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SelectQuote Inc (SLQT)
:SLQT
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SelectQuote
(NYSE:SLQT)
Select Model
Select Model
Rating:50Neutral
Price Target:
$1.50
▲(7.14% Upside)
SelectQuote's overall score reflects a mix of positive revenue growth and operational improvements, offset by significant profitability and cash flow challenges. The technical indicators suggest bearish momentum, and the valuation is unattractive due to negative earnings. The earnings call provided some optimism with growth in certain segments, but unmet fiscal targets and EBITDA losses weigh heavily on the outlook.
Positive Factors
Revenue Growth
The 13% revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.
Improved Gross Margins
Improved gross margins suggest better cost management and operational efficiency, enhancing profitability potential over time.
Debt Reduction
Reduced leverage enhances financial stability and flexibility, allowing for more strategic investments and growth opportunities.
Negative Factors
Profitability Concerns
Low profitability and negative cash flow can hinder reinvestment in growth initiatives and challenge long-term financial health.
Senior Segment Revenue Decline
Declining revenues in the Senior segment due to policy changes may indicate vulnerability to regulatory shifts, impacting future growth.
Healthcare Services EBITDA Impact
Changes in reimbursement rates can significantly affect profitability, highlighting risks in dependency on external pricing policies.
SelectQuote (SLQT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$260.44M
Dividend YieldN/A
Average Volume (3M)1.06M
Price to Earnings (P/E)―
Beta (1Y)1.27
Revenue Growth13.16%
EPS GrowthN/A
CountryUS
Employees4,292
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)-0.26
Shares Outstanding175,971,740
10 Day Avg. Volume659,176
30 Day Avg. Volume1,058,411
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.73
Price to Sales (P/S)0.27
P/FCF Ratio-30.25
Enterprise Value/Market Cap3.90
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit1.40
Enterprise Value/Ebitda7.62
Forecast
1Y Price Target
$6.00Price Target Upside328.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SelectQuote Business Overview & Revenue Model
Company DescriptionSelectQuote (SLQT) is a leading online insurance marketplace that specializes in connecting consumers with a variety of insurance products, including life, auto, home, and health insurance. Founded in 1985, the company operates primarily in the financial services sector, leveraging technology to provide personalized insurance solutions. SelectQuote offers a platform that allows consumers to compare quotes from multiple insurance carriers, helping them to find the best policies to meet their needs.
How the Company Makes MoneySelectQuote generates revenue primarily through commissions earned on the sale of insurance policies. The company partners with numerous insurance carriers, receiving a commission for each policy sold through its platform. This commission-based model allows SelectQuote to monetize its extensive customer base effectively. Additionally, the company may earn referral fees for directing customers to specific insurance providers. SelectQuote's focus on providing a transparent and user-friendly experience attracts a wide audience, contributing to its revenue growth. The company also invests in marketing and technology to enhance its services and expand its reach within the insurance marketplace.
SelectQuote Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Feb 09, 2026
Earnings Call Sentiment Neutral
SelectQuote experienced both positive and negative trends during the fiscal first quarter. The company achieved significant revenue growth in its consolidated and Life Insurance business, alongside operational achievements with the new Kansas facility. However, it faced challenges with declines in Senior segment revenues due to policy changes and a significant EBITDA impact in Healthcare Services caused by reimbursement rate adjustments. These challenges have led to unmet fiscal targets, impacting overall sentiment.Q1-2026 Updates
Positive Updates
Consolidated Revenue Growth
SelectQuote generated consolidated revenue of $329 million, representing a 13% growth over the same period a year ago, driven by strong growth in Healthcare Services.
Life Insurance Business Growth
Revenues expanded nearly 20% in the Life Insurance segment, driven by balanced growth in term life and final expense policies.
New Kansas Facility
The new Kansas facility is ramping as planned, delivering efficiency gains in line with expectations.
SelectRx Clinical Value
SelectRx improves medication adherence and health outcomes, reducing hospital days by around 20% for members, which benefits the healthcare system.
Negative Updates
Senior Revenue Decline
Senior revenues were $59 million compared to $93 million a year ago, driven by a 32% fewer policies due to changes in beneficiary eligibility requirements.
Healthcare Services EBITDA Impact
First quarter Healthcare Services EBITDA was impacted by a change in drug reimbursement rates with a SelectRx PBM partner, affecting the first half of the fiscal year by approximately $20 million.
Consolidated EBITDA Loss
Quarterly EBITDA was negative $32 million, below the guided loss range of $25 million to $30 million due to SelectRx margin dynamics.
Unmet Fiscal Targets
SelectQuote no longer anticipates reaching its $50 million EBITDA target for fiscal '26, aiming instead for an annualized run rate of $40 million to $50 million by year-end.
