olivLaw · US equity research
SelectQuote, Inc. SLQT
Insurance Agents, Brokers & Service · SIC 6411 · Vertical: Insurance Agents, Brokers & Service (SIC 6411)
SelectQuote is a technology-enabled direct-to-consumer platform that sells insurance policies and healthcare services, with a focus on the senior Medicare Advantage market. Consolidated revenue reached 1.6 billion USD in fiscal 2026, and the company guides to higher operating cash flow in fiscal 2027 as its pharmacy services scale.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, SelectQuote, Inc. (SLQT) stock was 0.49 USD (+19.76% on the day), with market capitalisation 88.1 m USD, P/E 7.3 on diluted EPS of 0.07 USD over the last 12 months, dividend yield 399.19%, beta 1.72, 52-week range 0.30–2.13 USD. Latest reported quarter (Q1 2027): revenue of 280.0 m USD (−14.8% YoY), net income of -20.3 m USD, diluted EPS -0.21 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 68.4
- strong (55–70)
- Bollinger (20, 2)
- 0.27 – 0.44
- above the upper band · %B 1.33 · band width 46.4%
- SMA 50 / 200
- 0.43 / 0.76
- mixed trend
- MACD (12, 26, 9)
- -0.00 / -0.03
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +17.2% | −1.1% | +18.3 pp | — |
| 3 months | −28.9% | −0.5% | −28.5 pp | — |
| 6 months | −59.1% | +4.4% | −63.5 pp | — |
| Year to date | −65.2% | +12.3% | −77.5 pp | — |
| 1 year | −75.9% | +13.5% | −89.5 pp | +0.8% |
| 3 years | −62.8% | +76.4% | −139.2 pp | +4.3% |
| 5 years | −95.4% | +63.7% | −159.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 481.1 m | 408.2 m | 345.1 m | 328.8 m | 537.1 m | 430.9 m | 321.7 m | 280.0 m |
| Cost of revenue | 156.2 m | 162.3 m | 182.3 m | 192.8 m | 205.2 m | 171.3 m | 161.5 m | 155.3 m |
| SG&A | 45.0 m | 41.7 m | 41.6 m | 35.8 m | 38.9 m | 38.2 m | 36.1 m | 35.9 m |
| Operating income | 70.9 m | 22.1 m | -12.5 m | -40.7 m | 75.3 m | 35.9 m | 3.4 m | -28.6 m |
| Depreciation & amortisation | 5.1 m | 4.9 m | 4.9 m | 4.3 m | 4.3 m | 4.4 m | 4.5 m | 4.5 m |
| Interest expense | 23.7 m | 20.4 m | 12.2 m | 11.8 m | 11.6 m | 10.6 m | 10.5 m | 11.0 m |
| Pre-tax income | 39.6 m | 34.6 m | 9.4 m | -37.7 m | 83.0 m | 44.1 m | -13.1 m | -26.5 m |
| Income tax | -13.7 m | 8.6 m | -3.5 m | -7.2 m | 13.7 m | 3.9 m | 3.7 m | -6.2 m |
| Net income | 53.2 m | 26.0 m | 12.9 m | -30.5 m | 69.3 m | 40.2 m | -16.8 m | -20.3 m |
| Diluted EPS | 0.30 | 0.03 | 0.07 ≈ | -0.26 | 0.26 | 0.11 | -0.09 ≈ | -0.21 |
| Operating cash flow | -28.7 m ≈ | 71.1 m ≈ | -37.5 m | -21.6 m | 52.0 k ≈ | 56.8 m ≈ | -3.3 m | -17.2 m |
| Capex | 299.0 k ≈ | 949.0 k ≈ | 501.0 k | 1.1 m | 1.1 m ≈ | 947.0 k ≈ | 1.2 m | 658.0 k |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 20 percentile of its own 10-quarter history (min 3.6, median 20.9, max 50.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | ⚠ 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 337.5 m | 529.3 m | 930.0 m | 764.0 m | 1.0 bn | 1.3 bn | 1.5 bn | 1.6 bn |
| Revenue YoY | +44.4% | — | +75.7% | −17.8% | +31.3% | +31.8% | +15.5% | +6.0% |
| Net income | 72.6 m | 79.5 m | 124.9 m | -297.5 m | -58.5 m | -34.1 m | 47.6 m | 62.2 m |
