year and delivered our third consecutive quarter of triple digit year-over-year growth," said Peter Colis, CEO and Co-Founder of Ethos. "In Q3 alone, we protected more than 140,000 additional families. Our results illustrate the power of growth at scale paired with disciplined execution, and continue to show that Ethos is a business that gets better as it gets bigger."
Third Quarter 2026 Financial Highlights
Revenue: Grew 151% year-over-year to $235.2 million
Direct Channel Revenue: Grew 112% year-over-year to $118.8 million
Third-Party Channel Revenue: Grew 209% year-over-year to $116.4 million
Gross Profit: $230.8 million, representing a 98% gross profit margin
Contribution Profit: $66.4 million, a 28% contribution profit margin
Net Income: $4.7 million, representing a 2% margin
Net Income per Share: basic and diluted were $0.07 per share
Non-GAAP Net Income: $33.8 million, representing a 14% margin
Non-GAAP Net Income per Share: basic was $0.53 and diluted was $0.49 per share
Adjusted EBITDA: $34.9 million, representing a 15% margin
Cash Flow: $40.7 million net cash provided by operations
Third Quarter 2026 Business Highlights
Families Protected: Activated 142,111 new policies in Q3, representing 189% year-over-year growth
Reported Average Revenue per Unit: $1,655, representing a 13% year-over-year decline due to a channel mix that skewed more heavily towards Ethos' Third-Party channel.
Share Repurchase
During the third quarter ended September 30, 2026, the Board of Directors of Ethos authorized a share repurchase program of up to $100 million of the Company’s outstanding Class A common stock. Since the announcement of such program no shares have been repurchased.
Financial Outlook
For the fourth quarter of 2026, Ethos expects the following:
Total Revenue: Between $220 million and $224 million, representing a 102% increase year-over-year at the midpoint
Adjusted EBITDA: Between $30 million and $32 million
For the full fiscal year 2026, Ethos expects the following:
Total Revenue: Between $838 million and $842 million, representing a 117% increase year-over-year at the midpoint
Adjusted EBITDA: Between $134 million and $136 million
Ethos’ financial outlook for the fourth quarter and full fiscal year 2026 are forward-looking, and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause the company's actual results to differ materially from these forward-looking statements.
Reconciliation of Adjusted EBITDA on a forward-looking basis to net income, the most directly comparable GAAP measure, is not available without unreasonable efforts due to high variability and complexity and low visibility with respect to certain charges excluded from this non-GAAP measure, including interest expense, interest income, and income tax expenses. Ethos expects the variability of these items could have a significant, and potentially unpredictable, impact on its future GAAP financial results. Conference Call Information
Ethos will host a conference call for analysts and investors to discuss its earnings results for the third quarter 2026 and outlook for its fourth fiscal quarter and fiscal year 2026 today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time). A live webcast and accompanying presentation can be accessed through the events section of the Ethos investor relations website at investors.ethos.com. A recorded webcast of the event will also be available on the Ethos Investor Relations website.
Non-GAAP Financial Information
Ethos has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). We believe that non-GAAP financial measures, among others, provide important supplemental information to management and investors, help evaluate our business, identify trends affecting our performance, formulate business plans, and make strategic decisions.
The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below.
Adjusted EBITDA - Ethos defines Adjusted EBITDA as net income excluding interest expense, interest income, income tax expense (benefit), depreciation and amortization, and stock-based compensation expense and related taxes as set forth in the table below. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period. Ethos uses Adjusted EBITDA and Adjusted EBITDA Margin to assess performance, to inform the preparation of its annual operating budget and quarterly forecasts, to evaluate the effectiveness of its business strategies, and to assist its board of directors in monitoring its business and financial performance. Ethos believes that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors about its business and financial performance, enhance their overall understanding of its past performance and future prospects, including by providing consistency and comparability with its past financial performance, and allow for greater transparency with respect to measures used by its management in investors’ financial and operational decision making. In addition, Ethos believes Adjusted EBITDA is widely used by investors, securities analysts, and other parties in evaluating companies in its industry as a measure of operational performance.
Contribution Profit - Ethos defines Contribution Profit as gross profit less sales and marketing expense, which includes agent payments and underwriting costs for non-activated policies, plus stock-based compensation and related taxes related to its employees and overhead costs allocated to sales and marketing expenses. Gross profit is defined as revenue less cost of revenue. Cost of revenue primarily consists of underwriting costs associated with activated policies. Overhead costs allocated to sales and marketing expenses include professional fees, technology expenses, and other related expenses. Contribution Margin is calculated by dividing Contribution Profit for a period by revenue for the same period.
