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SelectQuote
(NYSE:SLQT)
Select Model
Select Model
Rating:56Neutral
Price Target:
$0.75
▲(3.89% Upside)
Action:Reiterated
Date:06/27/26
The score is primarily held back by weak financial quality driven by negative recent operating and free cash flow, despite improved profitability and a better balance sheet. The earnings call adds support via reaffirmed guidance and a clearer cash-flow improvement/deleveraging path, but with notable one-time/volatility risks. Valuation is a positive (low P/E), while technicals remain bearish with the stock trading below key moving averages and negative MACD.
Positive Factors
Substantial commissions receivable/backbook
A nearly $1B commissions receivable balance represents a large backbook of expected renewal cash flows and long-duration revenue rights. That recurring revenue asset improves visibility into multi-year cash generation, supporting deleveraging and funding of growth initiatives if persistency holds.
Negative Factors
Weak cash generation
Negative operating and free cash flows in 2025 and TTM mean reported profitability has not consistently converted to cash. Persistent cash deficits increase refinancing and execution risk, constrain capital allocation, and could slow deleveraging or investments if cash conversion does not improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Substantial commissions receivable/backbook
A nearly $1B commissions receivable balance represents a large backbook of expected renewal cash flows and long-duration revenue rights. That recurring revenue asset improves visibility into multi-year cash generation, supporting deleveraging and funding of growth initiatives if persistency holds.
Read all positive factors
SelectQuote Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down where sales are coming from across product lines and channels, revealing concentration risks and the main drivers of growth or decline. For SelectQuote investors, segment-level revenue highlights dependence on Medicare or other product categories, how changes in customer acquisition or channel mix affect topline, and where regulatory or market shifts could materially impact future revenue.
Breaks down where sales are coming from across product lines and channels, revealing concentration risks and the main drivers of growth or decline. For SelectQuote investors, segment-level revenue highlights dependence on Medicare or other product categories, how changes in customer acquisition or channel mix affect topline, and where regulatory or market shifts could materially impact future revenue.
Data provided by:
The Fly
The FlySelectQuote (SLQT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$125.91M
Dividend YieldN/A
Average Volume (3M)1.74M
Price to Earnings (P/E)7.4
Beta (1Y)1.58
Revenue Growth10.29%
EPS GrowthN/A
CountryUS
Employees4,269
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)0.10
Shares Outstanding176,347,780
10 Day Avg. Volume907,222
30 Day Avg. Volume1,743,506
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)0.73
Price to Sales (P/S)0.27
P/FCF Ratio-30.25
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$5.00Price Target Upside594.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.13
Revenue Forecast (FY)$1.74B
SelectQuote Business Overview & Revenue Model
Company Description
SelectQuote, Inc. operates as a tech-driven, direct-to-consumer marketplace, offering a wide spectrum of insurance products to individuals throughout the United States. These policies are underwritten by a variety of insurance carriers. The compan...
How the Company Makes Money
SelectQuote generates revenue mainly by acting as an independent distributor for insurance carriers and earning commissions and related fees when a customer enrolls in or purchases a policy through SelectQuote. Key revenue streams include: (1) Sen...
SelectQuote Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational and financial progress: revenue grew 6% to $431M, adjusted EBITDA rose 18% to $45M, Senior and Healthcare Services showed tangible improvements, SelectRx demonstrated membership and efficiency momentum, and management reiterated guidance and a path to stronger cash flow in fiscal 2027. Offsetting items include IRA-driven top-line effects, earlier PBM reimbursement headwinds (now reportedly stabilized), reliance on a $14M favorable change in estimate that aided results, and potential timing-related volatility in MA approval rates that could affect Q4. Management emphasized backbook visibility (nearly $1B commissions receivable) and multiple strategic options to close the valuation gap. On balance, operational strengths and clear pathways to improved cash flow outweigh the near-term headwinds and accounting nuances.Positive Updates
Consolidated Revenue Growth
SelectQuote reported consolidated revenue of $431 million, up 6% year-over-year.
Negative Updates
Inflation Reduction Act Impact on Revenue
The IRA (effective Jan 1) reduced sequential top-line revenue for SelectRx by setting max fair prices on certain high-cost drugs; company received $13 million in manufacturer refunds in the quarter and stated the EBITDA impact was in the low single-digit millions.
