SelectQuote, Inc.

What they do

SelectQuote identifies consumers seeking insurance and places them with insurance carrier partners, earning commissions on policies sold rather than underwriting risk itself. It operates three reportable segments: Senior, Healthcare Services and Life, plus a de-emphasized Auto & Home business. Its proprietary platform uses AI and machine learning to source consumer leads across digital, radio, television and third-party channels and route them to sales agents.

Revenue drivers

• Healthcare Services — Includes the SelectRx Patient-Centered Pharmacy Home accredited pharmacy and SelectPatient Management; it produced $193.5 million of fourth quarter fiscal 2026 revenue, the largest segment in that quarter.
• Senior — Distributes senior health insurance, largely Medicare Advantage, from a panel of carriers and earns commissions; fourth quarter fiscal 2026 revenue was $72.5 million with 72,180 approved Medicare Advantage policies.
• Life — Places life insurance policies with carrier partners for commissions; fourth quarter fiscal 2026 revenue was $47.9 million.
• Auto & Home — Sells automobile and home insurance policies but has been de-emphasized and no longer represents a core area of focus.

Recent performance

Fourth quarter fiscal 2026 revenue was $321.7 million versus $345.1 million a year earlier, with a net loss of $(16.8) million compared to net income of $12.9 million in the prior-year quarter. Fourth quarter Adjusted EBITDA was $11.9 million versus $2.7 million a year earlier. Full fiscal year 2026 revenue was $1.6 billion with net income of $62.2 million, and operating cash flow was $31.9 million versus $11.7 million used in fiscal 2025.

Strategy

SelectQuote is expanding its healthcare services platform, particularly pharmacy services through SelectRx and chronic care management through SelectPatient Management, while de-emphasizing Auto & Home production. In fiscal 2026 it began investing in AI capabilities including contact center voice technology, AI-assisted software development and enterprise-wide productivity tools, stating AI-powered contact center technology expanded licensed agent capacity. Management says technology-enabled workstream efficiencies exiting 2026 are expected to drive annual expense savings of over $30 million. It also states its highest strategic priority is growing profitability and scaled cash flow and optimizing leverage and funding costs.

Risks

• Carrier concentration — The company depends on a small group of insurance carrier partners for a substantial portion of its business, so losing or failing to develop those relationships could harm results.
• Senior carrier dependence — Its business is substantially dependent on revenue from Senior health insurance carrier partners, and carrier partners can change sales strategies or underwriting practices.
• Enrollment windows — If the ability to enroll individuals during the Annual Enrollment Period and Open Enrollment Period is impeded, the business will be harmed.
• Lead acquisition — The business depends on obtaining a large quantity of quality insurance sales leads in a cost-effective manner through marketing and third-party channels.

Outlook

For fiscal year 2027, management guides revenue of $1.35 billion to $1.45 billion and Adjusted EBITDA of $90 million to $115 million, with operating cash flow expected to be more than $60 million. Management expects full-year 2027 operating cash flow to approximately double, with free cash flow generation of around $50 million. It also cites a SelectRx run-rate Adjusted EBITDA of nearly $50 million exiting fiscal 2026.