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CHICAGO - GoHealth, Inc. (NASDAQ:GOCO), a health insurance marketplace with annual revenues of $834 million, announced Monday it has entered into an amendment with its lenders that extends its revolving credit facility through September 30, 2025, and provides covenant adjustments. According to InvestingPro data, the company currently maintains a current ratio of 1.12, indicating tight but manageable liquidity.
The amendment also grants consent for the company to pursue receivables financing, including a potential securitization transaction, as part of efforts to address its recent going concern position and strengthen its financial foundation. InvestingPro analysis reveals the company is quickly burning through cash, with negative free cash flow of $58.75 million in the last twelve months.
"This amendment highlights broad-based support from stakeholders across the capital structure and allows the Company to focus on longer-term strategic priorities," said Vijay Kotte, Chief Executive Officer of GoHealth.
The agreement comes as GoHealth works with lenders toward developing a comprehensive financing plan intended to improve the company’s financial stability and position it for "sustainable and cash generating growth," according to the press release statement.
GoHealth specializes in Medicare-focused insurance marketplace services, helping consumers navigate and enroll in Medicare Advantage plans. The company has facilitated the enrollment of millions of consumers in Medicare plans since its inception.
Additional terms of the amendment will be detailed in GoHealth’s Current Report on Form 8-K to be filed with the Securities and Exchange Commission on Monday.
The company’s announcement comes amid apparent financial challenges, as indicated by the reference to alleviating its "recent going concern position" - an accounting term signaling substantial doubt about a company’s ability to continue operating. InvestingPro data shows the company remains unprofitable over the last twelve months, though its Fair Value analysis suggests the stock may be undervalued at current levels. Investors seeking deeper insights into GoHealth’s financial health can access comprehensive analysis and 8 additional ProTips through the InvestingPro platform.
In other recent news, GoHealth reported substantial growth in its Q1 2025 financial results, with a 19% increase in revenue year-over-year, reaching $221 million. The company also saw a 56% rise in adjusted EBITDA to $42.1 million, despite reporting a GAAP net loss of $9.8 million, marking an improvement from the previous year. GoHealth has launched new products, including GoHealthProtect, and expanded its Plan Fit platform, contributing to the company’s robust performance. The firm anticipates a potentially disruptive Annual Enrollment Period in 2025, focusing on strategic investments and capital discipline. Analysts from Granite Research and Noble Capital Markets have shown interest in the company’s capital structure and new product offerings. GoHealth is also facing legal challenges, as the United States Attorney’s Office has intervened in a lawsuit alleging violations of the False Claims Act and the Anti-Kickback Statute, which the company intends to defend vigorously. Despite these challenges, GoHealth’s executives remain optimistic about leveraging innovation and AI tools to enhance consumer experiences and drive growth. The company projects EPS growth in the upcoming quarters, with forecasts of $3.0 for FY 2025 and $5.03 for FY 2026, indicating confidence in its strategic direction.
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