- Q2 Revenue grew 113% year-over-year to $190 million
- Q2 Direct Channel Revenue grew 131% year-over-year to $116 million
- Q2 Third-Party Revenue grew 90% year-over-year to $73 million
- Board of Directors authorized a share repurchase program of up to $100 million of Ethos’ Class A common stock
AUSTIN, Texas, Aug. 03, 2026 (GLOBE NEWSWIRE) -- 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 second quarter ended June 30, 2026.
"Q2 was our second consecutive quarter of over 100% year-over-year growth, extending a streak of durable, multi-year growth we've built quarter over quarter," said Peter Colis, CEO and Co-Founder of Ethos. "In Q2 alone, we protected more than 100,000 additional families at a pace that shows just how fast our growth is compounding."
In addition to the release of financial results, Ethos announced today that its Board of Directors has authorized a share repurchase program of up to $100 million of the Company’s outstanding Class A common stock.
Second Quarter 2026 Financial Highlights
- Revenue: Grew 113% year-over-year to $189.6 million
- Direct Channel Revenue: Grew 131% year-over-year to $116.5 million with similar year-over-year unit economics
- Third-Party Channel Revenue: Grew 90% year-over-year to $73.1 million
- Net Income: $19.5 million, representing a 10% margin
- Non-GAAP Net Income: $35.0 million, representing an 18% margin
- Adjusted EBITDA: $35.2 million, representing a 19% margin
- Gross Profit: $185.5 million, representing a 98% gross profit margin
- Contribution Profit: $62.3 million, a 33% contribution profit margin
- Net Income per Share: basic was $0.31 and diluted was $0.30 per share
- Non-GAAP Net Income per Share: diluted was $0.53 per share
- Cash Flow: $35.7 million net cash provided by operations
Second Quarter 2026 Business Highlights
- Families Protected: Activated 107,847 new policies in Q2, representing 133% year-over-year growth
- Reported Average Revenue per Unit: $1,758, representing an 8% year-over-year decline due to channel/product mix
- Product Innovation: Launched Juvenile IUL with North American
Financial Outlook
For the third quarter of 2026, Ethos expects the following:
- Total Revenue: Between $160 million and $164 million, representing a 73% increase year-over-year at the midpoint
- Adjusted EBITDA: Between $23 million and $25 million
For the full fiscal year 2026, Ethos expects the following:
- Total Revenue: Between $727 million and $731 million, representing an 88% increase year-over-year at the midpoint
- Adjusted EBITDA: Between $119 million and $123 million
Ethos’ financial outlook for the third 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 second quarter 2026 and outlook for its third 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.
Investor Relations Contact:
Aaron Turner
[email protected]
Press Contact:
Allyson Savage
[email protected]
Forward-Looking Statements
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 September 30, 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 March 31, 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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue: Commission $189,562 $88,849 $382,661 $183,737 Total revenue 189,562 88,849 382,661 183,737 Costs and expenses: Sales and marketing 128,086 51,748 272,193 108,131 General and administrative 23,910 8,147 204,554 21,543 Technology (exclusive of amortization) 13,871 7,284 40,934 16,942 Cost of revenue 4,026 1,422 7,256 2,997 Depreciation and amortization 1,550 1,406 2,919 2,743 Total costs and expenses 171,443 70,007 527,856 152,356 Income (loss) from operations 18,119 18,842 (145,195) 31,381 Other income (expense): Interest expense (616) (646) (1,278) (1,619)Interest income 1,765 1,549 3,142 3,062 Other income, net 52 26 105 58 Total other income, net 1,201 929 1,969 1,501 Net income (loss) before income tax expense 19,320 19,771 (143,226) 32,882 Income tax expense (benefit) (211) 1,302 3,634 2,166 Net income (loss) 19,531 18,469 (146,860) 30,716 Deemed dividend on the conversion of Series D and D-1 redeemable convertible preferred stock — — (5,642) — Net income (loss) attributable to common stockholders $19,531 $18,469 $(152,502) $30,716 Per share data: Basic net income (loss) per share $0.31 $1.12 $(2.73) $1.87 Diluted net income (loss) per share $0.30 $0.31 $(2.73) $0.52 Weighted-average shares used in computing basic net income (loss) per share 63,480 16,544 55,805 16,402 Weighted-average shares used in computing diluted net income (loss) per share 65,645 58,794 55,805 58,778
Condensed Consolidated Balance Sheets
(In Thousands)(Unaudited)
