SelectQuote (SLQT) AI Stock Analysis

• Market Cap: $271.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• 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: 175,971,740
• 10 Day Avg. Volume: 1,257,106
• 30 Day Avg. Volume: 1,013,937
• 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: 3.74
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 1.40
• Enterprise Value/Ebitda: 7.62
• 1Y Price Target: $6.00
• Price Target Upside: 289.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $2.00 ▲(29.87% Upside)

The score is held back primarily by challenged cash generation (negative operating cash flow) and thin profitability, despite improvements in gross margin and leverage. Technically, shares show short-term strength but remain below longer-term averages with momentum indicators not fully supportive. Valuation is difficult given the negative P/E, while the earnings call and new credit facility add some support via maintained outlook and improved liquidity.

Positive Factors

Improved liquidity from new credit facility

The $415M senior secured facility lengthens debt maturity to 2031, raises revolver capacity and reduces amortization. This structurally strengthens liquidity and gives multi-year breathing room to execute operational fixes, fund seasonality, and convert improving margins into sustained cash flow.

Sustained gross margin improvement

Gross margin rising to ~61% from mid-40s reflects material cost and mix improvements that enhance operating leverage. If retained, higher gross margins provide a durable buffer to absorb SG&A volatility and support long-term cash generation and reinvestment into growth initiatives.

Diversified growth outside Senior segment

Nearly 20% Life insurance revenue growth and 13% consolidated growth indicate diversification beyond Medicare-driven Senior sales. Strong Life and Healthcare Services momentum can reduce dependence on a single policy stream, stabilizing commissions and supporting multi-channel cross-sell opportunities.

Negative Factors

Negative operating cash flow

Negative operating cash flow in the trailing period signals cash conversion weaknesses despite improving gross margins. Persistent OCF deficits would limit internal funding for marketing and agent capacity, increase reliance on debt or receivable-backed financing, and constrain long-term value creation.

Sharp Senior segment revenue decline

A 37% Senior revenue drop and 32% fewer policies from eligibility changes undermine the core Medicare-focused business that drives most commissions. Structural or regulatory shifts that reduce enrollments pose a durable earnings risk and make revenue recovery dependent on policy and enrollment normalization.

Contractual reimbursement risk (PBM)

A ~$20M EBITDA headwind from PBM reimbursement changes highlights exposure to third-party contract terms. Dependence on PBM pricing and reimbursement creates ongoing margin volatility risk for Healthcare Services until long-term agreements are secured and could materially affect sustained profitability.

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

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 1.54
• 50DMA: Positive
• 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 Positive. The current price of 1.54 is above the 20-day moving average (MA) of 1.41, above the 50-day MA of 1.48, and below the 200-day MA of 2.11, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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%
EHTH	58 Neutral	$115.98M	101.62	5.88%	―	16.79%	―
SLQT	54 Neutral	$271.00M	-51.51	15.11%	―	13.16%	―
HUIZ	46 Neutral	$22.80M	9.07	4.56%	―	19.30%	-17.56%
GOCO	44 Neutral	$36.53M	-0.14	-142.05%	―	7.56%	-344.04%
RELI	44 Neutral	$5.12M	-0.22	-146.43%	―	-6.84%	97.23%
TIRX	43 Neutral	$13.58M	-0.12	-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.