SelectQuote (SLQT) AI Stock Analysis

• Market Cap: $295.49M
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 13.16%
• EPS Growth: N/A
• Country: US
• Employees: 4,292
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): -0.26
• Shares Outstanding: 175,884,840
• 10 Day Avg. Volume: 1,191,842
• 30 Day Avg. Volume: 1,087,788
• PEG Ratio: -0.05
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -30.25
• Enterprise Value/Market Cap: 3.43
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 1.40
• Enterprise Value/Ebitda: 7.62
• 1Y Price Target: $5.33
• Price Target Upside: 208.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.04
• Revenue Forecast (FY): $1.71B

• Rating: 49 Neutral
• Price Target: $1.50 ▼(-13.29% Downside)

SelectQuote's overall stock score is primarily impacted by its financial performance and technical analysis. While there are signs of recovery in revenue and gross profit margins, the company faces significant profitability and cash flow challenges. The bearish technical indicators and negative valuation metrics further contribute to a cautious outlook.

SelectQuote Business Overview & Revenue Model

Company Description

SelectQuote, 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 Money

SelectQuote generates revenue primarily through commissions earned on the sale of insurance policies. The company partners with numerous insurance carriers, receiving a commission for each policy sold through its platform. This commission-based model allows SelectQuote to monetize its extensive customer base effectively. Additionally, the company may earn referral fees for directing customers to specific insurance providers. SelectQuote's focus on providing a transparent and user-friendly experience attracts a wide audience, contributing to its revenue growth. The company also invests in marketing and technology to enhance its services and expand its reach within the insurance marketplace.

SelectQuote Financial Statement Overview

Summary

SelectQuote shows signs of recovery with improved revenue growth and gross profit margins. However, profitability remains a concern with low net profit margins and negative operating cash flow. The reduction in leverage is a positive sign, but the company needs to address cash flow challenges to ensure long-term financial health.

Income Statement

SelectQuote has shown a positive revenue growth trend with a TTM revenue growth rate of 2.39%. The gross profit margin has improved significantly from 45.24% in 2024 to 61.30% in TTM, indicating better cost management. However, the net profit margin remains low at 3.12% in TTM, suggesting limited profitability. The EBIT and EBITDA margins have improved but are still modest, reflecting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.17 in TTM from a high of 2.25 in 2024, indicating reduced leverage and better financial stability. However, the return on equity is relatively low at 11.01% in TTM, suggesting limited returns for shareholders. The equity ratio is not provided, which limits a full assessment of asset financing.

Cash Flow

SelectQuote's cash flow situation is challenging, with negative operating cash flow in TTM. The free cash flow growth rate is positive at 40.62% in TTM, but the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is strong at 1.19, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.56B	1.53B	1.32B	1.00B	764.04M	929.98M
Gross Profit	723.36M	591.13M	597.97M	475.36M	308.35M	659.27M
EBITDA	133.19M	148.36M	89.48M	39.34M	-321.49M	203.48M
Net Income	61.67M	47.58M	-34.13M	-58.54M	-297.50M	124.86M
Balance Sheet
Total Assets	1.21B	1.25B	1.19B	1.22B	1.29B	1.43B
Cash, Cash Equivalents and Short-Term Investments	14.46M	32.40M	42.69M	83.16M	141.00M	286.45M
Total Debt	98.03M	415.91M	713.92M	731.58M	744.80M	505.30M
Total Liabilities	660.05M	673.84M	877.11M	872.28M	898.95M	758.98M
Stockholders Equity	305.07M	575.52M	316.80M	346.97M	391.11M	674.89M
Cash Flow
Free Cash Flow	-19.49M	-13.86M	11.85M	-28.50M	-372.96M	-138.43M
Operating Cash Flow	-16.68M	-11.67M	15.24M	-19.38M	-338.31M	-115.44M
Investing Cash Flow	-12.72M	-11.31M	-14.85M	-9.13M	-42.58M	-64.02M
Financing Cash Flow	34.66M	17.36M	-40.86M	-29.34M	235.43M	97.04M

SelectQuote Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.73 is below the 20-day moving average (MA) of 1.98, below the 50-day MA of 2.02, and below the 200-day MA of 2.75, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 36.25 is Neutral, neither overbought nor oversold. The STOCH value of 28.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLQT.

SelectQuote Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HUIZ	57 Neutral	$35.11M	13.16	4.56%	―	19.30%	-17.56%
SLQT	49 Neutral	$295.49M	―	15.11%	―	13.16%	―
EHTH	45 Neutral	$117.95M	109.97	5.88%	―	16.79%	―
RELI	44 Neutral	$4.20M	―	-223.86%	―	1.07%	96.67%
GOCO	42 Neutral	$56.44M	-0.93	-13.38%	―	17.46%	60.17%
TIRX	41 Neutral	$26.98M	-1.75	-11.18%	―	624.24%	85.46%

SelectQuote Corporate Events

SelectQuote Inc. Reports Q1 FY2026 Financial Results

SelectQuote Inc., a company specializing in offering unbiased insurance comparisons, operates primarily in the insurance and healthcare services sectors. The company provides a range of services including Medicare Advantage plans, prescription drug delivery, and life insurance.

SelectQuote Earnings Call: Mixed Sentiment and Strategic Outlook

SelectQuote’s recent earnings call revealed a mixed sentiment, reflecting both achievements and challenges faced by the company. On the positive side, SelectQuote reported significant revenue growth in its consolidated and Life Insurance business, alongside operational successes with the new Kansas facility. However, the company encountered difficulties with declining revenues in the Senior segment due to policy changes and a substantial EBITDA impact in Healthcare Services caused by reimbursement rate adjustments. These hurdles have led to unmet fiscal targets, impacting the overall sentiment of the earnings call.

SelectQuote Inc’s Earnings Call Highlights Growth Amid Challenges

During SelectQuote Inc’s recent earnings call, the sentiment was notably positive, driven by strong revenue growth and impressive agent productivity. However, the company acknowledged challenges in the Medicare Advantage market and anticipated lower EBITDA margins in fiscal 2026. The integration of technology and AI was highlighted as a promising avenue for future efficiency gains.

SelectQuote Inc. Reports Strong Q4 2025 Results

SelectQuote Inc., a company specializing in providing insurance comparisons and healthcare services, operates in the insurance and healthcare sectors, offering a unique blend of insurance brokerage and healthcare solutions.