Ethos Technologies, a San Francisco-based life insurance software provider, achieved a profitable listing on the Nasdaq under the ticker LIFE, distinguishing itself from many insurtech peers that failed to reach or sustain public-market status.

The company raised approximately $200 million by selling 10.5 million shares at $19 per share. Although the stock closed below its offer price on the first trading day, the transaction still represented a successful capital-raising event in a sector where many late-stage companies have faced pivots, distressed sales or shutdowns.

Ethos operates a three-sided platform. Consumers purchase life insurance online with a streamlined process that removes traditional medical exams. More than 10,000 independent agents use Ethos software to distribute these policies. Major insurance carriers rely on Ethos for underwriting support and back-office services. Ethos functions as a licensed agency rather than a carrier, generating revenue primarily through commissions on placed policies.

The competitive environment for life-insurtech startups launched in the same period as Ethos has been unfavorable. Several well-funded companies with similar ambitions have either stalled, been acquired at reduced valuations or ceased operations.

Policygenius, an online insurance marketplace backed by more than $250 million in venture capital, was acquired by Zinnia. Health IQ, another heavily funded insurtech focused on underwriting for health-conscious consumers, entered bankruptcy.

Ethos raised more than $400 million from investors including Sequoia, Accel, GV and SoftBank and faced the same macroeconomic pressures as its peers: higher interest rates, a constrained late-stage funding environment and reduced investor tolerance for unprofitable fintech models. In response, the company shifted its strategy from aggressive growth to a focus on profitability as external capital became more expensive and less available.

IPO filings indicate that this strategic adjustment produced measurable results. Ethos became profitable by mid-2023 while maintaining revenue growth above 50 percent year over year. For the nine months ending September 30, 2025, the company reported nearly $278 million in revenue and approximately $46.6 million in net income.

Despite these metrics, public investors valued Ethos at roughly $1.1 billion at the close of its first trading day, significantly below its prior private valuation of $2.7 billion from a SoftBank-led round. Management has presented the IPO primarily as a mechanism to enhance credibility and transparency with established insurance carriers, which tend to favor counterparties with stable, publicly disclosed financials.

For early investors such as Sequoia, Ethos represents an outlier among insurtech investments: a company that adapted to adverse market conditions, achieved profitability and met the more stringent performance expectations of public-market participants.