Ethos Technologies, a San Francisco company that makes life insurance easy to buy online, went public on Nasdaq yesterday. It sold shares and raised $200 million, but the stock price fell 11% on the first day, ending at a $1.1 billion value. This move comes as the company shows profits in a tough year for tech listings, while other similar startups have shut down or sold out.
Background
Ethos started in 2016 when Peter Colis and Lingke Wang saw problems in how people buy life insurance. The old way often meant long waits, doctor visits, and lots of paperwork. They built a platform to fix that. Users answer a few health questions online and get coverage in about 10 minutes, often without a medical exam.
The company grew fast. By 2018, it had money from big investors like Sequoia Capital and Google Ventures. It reached all 50 states by 2020. In 2022, it added tools to predict risks for insurers and help with estate planning. Last year, it passed $100 million in yearly premiums written through its system.
Ethos does not sell insurance itself. It acts as a middleman. Customers buy policies on its site. More than 10,000 independent agents use its software to sell to clients. Big insurers like Legal & General America and John Hancock use it for checks and paperwork. This setup lets Ethos earn fees on every sale.
The life insurance market in the US brings in over $150 billion a year in premiums. But only about half of adults have a policy. Ethos targets people who skip it because the process is hard. Younger buyers like using phones and apps, which fits the company's model.
Backers put $416 million into Ethos over the years. Sequoia led a big round in 2021 that valued it at $2.7 billion. That was before market troubles hit tech startups hard.
Key Details
Ethos priced 10.5 million shares at $19 each on Wednesday night. Half came from the company, half from early investors. The deal closed today, with shares trading under the symbol LIFE on Nasdaq. Goldman Sachs and J.P. Morgan ran the sale.
Trading started flat at $19. But the stock dropped through the day. It closed at $16.85, down 11% from the start. That gave the company a market value of $1.1 billion, far below its 2021 high.
Numbers show why Ethos pushed ahead. For the first nine months of 2025, it made $46.6 million in net income, up from $39.3 million the year before. Revenue hit $277.5 million, a jump from $188.4 million. Active policies grew 70% to 94,000 by June 2025. Revenue rose 50% overall.
Co-founder Peter Colis talked about the competition.
"When we launched the business, there were like eight or nine other life insurtech startups that looked very similar to Ethos, with similar Series A funding. Over time, the vast majority of those startups have pivoted, been acquired at subscale, remain at subscale or gone out of business." – Peter Colis, co-founder of Ethos
Rivals' Struggles
Many companies that started like Ethos did not last. Policygenius sold to a bigger firm at a low price. Health IQ filed for bankruptcy. Others changed their focus or stayed small. Ethos kept growing and turned profitable, which helped it reach this point.
The company runs a three-part system. It serves buyers, agents, and insurers. This brings steady money from fees and partnerships. It works with banks, planning apps, and fintechs to add insurance to their services. It also sells data tools to cut fraud and speed approvals.
Ethos filed with the SEC in September 2025. It picked now because markets improved and it had strong results. Investors want tech firms that make money, not just grow fast.
What This Means
Ethos's listing tests the waters for tech IPOs in 2026. It is one of the first big ones, after a quiet period. The flat start shows caution among buyers, but profits drew interest. If it holds up, more insurtech and tech firms may follow.
For Ethos, the cash strengthens its books. It plans faster growth this year, with new products and buys in the market. Early backers like Sequoia get a way to cash out. The public status boosts its name with customers and partners.
The stock drop highlights risks. Valuations sit well below past highs. But steady income sets Ethos apart. It blends tech speed with insurance reliability.
Investors watch for signs on the broader market. US stocks hit highs lately, with money moving to finance tech. Ethos fits that shift. Its no-exam policies open doors for more people. As families seek protection without hassle, the platform could grab a bigger share.
Rivals' falls clear the field. Ethos now leads in digital life insurance. Partnerships grow its reach. Data from users improves its tools over time.
The debut matters beyond one company. It signals if public markets welcome profitable tech again. Ethos bet on its numbers paying off. Early trading shows the road ahead may not be smooth, but the base looks solid.
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