LIFE

Ethos is a high-quality growth story on the surface: FY2025 revenue of $388M grew 52% YoY, net income of $71.2M grew 46% at an 18.4% net margin, operating income rose 50%, and operating cash flow jumped to $36.2M (+432%). The platform model — earning carrier commissions on activated life-insurance policies sold digitally — scales well, and cash of $91.1M (+160%) plus negligible capex ($1.49M) give it room to fund growth without leaning on its balance sheet. On the provided 16.6M-share basis, a 15.5x P/E and 0.8x P/S would be conspicuously cheap for that growth.

The problem is that those headline multiples are almost certainly wrong. The 10-K discloses 30,790,388 Class A plus 32,079,265 Class B shares outstanding as of Feb 28, 2026 — roughly 63M shares, nearly 4x the 16.6M used to derive the $315M market cap, P/E and P/S. On the real diluted base the stock trades closer to ~3x sales and a P/E in the 40s — i.e., roughly fair for ~50% growth (PEG near 1), not the bargain the screen implies. I will not invent a precise valuation off a share count the filing contradicts, hence no price target.