Ethos Technologies Inc. Q4 FY2025 earnings call

• Ethos mission is to protect families by democratizing life insurance access and empowering agents. • Built vertically integrated platform for life insurance buying, selling, underwriting. • Automated data-driven underwriting engine with 95% instant decisioning rate. • Three-sided platform serves consumers, agents, carriers. • In Q4, launched two new products: accumulation index universal life with North American salmons and supplementary health product with Aflac. • Three durable growth factors: growing ecosystem, enhancing platform, expanding product portfolio. • Testing velocity increased from around three weeks in 2023 to as few as three days in Jan 2026.

In Q4 2025, Ethos delivered $110.1 million in revenue, a 65% year-over-year growth. Direct channel revenue was $74.2 million, up 93% YOY; third-party channel revenue was $35.9 million, up 27% YOY. Activated 54,714 policies in Q4, 42% YOY growth. Average revenue per policy was $2,012. Q4 contribution profit was $47.2 million, 43% contribution margin. Adjusted EBITDA was $25.8 million, 23% margin. Full year 2025 revenue was $388 million, 52% growth, with a Rule of 40 score of 75.

• First quarter 2026 expected revenue range: $144 - $146 million (midpoint 53% YOY growth), adjusted EBITDA range: $30 - $32 million. • Full year 2026 expected revenue range: $510 - $514 million (midpoint 32% YOY growth), adjusted EBITDA range: $99 - $103 million. • Focus on diversifying revenue sources, ramping new product lines, expanding channels.

Q: Peter, what are the biggest strategic priorities for 2026?

A: Business as usual priorities include recruiting more clients and agents, making agents more productive, broadening product portfolio. Also leveraging AI across all vectors.

Q: How is Ethos thinking about partnering with third-party agentic AI services?

A: AI is a huge opportunity, Ethos uniquely positioned with native platform, data, and relationships to harness AI, focusing on integrating with LLMs.

Q: About new products launched in Q4, how much is embedded in outlook?

A: New products are early days, accumulation index universal life has healthy agent adoption, cancer insurance is early innings. Launching new products takes time and effort.

Q: What drove 93% growth in D2C revenue?

A: Vertically integrated stack improvements in marketing models, user experiments, underwriting. Drivers of agent growth: adding new and tenured agencies.

Q: Thoughts on union economics and monetization?

A: Aim for cash profitability by month two of policy life cycle. Focus on becoming largest life insurance issuer with modern platform.

Q: Carrier relationship dynamics and revenue guidance?

A: Carrier contracts are evergreen, scale helps in negotiations. Q1 guidance reflects strong momentum, year-round growth driven by direct channel and new agencies.

Q: Long-term view on DTC and agency strategy?

A: DTC has potential to transform life insurance market. Agency strategy focuses on agents matching transactional velocity, organic onboarding.