SelectQuote (SLQT) investor relations material

Executive summary

• Revenue for Q2 FY2026 reached $537.1 million, up 12% year-over-year, led by strong Healthcare Services and Life segment growth, with Senior segment showing modest gains and near-record 39% EBITDA margins.

• Adjusted EBITDA for Q2 FY2026 was $84.7 million, slightly down from the prior year due to PBM reimbursement headwinds and external partner decisions.

• Net income for Q2 FY2026 was $69.3 million, up from $53.2 million in the prior year, while net income attributable to common shareholders was $51.2 million.

• Entered a multi-year PBM agreement and secured a new $415 million credit facility, extending debt maturities to 2031 and enhancing capital flexibility.

• Fiscal 2026 guidance was reduced by $40 million due to a national carrier's marketing budget cut and PBM reimbursement changes.

Financial highlights

• Consolidated revenue for Q2 FY2026 was $537.1 million, with net income of $69.3 million and Adjusted EBITDA of $84.7 million.

• Senior segment revenue grew 2% to $261.5 million, with Adjusted EBITDA of $102.5 million and a 39% margin.

• Healthcare Services revenue increased 26% year-over-year to $230.7 million, with SelectRx membership up 17% to 113,483.

• Life segment revenue rose 9% to $43.6 million, with final expense premiums up 24% and Adjusted EBITDA of $5.6 million.

• Operating cash flow for the six months ended December 31, 2025, was negative $21.6 million, an improvement from the prior year.

Outlook and guidance

• Fiscal 2026 consolidated revenue guidance revised to $1.61–$1.71 billion and Adjusted EBITDA to $90–$100 million, reflecting $40 million in aggregate headwinds.

• Operating cash flow for fiscal 2026 expected at $25–$35 million, up over $40 million at midpoint from last year.

• Senior division targets 20%+ EBITDA margins; Healthcare Services aims for $40–$50 million annualized Adjusted EBITDA exit rate.

• Membership in Healthcare Services expected to end fiscal 2026 flat to modestly down, but with 20%+ year-over-year revenue growth.

• Guidance revision attributed to external factors, not internal performance.