SelectQuote (SLQT) investor relations material

Executive summary

• Revenue for Q3 FY2026 reached $430.9 million, up 6% year-over-year, driven by Senior and Healthcare Services growth, with Life also contributing.

• Adjusted EBITDA for Q3 FY2026 was $45 million, up 18% year-over-year, reflecting improved operating performance and strong Senior segment margins.

• Net income for Q3 FY2026 was $40.2 million, up from $26.0 million in Q3 FY2025.

• Management reaffirmed FY2026 guidance and highlighted readiness to accelerate cash flow and profit in fiscal 2027.

• Introduced SelectQuote Local, a franchise model to expand reach with minimal capital investment.

Financial highlights

• Q3 FY2026 revenue was $430.9 million, with Adjusted EBITDA of $44.6 million and net income of $40.2 million.

• Senior segment revenue grew 8% year-over-year to $182.9 million, with Adjusted EBITDA of $58.6 million and a $14 million positive adjustment.

• Healthcare Services revenue increased 5% to $199.4 million, with Adjusted EBITDA improving to $5.3 million and SelectRx membership up 11% to 116,616.

• Life segment revenue rose 4% to $47.9 million, generating $6.1 million in Adjusted EBITDA.

• Marketing efficiency improved, with 14% less spent per approved policy compared to two years ago.

Outlook and guidance

• FY2026 revenue guidance reaffirmed at $1.61–$1.71 billion and Adjusted EBITDA at $90–$100 million.

• Management expects to exit FY2026 on strong footing and build further cash flow improvement in FY2027.

• Healthcare Services, especially SelectRx, anticipated to be a significant profit and cash flow driver in 2027 and beyond.

• Management expects to remain in compliance with debt covenants and has sufficient liquidity for the next 12 months.

• The company is monitoring its NYSE listing status after receiving a notice for non-compliance with the $1.00 minimum share price.