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SelectQuote (SLQT)
NYSE:SLQT
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SelectQuote
(NYSE:SLQT)
Rating:63Neutral
Price Target:
$3.00
▲(32.74% Upside)
SelectQuote (SLQT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$390.57M
Dividend YieldN/A
Average Volume (3M)2.23M
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth15.50%
EPS GrowthN/A
CountryUS
Employees4,292
SectorFinancial
Sector Strength78
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)-0.02
Shares Outstanding172,816,730
10 Day Avg. Volume4,283,485
30 Day Avg. Volume2,230,353
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.67
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit1.12
Enterprise Value/Ebitda9.55
Forecast
1Y Price Target
$4.80Price Target Upside112.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
SelectQuote Business Overview & Revenue Model
Company DescriptionSelectQuote, 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 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:Aug 21, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth driven by the Healthcare Services segment and impressive agent productivity. However, challenges in the Medicare Advantage market and expected lower EBITDA margins in fiscal 2026 present concerns. The integration of technology and AI shows potential for further efficiency gains.Q4-2025 Updates
Positive Updates
Revenue Growth
SelectQuote reported consolidated revenue of $1.5 billion for fiscal 2025, a 16% increase compared to the previous year.
Healthcare Services Success
The Healthcare Services segment, driven by SelectRx, grew 55% year-over-year, reaching nearly $0.75 billion in revenue.
Agent Productivity
Record-breaking agent productivity increased by 24%, contributing to above-target EBITDA margins for the third consecutive year.
Adjusted EBITDA
SelectQuote achieved $126 million in adjusted EBITDA, with a margin of 8%, maintaining stability despite adding lower-margin healthcare services revenue.
Tech and AI Integration
Significant advancements in AI and technology led to a 25% reduction in enrollment time and a 30% reduction in health needs assessment call duration.
Negative Updates
Medicare Advantage Challenges
The Senior Medicare Advantage business faced a challenging market with significant plan changes and new SEP parameters.
Lower EBITDA Margins Expected
Fiscal 2026 is expected to show a dampening effect on EBITDA margins due to a higher mix of SelectRx revenue.
First Quarter EBITDA Loss
Expected consolidated adjusted EBITDA loss of $25 million to $30 million for the first quarter of fiscal 2026 due to SEP dynamics and AEP hiring.
Company Guidance
During the SelectQuote Fourth Quarter Earnings Call for fiscal year 2025, the company provided a robust guidance for the upcoming year, emphasizing both growth and cash flow generation. SelectQuote anticipates consolidated revenue to increase by approximately 11% year-over-year, targeting a range of $1.65 billion to $1.75 billion, with significant contributions from its Healthcare Services segment, which is expected to grow by around 20%. The company also projected adjusted EBITDA to be between $120 million to $150 million, representing a growth of 7% at the midpoint. A key highlight was the expected growth in the Healthcare Services EBITDA to exceed $50 million. The company emphasized the ongoing strategic shift towards balancing growth with cash flow, expecting to achieve operating cash flow positivity for fiscal 2026 and beyond, driven by a diversified revenue model that leverages both the Senior and Healthcare Services segments. SelectQuote's focus on operational efficiency, particularly through AI and technology, aims to continue enhancing agent productivity and service quality, supporting the company's strategic vision within the $5 trillion U.S. healthcare market.SelectQuote Financial Statement Overview
Summary
SelectQuote is showing signs of recovery with improved revenue growth and profitability margins. The balance sheet reflects reduced leverage, enhancing financial stability. However, cash flow challenges persist, posing liquidity risks. Continued focus on improving cash flow and profitability will be crucial for sustained financial health.Income Statement
