SelectQuote (NYSE:SLQT) Releases Earnings Results, Misses Estimates By $0.03 EPS

SelectQuote (NYSE:SLQT) released its earnings results on Tuesday. The company reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.16) by ($0.03), Zacks reports. The business had revenue of $321.65 million during the quarter, compared to the consensus estimate of $353.44 million. SelectQuote had a net margin of 3.84% and a return on equity of 19.70%.

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

• Fiscal 2026 exceeded expectations, with revenue up 6% to $1.62 billion and Adjusted EBITDA of $109 million, ahead of the $90 million–$100 million guidance range. Operating cash flow improved by $44 million year over year.
• Healthcare Services revenue rose 14% to $845 million, while SelectRx generated $25 million of Adjusted EBITDA and exited the year at an annualized run rate near $50 million. The Kansas facility is delivering approximately 30% greater shipment efficiency than legacy sites, supporting management’s expectation that segment margins will roughly double in fiscal 2027.
• Management expects fiscal 2027 revenue to decline to $1.35 billion–$1.45 billion, driven by a 10%–15% reduction in Medicare Advantage approved policies and a 10%–15% Healthcare Services revenue decline related primarily to Inflation Reduction Act effects. The company is deliberately prioritizing profitability and cash flow over near-term growth.
• SelectQuote identified more than $30 million of annualized expense improvements through AI, automation, process changes, and organizational restructuring. Management forecasts fiscal 2027 operating cash flow of more than $60 million and free cash flow of approximately $50 million, with potential for debt reduction and lower funding costs.
• Medicare Advantage conditions are showing early signs of improvement, but carriers continue to target 3%–4% operating margins and may reduce benefits or terminate plans. SelectQuote plans to remain disciplined in fiscal 2027 while preserving the ability to respond if the market supports responsible growth in plan year 2028.

SelectQuote Trading Down 0.8%

Shares of SelectQuote stock opened at $0.54 on Thursday. SelectQuote has a 52-week low of $0.48 and a 52-week high of $2.54. The stock’s 50-day simple moving average is $0.76 and its 200 day simple moving average is $0.82. The stock has a market capitalization of $95.93 million, a P/E ratio of -6.80 and a beta of 1.66. The company has a debt-to-equity ratio of 0.99, a quick ratio of 5.63 and a current ratio of 6.57.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on SLQT. Zacks Research downgraded SelectQuote from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, July 1st. Weiss Ratings lowered shares of SelectQuote from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday, August 17th. Finally, Noble Financial upgraded shares of SelectQuote to a “strong-buy” rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, SelectQuote has a consensus rating of “Hold” and an average target price of $3.00.

Hedge Funds Weigh In On SelectQuote

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Dynamic Technology Lab Private Ltd bought a new stake in shares of SelectQuote in the third quarter valued at approximately $27,000. Aquatic Capital Management LLC purchased a new stake in shares of SelectQuote during the 3rd quarter valued at approximately $29,000. CIBC Bancorp USA Inc. bought a new position in SelectQuote in the 3rd quarter worth approximately $29,000. Russell Investments Group Ltd. grew its stake in SelectQuote by 90.7% in the 2nd quarter. Russell Investments Group Ltd. now owns 16,133 shares of the company’s stock valued at $38,000 after buying an additional 7,675 shares in the last quarter. Finally, Mackenzie Financial Corp purchased a new position in SelectQuote in the 3rd quarter valued at approximately $43,000. Institutional investors own 34.59% of the company’s stock.

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.