June 30, December 31, 2026 2025 Assets Current assets: Cash and cash equivalents $112,158 $91,091 Short-term investments 56,161 34,876 Accounts receivable, net 57,211 36,498 Commissions receivable-current, net 30,886 28,786 Prepaid and other current assets 45,585 54,553 Total current assets 302,001 245,804 Long-term assets: Commissions receivable, net 293,394 224,219 Property and equipment, net 10,986 8,189 Operating lease right-of-use assets 1,623 2,183 Goodwill 2,238 2,238 Acquired intangible assets, net of amortization 611 662 Long-term investments 84,536 31,468 Other long-term assets 695 574 Total long-term assets 394,083 269,533 Total assets $696,084 $515,337 Liabilities, redeemable preferred stock and stockholders’ equity Current liabilities: Accounts payable $80,353 $55,070 Accrued expenses 62,053 39,224 Liabilities related to sale of commissions receivable, current 9,491 11,750 Operating lease liabilities, current 1,031 1,125 Other current liabilities 46,117 6,021 Total current liabilities 199,045 113,190 Long-term liabilities: Liabilities related to sale of commissions receivable, non-current 8,738 12,509 Operating lease liabilities, non-current 742 1,228 Deferred tax liability 11,393 8,529 Total long-term liabilities 20,873 22,266 Total liabilities 219,918 135,456 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 726,960 78,950 Accumulated other comprehensive loss (1,426) (554)Accumulated deficit (249,374) (102,514)Total stockholders’ equity (deficit) 476,166 (24,116)Total liabilities, redeemable convertible preferred stock and stockholders’ equity $696,084 $515,337
Condensed Consolidated Statements of Cash Flows
(In Thousands)(Unaudited)
Six Months Ended June 30, 2026 2025 Cash flows from operating activities Net income (loss) $(146,860) $30,716 Adjustments to reconcile net income to net cash used in operating activities: Deferred taxes 2,864 1,617 Depreciation and amortization 2,919 2,743 Non-cash interest expense 1,278 1,619 Amortization of discounts and premium, investments (532) (639)Stock-based compensation expense 208,197 10,292 Operating lease right-of-use asset amortization 548 412 Unrealized foreign currency translation (161) (134)Changes in operating assets and liabilities: Prepaid and other assets 1,886 (10,866)Accounts payable 25,408 22,634 Accounts receivable (20,713) (8,165)Commissions receivable (2,100) (8,926)Long-term commissions receivable (69,175) (22,204)Accrued expenses 23,781 6,070 Other current liabilities 39,529 (385)Other long-term liabilities — (750)Net cash provided by operating activities 66,869 24,034 Cash flows from investing activities Purchase of property and equipment (678) (578)Purchase of investments (122,388) (22,210)Proceeds from maturity of investments 47,315 45,800 Investment in software development costs (3,337) (1,797)Net cash provided by (used in) investing activities (79,088) 21,215 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 (6,978) (4,711)Proceeds from exercise of stock options and warrants 701 790 Payment of deferred offering costs (2,843) (1,118)Net cash provided by (used in) financing activities 33,375 (39)Net increase in cash and cash equivalents 21,156 45,210 Effect of exchange rates on cash (89) (1)Cash and cash equivalents, beginning of period 91,091 35,075 Cash and cash equivalents, end of period $112,158 $80,284
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In Thousands) (Unaudited)
Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Gross profit $185,536 $87,427 $375,405 $180,740 Less: sales and marketing (128,086) (51,748) (272,193) (108,131)Add: stock-based compensation and related taxes allocated to sales and marketing 1,219 33 11,583 2,020 Add: professional fees allocated to sales and marketing 1,023 550 1,350 916 Add: technology expenses allocated to sales and marketing 1,475 651 2,686 1,447 Add: other expenses allocated to sales and marketing 1,147 734 2,082 1,126 Contribution profit $62,314 $37,647 $120,913 $78,118 Contribution profit margin 33% 42% 32% 43%
June 30, Six Months Ended
June 30, 2026 2025 2026 2025 (in thousands, except per share data) GAAP net income (loss) $19,531 $18,469 $(146,860) $30,716 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 $19,531 $18,469 $(152,502) $30,716 GAAP net income (loss) $19,531 $18,469 $(146,860) $30,716 Add back: Stock-based compensation expense and related taxes 15,486 478 210,993 10,292 Non-GAAP net income $35,017 $18,947 $64,133 $41,008 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 $35,017 $18,947 $58,491 $41,008 Per share data: Weighted-average shares used in computing GAAP net income (loss) per share, basic 63,480 16,544 55,805 16,402 Weighted-average shares used in computing GAAP net income (loss) per share, diluted 65,645 58,794 55,805 58,778 Weighted-average shares used in computing non-GAAP net income per share, basic 63,480 16,544 55,805 16,402 Weighted-average shares used in computing non-GAAP net income per share, diluted 65,645 58,794 63,957 58,778 GAAP net income (loss) per share attributable to common stockholders, basic $0.31 $1.12 $(2.73) $1.87 GAAP net income (loss) per share attributable to common stockholders, diluted $0.30 $0.31 $(2.73) $0.52 Non-GAAP net income per share attributable to common stockholders, basic $0.55 $1.15 $1.05 $2.50 Non-GAAP net income per share attributable to common stockholders, diluted $0.53 $0.32 $0.91 $0.70