| Net income YoY | +108.0% | — | +57.1% | −338.3% | unavailable | unavailable | unavailable | +30.7% |
| Diluted EPS | 0.55 | -0.18 | 0.75 | -1.81 | -0.35 | -0.20 | 0.01 | -0.06 |
| Diluted EPS YoY | +139.1% | — | unavailable | −341.3% | unavailable | unavailable | unavailable | −700.0% |
| net % | 21.5% | 15.0% | 13.4% | -38.9% | -5.8% | -2.6% | 3.1% | 3.8% |
| Free cash flow | -3.8 m | -71.2 m | -130.3 m | -363.1 m | -20.8 m | 11.9 m | -13.9 m | 27.6 m |
The series breaks before 2020: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 Jun 2026
- Cash
- 16.0 m USD
- Financial debt
- 370.2 m USD
- Net debt
- 354.1 m USD
- Equity
- 351.8 m USD
- Total assets
- 1.3 bn USD
- Debt / equity
- 1.05x
- Current ratio
- 1.82x
- ROE
- 17.7%
- ROA
- 4.9%
- FCF margin
- 1.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 930.0 m | 764.0 m | 1.0 bn | 1.3 bn | 1.5 bn | 1.6 bn | SEC (XBRL)· 25 Aug 2026verified |
| Cost of revenue | 1.6 m | 64.2 m | 226.0 m | 405.0 m | 630.3 m | 730.7 m | SEC (XBRL)· 25 Aug 2026verified |
| Gross profit | 928.3 m ≈ | 699.9 m ≈ | 776.9 m ≈ | 916.8 m ≈ | 896.3 m ≈ | 887.8 m ≈ | SEC (XBRL)· 25 Aug 2026derived |
| SG&A | 63.1 m | 100.9 m | 136.5 m | 141.0 m | 164.4 m | 149.0 m | SEC (XBRL)· 25 Aug 2026verified |
| Operating income | 192.2 m | -346.0 m | 11.6 m | 64.6 m | 68.5 m | 73.9 m | SEC (XBRL)· 25 Aug 2026verified |
| Depreciation & amortisation | 16.1 m | 24.7 m | 27.9 m | 25.0 m | 20.5 m | 17.5 m | SEC (XBRL)· 25 Aug 2026verified |
| EBITDA | 208.4 m ≈ | -321.3 m ≈ | 39.5 m ≈ | 89.5 m ≈ | 89.0 m ≈ | 91.4 m ≈ | SEC (XBRL)· 25 Aug 2026derived |
| Interest expense | 29.3 m | 43.6 m | 80.6 m | 93.6 m | 79.4 m | 44.5 m | SEC (XBRL)· 25 Aug 2026verified |
| Pre-tax income | 158.0 m | -389.8 m | -69.1 m | -29.1 m | 48.5 m | 76.3 m | SEC (XBRL)· 25 Aug 2026verified |
| Income tax | 33.2 m | -92.3 m | -10.6 m | 5.1 m | 931.0 k | 14.1 m | SEC (XBRL)· 25 Aug 2026verified |
| Net income | 124.9 m | -297.5 m | -58.5 m | -34.1 m | 47.6 m | 62.2 m | SEC (XBRL)· 25 Aug 2026verified |
| Diluted EPS | 0.75 | -1.81 | -0.35 | -0.20 | 0.01 | -0.06 | SEC (XBRL)· 25 Aug 2026verified |
| Weighted average diluted shares | 165.5 m | 164.0 m | 166.1 m | 168.5 m | 181.9 m | 188.2 m | SEC (XBRL)· 25 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 286.5 m | 141.0 m | 83.2 m | 42.7 m | 32.4 m | 16.0 m | SEC (XBRL)· 25 Aug 2026verified |
| Inventories | 176.0 k | 5.8 m | 5.6 m | 8.8 m | — | — | SEC (XBRL)· 13 Sept 2024verified |
| Current assets | 483.4 m | 402.8 m | 363.2 m | 332.9 m | 341.0 m | 350.9 m | SEC (XBRL)· 25 Aug 2026verified |
| Goodwill | 68.0 m | 29.1 m | 29.1 m | 29.4 m | 29.4 m | 29.4 m | SEC (XBRL)· 25 Aug 2026verified |
| Intangibles (excl. goodwill) | 40.7 m | 31.3 m | 10.2 m | 10.2 m | 2.0 m | 839.0 k | SEC (XBRL)· 25 Aug 2026verified |
| Total assets | 1.4 bn | 1.3 bn | 1.2 bn | 1.2 bn | 1.2 bn | 1.3 bn | SEC (XBRL)· 25 Aug 2026verified |
| Accounts payable | 34.1 m | 24.8 m | 27.6 m | 36.6 m | 59.2 m | 74.0 m | SEC (XBRL)· 25 Aug 2026verified |
