Ethos (LIFE) Grows Revenue 113% While Margins Quietly Compress

Ethos Technologies (NASDAQ:LIFE) reported a 113% year-over-year revenue increase to $189.6 million for Q2 2026, with the company's board authorizing a $100 million buyback of its Class A common stock. The revenue growth came from two channels - direct channel revenue rose 131% to $116.5 million and third-party revenue grew 90% to $73.1 million.

New policy activations were up 133% year-over-year to 107,847, reaching over 100,000 new families in a three-month period. Gross profit was $185.5 million with a 98% gross margin, while cash generation was $35.7 million for the quarter and $66.9 million for the first half of the year, boosting cash and cash equivalents to $112.2 million.

Despite the revenue growth, margins have been compressing - GAAP net income was $19.5 million with a 10% margin, down from $18.5 million a year ago; contribution margin fell to 33% from 42%; and adjusted EBITDA margin slipped to 19% from 23%. Revenue per activated policy also fell 8% to $1,758. The company launched a Juvenile IUL policy in partnership with North American and guidance for Q3 is $160 million to $164 million, with full-year guidance of $727 million to $731 million, an 88% increase.