Key Highlights

  • LIFE reported third quarter 2026 Revenue of $235.2 million, up 151% from the prior-year quarter.
  • Net income was $4.7 million, or $0.07 per share, compared with $15.9 million a year earlier.
  • Adjusted EBITDA was $34.9 million, a 15% margin, with $40.7 million of operating cash flow.
  • Full-year 2026 revenue is now guided to $838 million to $842 million, with adjusted EBITDA of $134 million to $136 million.
  • Fourth-quarter revenue is guided to $220 million to $224 million, with adjusted EBITDA of $30 million to $32 million.

Third-Party Channel Revenue Triples as Direct Sales Also Double

Ethos (NASDAQ:LIFE) reported results for the third quarter ended Sep 30, 2026 on Nov 2, 2026. Revenue grew 151% to $235.2 million from $93.8 million a year earlier, marking a third straight quarter of triple-digit growth. The company activated 142,111 new policies, up 189% year over year.

Ethos runs a digital Life insurance platform that lets customers apply online without a medical exam, selling through its own direct channel and through third-party agencies. Direct channel revenue rose 112% to $118.8 million, while third-party channel revenue climbed 209% to $116.4 million. Management said agencies added in 2025 and 2026 are ramping quickly and older agencies are still growing.

The company said cumulative activated policies now exceed 850,000.

Whole Life Mix Lowers Revenue per Policy and Narrows Contribution Margin

Gross profit was $230.8 million, a 98% margin, and contribution profit was $66.4 million, a 28% margin. Contribution profit grew 81% year over year, according to management, who said the heavier third-party mix and higher Brand spending in the direct channel shaped the blended rate.

Average revenue per policy was $1,655, down 13% from a year ago as more whole life policies came through the third-party channel. Third-party revenue made up about 10 more points of the mix than in the second quarter.

GAAP Net Income was $4.7 million, a 2% margin, down from $15.9 million a year earlier. Non-GAAP net income was $33.8 million, or $0.49 per diluted share, and adjusted EBITDA was $34.9 million. For the nine months, the company posted a net loss of $142.2 million, against net income of $46.6 million in the same period of 2025.

Raised 2026 Targets Imply a Fourth Quarter Below the Third

Ethos raised its fiscal 2026 revenue outlook to between $838 million and $842 million, a 117% increase at the midpoint, and lifted adjusted EBITDA guidance to between $134 million and $136 million. For the fourth quarter ending Dec 31, 2026, it expects revenue of $220 million to $224 million, a 102% increase at the midpoint, and adjusted EBITDA of $30 million to $32 million.

That fourth-quarter range sits below the $235.2 million posted in the third quarter. Management said the guidance already reflects the channel mix and the stepped-up brand investment, and that it will preview 2027 when it reports fourth-quarter results in February.

Cash Build and an Unused $100 Million Buyback Frame the Fourth-Quarter Print

Cash, cash equivalents and investments totaled $290 million at Sep 30, 2026, up from $253 million at the end of the second quarter. Operating Cash Flow of $40.7 million meant cash conversion above 100%, which management tied to the faster cash profile of third-party sales. The board authorized a repurchase program of up to $100 million, but no shares have been bought. The next marker is the fourth-quarter report in February.