| Short-term debt | 2.4 m | 7.2 m | 33.9 m | 45.9 m | 68.5 m | 22.0 m | SEC (XBRL)· 25 Aug 2026verified |
| Long-term debt | 459.0 m | 698.4 m | 664.6 m | 637.5 m | 316.6 m | 348.2 m | SEC (XBRL)· 25 Aug 2026verified |
| Current liabilities | 108.8 m | 113.5 m | 137.3 m | 174.6 m | 212.9 m | 192.6 m | SEC (XBRL)· 25 Aug 2026verified |
| Total liabilities | 756.8 m | 898.9 m | 872.3 m | 877.1 m | 673.8 m | 636.8 m | SEC (XBRL)· 25 Aug 2026verified |
| Equity | 667.0 m † | 391.1 m † | 347.0 m † | 316.8 m † | 351.1 m † | 351.8 m † | SEC (XBRL)· 25 Aug 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -115.4 m | -338.3 m | -19.4 m | 15.2 m | -11.7 m | 31.9 m | SEC (XBRL)· 25 Aug 2026verified |
| Capex | 14.9 m | 24.8 m | 1.4 m | 3.4 m | 2.2 m | 4.3 m | SEC (XBRL)· 25 Aug 2026verified |
| Free cash flow | -130.3 m ≈ | -363.1 m ≈ | -20.8 m ≈ | 11.9 m ≈ | -13.9 m ≈ | 27.6 m ≈ | SEC (XBRL)· 25 Aug 2026derived |
| Investing cash flow | -64.0 m | -42.6 m | -9.1 m | -14.8 m | -11.3 m | -16.1 m | SEC (XBRL)· 25 Aug 2026verified |
| Financing cash flow | 97.0 m | 235.4 m | -29.3 m | -40.9 m | 17.4 m | -31.1 m | SEC (XBRL)· 25 Aug 2026verified |
| Dividends paid | 0 | 0 | — | — | — | — | SEC (XBRL)· 29 Aug 2022verified |
| Share repurchases | 0 | — | — | — | — | — | SEC (XBRL)· 26 Aug 2021verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 66 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 88.1 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet22
- Growth100
- Valuation100
- Quality49
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 1.32 – 34.64 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)8.96 – 26.85 (Mid 13.81)WACC 5.8% · starting FCFF 68.6 m USD · terminal value share of EV 86%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDA5.82 – 7.27 (Mid 5.99)3 companies used · median multiple 14.0x · quartiles 13.7x – 16.2xBWIN, GSHD, MRSH
- Peers: P/E1.32 – 2.87 (Mid 1.68)11 companies used · median multiple 25.2x · quartiles 19.7x – 43.0xACT, AJG, AON, BRO, CRVL, GSHD, MRSH, RYAN, TWFG, WDH, WTW
- Dividend discount (DDM)25.76 – 34.64 (Mid 29.54)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 66/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 10.3% | 64 (vs peers) | 13% |
| Net margin · Quality | 4.6% | 52 (vs peers) | 8% |
| FCF conversion · Quality | 44.9% | 21 (on a fixed band) | 8% |
| Revenue CAGR 3Y · Growth | 17.3% | 100 (on a fixed band) | 10% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 3.6x | 0 (vs peers) | 13% |
| Interest coverage · Balance sheet | 2.0x | 7 (on a fixed band) | 8% |
| Current ratio · Balance sheet | 2.0x | 100 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 7.3x | 100 (vs peers) | 13% |
| EV/EBITDA · Valuation | 4.5x | 100 (vs peers) | 13% |
| FCF yield · Valuation | 36.8% | 100 (on a fixed band) | 10% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet22/100 · 3/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality49/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation100/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
SelectQuote, Inc. (SLQT). Latest full fiscal year: 2026; data up to 2026-09-30.