SelectQuote has shown a positive revenue growth rate of 2.55% in the TTM, indicating a recovery from previous declines. The gross profit margin has improved to 61.3%, reflecting efficient cost management. However, the net profit margin remains low at 3.12%, suggesting limited profitability. The EBIT and EBITDA margins have improved, indicating better operational efficiency, but there is still room for improvement in profitability.72
Positive
Balance Sheet
The company's debt-to-equity ratio has significantly improved to 0.28 in the TTM, indicating reduced leverage and financial risk. Return on equity has turned positive at 12.65%, showcasing improved profitability. However, the equity ratio remains moderate, suggesting a balanced capital structure but with potential risks if debt levels increase again.65
Positive
Cash Flow
SelectQuote's cash flow situation is challenging, with negative operating and free cash flows in the TTM. The free cash flow to net income ratio is positive, indicating some ability to cover net income with free cash flow. However, the negative growth in free cash flow and operating cash flow coverage ratio highlight liquidity concerns that need addressing.58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.53B | 1.53B | 1.32B | 1.00B | 764.04M | 937.82M |
| Gross Profit | 935.74M | 1.22B | 597.97M | 475.36M | 297.24M | 667.10M |
| EBITDA | 109.36M | 143.38M | 89.48M | 29.91M | -320.65M | 204.26M |
| Net Income | 47.58M | 47.58M | -34.13M | -58.54M | -297.50M | 124.86M |
Balance Sheet | ||||||
| Total Assets | 1.49B | 1.25B | 1.19B | 1.22B | 1.29B | 1.43B |
| Cash, Cash Equivalents and Short-Term Investments | 35.73M | 32.40M | 42.69M | 83.16M | 141.00M | 286.45M |
| Total Debt | 99.33M | 415.91M | 713.92M | 731.58M | 744.80M | 505.30M |
| Total Liabilities | 909.82M | 673.84M | 877.11M | 872.28M | 898.95M | 758.98M |
| Stockholders Equity | 575.52M | 575.52M | 316.80M | 346.97M | 391.11M | 674.89M |
Cash Flow | ||||||
| Free Cash Flow | -13.86M | -13.86M | 11.85M | -28.50M | -372.96M | -138.43M |
| Operating Cash Flow | -11.67M | -11.67M | 15.24M | -19.38M | -338.31M | -115.44M |
| Investing Cash Flow | -11.31M | -11.31M | -14.85M | -9.13M | -42.58M | -64.02M |
| Financing Cash Flow | 17.36M | 17.36M | -40.86M | -29.34M | 235.43M | 97.04M |
SelectQuote Technical Analysis
Neutral
2.26
Price Trends
2.17
Positive
2.38
Negative
3.06
Negative
Market Momentum
0.09
Negative
53.10
Neutral
53.06
Neutral
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 2.26 is above the 20-day moving average (MA) of 2.10, above the 50-day MA of 2.17, and below the 200-day MA of 3.06, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 53.06 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $17.93B | 11.86 | 10.28% | 3.71% | 9.75% | 1.60% | |
63 Neutral | $390.57M | ― | 10.66% | ― | 15.50% | ― | |
52 Neutral | $25.32M | 11.44 | -3.92% | ― | 0.48% | -127.19% | |
48 Neutral | $118.26M | ― | 4.45% | ― | 16.19% | 89.75% | |
45 Neutral | $4.34M | ― | -223.86% | ― | 1.07% | 96.67% | |
45 Neutral | $81.70M | ― | -13.38% | ― | 17.46% | 60.17% | |
41 Neutral | $72.28M | ― | -11.18% | ― | 624.24% | 85.46% |
* Financial Sector Average
Performance Comparison
SLQT
SelectQuote
2.26
-1.42
-38.59%
EHTH
Ehealth
3.87
0.11
2.93%
RELI
Reliance Global Group
0.97
-1.72
-63.94%
HUIZ
Huize Holding
2.51
-2.01
-44.47%
TIRX
Tian Ruixiang Holdings
0.59
-1.14
-65.90%
GOCO
GoHealth
5.11
-3.28
-39.09%
SelectQuote Corporate Events
Private Placements and Financing
SelectQuote Amends Credit Agreement with Ares Capital
Neutral
Jul 29, 2025
On July 25, 2025, SelectQuote, Inc. amended its Credit Agreement with Ares Capital Corporation and UMB Bank, extending the revolving facility termination date to September 30, 2027. This amendment, which includes a fee for lenders, impacts the company’s financial operations by providing extended credit flexibility.
Executive/Board Changes
SelectQuote Announces Passing of Vice Chairman Grant
Negative
Jul 2, 2025
On July 1, 2025, SelectQuote announced the passing of William T. Grant II, Vice Chairman and former President, who played a crucial role in the company’s evolution into a diversified insurance and healthcare services business. His leadership significantly impacted the company’s success and the lives of its associates. His sons, Bill and Bob Grant, will continue in their executive roles at SelectQuote.
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.