SelectQuote (SLQT) AI Stock Analysis

• Market Cap: $152.09M
• Dividend Yield: N/A
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: 13.16%
• EPS Growth: N/A
• Country: US
• Employees: 4,292
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 0.26
• Shares Outstanding: 176,289,660
• 10 Day Avg. Volume: 1,012,178
• 30 Day Avg. Volume: 1,459,978
• 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 Cap: 3.86
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 0.52
• Enterprise Value/Ebitda: 3.60
• 1Y Price Target: $4.00
• Price Target Upside: 365.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.12
• Revenue Forecast (FY): $1.67B

• Rating: 55 Neutral
• Price Target: $0.99 ▲(15.58% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score reflects improving fundamentals and a constructive earnings-call outlook (profitability recovery, sharply improved leverage, and expectations for better FY2026 operating cash flow), tempered by very weak technical momentum (below major moving averages with negative MACD and oversold readings) and limited valuation support due to a negative P/E and no dividend yield data.

Positive Factors

De-risked balance sheet and extended liquidity

The new $415M facility materially extends debt maturities to 2031, raises revolver capacity and can lower interest costs. That structural improvement reduces refinancing risk, smooths seasonal liquidity needs tied to commissions receivable and gives management optionality for investments or buybacks over the medium term.

High and durable Senior-segment margins

The senior business is the core cash engine: near‑record 39% margins and rising approved policy volume demonstrate strong unit economics and pricing power with carriers. Durable high margins in the flagship segment support sustainable earnings and cash generation even if growth moderates.

SelectRx (healthcare services) structural growth and clinical impact

SelectRx shows durable, double‑digit member and revenue growth and produces measurable clinical outcomes (fewer hospital days). Those outcomes drive payer/carrier value, stickier relationships and growing recurring revenue, improving long‑term profitability and strategic diversification away from pure commission sales.

Negative Factors

Weak and inconsistent cash conversion

Operating and free cash flows are positive but modest relative to revenue and volatile across years. Inconsistent cash conversion limits internal funding for marketing and margin expansion, increases reliance on credit facilities for seasonality, and raises sensitivity to one‑time reimbursement or carrier shocks.

Concentration exposure to PBM/carrier actions and regulatory rates

Material, discrete actions by PBMs and national carriers produced a large guidance hit, highlighting structural concentration and contract risk. Ongoing CMS rate uncertainty and carrier marketing changes can persistently reduce enrollments, commissions, or reimbursement, compressing revenue and predictability.

Overall profitability remains thin; margin durability uncertain

Although earnings recovered from losses, consolidated margins are still narrow versus historical peaks. Thin margins increase vulnerability to commission rate moves, marketing cost inflation, or industry disruptions and constrain the company's ability to self‑fund growth or absorb further adverse carrier or regulatory changes.

SelectQuote Business Overview & Revenue Model

Company Description

SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance policies to consumers from various insurance carriers in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related policies, including prescription drugs, dental, vision, and hearing plans; term life policies; and non-commercial auto and home property, and casualty policies. The company was incorporated in 1999 and is headquartered in Overland Park, Kansas.

How the Company Makes Money

SelectQuote 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 Financial Statement Overview

Summary

Financials show a credible recovery with profitability returning and a materially de-risked balance sheet (debt-to-equity ~0.14x; ROE positive again). However, profitability remains thin versus prior peak levels and cash generation is inconsistent, with weak cash conversion and volatility in operating/free cash flow keeping the overall financial profile only moderately strong.

Income Statement

Results show a clear earnings recovery from sizable losses in 2022–2024 to profitability in 2025, alongside steady top-line expansion (TTM (Trailing-Twelve-Months) revenue up 3.6%). Profitability is still relatively thin on a TTM (Trailing-Twelve-Months) basis (net margin ~3.7% and EBIT margin ~3.1%), well below the stronger profile seen in 2021, indicating the turnaround is real but not yet fully re-established. Overall, improving trajectory is a positive, but margin durability remains a key watch item.

