Ethos Technologies Inc. Class A Common Stock (LIFE)

FairStock Score: 86/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable earnings and a margin of safety. Ethos is a technology-enabled insurance administrator serving consumers, agents, and carriers. It is not without promise: revenue rose from $254.9 million in fiscal 2024 to $387.6 million in fiscal 2025; in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $189.6 million and net income $19.5 million, a 10.30% margin. The balance sheet shows no debt, with a D/E of 0.00 and a FairStock Altman Z-score of 7.13, suggesting low near-term distress risk. Trailing free cash flow was $71.1 million, a 2.7% FCF yield at the 2026-10-13 close. However, the income record is erratic: fiscal Q1 2026 had a $166.4 million net loss and diluted EPS of $-3.57, while fiscal Q2 2026 earned $0.30. The stated P/E is negative at -23.72 because trailing EPS is $-1.67. At that close, FairStock shows P/B of 5.30. The supplied growth figures are impressive—65.47% revenue growth and 157.24% profit growth—but one quarter cannot establish a moat in insurance administration. Piotroski is 5/9, ROE is -26.11%, and ROCE is -11.15%. The Lynch category is none because there are only two years of filed results. I would want consistent economics, not lumpy results. The business may be improving, but the price already assumes much. Without a stable earnings history and a margin of safety, this is speculation more than Graham-style value.

In plain English: Ethos Technologies helps insurers and agents sell life and related insurance through an online platform. Sales have grown fast, and the latest quarter showed a profit, but the company had a very large loss in the quarter before, so earnings are uneven. At $39.61, the shares look expensive compared with recent profits and accounting value, even though the business generates some cash.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer