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SelectQuote (SLQT)
NYSE:SLQT
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SelectQuote
(NYSE:SLQT)
55Neutral
SelectQuote (SLQT) vs. S&P 500 (SPY)
Market Cap
$404.54M
Dividend YieldN/A
Average Volume (3M)1.63M
Price to Earnings (P/E)―
Beta (1Y)1.47
Revenue Growth20.41%
EPS Growth93.09%
CountryUS
Employees4,292
SectorFinancial
Sector Strength85
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)0.03
Shares Outstanding172,144,290
10 Day Avg. Volume2,152,634
30 Day Avg. Volume1,628,687
Financial Highlights & Ratios
PEG Ratio-0.44
Price to Book (P/B)1.32
Price to Sales (P/S)0.00
P/FCF Ratio36.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.00Price Target Upside200.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
SelectQuote Business Overview & Revenue Model
Company DescriptionSelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance policies to consumers from various insurance carriers in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related policies, including prescription drugs, dental, vision, and hearing plans; term life policies; and non-commercial auto and home property, and casualty policies. The company was incorporated in 1999 and is headquartered in Overland Park, Kansas.
How the Company Makes MoneySelectQuote makes money primarily through the commissions it receives from insurance carriers when consumers purchase insurance policies via its platform. The company operates as a brokerage, facilitating the connection between consumers and insurance providers. It earns revenue by charging these carriers a commission on every policy sold. Additionally, SelectQuote may generate income through lead generation fees from insurance carriers and fees for providing additional services, such as policy management and consulting. Key factors contributing to its earnings include the volume of insurance policies sold, the diversity of its insurance carrier partnerships, and the effectiveness of its marketing strategies in attracting consumers to its platform.
SelectQuote Financial Statement Overview
Summary
SelectQuote demonstrates strong revenue growth and improving operational margins, yet faces challenges with net profitability and equity returns. The balance sheet is stable but shows signs of increasing leverage. The positive shift in cash flow is a favorable development, though further improvements in cash efficiency are needed.Income Statement
SelectQuote's income statement shows a steady revenue growth trend over the recent periods, with a noticeable increase from $764 million in 2022 to $1.46 billion in the TTM (Trailing-Twelve-Months). The gross profit margin is healthy, reaching approximately 53.9% in the TTM. However, the company is struggling with profitability at the net level, as indicated by a negative net profit margin of -0.95% in the TTM, though it shows improvement from previous years. The EBIT and EBITDA margins are positive, signaling operational efficiency improvement.65
Positive
Balance Sheet
The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.17 in the TTM, indicating manageable leverage. The equity ratio stands at 25.5%, which is reasonable but shows a declining trend from previous years, suggesting increasing liabilities. Return on equity is negative due to net losses, highlighting a challenge in generating returns for shareholders.60
Neutral
Cash Flow
SelectQuote's cash flow statement reveals a positive operating cash flow in the TTM, signaling improvement from prior periods. Free cash flow has also turned positive, indicating better cash management. However, the free cash flow to net income ratio suggests inefficiency as the company is not yet converting its earnings into cash effectively.58
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.46B | 1.32B | 1.00B | 764.04M | 937.82M | 531.51M | Gross Profit |
| 628.67M | 597.97M | 475.36M | 297.24M | 667.10M | 364.12M | EBIT |
| 93.96M | 64.55M | 11.58M | -301.41M | 200.07M | 132.33M | EBITDA |
| 108.05M | 89.48M | 29.91M | -320.65M | 204.26M | 139.92M | Net Income Common Stockholders |
| -13.78M | -34.13M | -58.54M | -297.50M | 124.86M | 79.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 12.10M | 42.69M | 83.16M | 141.00M | 286.45M | 321.06M | Total Assets |
| 1.28B | 1.19B | 1.22B | 1.29B | 1.43B | 1.07B | Total Debt |
| 740.38M | 713.92M | 731.58M | 744.80M | 502.72M | 311.81M | Net Debt |
| 728.28M | 671.23M | 648.42M | 603.80M | 216.27M | -9.25M | Total Liabilities |
| 953.16M | 877.11M | 872.28M | 898.95M | 758.98M | 528.10M | Stockholders Equity |
| 326.00M | 316.80M | 346.97M | 391.11M | 674.89M | 545.69M |
| Cash Flow | Free Cash Flow | ||||
| 11.94M | 3.57M | -28.50M | -372.96M | -138.43M | -77.33M | Operating Cash Flow |
| 18.40M | 15.24M | -19.38M | -338.31M | -115.44M | -61.78M | Investing Cash Flow |
| -14.00M | -14.85M | -9.13M | -42.58M | -64.02M | -51.37M | Financing Cash Flow |
| -1.61M | -40.86M | -29.34M | 235.43M | 97.04M | 481.45M |
SelectQuote Technical Analysis
Negative
2.33
Price Trends
3.24
Negative
3.78
Negative
3.27
Negative
Market Momentum
-0.27
Positive
32.81
Neutral
37.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLQT, the sentiment is Negative. The current price of 2.33 is below the 20-day moving average (MA) of 2.88, below the 50-day MA of 3.24, and below the 200-day MA of 3.27, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 32.81 is Neutral, neither overbought nor oversold. The STOCH value of 37.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLQT.
