v3.26.1
Supplemental Financial Statement Information
 6 Months Ended
Jun. 30, 2026
Balance Sheet Related Disclosures [Abstract]  
Supplemental Financial Statement Information Supplemental Financial Statement Information
Cash, Cash Equivalents and Restricted Cash

We consider all investments with an original maturity of 90 days or less from the date of purchase to be cash equivalents. Cash and cash equivalents are stated at fair value. We also invest in marketable securities that are measured and recorded at fair value. See Note 4 – Fair Value Measurements for further discussion about our marketable securities.
Our cash, cash equivalents and restricted cash balances are summarized as follows (in thousands):
June 30, 2026December 31, 2025
Cash$14,503 $58,162 
Cash equivalents55,178 15,563 
Cash and cash equivalents69,681 73,725 
Restricted cash2,630 3,090 
Total cash, cash equivalents and restricted cash$72,311 $76,815 

As of June 30, 2026 and December 31, 2025, we had $2.6 million and $3.1 million of restricted cash, respectively, which was classified as a non-current asset on our Condensed Consolidated Balance Sheets. This amount collateralizes letters of credit related to certain lease commitments.

Contract Assets and Accounts Receivable

We do not require collateral or other security for our contract assets and accounts receivable. We believe the potential for collection issues with any of our customers was minimal as of June 30, 2026.

We estimate an allowance for credit losses using relevant available information from internal and external sources related to past events, current conditions and reasonable and supportable forecasts. Specifically, for the purpose of measuring the probability of default parameters, we utilize Capital IQ’s, Standard & Poor’s and Moody’s analytics. Our estimates of loss given default are determined by using our historical collections data as well as historical information obtained through our research and review of other insurance related companies. Our estimated exposure at default is determined by applying these internal and external data sources to our commissions receivable balances. As such, we apply an immediate reversion method and revert to historical loss information when computing our credit loss exposure. Credit loss expenses are assessed quarterly and included in the “General and administrative” line in our Condensed Consolidated Statements of Comprehensive Loss. There were no write-offs during the six months ended June 30, 2026 or for the year ended December 31, 2025.

The change in the allowance for credit losses is summarized as follows (in thousands): 
June 30, 2026December 31, 2025
Beginning balance$2,438 $2,222 
Change in allowance(388)216 
Ending balance$2,050 $2,438 
Our contract assets – commissions receivable activities, net of credit loss allowances, are summarized as follows (in thousands):
Medicare Segment
E&I Segment
Total
Beginning balance at December 31, 2025
$1,068,918 $53,812 $1,122,730 
Commission revenue from members approved during the period85,579 3,910 89,489 
Commission revenue from renewals of small business members during the period— 4,484 4,484 
Net commission revenue from members approved in prior periods15,877 (239)15,638 
Cash receipts(212,125)(12,994)(225,119)
Net change in credit loss allowance369 19 388 
Ending balance at June 30, 2026
$958,618 $48,992 $1,007,610 

Credit Risk

Our financial instruments that are exposed to concentrations of credit risk principally consist of cash, cash equivalents, marketable securities, contract assets – commissions receivable and accounts receivable. We invest our cash and cash equivalents with major banks and financial institutions, and, at times, such investments are in excess of federally insured limits. We also have deposits with major banks in China that are denominated in both U.S. dollars and Chinese Yuan Renminbi and are not insured by the U.S. federal government. The deposits in China were $2.5 million as of June 30, 2026. See Note 4 – Fair Value Measurements for additional information regarding our marketable securities.

We do not require collateral or other security for either our contract assets or accounts receivable. Carriers, including subsidiaries, that represented 10% or more of our total contract assets – commissions receivable and accounts receivable balances are summarized as follows:
June 30, 2026December 31, 2025
Humana34 %33 %
UnitedHealthcare 29 %28 %
Aetna 13 %13 %

Prepaid Expenses and Other Current Assets – Our prepaid expenses and other current assets are summarized as follows (in thousands):
June 30, 2026December 31, 2025
Prepaid software and maintenance contracts$4,889 $5,449 
Prepaid licenses1,370 2,335 
Prepaid insurance319 1,254 
Prepaid marketing231 1,104 
Prepaid other expenses1,719 1,787 
Other current assets1,555 1,399 
Prepaid expenses and other current assets$10,083 $13,328