SelectQuote (NYSE:SLQT) Announces Earnings Results, Beats Estimates By $0.17 EPS

SelectQuote (NYSE:SLQT) announced its earnings results on Tuesday. The company reported $0.15 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.02) by $0.17, Zacks reports. SelectQuote had a net margin of 5.60% and a return on equity of 20.49%. The business had revenue of $430.93 million during the quarter, compared to the consensus estimate of $438.93 million.

Here are the key takeaways from SelectQuote’s conference call:

• SelectQuote reported a strong quarter with $431 million in revenue and $45 million of Adjusted EBITDA (18% YoY growth), and management reaffirmed its fiscal 2026 guidance.
• Senior segment revenue rose 8% to $183 million; Senior Adjusted EBITDA was $59 million including a $14 million favorable change in estimate to commissions receivable, and management highlights a nearly $1 billion commissions receivable asset on the balance sheet.
• Healthcare services (SelectRx) generated $199 million of revenue; sequential top-line decline was driven by the Inflation Reduction Act but EBITDA impact was limited to low single-digit millions, and management expects SelectRx can reach a $40–50 million EBITDA run rate in the near term.
• Management is actively pursuing capital-market options (securitization, potential M&A or other transactions) to unlock receivable value and has committed to maintaining the company’s NYSE listing, signaling steps to address the equity valuation disconnect.
• The company introduced SelectQuote Local, a franchise model to broaden its addressable market with minimal capital investment, but it will not be a meaningful revenue driver in the near term.

SelectQuote Stock Down 8.2%

SelectQuote stock traded down $0.10 during midday trading on Thursday, hitting $1.10. 1,687,782 shares of the stock were exchanged, compared to its average volume of 1,682,536. SelectQuote has a 52-week low of $0.56 and a 52-week high of $2.80. The stock has a market capitalization of $194.27 million, a price-to-earnings ratio of 12.23 and a beta of 1.62. The business’s 50-day moving average price is $0.75 and its 200-day moving average price is $1.22. The company has a quick ratio of 5.65, a current ratio of 5.63 and a debt-to-equity ratio of 0.92.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on SLQT. Noble Financial raised shares of SelectQuote to a “strong-buy” rating in a research note on Wednesday. Craig Hallum set a $3.00 target price on shares of SelectQuote in a research note on Friday, February 6th. Zacks Research upgraded shares of SelectQuote from a “hold” rating to a “strong-buy” rating in a report on Friday, February 6th. Royal Bank Of Canada reduced their price target on shares of SelectQuote from $5.00 to $3.00 and set a “sector perform” rating for the company in a report on Wednesday, February 11th. Finally, Wall Street Zen upgraded shares of SelectQuote from a “sell” rating to a “hold” rating in a report on Saturday, February 7th. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $2.92.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in SelectQuote by 6.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 81,854 shares of the company’s stock worth $273,000 after purchasing an additional 4,947 shares during the last quarter. Russell Investments Group Ltd. boosted its holdings in SelectQuote by 90.7% during the second quarter. Russell Investments Group Ltd. now owns 16,133 shares of the company’s stock worth $38,000 after purchasing an additional 7,675 shares during the last quarter. Ameriprise Financial Inc. boosted its holdings in SelectQuote by 9.5% during the second quarter. Ameriprise Financial Inc. now owns 91,765 shares of the company’s stock worth $218,000 after purchasing an additional 7,960 shares during the last quarter. Creative Planning boosted its holdings in SelectQuote by 8.5% during the second quarter. Creative Planning now owns 121,597 shares of the company’s stock worth $289,000 after purchasing an additional 9,504 shares during the last quarter. Finally, Dynamic Technology Lab Private Ltd purchased a new position in SelectQuote during the third quarter worth about $27,000. 34.59% of the stock is currently owned by hedge funds and other institutional investors.

SelectQuote Company Profile

SelectQuote, Inc (NYSE: SLQT) is a U.S.-based insurance brokerage and lead generation company that connects consumers with a range of insurance products through proprietary technology and licensed agents. The company specializes in life insurance, supplemental health coverage and Medicare plans, leveraging its digital platform and call center operations to help individuals compare policies and find cost-effective solutions tailored to their needs.

Through a single point of contact, policy seekers can evaluate offerings from multiple carriers, including term life, whole life, accidental death, critical illness and long-term care products.