Aug. 5 at 8:46 PM
Citi analyst Ronald Josey named Ethos Technologies his top SMID-cap pick after the life insurance technology company delivered a significantly stronger-than-expected Q2. Net activated policies surged 133% year over year to 107,800, roughly 78% above analyst estimates, driven by robust growth across both its direct-to-consumer and third-party distribution channels.
Revenue climbed 113% to
$189.6 million, exceeding consensus by about 62%. Direct-to-consumer revenue increased 131% to
$116.5 million, while third-party revenue rose 90% to
$73.1 million, supported by product enhancements, improved user experience, higher conversion rates, and strong customer acquisition. Josey also highlighted that Ethos maintained attractive advertising returns despite more than doubling its marketing spend, while agency partners continued increasing policy sales through the company's platform.
$LIFE