SelectQuote Risk Analysis
SelectQuote disclosed 54 risk factors in its most recent earnings report. SelectQuote reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SelectQuote Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $846.95M | 9.14 | 20.78% | ― | -1.46% | ― | |
74 Outperform | $703.59M | 9.69 | 13.11% | 3.49% | 5.29% | 1200.44% | |
72 Outperform | $896.73M | 11.65 | 8.93% | 2.71% | 7.16% | 12.20% | |
64 Neutral | $12.75B | 9.93 | 7.86% | 17015.07% | 12.19% | -5.92% | |
55 Neutral | $404.54M | ― | 0.82% | ― | 20.41% | 93.09% | |
55 Neutral | $545.74M | ― | -46.84% | ― | 51.96% | 60.33% | |
48 Neutral | $374.56M | ― | -29.48% | ― | 3.76% | 16.19% |
* Financial Sector Average
Performance Comparison
SLQT
SelectQuote
2.33
-0.61
-20.75%
DGICA
Donegal Group
19.73
6.98
54.75%
TREE
Lendingtree
38.70
-7.92
-16.99%
UVSP
Univest Of Pennsylvania
30.77
8.71
39.48%
WRLD
World Acceptance
148.00
12.80
9.47%
LDI
loanDepot
1.21
-0.95
-43.98%
SelectQuote Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q3-2025)
| % Change Since: -12.73%|
Next Earnings Date:Sep 10, 2025
Earnings Call Sentiment Neutral
SelectQuote's earnings call reveals a strong overall performance with notable revenue and membership growth, especially in the SelectRx and Life Insurance segments. Despite challenges in the Medicare Advantage market and legal issues, the company's profitability and efficiency metrics show promising trends. The sentiment is balanced with significant achievements countered by legal and operational challenges.Q3-2025 Updates
Positive Updates
Revenue Growth
SelectQuote reported third quarter revenues of $408 million, an 8% increase compared to the previous year, driven by strong member onboarding in the SelectRx business.
SelectRx Membership Increase
SelectRx membership grew to nearly 106,000 members, representing a 41% increase compared to a year ago, contributing to $675 million in trailing 12-month revenues.
Life Insurance Segment Performance
Life Insurance revenues grew by 13%, with profits more than doubling compared to a year ago, demonstrating strong top and bottom-line performance.
Efficient Customer Acquisition
The company's trailing 12-month revenue to customer acquisition cost (CAC) was 5.8x, compared to 4.2x a year ago, indicating improved marketing efficiency.
Senior Segment Margins
The Senior segment delivered a 27% margin despite a 26% smaller agent force, showing impressive efficiency and execution during a challenging Medicare Advantage season.
Negative Updates
Challenges in Medicare Advantage Environment
The agent force was reduced by 26% during the Medicare Advantage season, resulting in a 10% decrease in policy volumes and impacting profitability.
Healthcare Services Margin Pressure
While Healthcare Services showed growth, profitability lagged due to investments in growth and facility expansion, leading to anticipated short-term EBITDA headwinds.
Legal Challenges
SelectQuote is facing a Department of Justice complaint regarding Medicare Advantage practices, which the company plans to vigorously defend.
Company Guidance
During SelectQuote's fiscal third quarter earnings call, the company reported a consolidated revenue of $408 million, reflecting an 8% increase year-over-year. This growth was primarily driven by a robust 41% increase in membership in the SelectRx business, now totaling nearly 106,000 members. The SelectRx segment achieved trailing 12-month revenues of approximately $675 million. The company's consolidated EBITDA for the quarter was $38 million, maintaining strong margins despite a shift in business mix, with a notable 27% margin in the Senior segment. The Life Insurance segment also performed well, with revenues growing by 13% and profits more than doubling compared to the previous year. SelectQuote's trailing 12-month revenue to customer acquisition cost (CAC) ratio improved to 5.8x, up from 4.2x a year ago, highlighting enhanced marketing efficiency. The company plans to focus on increasing profitability in its Healthcare Services segment and anticipates some near-term headwinds from the expansion of its new Kansas facility. Overall, SelectQuote is optimistic about its strategic focus on driving consistent margins and cash flows moving forward.SelectQuote Corporate Events
Executive/Board ChangesPrivate Placements and FinancingDividends
SelectQuote Secures $350 Million Investment from NL Monarch
Positive
Feb 28, 2025
On February 28, 2025, SelectQuote, Inc. completed the sale of 350,000 shares of Senior Non-Convertible Preferred Stock and 30,833,333 warrants to purchase common stock to NL Monarch Holdings LLC and NL Monarch Holdings II LLC, marking a significant $350 million investment. This transaction is expected to impact SelectQuote’s financial structure and operations, with implications for stakeholders, including changes in board composition and potential adjustments in dividend rates based on company liquidity and financial performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.