Non-GAAP Net Income and Non-GAAP Net Income Per Share, Basic and Diluted - Ethos defines non-GAAP net income as net income/(loss), adjusted to exclude stock-based compensation and related taxes, to provide investors and management with greater visibility into the underlying performance of its recurring core business operations. Ethos defines non-GAAP net income per share, basic, as non-GAAP net income divided by the weighted-average shares outstanding. Ethos defines non-GAAP net income per share, diluted, as non-GAAP net income divided by the weighted-average shares outstanding, which includes the dilutive effect of potentially diluted common stock equivalents outstanding during the period, if any.
About Ethos
Ethos is a leading life insurance technology company on a mission to protect families by democratizing access to life insurance and empowering agents at scale. With its robust three-sided technology platform, Ethos is transforming the life insurance experience for consumers, agents, and carriers alike. Ethos offers instant, accessible products and a seamless online process that requires no medical exams and just a few health questions; it eliminates traditional barriers, making it easier than ever for everyone to protect their families. Ethos is redefining how life insurance is bought, sold, and underwritten.
Learn more at ethos.com.
Forward-Looking Statements
Forward-looking statements notice
This press release and the related conference call contain express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding potential share repurchases, Ethos’ financial outlook for the fiscal quarter ending December 31, 2026 and the fiscal year ending December 31, 2026, the size of Ethos’ market opportunity, market trends, and Ethos’ business and financial strategy and plans. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” or similar expressions. Such statements are subject to risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements. These include, but are not limited to: Ethos’ limited operating history at its current scale, scope and complexity; the growth rate of the markets in which Ethos competes; Ethos’ ability to effectively manage and sustain its growth; Ethos’ ability to compete with existing competitors and new market entrants; Ethos’ ability to attract new and retain existing carriers and agency counterparties; adoption of and engagement with Ethos’ platform by individual agents; Ethos’ brand awareness and the success of its marketing efforts to grow its business; potential damage to Ethos’ reputation; disruptions or other business interruptions that affect the availability of Ethos’ platform. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements contained herein are included in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Ethos’ most recent filings with the Securities and Exchange Commission, including in its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026. Except as required by law, Ethos undertakes no obligation, and does not intend, to update these forward-looking statements.
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Data) (Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Revenue: | | | | |
| Commission | $235,215 | $93,794 | $617,876 | $277,531 |
| Total revenue | 235,215 | 93,794 | 617,876 | 277,531 |
| Costs and expenses: | | | | |
| Sales and marketing | 169,423 | 57,074 | 441,616 | 165,205 |
| General and administrative | 39,176 | 8,871 | 243,730 | 30,414 |
| Technology (exclusive of amortization) | 16,480 | 7,769 | 57,414 | 24,711 |
| Cost of revenue | 4,451 | 1,677 | 11,707 | 4,674 |
| Depreciation and amortization | 1,838 | 1,332 | 4,757 | 4,075 |
| Total costs and expenses | 231,368 | 76,723 | 759,224 | 229,079 |
| Income (loss) from operations | 3,847 | 17,071 | (141,348) | 48,452 |
| Other income (expense): | | | | |
| Interest expense | (358) | (786) | (1,636) | (2,405) |
| Interest income | 1,908 | 1,410 | 5,050 | 4,472 |
| Other income, net | 65 | 42 | 170 | 100 |
| Total other income, net | 1,615 | 666 | 3,584 | 2,167 |
| Net income (loss) before income tax expense | 5,462 | 17,737 | (137,764) | 50,619 |
| Income tax expense | 790 | 1,863 | 4,424 | 4,029 |
| Net income (loss) | 4,672 | 15,874 | (142,188) | 46,590 |
| Deemed dividend on the conversion of Series D and D-1 redeemable convertible preferred stock | - | - | (5,642) | - |
