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SelectQuote
(NYSE:SLQT)
Select Model
Select Model
Rating:54Neutral
Price Target:
$0.35
▼(-36.91% Downside)
Action:Reiterated
Date:10/22/26
The score is anchored by improving fundamentals—especially the sharply de-risked balance sheet and rebound to positive profitability—tempered by inconsistent multi-year cash flow and slowing/declining revenue. Technical indicators are broadly bearish and valuation metrics are unhelpful due to a negative P/E, while the latest earnings call supports a cash-flow-and-margin improvement narrative but with material near-term top-line and capital-structure risks.
Positive Factors
Deleveraged Balance Sheet
The sharp reduction in debt materially improves financial flexibility and lowers balance-sheet risk. A less leveraged structure can preserve cash for technology, customer acquisition, and operational investment while improving the company’s ability to withstand insurance-market volatility.
Negative Factors
FY27 Revenue Decline
A projected double-digit revenue decline signals that near-term growth has weakened materially and may limit operating leverage. Even with better margins, a smaller revenue base can constrain absolute earnings, reduce scale benefits, and make sustained profitability more dependent on cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraged Balance Sheet
The sharp reduction in debt materially improves financial flexibility and lowers balance-sheet risk. A less leveraged structure can preserve cash for technology, customer acquisition, and operational investment while improving the company’s ability to withstand insurance-market volatility.
Read all positive factors
SelectQuote Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down where sales are coming from across product lines and channels, revealing concentration risks and the main drivers of growth or decline. For SelectQuote investors, segment-level revenue highlights dependence on Medicare or other product categories, how changes in customer acquisition or channel mix affect topline, and where regulatory or market shifts could materially impact future revenue.
Breaks down where sales are coming from across product lines and channels, revealing concentration risks and the main drivers of growth or decline. For SelectQuote investors, segment-level revenue highlights dependence on Medicare or other product categories, how changes in customer acquisition or channel mix affect topline, and where regulatory or market shifts could materially impact future revenue.
Data provided by:
The Fly
The FlySelectQuote (SLQT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.35M
Dividend YieldN/A
Average Volume (3M)1.26M
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth6.02%
EPS Growth-144.93%
CountryUS
Employees4,039
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)-0.06
Shares Outstanding179,261,800
10 Day Avg. Volume1,561,663
30 Day Avg. Volume1,262,495
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.24
Price to Sales (P/S)0.10
P/FCF Ratio5.73
Enterprise Value/Market Cap13.18
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit1.45
Enterprise Value/Ebitda6.04
Forecast
1Y Price Target
$2.17Price Target Upside293.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.41
Revenue Forecast (FY)$1.40B
SelectQuote Business Overview & Revenue Model
Company Description
SelectQuote, Inc. operates as a tech-driven, direct-to-consumer marketplace, offering a wide spectrum of insurance products to individuals throughout the United States. These policies are underwritten by a variety of insurance carriers. The compan...
How the Company Makes Money
SelectQuote primarily generates revenue by acting as an insurance agent/broker for third-party insurance carriers and earning commissions and related fees when a consumer enrolls in a policy through its platform. The core revenue streams are (1) M...
SelectQuote Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong execution on profitability and cash flow (notably a $44M year-over-year operating cash flow improvement, Healthcare Services inflection to a near $50M annual EBITDA run rate, and >$30M of identified cost savings) contrasted with meaningful top-line headwinds (guidance implying ~14% revenue decline in 2027), ongoing Medicare Advantage market volatility, IRA-related revenue pressure, and a relatively high-cost capital structure (~$800M at ~12%). Management is prioritizing cash generation and deleveraging over growth in fiscal 2027, which supports a constructive longer-term view but leaves notable near-term revenue and capital risks.Positive Updates
Material Operating Cash Flow Improvement
Operating cash flow improved by $44 million year-over-year in fiscal 2026. Management guides to roughly double operating cash flow in fiscal 2027 to $60M+ and expects free cash flow of around $50M for the year ahead.
