US LNG exports surge but will buyers in China turn up?
CHICAGO - GoHealth, Inc. (NASDAQ:GOCO), currently trading below its InvestingPro Fair Value, announced Thursday it has secured a new $80 million senior secured term loan facility and implemented governance changes to enhance its financial flexibility ahead of the Medicare annual enrollment period. The financing comes at a crucial time, as InvestingPro data shows the company has been quickly burning through cash with negative free cash flow of $58.75 million in the last twelve months.
The health insurance marketplace also obtained $35 million in roll-up loans as part of the financing package. The company’s existing credit agreement has been amended to waive principal payments through 2026 and reset financial covenants. This restructuring comes as the company’s debt-to-equity ratio stands at 2.17, according to recent InvestingPro financial metrics.
"With the new credit facility and the access to immediate and expandable capital it provides, we believe we are operating from a position of strength," said Vijay Kotte, CEO of GoHealth, in a statement based on the company’s press release.
The strategic capital actions include creating debt basket capacity of up to $250 million under the new term loan facility to pursue potential transactions. GoHealth also issued nearly 4.8 million shares of Class A common stock to lenders.
In conjunction with the financing, the company appointed three new directors to its board while three existing directors resigned.
GoHealth reported preliminary financial results for the second quarter ended June 30, showing net revenues of $94 million, down 11.2% from $105.9 million in the same period last year. The company recorded a net loss of $116 million compared to a $59.3 million loss in the prior-year quarter, with results impacted by a $53 million intangible asset impairment charge. Despite these challenges, the company maintains a current ratio of 1.12 and has achieved revenue growth of 13.18% over the last twelve months, according to InvestingPro analysis.
For the first half of 2025, GoHealth posted net revenues of $315 million, up 8.1% from $291.5 million in the first six months of 2024, while its net loss widened to $125.8 million from $80.7 million.
The company’s adjusted EBITDA for the first half improved to $30.8 million from $14.6 million in the prior-year period. InvestingPro analysis reveals additional insights about GoHealth’s financial health, with an overall Financial Health Score of 2.01 (FAIR). Subscribers can access 7 more exclusive ProTips and comprehensive analysis in the Pro Research Report, providing deeper insights into the company’s valuation and future prospects.
In other recent news, GoHealth reported strong growth in its Q1 2025 financial results. The company achieved a 19% increase in revenue year-over-year, reaching $221 million. Despite a GAAP net loss of $9.8 million, this was an improvement from the previous year’s figures. Additionally, GoHealth announced it has entered into an amendment with its lenders to extend its revolving credit facility through September 30, 2025. This amendment also allows the company to pursue receivables financing, including a potential securitization transaction. These steps are part of GoHealth’s efforts to address its recent financial challenges and strengthen its financial foundation. Investors responded positively to these developments, as reflected in the stock’s premarket activity.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.