SelectQuote (SLQT)
NYSE:SLQT
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SelectQuote
(NYSE:SLQT)
Select Model
Select Model
Rating:58Neutral
Price Target:
$0.66
▲(11.02% 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 & liquidity
The new $415M senior secured facility extends debt maturities to 2031, raises revolver capacity and reduces amortization. That materially lowers near‑term refinancing risk, increases peak‑season liquidity and gives management optionality to invest or absorb shocks over multiple years.
Negative Factors
Inconsistent cash conversion
Cash generation remains modest and volatile; OCF and FCF swung negative in recent years and TTM cash is small versus revenue. Weak, inconsistent cash conversion limits capacity to self‑fund growth, pay down debt or absorb shocks without relying on credit or capital raises over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
De‑risked balance sheet & liquidity
The new $415M senior secured facility extends debt maturities to 2031, raises revolver capacity and reduces amortization. That materially lowers near‑term refinancing risk, increases peak‑season liquidity and gives management optionality to invest or absorb shocks over multiple years.
Read all positive factors
SelectQuote (SLQT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$104.66M
Dividend YieldN/A
Average Volume (3M)1.34M
Price to Earnings (P/E)0.9
Beta (1Y)1.35
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. Volume1,304,408
30 Day Avg. Volume1,340,724
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 Cap5.16
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit0.48
Enterprise Value/Ebitda3.31
Forecast
1Y Price Target
$4.00Price Target Upside577.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.12
Revenue Forecast (FY)$1.67B
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 a consumer enrolls in a policy through SelectQuote’s platform and licensed agents. The largest revenue driver has been its Senior segment (Medicare-related produ...
SelectQuote Key Performance Indicators (KPIs)
SelectQuote Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 07, 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
Negative
0.59
Price Trends
0.99
Negative
1.24
Negative
1.67
Negative
Market Momentum
-0.10
Negative
29.63
Positive
18.10
Positive
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 0.59 is below the 20-day moving average (MA) of 0.69, below the 50-day MA of 0.99, and below the 200-day MA of 1.67, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 29.63 is Positive, neither overbought nor oversold. The STOCH value of 18.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $104.66M | 0.95 | 13.52% | ― | 13.16% | ― | |
55 Neutral | $39.77M | 3.50 | 4.33% | ― | 16.79% | ― | |
46 Neutral | $16.65M | 0.17 | 4.56% | ― | 19.30% | -17.56% | |
41 Neutral | $25.02M | -0.09 | -87.95% | ― | 7.56% | -344.04% |
* Financial Sector Average
SLQT
SelectQuote
0.59
-2.75
-82.25%
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1.28
-5.40
-80.84%
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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’...
Business Operations and StrategyPrivate Placements and Financing
SelectQuote secures new $415 million credit facility
Positive
Jan 12, 2026
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 ...
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.