SelectQuote (SLQT) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue grew 26% year-over-year to $292.3 million, driven by 61% pharmacy growth and strong agent productivity, while net loss widened to $44.5 million from $31.1 million; Adjusted EBITDA improved to $(1.7) million from $(11.4) million.

• SelectRx membership increased 64% to 86,521, fueling Healthcare Services segment growth and profitability for the sixth consecutive quarter.

• Outperformance in the Medicare Advantage enrollment period led to an increased fiscal 2025 outlook for revenue and Adjusted EBITDA.

• Completed a $100 million investment-grade securitization post-quarter to refinance debt, extend maturities, and improve capital flexibility.

• High agent retention and productivity, supported by technology and data tools, contributed to strong results and competitive advantage.

Financial highlights

• Q1 FY2025 consolidated revenue: $292.3 million (up from $232.7 million year-over-year); pharmacy revenue: $152.9 million (+61%); commissions and other services: $139.4 million (+1%).

• Net loss: $44.5 million (vs. $31.1 million prior year); Adjusted EBITDA: $(1.7) million (improved from $(11.4) million); gross margin: 48% (down from 59%).

• Senior segment revenue: $92.9 million (+3%); Adjusted EBITDA: $7.7 million (from $(1.3) million); Medicare Advantage LTV up 7% to $812.

• Healthcare Services revenue: $155.7 million (+60%); Adjusted EBITDA: $4.9 million (from $2.3 million).

• Life segment revenue: $39.3 million (+4%); Adjusted EBITDA: $6.0 million (from $5.2 million).

Outlook and guidance

• FY2025 revenue guidance raised to $1.425–$1.525 billion; Adjusted EBITDA guidance increased to $100–$130 million; net income (loss) guidance: $(59) million to $3 million.

• Healthcare Services margins expected in the low to mid-single digits for the full year, with profitability ramping in the second half.

• Management expects to remain in compliance with debt covenants for the next 12 months but may require additional financing for milestone payments.