SelectQuote Inc ( (SLQT) ) has released its Q2 earnings. Here is a breakdown of the information SelectQuote Inc presented to its investors.
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SelectQuote Inc., operating in the insurance sector, specializes in providing consumers with unbiased comparisons of insurance policies from multiple carriers, leveraging a high-touch, agent-led model. In the second quarter of fiscal year 2025, SelectQuote reported a notable increase in consolidated revenue, reaching $481.1 million, up from $405.4 million in the same quarter of the previous year. Net income also saw a significant rise to $53.2 million from $19.4 million year-over-year, and adjusted EBITDA increased to $87.5 million compared to $67.4 million.
Key financial highlights from the quarter include strong performance in the Senior segment, which achieved a revenue of $255.6 million and an adjusted EBITDA margin of 39%. The Healthcare Services segment also demonstrated robust growth, driven by a 54% increase in SelectRx members, contributing to a 64% rise in revenue to $183.4 million. The Life segment saw a revenue increase of 7% to $39.9 million, with an adjusted EBITDA growth of 62%.
Strategically, SelectQuote improved its capital structure with a $350 million investment led by Bain Capital and Morgan Stanley Private Credit. This move is expected to enhance liquidity and provide operational flexibility, supporting growth initiatives within its Senior and Healthcare Services businesses.
Looking ahead, SelectQuote projects its fiscal year 2025 revenue to fall between $1.500 billion and $1.575 billion, with net income ranging from a loss of $24 million to a gain of $11 million. Adjusted EBITDA is anticipated to be between $115 million and $140 million, reflecting the company’s optimistic outlook for continued growth and profitability in the insurance and healthcare services markets.