| Net income (loss) attributable to common stockholders | $4,672 | $15,874 | $(147,830) | $46,590 |
| Per share data: | | | | |
| Basic net income (loss) per share | $0.07 | $0.96 | $(2.52) | $2.83 |
| Diluted net income (loss) per share | $0.07 | $0.27 | $(2.52) | $0.80 |
| Weighted-average shares used in computing basic net income (loss) per share | 64,396 | 16,556 | 58,669 | 16,453 |
| Weighted-average shares used in computing diluted net income (loss) per share | 69,207 | 58,222 | 58,669 | 58,593 |
Condensed Consolidated Balance Sheets
(In Thousands)(Unaudited)
| September 30, | December 31, |
|---|
| 2026 | 2025 |
|---|
| Assets | | |
| Current assets: | | |
| Cash and cash equivalents | $149,800 | $91,091 |
| Short-term investments | 71,656 | 34,876 |
| Accounts receivable, net | 83,464 | 36,498 |
| Commissions receivable-current, net | 33,936 | 28,786 |
| Prepaid and other current assets | 68,752 | 54,553 |
| Total current assets | 407,608 | 245,804 |
| Long-term assets: | | |
| Commissions receivable, net | 315,389 | 224,219 |
| Property and equipment, net | 12,097 | 8,189 |
| Operating lease right-of-use assets | 1,354 | 2,183 |
| Goodwill | 2,238 | 2,238 |
| Acquired intangible assets, net of amortization | 587 | 662 |
| Long-term investments | 68,613 | 31,468 |
| Other long-term assets | 633 | 574 |
| Total long-term assets | 400,911 | 269,533 |
| Total assets | $808,519 | $515,337 |
| Liabilities, redeemable preferred stock and stockholders’ equity | | |
| Current liabilities: | | |
| Accounts payable | $77,558 | $55,070 |
| Accrued expenses | 109,384 | 39,224 |
| Liabilities related to sale of commissions receivable, current | 8,314 | 11,750 |
| Operating lease liabilities, current | 875 | 1,125 |
| Other current liabilities | 80,692 | 6,021 |
| Total current liabilities | 276,823 | 113,190 |
| Long-term liabilities: | | |
| Liabilities related to sale of commissions receivable, non-current | 7,061 | 12,509 |
| Operating lease liabilities, non-current | 619 | 1,228 |
| Deferred tax liability | 11,867 | 8,529 |
| Total long-term liabilities | 19,547 | 22,266 |
| Total liabilities | 296,370 | 135,456 |
| Commitments and contingencies | | |
| Redeemable convertible preferred stock, par value $0.0001 | - | 403,997 |
| Stockholders’ deficit: | | |
| Common stock, $0.0001 par value | 6 | 2 |
| Additional paid-in capital | 759,000 | 78,950 |
| Accumulated other comprehensive loss | (2,155) | (554) |
| Accumulated deficit | (244,702) | (102,514) |
| Total stockholders’ equity (deficit) | 512,149 | (24,116) |
| Total liabilities, redeemable convertible preferred stock and stockholders’ equity | $808,519 | $515,337 |
Condensed Consolidated Statements of Cash Flows
(In Thousands)(Unaudited)
| Nine Months Ended September 30, |
|---|
| 2026 | 2025 |
|---|
| Cash flows from operating activities | | |
| Net income (loss) | $(142,188) | $46,590 |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | |
| Deferred taxes | 3,338 | 3,483 |
| Depreciation and amortization | 4,757 | 4,075 |
| Non-cash interest expense | 1,636 | 2,405 |
| Amortization of discounts and premium, investments | (962) | (994) |
| Stock-based compensation expense | 237,296 | 10,564 |
| Operating lease right-of-use asset amortization | 828 | 635 |
| Unrealized foreign currency translation | (205) | (244) |
| Changes in operating assets and liabilities: | | |
| Prepaid and other assets | (21,183) | (15,889) |
| Accounts payable | 22,641 | 35,266 |
| Accounts receivable | (46,966) | (5,636) |
| Commissions receivable | (5,150) | (11,014) |
| Long-term commissions receivable | (91,170) | (35,507) |
| Accrued expenses | 71,119 | 10,517 |
| Other current liabilities | 73,813 | (12,220) |
| Other long-term liabilities | - | (750) |
| Net cash provided by operating activities | 107,604 | 31,281 |
| Cash flows from investing activities | | |
| Purchase of property and equipment | (1,350) | (1,101) |
| Purchase of investments | (145,532) | (52,509) |
| Proceeds from maturity of investments | 70,615 | 79,870 |
| Investment in software development costs | (5,328) | (3,145) |
| Net cash provided by (used in) investing activities | (81,595) | 23,115 |
| Cash flows from financing activities | | |
| Proceeds from issuance of Class A common stock in initial public offering, net of underwriting discounts and commissions | 91,580 | - |
| Proceeds from liabilities related to sale of commissions receivable | - | 5,000 |
