Ethos revenue jumps 113% to $190M as life insurance demand accelerates

Ethos reported second-quarter revenue of $189.6 million, up 113% from a year earlier, a second straight quarter of triple-digit growth for the life insurance technology company.

"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," Chief Executive Officer Peter Colis said.

Direct channel revenue rose 131% to $116 million, while third-party revenue climbed 90% to $73 million. Net income was $19.5 million, or 30 cents a diluted share, versus $18.5 million, or 31 cents, a year earlier. Adjusted EBITDA reached $35.2 million, a 19% margin, down from 23% as sales and marketing spending more than doubled to $128.1 million. Contribution profit, which excludes sales and marketing costs, was $62.3 million, a 33% margin versus 42% a year earlier. Stock-based compensation totaled $15.5 million in the quarter, and the company ended June with $112.2 million in cash and short-term investments.

The company protected more than 100,000 families during the quarter, Colis said. The board authorized repurchases of up to $100 million of Class A common stock, and Ethos issued guidance for the third quarter and full fiscal year 2026, though it did not disclose specific figures in the release.

The buyback follows the company's initial public offering, which raised $91.6 million in net proceeds in the first half, and comes as Ethos scales its direct channel against traditional life insurers that still rely on in-person underwriting. Investors will watch the earnings call at 4:30 p.m. Eastern time for updated margin guidance as the company weighs growth against rising acquisition costs.

This article is for informational purposes only and does not constitute investment advice.