SelectQuote (SLQT) AI Stock Analysis

• Market Cap: $300.54M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: 20.41%
• EPS Growth: 93.09%
• Country: US
• Employees: 4,292
• Sector: Financial
• Sector Strength: 67
• Industry: Insurance - Brokers
• EPS (TTM): 0.11
• Shares Outstanding: 172,721,270
• 10 Day Avg. Volume: 1,197,108
• 30 Day Avg. Volume: 1,100,007
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.89
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 1.51
• Enterprise Value/Ebitda: 13.43
• 1Y Price Target: $5.25
• Price Target Upside: 182.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: $2.00 ▲(7.53% Upside)

SelectQuote's overall stock score is driven by solid revenue growth and effective cash management, although profitability challenges and a weak technical outlook are significant concerns. The earnings call provided positive insights into growth and efficiency, but legal and operational pressures, along with leadership changes, add uncertainty. The valuation score is weakened by negative earnings and the absence of a dividend yield, further impacting the stock's attractiveness.

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 makes money primarily through commission fees paid by insurance carriers for the policies sold through its platform. When a customer purchases an insurance policy via SelectQuote, the company earns a commission from the insurance carrier, which is typically a percentage of the policy's premium. Additionally, SelectQuote may receive renewal commissions if a customer continues to renew their policy. The company also benefits from significant partnerships with various insurance carriers, which enhance its product offerings and customer reach. By leveraging its technology platform, SelectQuote aims to optimize the customer acquisition process and increase conversion rates, thereby boosting its revenue.

SelectQuote Financial Statement Overview

Summary

SelectQuote demonstrates solid revenue growth and effective cash management. However, profitability remains a concern with ongoing net losses. The balance sheet indicates moderate financial stability with low leverage, but negative ROE underscores profitability challenges. Overall, while the company shows potential through revenue and cash flow improvements, it must address profitability to enhance financial health.

Income Statement

The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 51.8% and a net profit margin of -0.1%, indicating strong gross profit but negative net income. Revenue growth from the previous year is 12.6%, indicating moderate sales growth. EBIT margin is at 5.3% and EBITDA margin at 5.8%, suggesting operating profitability but limited by high expenses. Despite revenue growth, the net profitability remains a challenge due to high operational costs.

Balance Sheet

The debt-to-equity ratio stands at 0.17, reflecting manageable leverage. Return on equity (ROE) is negative due to a net loss, impacting overall investor returns. The equity ratio is 27.0%, indicating a reasonable level of equity financing. Overall, the balance sheet displays moderate financial stability with a positive equity position but is affected by negative earnings.

Cash Flow

The free cash flow growth rate is substantial at 1,066.1%, driven by improved cash flow management. The operating cash flow to net income ratio is -21.9, indicating strong cash generation compared to net losses. The free cash flow to net income ratio is -19.9, showing positive free cash flow despite net losses. This indicates effective cash management practices offsetting net income challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	1.00B	764.04M	937.82M	531.51M
Gross Profit	597.97M	475.36M	297.24M	667.10M	364.12M
EBITDA	89.48M	29.91M	-320.65M	204.26M	139.92M
Net Income	-34.13M	-58.54M	-297.50M	124.86M	79.48M
Balance Sheet
Total Assets	1.19B	1.22B	1.29B	1.43B	1.07B
Cash, Cash Equivalents and Short-Term Investments	42.69M	83.16M	141.00M	286.45M	321.06M
Total Debt	713.92M	731.58M	744.80M	502.72M	311.81M
Total Liabilities	877.11M	872.28M	898.95M	758.98M	528.10M
Stockholders Equity	316.80M	346.97M	391.11M	674.89M	545.69M
Cash Flow
Free Cash Flow	3.57M	-28.50M	-372.96M	-138.43M	-77.33M
Operating Cash Flow	15.24M	-19.38M	-338.31M	-115.44M	-61.78M
Investing Cash Flow	-14.85M	-9.13M	-42.58M	-64.02M	-51.37M
Financing Cash Flow	-40.86M	-29.34M	235.43M	97.04M	481.45M

SelectQuote Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.86 is below the 20-day moving average (MA) of 2.01, below the 50-day MA of 2.18, and below the 200-day MA of 3.05, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 45.60 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 *	63 Neutral	€13.46B	9.53	5.49%	3.96%	13.93%	9.46%
SLQT	58 Neutral	$300.54M	―	0.82%	―	20.41%	93.09%
HUIZ	51 Neutral	$23.67M	11.44	-3.92%	―	0.48%	-127.19%
GOCO	51 Neutral	$65.69M	―	-13.38%	―	13.18%	97.01%
EHTH	47 Neutral	$144.35M	―	4.45%	―	16.19%	89.75%
RELI	45 Neutral	$4.35M	―	-223.86%	―	1.07%	96.67%
TIRX	41 Neutral	$115.70M	―	-12.03%	―	158.74%	14.86%

SelectQuote Corporate Events

SelectQuote Amends Credit Agreement with Ares Capital

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.

The most recent analyst rating on (SLQT) stock is a Hold with a $2.75 price target. To see the full list of analyst forecasts on SelectQuote stock, see the SLQT Stock Forecast page.

SelectQuote Announces Passing of Vice Chairman Grant

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.

The most recent analyst rating on (SLQT) stock is a Hold with a $2.75 price target. To see the full list of analyst forecasts on SelectQuote stock, see the SLQT Stock Forecast page.