Figures computed from the financial statements: revenue 1.6 bn USD in 2026; YoY growth 6.0%; net margin 4.6%; ROE 23.4%; net debt/EBITDA 3.6x.
The estimated value range is 7.39–17.06 USD per share (median of 4 methods, agreement: low); assumptions are illustrative. Against the central value of 9.90 USD, the price of 0.49 USD leaves a potential of 1,916.1% (value / price − 1) and a margin of safety of 95.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 66/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue CAGR 3Y: 17.3%
- Current ratio: 2.0x
- P/E (TTM): 7.3x
- EV/EBITDA: 4.5x
- FCF yield: 36.8%
- The price is below the estimated value range
What contradicts it
- FCF conversion: 44.9%
- Net debt / EBITDA: 3.6x
- Interest coverage: 2.0x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Insurance Agents, Brokers & Service (SIC 6411) · same industry (4-digit SIC) · compared with 29 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MRSHMarsh & Mclennan Companies, Inc. | 100.0 bn | 25.2 | 26.7% | 14.2% | +10.3% | +15% / +5% |
| XHGXChange TEC.INC | 85.9 bn | — | — | -204.9% | +24.9% | +253% / −100% |
| AJGArthur J. Gallagher & Co. | 73.9 bn | 47.1 | 6.7% | 10.0% | +20.7% | +16% / +16% |
| AONAon plc | 73.1 bn | 18.9 | 43.6% | 22.2% | +9.4% | −3% / +5% |
| WTWWillis Towers Watson PLC | 31.1 bn | 20.5 | 20.2% | 15.2% | −2.2% | +5% / +37% |
| BROBrown & Brown, Inc. | 24.5 bn | 22.1 | 9.7% | 17.6% | +22.8% | −8% / −1% |
| EQHEquitable Holdings, Inc. | 15.3 bn | — | -508.8% | -8.7% | −6.1% | +20% / +83% |
| AIFUAIFU Inc. | 10.5 bn | — | -155.9% | -408.8% | −67.9% | −84% / −100% |
| ACTEnact Holdings, Inc. | 6.6 bn | 10.7 | 12.7% | 53.8% | +2.8% | +25% / +74% |
| HGTYHagerty, Inc. | 6.5 bn | 108.0 | 25.6% | 4.4% | +17.3% | +40% / +121% |
| RYANRyan Specialty Holdings, Inc. | 5.2 bn | 49.9 | 19.4% | 3.2% | +21.3% | −18% / +4% |
| CRVLCorvel Corporation | 4.4 bn | 38.9 | 30.7% | 11.7% | +7.0% | +19% / +26% |
| WDHWaterdrop Inc. | 3.6 bn | 50.5 | 11.6% | 14.2% | +49.8% | −44% / −16% |
| ARXAccelerant Holdings | 3.3 bn | — | -241.6% | -112.1% | +51.5% | +36% / unavailable |
| NPNeptune Insurance Holdings Inc. | 2.7 bn | 91.6 | — | 22.7% | +33.7% | +22% / unavailable |
| GSHDGoosehead Insurance, Inc. | 1.2 bn | 33.8 | — | 8.8% | +16.2% | −21% / −23% |
| HUIZHuize Holding Limited | 1.1 bn | — | 1.0% | 0.3% | +32.2% | −31% / −48% |
| BWINThe Baldwin Insurance Group, Inc. | 1.1 bn | — | -10.7% | -4.7% | +8.3% | +13% / +84% |
| RDZNRoadzen Inc. | 92.8 m | — | — | -46.9% | +24.2% | −37% / −78% |
| SLQTSelectQuote, Inc. | 88.1 m | 7.3 | 23.4% | 4.6% | +6.0% | −76% / −63% |
| EHTHeHealth, Inc | 20.3 m | — | 5.0% | 5.4% | +4.1% | −84% / −91% |
| EZRAReliance Global Group, Inc. | 2.4 m | — | -123.4% | -54.3% | −11.6% | −91% / −100% |
| LIFEEthos Technologies Inc. | 0 | — | -50.8% | -16.2% | +52.0% | unavailable / unavailable |
| CRD-ACrawford & Co | — | — | 14.0% | 2.0% | −2.2% | +7% / +7% |
| YBYuanbao Inc. | — | — | 152.7% | 29.9% | +33.1% | −43% / unavailable |
1- and 3-year price returns: for SLQT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 1.94 Total return 294% · Per year 294% | 3.41 Total return 594% · Per year 594% | 5.11 Total return 941% · Per year 941% |
| 3 years | 2.30 Total return 368% · Per year 67% | 4.51 Total return 818% · Per year 109% | 7.36 Total return 1,399% · Per year 147% |
| 5 years | 2.72 Total return 455% · Per year 41% | 5.96 Total return 1,114% · Per year 65% | 10.60 Total return 2,059% · Per year 85% |
- Exit P/E± 1.13
- Net margin± 0.79
- Annual revenue growth± 0.59
- Annual dilution± 0.07
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 25 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results), 10-Q (04 Nov 2026).
