Ethos Technologies Inc. Q1 FY2026 earnings call

• Q1 was an exceptional seasonally strongest quarter with $193 million revenue, 104% Y/Y growth, $34 million adjusted EBITDA, and over 88,000 new families protected.
• Direct channel: Virtuous data cycle with refined vertical stack drove 136% Y/Y revenue growth in Q1.
• Third-party channel: New agencies added in 2025 are ramping, contributing double-digit percentage of third-party revenue with 42% Y/Y growth in Q1.
• Product: Accumulation indexed universal life insurance showed early product market fit in third-party channel; deepened partnership with Banner Life to launch new whole life products; rapidly launched new products; partnered with Liberty Mutual and built experience in ChatGPT.

In Q1 2026, Ethos Technologies delivered $193 million in revenue, representing 104% year-over-year growth. Direct channel revenue was $146 million in Q1, with 136% year-over-year growth. The virtuous data cycle in the direct channel drove this growth by refining the vertical stack. Third-party channel revenue reached $47 million in Q1, a 42% year-over-year growth, with newer agencies added in 2025 ramping up. For product performance, the accumulation indexed universal life insurance product showed early indicators of product market fit in the third-party channel. Ethos deepened partnership with Banner Life to launch new whole life products, and partnered with Liberty Mutual and built experience in ChatGPT.

• Second quarter 2026: Expected total revenue range of $114 - $118 million, midpoint 31% Y/Y growth; adjusted EBITDA range of $20 - $22 million.
• Full year 2026: Raised total revenue guidance to $561 - $565 million, midpoint 45% Y/Y growth; adjusted EBITDA range of $103 - $107 million, based on revised agent compensation expense assumptions.

Forward-looking statements are subject to a number of risks and other factors, including actual results may differ materially from expectations. For a discussion of these risks and other factors, please see the information under forward-looking statements in the financial results press release and presentation materials, as well as the more detailed discussion in SEC filings.

Q: Colin Sebastian of Baird asked about incremental marketing spend and average revenue per policy expansion.

A: Peter noted Q1 is strong seasonally, Q2 less so, and ARPU increase is due to channel mix.

Q: Ross Sandler of Barclays asked about advertising cost in Q1 and ChatGPT.

A: Peter talked about adaptability to digital acquisition landscape and excitement about ChatGPT experimentation.

Q: Eric Sheridan of Goldman Sachs asked about product pipeline.

A: Ethos has track record of launching 3 - 4 new products per year, with accumulation IUL showing good start and cancer product in early innings.

Q: Ron Josie of Citi asked about IUL results and new channels.

A: IUL has early sequential growth, and marketing spend shifting to top-of-funnel channels.

Q: Michael McGovern of Bank of America asked about revenue deceleration and Liberty Mutual partnership.

A: Revenue deceleration due to seasonal transition, and Liberty Mutual partnership allows non-life insurance experts to sell easily.

Q: Pablo Singham of JP Morgan asked about charge effect on revenues and guidance.

A: Charge had small effect on revenue this quarter, and guidance adjusted based on revised assumptions.

Q: Carol Schmiel of Citizens asked about exclusivity of Liberty Mutual deal.

A: There is no exclusivity around the Liberty Mutual deal.