Ethos Lifts Full-Year Revenue Outlook After Record Quarter

The Tip Desk · November 3, 2026 · 3 min read

Third-quarter revenue reached $235.2 million, up 151% from a year earlier, and the company now sees full-year 2026 sales of $838 million to $842 million.

Ethos Technologies (LIFE), a life insurance technology company, reported third-quarter revenue of $235.2 million, up 151% from a year earlier, accelerating from 113% year-over-year growth in the second quarter and 104% in the first.

Chief Executive Peter Colis said the quarter was a record and the third consecutive period of triple-digit year-over-year revenue growth. The company activated 142,111 new policies in the quarter, 189% more than a year earlier.

The mix of the business shifted toward third-party distribution. Third-party channel revenue was $116.4 million, up 209% from a year earlier, after 90% growth to $73.1 million in the second quarter and 42% growth to $47.1 million in the first. Direct channel revenue was $118.8 million, up 112% from a year earlier, after 131% growth to $116.5 million in the second quarter and 136% growth to $146.0 million in the first.

Reported average revenue per unit was $1,655, a 13% year-over-year decline that the company attributed to a channel mix skewed more heavily toward the third-party channel.

Gross profit was $230.8 million, a 98% margin, matching the prior two quarters. Contribution profit was $66.4 million, a 28% margin, down from 33% in the second quarter and 30% in the first. Sales and marketing expense was $169.4 million. General and administrative expense was $39.2 million. Technology expense, exclusive of amortization, was $16.5 million. Cost of revenue was $4.5 million.

GAAP net income was $4.7 million, or $0.07 a share, a 2% margin, versus $19.5 million, or a 10% margin, in the second quarter. The first quarter included a $166.4 million net loss after a one-time, non-cash $16.5 million charge tied to a change in third-party agent compensation estimates. Non-GAAP net income was $33.8 million, or $0.49 a share diluted, a 14% margin. Adjusted EBITDA was $34.9 million, a 15% margin.

Net cash provided by operations was $40.7 million. Cash and cash equivalents were $149.8 million at September 30, 2026, with short-term investments of $71.7 million. Long-term commissions receivable were $315.4 million.

The board authorized a share repurchase program of up to $100 million of Class A common stock during the third quarter. The company said no shares had been repurchased since the announcement.

For the fourth quarter of 2026, Ethos expects total revenue of $220 million to $224 million, a 102% increase year-over-year at the midpoint, and Adjusted EBITDA of $30 million to $32 million. Those ranges sit above the third-quarter outlook of $160 million to $164 million in revenue and $23 million to $25 million in Adjusted EBITDA. For the full fiscal year 2026, the company now expects revenue of $838 million to $842 million, a 117% increase at the midpoint, and Adjusted EBITDA of $134 million to $136 million, versus the prior full-year guide of $727 million to $731 million in revenue and $119 million to $123 million in Adjusted EBITDA.