In brief
SelectQuote is a technology-enabled direct-to-consumer platform that sells insurance policies and healthcare services, with a focus on the senior Medicare Advantage market. Consolidated revenue reached 1.6 billion USD in fiscal 2026, and the company guides to higher operating cash flow in fiscal 2027 as its pharmacy services scale.
SWOT
Strengths
- The technology platform and data set built over more than four decades support efficient routing of consumer leads to suitable agents.
- The Senior segment kept a high Adjusted EBITDA margin, above the long-term target stated by management.
- Pharmacy services grew volume and brought recurring members, diversifying revenue away from commissions alone.
Weaknesses
- The company relies on a small number of carrier partners, so revenue is exposed to changes in those relationships.
- The healthcare services margin is very low, and revenue growth has not fully translated into profit.
- The fourth quarter of fiscal 2026 produced a net loss, pointing to significant swings from one quarter to the next.
Opportunities
- Rising Medicare Advantage share and an aging population could widen the customer base for the Senior segment.
- Scaling the pharmacy and integrating healthcare services could improve profitability if margins expand.
- Artificial intelligence could lower acquisition and servicing costs if the investments deliver the estimated savings.
Threats
- Carriers can change commissions or sell directly, which could reduce the company's revenue.
- Regulatory changes in Medicare and the health system could limit how the company sells plans.
- Ongoing litigation, including a Department of Justice complaint, could carry significant financial effects.
Risks
- Dependence on a few carriershigh
A large share of revenue comes from a small number of carriers and their affiliates. Agreements can be terminated on short notice, which could quickly affect revenue.
- Medicare regulationhigh
Rules for selling senior health plans are complex and can change. Violations could lead to suspended sales or lost carrier relationships.
- Litigation and federal complaintshigh
The company is involved in ongoing litigation, including a Department of Justice complaint about alleged violations of the False Claims Act, which could create significant costs.
- Indebtedness and capital needsmedium
Existing debt and the need for capital to grow could limit financial flexibility if cash flow does not improve as planned.
- Pharmacy product liabilitymedium
Consumption of pharmacy products can cause injury, so the company could face liability claims with legal and reputational costs.
Investment thesis
What would need to be true (bull case)
- If Senior profitability holds and pharmacy services scale, operating cash flow could rise substantially in fiscal 2027, in line with management's guidance.
- Cost reductions from technology and artificial intelligence could improve margins, especially if the announced savings materialize in full.
- An aging population and the growth of Medicare Advantage could support long-term demand for the company's products.
What would break the thesis
- Dependence on a few large carriers means that any change in their commissions or policies could quickly affect revenue.
- The healthcare services margin remains very low, and revenue growth may not turn into sustained profit.
- Litigation and Medicare regulatory changes could bring unforeseen costs and business restrictions.
What to watch
- Delivery of fiscal 2027 revenue and Adjusted EBITDA guidance2027
- Operating cash flow development compared with guidance of more than 60 million USDnext 10-K
- Stability of key carrier relationships and commission levelsQ1 2027
- Status of the Department of Justice litigation and any effect on reservesnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 25 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results), 10-Q (04 Nov 2026).
The business
SelectQuote, Inc. describes itself as a technology-enabled direct-to-consumer (DTC) distribution and engagement platform for selling insurance policies and healthcare services. The company does not insure the consumer; it places consumers with insurance carrier partners and earns commissions over the life of each approved policy, a metric it calls 'lifetime value of commissions' or 'LTV'. The model relies on licensed agents and a proprietary system that generates, scores and routes leads using machine learning.