Company Guidance
During the SelectQuote fiscal first quarter earnings call, several key metrics and guidance were highlighted. The company reported consolidated revenue of $329 million, marking a 13% year-over-year increase, primarily driven by growth in Healthcare Services. However, the Senior segment experienced a 37% decline in revenue to $59 million due to changes in beneficiary eligibility requirements during the special election period, leading to a negative EBITDA of $21 million. Despite this, the company is optimistic about the upcoming Annual Enrollment Period (AEP) and expects to exit fiscal 2026 with an annualized EBITDA run rate between $40 million and $50 million. Additionally, SelectQuote faced a $20 million headwind in Healthcare Services due to a change in drug reimbursement rates from a pharmacy benefit manager (PBM) partner, impacting first and second quarter EBITDA margins. The company remains confident in reaching a longer-term agreement with the PBM, expecting normalized reimbursement rates by January 1, 2026. Overall, SelectQuote maintained its fiscal 2026 financial outlook, projecting revenues of $1.65 billion to $1.75 billion and adjusted EBITDA between $120 million and $150 million, with expectations to be operating cash flow positive for the year.SelectQuote Financial Statement Overview
Summary
SelectQuote shows signs of recovery with improved revenue growth and gross profit margins. However, profitability remains a concern with low net profit margins and negative operating cash flow. The reduction in leverage is a positive sign, but the company needs to address cash flow challenges to ensure long-term financial health.Income Statement
SelectQuote has shown a positive revenue growth trend with a TTM revenue growth rate of 2.39%. The gross profit margin has improved significantly from 45.24% in 2024 to 61.30% in TTM, indicating better cost management. However, the net profit margin remains low at 3.12% in TTM, suggesting limited profitability. The EBIT and EBITDA margins have improved but are still modest, reflecting operational challenges.65
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.17 in TTM from a high of 2.25 in 2024, indicating reduced leverage and better financial stability. However, the return on equity is relatively low at 11.01% in TTM, suggesting limited returns for shareholders. The equity ratio is not provided, which limits a full assessment of asset financing.58
Neutral
Cash Flow
SelectQuote's cash flow situation is challenging, with negative operating cash flow in TTM. The free cash flow growth rate is positive at 40.62% in TTM, but the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is strong at 1.19, suggesting efficient cash generation relative to net income.50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.56B | 1.53B | 1.32B | 1.00B | 764.04M | 929.98M |
| Gross Profit | 723.36M | 591.13M | 597.97M | 475.36M | 308.35M | 659.27M |
| EBITDA | 133.19M | 148.36M | 89.48M | 39.34M | -321.49M | 203.48M |
| Net Income | 61.67M | 47.58M | -34.13M | -58.54M | -297.50M | 124.86M |
Balance Sheet | ||||||
| Total Assets | 1.21B | 1.25B | 1.19B | 1.22B | 1.29B | 1.42B |
| Cash, Cash Equivalents and Short-Term Investments | 10.74M | 32.40M | 42.69M | 83.16M | 141.00M | 286.45M |
| Total Debt | 422.85M | 415.91M | 713.92M | 731.80M | 745.06M | 505.30M |
| Total Liabilities | 660.05M | 673.84M | 877.11M | 872.28M | 898.95M | 756.82M |
| Stockholders Equity | 546.93M | 575.52M | 316.80M | 346.97M | 391.11M | 667.04M |
Cash Flow | ||||||
| Free Cash Flow | -24.39M | -13.86M | 3.57M | -28.50M | -372.96M | -138.43M |
| Operating Cash Flow | -16.68M | -11.67M | 15.24M | -19.38M | -338.31M | -115.44M |
| Investing Cash Flow | -12.72M | -11.31M | -14.85M | -9.13M | -42.58M | -64.02M |
| Financing Cash Flow | 34.66M | 17.36M | -40.86M | -29.34M | 235.43M | 97.04M |
SelectQuote Technical Analysis
Negative
1.40
Price Trends
1.72
Negative
1.88
Negative
2.33
Negative
Market Momentum
-0.08
Negative
40.34
Neutral
54.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLQT, the sentiment is Negative. The current price of 1.4 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.72, and below the 200-day MA of 2.33, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 54.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLQT.
SelectQuote Risk Analysis
SelectQuote disclosed 54 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | $35.81M | 12.80 | 4.56% | ― | 19.30% | -17.56% | |
56 Neutral | $138.44M | 116.17 | 5.88% | ― | 16.79% | ― | |
50 Neutral | $260.44M | -46.49 | 15.11% | ― | 13.16% | ― | |
45 Neutral | $6.54M | -0.27 | -146.43% | ― | -6.84% | 97.23% | |
43 Neutral | $16.43M | -0.20 | -11.18% | ― | 624.24% | 85.46% | |
41 Neutral | $48.28M | -0.18 | -142.05% | ― | 7.56% | -344.04% |
* Financial Sector Average
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SelectQuote Corporate Events
Executive/Board ChangesShareholder Meetings
SelectQuote Holds 2025 Annual Stockholders Meeting
Neutral
Nov 14, 2025
On November 11, 2025, SelectQuote, Inc. held its 2025 Annual Meeting of Stockholders, where 114,443,928 shares were represented. During the meeting, two Class III directors were elected, Deloitte & Touche LLP was ratified as the independent accounting firm for the fiscal year ending June 30, 2026, and the compensation for the company’s named executive officers was approved.
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.