SelectQuote, Inc. — Fourth Quarter Fiscal Year 2026 Earnings Summary

Financial Performance

• Consolidated revenue for the fourth quarter of fiscal 2026 was $321.7 million, a decrease from $345.1 million in the fourth quarter of fiscal 2025.
• Consolidated net loss for the fourth quarter of fiscal 2026 was $16.8 million, compared to net income of $12.9 million in the prior year quarter.
• Consolidated Adjusted EBITDA for the fourth quarter of fiscal 2026 was $11.9 million, an increase from $2.7 million in the fourth quarter of fiscal 2025.
• Consolidated cash used in operations for the fourth quarter of fiscal 2026 was $3.3 million, compared to $37.5 million used in the fourth quarter of fiscal 2025.
• Consolidated revenue for the full fiscal year 2026 was $1.6 billion, compared to $1.5 billion in fiscal 2025.
• Consolidated net income for the full fiscal year 2026 was $62.2 million, compared to $47.6 million in fiscal 2025.
• Consolidated Adjusted EBITDA for the full fiscal year 2026 was $109.1 million, a decrease from $126.3 million in fiscal 2025.
• Consolidated cash generated from operations for the full fiscal year 2026 was $31.9 million, compared to $11.7 million used in fiscal 2025, representing a $44 million improvement.
• Total operating expenses per MA/MS policy increased 13% to $2,189 for the twelve months ended June 30, 2026, compared to $1,937 in the prior year.
• Total revenue per MA/MS policy increased 13% to $2,494 for the twelve months ended June 30, 2026, compared to $2,202 in the prior year.
• Adjusted EBITDA per MA/MS policy was $305 for the twelve months ended June 30, 2026, compared to $265 in the prior year.
• Revenue/CAC multiple was 6.8X for the twelve months ended June 30, 2026, compared to 6.1X in the prior year.

Guidance and Future Outlook

• Revenue for fiscal 2027 is expected to be in the range of $1.35 billion to $1.45 billion.
• Adjusted EBITDA for fiscal 2027 is expected to be in the range of $90 million to $115 million.
• Operating cash flow for fiscal 2027 is expected to be more than $60 million.
• Management expects full-year 2027 operating cash flow to approximately double to over $60 million, with free cash flow generation of around $50 million.
• Technology-enabled workstream efficiencies implemented exiting 2026 are expected to drive annual expense savings of over $30 million.
• Management views fiscal 2027 as an important year to further compound cash flow while remaining disciplined in growth investments.

Business Segments and Product Lines

• Senior Segment:
  • Q4 Fiscal 2026 revenue was $72.5 million, down 12% from $82.5 million in Q4 Fiscal 2025.
  • Q4 Fiscal 2026 Adjusted EBITDA was $8.0 million, up 3% from $7.7 million in Q4 Fiscal 2025.
  • Q4 Fiscal 2026 Adjusted EBITDA margin was 11%, compared to 9% in the prior year quarter.
  • Fiscal 2026 Adjusted EBITDA margin was 26%, compared to 27% in fiscal 2025.
  • Approved Medicare Advantage policies in Q4 Fiscal 2026 were 72,180, down 15% from 85,344 in the prior year quarter.
  • Submitted Medicare Advantage policies in Q4 Fiscal 2026 were 69,653, down 19% from 85,979 in the prior year quarter.
  • Lifetime value of commissions per approved Medicare Advantage policy was $883 in Q4 Fiscal 2026, up 5% from $837 in the prior year quarter.
• Healthcare Services Segment:
  • Q4 Fiscal 2026 revenue was $193.5 million, down 10% from $214.0 million in Q4 Fiscal 2025.
  • Q4 Fiscal 2026 Adjusted EBITDA was $12.1 million, up 2% from $11.9 million in Q4 Fiscal 2025.
  • Q4 Fiscal 2026 Adjusted EBITDA margin was 6%, consistent with the prior year quarter.
  • Fiscal 2026 revenue was $844.9 million, up 14% from $742.7 million in fiscal 2025.
  • Fiscal 2026 Adjusted EBITDA was $25.5 million, flat compared to $25.4 million in fiscal 2025.
  • Fiscal 2026 Adjusted EBITDA margin was 3%, consistent with the prior year.
  • SelectRx members totaled 109,039 as of June 30, 2026, a 1% increase from 108,018 in the prior year.
  • Average prescriptions shipped per day were 31,711 in Q4 Fiscal 2026, up from 30,630 in the prior year quarter.
  • Pharmacy revenue per MA/MS policy was $1,458 for the twelve months ended June 30, 2026, up from $1,219 in the prior year.
• Life Segment:
  • Q4 Fiscal 2026 revenue was $47.9 million, flat compared to $48.0 million in Q4 Fiscal 2025.
  • Q4 Fiscal 2026 Adjusted EBITDA was $9.8 million, up 41% from $6.9 million in Q4 Fiscal 2025.
  • Q4 Fiscal 2026 Adjusted EBITDA margin was 20%, up from 14% in the prior year quarter.
  • Fiscal 2026 revenue was $186.0 million, up 8% from $173.0 million in fiscal 2025.
  • Fiscal 2026 Adjusted EBITDA was $27.0 million, up 1% from $26.7 million in fiscal 2025.
  • Fiscal 2026 Adjusted EBITDA margin was 15%, consistent with the prior year.
  • Total premiums in Q4 Fiscal 2026 were $45.0 million, down 11% from $50.8 million in the prior year quarter.
  • Total premiums for fiscal 2026 were $185.2 million, up 5% from $176.5 million in fiscal 2025.