In recent years management has shifted emphasis toward healthcare services, which it sees as a natural extension of the Senior business. The company has de-emphasized production in Auto & Home, which it no longer regards as a core area. Healthcare services include the SelectRx pharmacy, the Healthcare Select program and the chronic care management platform acquired in 2024.
In fiscal year 2026 the company began initial investments in artificial intelligence, notably contact center voice technology and agent productivity tools. Management regards these as foundational to lowering consumer acquisition and servicing costs, although the full financial effect remains to be seen in later periods.
Segments
Senior
The Senior segment provides unbiased comparison shopping for Medicare Advantage and Medicare Supplement plans, as well as prescription drug and dental, vision and hearing plans. Revenue in fiscal 2026 was 575.9 million USD, down 4%, and the Adjusted EBITDA margin was 26%. Medicare Advantage plans made up 89% of approved Senior policies.
Healthcare Services
Healthcare Services generated revenue of 844.9 million USD in fiscal 2026, up 14%, but with an Adjusted EBITDA margin of only 3%. As of June 30, 2026 there were 109,039 SelectRx members, and management has said exit run-rate Adjusted EBITDA is nearly 50 million USD.
Market context
The company estimates the addressable market for the insurance products it distributes at more than 200 billion USD. Demand in the Senior segment is supported by an aging population and rising Medicare enrollment, with Medicare Advantage taking a growing share. The U.S. life insurance market is described as mature, with industry new annualized premium growth of 10% in 2025.
The healthcare services segment depends on member volume and prescription counts, but pharmacy margins are shaped by reimbursement rates negotiated with pharmacy benefit managers. Pressure on those rates and regulatory changes could affect profitability even if demand grows.
Trends
- Aging populationtailwind
The share of people over 65 is rising and Medicare Advantage is expanding its share of Medicare. This could support Senior sales volume and pharmacy demand if the company keeps placing new policies.
- Digital distributionmixed
Consumers increasingly shop online and expect price transparency, which favors DTC platforms. At the same time carriers can sell directly, which could reduce the role of intermediaries.
- Carrier commission and underwriting pressureheadwind
Carriers can change commissions and underwriting criteria with short notice, which could reduce the volume and renewal rates of policies sold through the platform.
- Artificial intelligence in operationstailwind
AI investments in contact centers and productivity could lower acquisition and servicing costs. Management estimates annual expense savings above 30 million USD, which still needs to be verified.
Competitive position
The company competes with insurance search websites, carriers selling directly, traditional agents and brokers, and field marketing organizations. New competitors can enter with similar distribution platforms, and they could reduce the policy volume that flows through SelectQuote.
The company differentiates through a combination of routing technology, licensed agents and a data set built over more than four decades. It argues this mix offers transparency and choice, but the advantage depends on keeping performance ahead of rivals.
- Insurance search websites
Online platforms that display offers and allow purchase, competing directly with the company's DTC platform.
- Carriers selling directly
Insurers can attract consumers through their own campaigns, websites and agencies, bypassing intermediaries.
- Traditional agents and brokers
Distributors that use a more intensive, in-person process to sell policies.
- Field marketing organizations
Organizations that generate sales through direct contact, competing for the same senior customers.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- SelectQuote’s (SLQT) Cash Flow Pitch Comes With A Shrinking Top LineYahoo Finance — News · 01 Sept 2026 · EN
- SelectQuote (SLQT) Q4 2026 Earnings Call TranscriptYahoo Finance — News · 01 Sept 2026 · EN
- SelectQuote, Inc. Q4 2026 Earnings Call SummaryYahoo Finance — News · 26 Aug 2026 · EN
- SelectQuote Q4 Earnings Call HighlightsYahoo Finance — News · 25 Aug 2026 · EN
The latest news item in our archive is from 01 Sept 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report04 Nov 2026
- Current report04 Nov 2026Results of operations · Financial statements and exhibits
- Proxy statement30 Sept 2026
- Annual report25 Aug 2026
- Current report25 Aug 2026Results of operations · Financial statements and exhibits
- Quarterly report05 May 2026
- Current report05 May 2026Results of operations · Financial statements and exhibits
- Current report25 Mar 2026Delisting notice · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report05 Feb 2026
- Current report05 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / SelectQuote, Inc. · 25 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / SelectQuote, Inc. · 25 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.