SelectQuote (SLQT) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue reached $408.2 million, up 8% year-over-year, driven by strong Healthcare Services and SelectRx membership growth, while Senior segment revenue declined.

• Net income for the quarter was $26.0 million, up from $8.6 million, and Adjusted EBITDA was $37.7 million, down from $46.6 million, reflecting margin pressures in Senior.

• SelectRx membership grew 41% year-over-year to 106,000, with trailing 12-month revenue of $675 million and positive Adjusted EBITDA.

• Life segment revenue increased 13% year-over-year to $46 million, with Adjusted EBITDA more than doubling.

• The company completed a $350 million Senior Non-Convertible Preferred Stock transaction, using proceeds to repay debt and strengthen liquidity.

Financial highlights

• Q3 FY2025 revenue was $408.2 million (+8% YoY); net income $26.0 million; Adjusted EBITDA $37.7 million (down 19% YoY).

• Nine months ended March 31, 2025: revenue $1.18 billion (+16% YoY), net income $34.7 million, Adjusted EBITDA $123.6 million.

• Senior segment Q3 revenue was $169 million (down 17% YoY), Adjusted EBITDA $45.7 million (down 26%), margin 27%.

• Healthcare Services Q3 revenue was $190 million (+53% YoY), Adjusted EBITDA $6.4 million (+301% YoY), margin 3%.

• Life segment Q3 revenue was $46 million (+13% YoY), Adjusted EBITDA $6.4 million (+103% YoY), margin 14%.

Outlook and guidance

• FY2025 revenue guidance is $1.5 billion to $1.575 billion, with Adjusted EBITDA of $115 million to $140 million and net income (loss) between $(1) million and $28 million.

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

• Near-term headwinds expected in Healthcare Services EBITDA due to Kansas facility ramp and focus on margin over growth.

• Fourth quarter growth expected to taper due to seasonality and industry changes affecting policy volumes.

• Continued investment in Healthcare Services, especially SelectRx, is expected to drive future growth.