Market and Competitive Landscape

• Insurance carriers continued to modify policy benefits and optimize volumes during a turbulent year for the industry.
• SelectQuote positions itself as the reliable partner of choice for carriers.
• The Senior business delivered another strong year with an Adjusted EBITDA margin of 26%, marking the 4th consecutive year with margins solidly above the long-term 20%+ operating target.
• Management views the Senior platform's ability to generate durable returns across a range of Medicare Advantage environments as a key strength.

Risks and Challenges

• The company relies on a limited number of insurance carrier partners, with risks regarding potential termination of relationships or failure to develop new ones.
• Existing and future laws and regulations affecting the health insurance market, including changes in products offered and commission rates, pose risks.
• Competition exists from brokers, exclusively online brokers, and carriers selling directly to consumers, as well as government-run health insurance exchanges.
• Risks include failure to enroll individuals during the Medicare annual enrollment period, dependence on lead providers, and the ability to convert sales leads to actual sales.
• The pharmacy business faces risks related to manufacturing or supply chain disruptions, access and demand for prescription drugs, changes in reimbursement rates under contracts with pharmacy benefit managers, and regulatory changes.
• Potential risks include cybersecurity breaches, failure to protect consumer information, and impairment of goodwill.

Management Commentary and Tone

• CEO Tim Danker described the 4th quarter and full-year fiscal 2026 as "highly successful."
• Management expressed high confidence in the Senior platform's ability to generate durable returns.
• The strategic priority is defined as delivering shareholder value through growth in profitability and scaled cash flow.
• Management highlighted the successful implementation of technology-enabled workstream efficiencies expected to drive over $30 million in annual expense savings.
• Management expects to accelerate equity value accretion through the demonstrated durability of Senior profitability and continued scale of Healthcare Services.

Other Key Points

• The Senior Non-Convertible Preferred Stock has a current liquidation preference of $423.2 million as of June 30, 2026, compared to $367.1 million as of June 30, 2025.
• The company has 350,000 shares of Senior Non-Convertible Preferred Stock issued and outstanding as of June 30, 2026.
• A conference call with the investment community was scheduled for August 25, 2026, at 8:30 a.m. ET.
• The company operates an ecosystem offering high touchpoints for consumers across insurance, pharmacy, and virtual care.
• Healthcare Services includes SelectRx Pharmacy (Patient-Centered Pharmacy Home accredited), SelectPatient Management, and Healthcare Select.
• Senior Non-Convertible Preferred Stock accumulated dividends and accretion for the quarter ended June 30, 2026, were $19.5 million.
• Net income attributable to common shareholders for the quarter ended June 30, 2026, was a loss of $36.3 million.