| Taxes paid related to net share settlement of restricted stock units | (49,085) | - |
| Repayment of liabilities related to sale of commissions receivable | (10,196) | (7,802) |
| Proceeds from equity incentive plans and warrant exercise | 3,352 | 794 |
| Payment of deferred offering costs | (2,843) | (3,175) |
| Net cash provided by (used in) financing activities | 32,808 | (5,183) |
| Net increase in cash and cash equivalents | 58,817 | 49,213 |
| Effect of exchange rates on cash | (108) | (19) |
| Cash and cash equivalents, beginning of period | 91,091 | 35,075 |
| Cash and cash equivalents, end of period | $149,800 | $84,269 |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In Thousands) (Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| (in thousands) |
|---|
| Gross profit | $230,764 | $92,117 | $606,169 | $272,857 |
| Less: sales and marketing | (169,423) | (57,074) | (441,616) | (165,205) |
| Add: stock-based compensation and related taxes allocated to sales and marketing | (170) | 23 | 11,413 | 2,043 |
| Add: professional fees allocated to sales and marketing | 1,806 | 258 | 3,156 | 1,174 |
| Add: technology expenses allocated to sales and marketing | 2,137 | 750 | 4,823 | 2,197 |
| Add: other expenses allocated to sales and marketing | 1,310 | 620 | 3,392 | 1,746 |
| Contribution profit | $66,424 | $36,694 | $187,337 | $114,812 |
| Gross profit margin | 98% | 98% | 98% | 98% |
| Contribution profit margin | 28% | 39% | 30% | 41% |
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| (in thousands) |
|---|
| Net income (loss) | $4,672 | $15,874 | $(142,188) | $46,590 |
| Stock-based compensation and related taxes | 29,170 | 272 | 240,163 | 10,564 |
| Non-GAAP net income | $33,842 | $16,146 | $97,975 | $57,154 |
| Interest expense | 358 | 786 | 1,636 | 2,405 |
| Interest income | (1,908) | (1,410) | (5,050) | (4,472) |
| Income tax expense | 790 | 1,863 | 4,424 | 4,029 |
| Depreciation and amortization | 1,838 | 1,332 | 4,757 | 4,075 |
| Adjusted EBITDA | $34,920 | $18,717 | $103,742 | $63,191 |
| Net income (loss) margin | 2% | 17% | -23% | 17% |
| Non-GAAP net income margin | 14% | 17% | 16% | 21% |
| Adjusted EBITDA margin | 15% | 20% | 17% | 23% |
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| (in thousands) |
|---|
| Stock-based compensation and related taxes | | | | |
| Sales and marketing | $(170) | $23 | $11,413 | $2,043 |
| General and administrative | 25,603 | 137 | 205,538 | 5,905 |
| Technology (exclusive of amortization) | 3,737 | 112 | 23,212 | 2,616 |
| Total | $29,170 | $272 | $240,163 | $10,564 |
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| (in thousands, except per share data) |
|---|
| GAAP net income (loss) | $4,672 | $15,874 | $(142,188) | $46,590 |
| Deemed dividend on the conversion of Series D and D-1 redeemable convertible preferred stock | - | - | (5,642) | - |
| GAAP net income (loss) attributable to common stockholders | $4,672 | $15,874 | $(147,830) | $46,590 |
| GAAP net income (loss) | $4,672 | $15,874 | $(142,188) | $46,590 |
| Add back: Stock-based compensation expense and related taxes | 29,170 | 272 | 240,163 | 10,564 |
| Non-GAAP net income | $33,842 | $16,146 | $97,975 | $57,154 |
| Deemed dividend on the conversion of Series D and D-1 redeemable convertible preferred stock | - | - | (5,642) | - |
| Non-GAAP net income attributable to common stockholders | $33,842 | $16,146 | $92,333 | $57,154 |
| Per share data: | | | | |
| Weighted-average shares used in computing GAAP net income (loss) per share, basic | 64,396 | 16,556 | 58,669 | 16,453 |
| Weighted-average shares used in computing GAAP net income (loss) per share, diluted | 69,207 | 58,222 | 58,669 | 58,593 |
| Weighted-average shares used in computing non-GAAP net income per share, basic | 64,396 | 16,556 | 58,669 | 16,453 |
| Weighted-average shares used in computing non-GAAP net income per share, diluted | 69,207 | 58,222 | 65,707 | 58,593 |
| GAAP net income (loss) per share attributable to common stockholders, basic | $0.07 | $0.96 | $(2.52) | $2.83 |
| GAAP net income (loss) per share attributable to common stockholders, diluted | $0.07 | $0.27 | $(2.52) | $0.80 |
| Non-GAAP net income per share attributable to common stockholders, basic | $0.53 | $0.98 | $1.57 | $3.47 |
| Non-GAAP net income per share attributable to common stockholders, diluted | $0.49 | $0.28 | $1.41 | $0.98 |
Contacts
Aaron Turner ir@ethos.com
Allyson Savage press@ethos.com