Selectquote Stock Earnings Reports

SelectQuote reported fiscal Q3 revenue of $408M, up 8% YoY, with consolidated adjusted EBITDA of $38M (9% margin). Key drivers were rapid growth in Healthcare Services (SelectRx) — now ~106K members, +41% YoY, and ~$675M trailing-12-month revenue — and continued strong profitability in Senior and Life Insurance. Senior delivered $169M revenue and ~27% adjusted EBITDA margins despite operating with a 26% smaller agent force and a ~10% drop in approved Medicare Advantage policies; management highlights improved agent efficiency and technology-driven close rates. SelectRx revenue grew 53% to $190M in Q3 but remains a lower-margin business; management plans to prioritize membership quality and operational efficiency (including ramping a new Kansas distribution facility) which may slow membership growth near term and cause a modest Q4 EBITDA headwind. Life Insurance produced $46M revenue and ~14% EBITDA margin (EBITDA doubled YoY). LTV for Medicare Advantage was $915 (down 8%) driven by shifts in commission timing. Management maintains full-year revenue and adjusted EBITDA ranges but expects to finish toward the lower half due to seasonality, new beneficiary eligibility rules that could pressure close rates, and near-term SelectRx facility ramp costs. Capital structure improvements include a $100M securitization and a $350M strategic investment, $71M operating cash flow in the quarter, $86M cash balance, and >$1B commissions receivable; management is exploring additional capital options (including further securitization). Management rejects recent DOJ allegations and says it will vigorously defend the company.