Balance Sheet

Leverage has improved materially: debt-to-equity moved from very elevated levels in 2023–2024 (above 2x) to a much more conservative position in the TTM (Trailing-Twelve-Months) data (debt-to-equity ~0.14x), implying significantly reduced balance-sheet risk. Equity is sizable relative to assets (TTM equity of ~$620M vs. assets of ~$1.35B), and returns on equity are positive again (TTM ~11.7%) after negative levels in prior years. The main drawback is the recent history of volatility in profitability and capital structure, even though the latest snapshot is much healthier.

Cash Flow

Cash generation is currently modest: TTM (Trailing-Twelve-Months) operating cash flow (~$12M) and free cash flow (~$8M) are positive, but the business has shown inconsistency with negative operating and free cash flow in 2023 and again in 2025 annual data. Free cash flow growth is sharply negative in the TTM (Trailing-Twelve-Months) period, and operating cash flow is low relative to revenue, signaling that accounting profitability is not consistently translating into cash. Strength is the return to positive free cash flow in the latest period, but volatility and weak cash conversion keep this vertical below average.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.62B	1.53B	1.32B	1.00B	764.04M	929.98M
Gross Profit	1.13B	591.13M	597.97M	475.36M	308.35M	659.27M
EBITDA	163.08M	148.36M	89.48M	39.34M	-321.49M	203.48M
Net Income	77.72M	47.58M	-34.13M	-58.54M	-297.50M	124.86M
Balance Sheet
Total Assets	1.35B	1.25B	1.19B	1.22B	1.29B	1.42B
Cash, Cash Equivalents and Short-Term Investments	22.20M	32.40M	42.69M	83.16M	141.00M	286.45M
Total Debt	457.83M	415.91M	713.92M	731.80M	745.06M	505.30M
Total Liabilities	732.62M	673.84M	877.11M	872.28M	898.95M	756.82M
Stockholders Equity	619.64M	575.52M	316.80M	346.97M	391.11M	667.04M
Cash Flow
Free Cash Flow	8.47M	-13.86M	3.57M	-28.50M	-372.96M	-138.43M
Operating Cash Flow	12.07M	-11.67M	15.24M	-19.38M	-338.31M	-115.44M
Investing Cash Flow	-14.10M	-11.31M	-14.85M	-9.13M	-42.58M	-64.02M
Financing Cash Flow	11.74M	17.36M	-40.86M	-29.34M	235.43M	97.04M

SelectQuote Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.86 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.27, and below the 200-day MA of 1.82, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 34.02 is Neutral, neither overbought nor oversold. The STOCH value of 58.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLQT.

SelectQuote Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLQT	55 Neutral	$152.09M	-13.10	16.44%	―	13.16%	―
EHTH	52 Neutral	$38.53M	-2.70	4.22%	―	16.79%	―
HUIZ	46 Neutral	$20.11M	7.99	4.56%	―	19.30%	-17.56%
GOCO	44 Neutral	$21.73M	-0.08	-142.05%	―	7.56%	-344.04%
TIRX	43 Neutral	$4.72M	-0.01	-11.18%	―	624.24%	85.46%

SelectQuote Corporate Events

SelectQuote secures new $415 million credit facility

On January 8, 2026, SelectQuote entered into a new $415 million senior secured credit facility consisting of a $325 million term loan led by Pathlight Capital and a $90 million revolving credit facility with UMB Bank, using roughly $313.8 million of the term loan proceeds to fully repay its prior debt and cover transaction costs. Announced publicly on January 12, 2026, the financing significantly extends the company’s debt maturity to January 2031, modestly lowers its cost of capital, increases peak-season revolver capacity from $72 million to $90 million, and reduces principal amortization requirements, collectively strengthening liquidity and operational flexibility as the company looks to leverage its roughly $1 billion in commissions receivable and the growing cash generation of its SelectRx and healthcare services operations, while its obligations remain secured by substantially all company and guarantor subsidiary assets and subject to customary covenants, coverage ratios, and borrowing-base tests tied to receivables.

The most recent analyst rating on (SLQT) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on SelectQuote stock, see the SLQT Stock Forecast page.

SelectQuote Holds 2025 Annual Stockholders Meeting

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.

The most recent analyst rating on (SLQT) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on SelectQuote stock, see the SLQT Stock Forecast page.