SelectQuote (SLQT)
NYSE:SLQT
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SelectQuote
(NYSE:SLQT)
Select Model
Select Model
Rating:58Neutral
Price Target:
$0.78
▲(0.13% Upside)
Action:ReiteratedDate:03/26/26
The score is anchored by an improving fundamental picture (profitability recovery and a much healthier balance sheet) and a supportive low P/E, but it is held back by weak cash-flow consistency, clearly bearish technicals (below key moving averages with negative MACD), and a notable near-term risk backdrop from reduced guidance/headwinds plus NYSE listing compliance pressure.
Positive Factors
De-risked balance sheet
Leverage has fallen materially to ~0.14x debt-to-equity and equity is sizable versus assets, which meaningfully reduces refinancing and solvency risk. This durable improvement expands capital flexibility for AEP seasonality, strategic investments and cushions regulatory or partner shocks.
Negative Factors
Inconsistent cash generation
Cash conversion has been volatile with small absolute TTM OCF/FCF and prior-year negative periods. That inconsistency constrains reinvestment in marketing or agent incentives, increases reliance on debt or facilities for seasonality, and limits cushion against recurring industry shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
De-risked balance sheet
Leverage has fallen materially to ~0.14x debt-to-equity and equity is sizable versus assets, which meaningfully reduces refinancing and solvency risk. This durable improvement expands capital flexibility for AEP seasonality, strategic investments and cushions regulatory or partner shocks.
Read all positive factors
SelectQuote (SLQT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$132.50M
Dividend YieldN/A
Average Volume (3M)1.09M
Price to Earnings (P/E)0.9
Beta (1Y)1.43
Revenue Growth13.16%
EPS GrowthN/A
CountryUS
Employees4,292
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)0.26
Shares Outstanding176,289,660
10 Day Avg. Volume850,257
30 Day Avg. Volume1,094,945
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 Cap4.31
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit0.51
Enterprise Value/Ebitda3.50
Forecast
1Y Price Target
$4.00Price Target Upside412.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.1
Revenue Forecast (FY)$1.66B
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: Seni...
How the Company Makes Money
SelectQuote primarily makes money by earning commissions from insurance carriers when it successfully sells and enrolls customers into policies. Its core revenue streams are: (1) Medicare (Senior segment): The company markets and sells Medicare Ad...
SelectQuote Key Performance Indicators (KPIs)
SelectQuote Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call described strong operational execution: double‑digit consolidated revenue growth, near‑record senior margins (39%), rapid SelectRx revenue growth (26% YoY) and measurable clinical outcomes (20% fewer hospital days). Management secured a multiyear PBM agreement and a $415M credit facility that materially improves visibility and capital flexibility. However, the quarter and fiscal 2026 guidance were meaningfully impacted by two discrete headwinds (~$20M PBM reimbursement adjustment and ~$20M from a national carrier marketing cut), prompting a revised adjusted EBITDA range of $90–$100M and signaling near‑term uncertainty from industry disruption and preliminary CMS rate guidance. Overall the operational and cash flow improvements and strategic balance sheet actions outweigh the near‑term, largely one‑time headwinds, leaving management optimistic about long‑term profitability and cash generation.Positive Updates
Consolidated Revenue Growth
Consolidated revenue grew 12% year-over-year to $537 million in the quarter.
Negative Updates
Guidance Reduced Due to Aggregate $40M Headwind
Fiscal 2026 guidance was lowered: consolidated revenue range revised to $1.61–$1.71 billion and adjusted EBITDA to $90–$100 million after an aggregate ~$40 million impact (approximately $20 million from PBM reimbursement changes and ~$20 million from a national carrier reducing marketing spend).
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated revenue grew 12% year-over-year to $537 million in the quarter.
Read all positive updates
Company Guidance
SelectQuote narrowed fiscal 2026 guidance to consolidated revenue of $1.61–$1.71 billion and adjusted EBITDA of $90–$100 million after an aggregate ~ $40 million headwind (about $20M from PBM reimbursement changes and $20M from a carrier marketing cut); management still expects operating cash flow of $25–$35 million (more than $40M higher at the midpoint versus last year) and roughly 20% growth in cash EBITDA year‑over‑year. They reiterated longer‑term targets of 20%+ EBITDA margins for the senior division and an annualized adjusted EBITDA exit run‑rate of $40–$50 million for health care services, expect SelectRx membership to finish fiscal 2026 flat to modestly down from 113,000 while driving 20%+ year‑over‑year revenue growth, and cited a new $415 million credit facility that extends maturities to 2031 and could reduce the term rate by up to 100 basis points.SelectQuote Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
45
Neutral
| 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
Neutral
0.78
Price Trends
0.75
Positive
1.10
Negative
1.56
Negative
Market Momentum
>-0.01
Negative
59.30
Neutral
90.69
Negative
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 0.78 is above the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.75, and below the 200-day MA of 1.56, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 90.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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% | |
58 Neutral | $132.50M | 0.95 | 13.52% | ― | 13.16% | ― | |
55 Neutral | $57.17M | 3.50 | 4.33% | ― | 16.79% | ― | |
46 Neutral | $17.05M | 2.52 | 4.56% | ― | 19.30% | -17.56% | |
43 Neutral | $36.35M | -0.21 | -135.15% | ― | 7.56% | -344.04% |
* Financial Sector Average
SLQT
SelectQuote
0.77
-2.32
-75.16%
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SelectQuote Corporate Events
Delistings and Listing ChangesFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
SelectQuote Faces NYSE Listing Compliance Challenge Amid Pressure
Negative
Mar 25, 2026
On March 19, 2026, SelectQuote received a notice from the New York Stock Exchange that it was no longer in compliance with listing standards because its average share price had fallen below $1 over a 30‑day trading period. The company’...
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.