Negative Updates
Meaningful Top-Line Guidance Decline for Fiscal 2027
Company guides consolidated revenue to $1.35 billion–$1.45 billion for fiscal 2027, which at the midpoint is approximately 14% below fiscal 2026 revenue, reflecting deliberate pullbacks and macro/industry headwinds.
Read all updates
Q4-2026 Updates
Positive
Negative
Material Operating Cash Flow Improvement
Operating cash flow improved by $44 million year-over-year in fiscal 2026. Management guides to roughly double operating cash flow in fiscal 2027 to $60M+ and expects free cash flow of around $50M for the year ahead.
Read all positive updates
Company Guidance
SelectQuote guided fiscal 2027 consolidated revenue of $1.35B–$1.45B (midpoint ~14% below FY26’s $1.62B) and adjusted EBITDA of $90M–$115M (midpoint implying ~60 bps of margin expansion vs FY26’s $109M), and said operating cash flow should approximately double to $60M+ with free cash flow of ~$50M. Management expects Medicare Advantage approved policies to decline 10–15% and Healthcare Services revenue to be down 10–15% (Healthcare Services exited FY26 with ~109k members, FY26 revenue $845M and $25M adjusted EBITDA, and an exit Q4 annual EBITDA run rate of nearly $50M), but forecasts Healthcare Services EBITDA margins to approximately double in 2027 and to target low double-digit margins over the long term. The Senior segment generated $576M of revenue in FY26 (‑4% YoY) with 26% adjusted EBITDA margin and is expected to remain above a 20% margin target in 2027 despite lower policy volumes. Company plans to capture more than $30M of annualized run‑rate expense improvements (AI, tech, process, rightsizing), expects its $1B+ commissions receivable to be relatively flat, and noted balance sheet items of roughly $800M of debt and preferred at ~12% cost with ~$45M of annual cash interest (every 100 bps reduction in funding cost ≈ $8M of savings).SelectQuote Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
48
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.62B | 1.53B | 1.32B | 1.00B | 764.04M |
| Gross Profit | 575.60M | 591.13M | 597.97M | 475.36M | 308.35M |
| EBITDA | 138.30M | 148.36M | 89.48M | 39.34M | -321.49M |
| Net Income | 62.19M | 47.58M | -34.13M | -58.54M | -297.50M |
Balance Sheet | |||||
| Total Assets | 1.52B | 1.25B | 1.19B | 1.22B | 1.29B |
| Cash, Cash Equivalents and Short-Term Investments | 20.72M | 32.40M | 42.69M | 83.16M | 141.00M |
| Total Debt | 396.37M | 415.91M | 713.92M | 731.80M | 745.06M |
| Total Liabilities | 870.96M | 673.84M | 877.11M | 872.28M | 898.95M |
| Stockholders Equity | 650.02M | 575.52M | 316.80M | 346.97M | 391.11M |
Cash Flow | |||||
| Free Cash Flow | 27.61M | -13.86M | 3.57M | -28.50M | -372.96M |
| Operating Cash Flow | 31.89M | -11.67M | 15.24M | -19.38M | -338.31M |
| Investing Cash Flow | -16.15M | -11.31M | -14.85M | -9.13M | -42.58M |
| Financing Cash Flow | -31.13M | 17.36M | -40.86M | -29.34M | 235.43M |
SelectQuote Technical Analysis
Negative
0.55
Price Trends
0.47
Negative
0.63
Negative
0.80
Negative
Market Momentum
-0.04
Negative
42.69
Neutral
46.54
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 0.55 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.47, and below the 200-day MA of 0.80, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 42.69 is Neutral, neither overbought nor oversold. The STOCH value of 46.54 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 55 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $360.88M | 0.60 | 10.56% | 6.00% | 76.04% | 25.89% | |
73 Outperform | $1.47B | 44.67 | 12.67% | ― | 33.12% | 45.43% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $21.83M | 0.27 | 6.41% | ― | ― | ― | |
54 Neutral | $63.35M | -5.89 | 10.03% | ― | 6.02% | -144.93% | |
48 Neutral | $17.61M | -0.66 | 3.23% | ― | -8.37% | -220.33% | |
34 Underperform | $620.32M | -0.15 | -150.44% | 3.38% | -47.11% | -87.98% |
* Financial Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.