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Revenue Growth
SelectQuote reported consolidated revenue of $431 million, up 6% year-over-year.
Read all positive updates
Company Guidance
SelectQuote reaffirmed fiscal 2026 guidance of $1.61 billion to $1.71 billion in revenue and $90 million to $100 million in adjusted EBITDA, saying it expects to exit FY26 on “very strong footing,” deliver meaningful year‑over‑year improvement in operating cash flow in FY26 and compound cash‑flow growth in FY27 while delevering over time; in Q3 it reported $431 million of revenue and $45 million of adjusted EBITDA (up 18% YoY, aided by a $14 million favorable commissions receivable adjustment), which excluding that adjustment implied a consolidated EBITDA margin of ~7%; segment metrics cited include Senior revenue of $183 million (up 8% YoY) with Senior adjusted EBITDA of $59 million and a 26% Senior EBITDA margin excluding the adjustment, Healthcare Services revenue of $199 million with $5 million adjusted EBITDA and ~117,000 members (11% growth), SelectRx prescriptions shipped +64% vs. two years and a near‑term SelectRx EBITDA run‑rate target of $40–50 million, Life revenue of $48 million with $6 million adjusted EBITDA, a global revenue‑to‑CAC multiple of 6.7x, and a Medicare Advantage commissions receivable balance of nearly $1 billion.SelectQuote Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
62
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.64B | 1.53B | 1.32B | 1.00B | 764.04M | 929.98M |
| Gross Profit | 973.80M | 591.13M | 597.97M | 475.36M | 308.35M | 659.27M |
| EBITDA | 144.09M | 148.36M | 89.48M | 39.34M | -321.49M | 203.48M |
| Net Income | 91.90M | 47.58M | -34.13M | -58.54M | -297.50M | 124.86M |
Balance Sheet | ||||||
| Total Assets | 1.33B | 1.25B | 1.19B | 1.22B | 1.29B | 1.42B |
| Cash, Cash Equivalents and Short-Term Investments | 35.21M | 32.40M | 42.69M | 83.16M | 141.00M | 286.45M |
| Total Debt | 403.13M | 415.91M | 713.92M | 731.80M | 745.06M | 505.30M |
| Total Liabilities | 671.22M | 673.84M | 877.11M | 872.28M | 898.95M | 756.82M |
| Stockholders Equity | 663.49M | 575.52M | 316.80M | 346.97M | 391.11M | 667.04M |
Cash Flow | ||||||
| Free Cash Flow | -13.53M | -13.86M | 3.57M | -28.50M | -372.96M | -138.43M |
| Operating Cash Flow | -9.94M | -11.67M | 15.24M | -19.38M | -338.31M | -115.44M |
| Investing Cash Flow | -14.69M | -11.31M | -14.85M | -9.13M | -42.58M | -64.02M |
| Financing Cash Flow | -25.34M | 17.36M | -40.86M | -29.34M | 235.43M | 97.04M |
SelectQuote Technical Analysis
Neutral
0.72
Price Trends
0.80
Negative
0.83
Negative
1.07
Negative
Market Momentum
-0.03
Negative
46.09
Neutral
17.38
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLQT, the sentiment is Neutral. The current price of 0.72 is above the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.80, and below the 200-day MA of 1.07, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 17.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SLQT.
SelectQuote Risk Analysis
SelectQuote disclosed 55 risk factors in its most recent earnings report. SelectQuote reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SelectQuote Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.46B | 44.62 | 12.67% | ― | 33.12% | 45.43% | |
74 Outperform | $360.88M | 0.85 | 10.94% | 5.22% | 61.37% | 44.39% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $13.04M | 1.03 | 0.99% | ― | ― | ― | |
56 Neutral | $125.91M | 7.37 | 15.28% | ― | 10.29% | ― | |
56 Neutral | $227.27M | -1.09 | -150.44% | ― | -67.88% | -3014.41% | |
51 Neutral | $38.76M | -1.47 | 3.57% | ― | -8.37% | -220.33% |
* Financial Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.