SelectQuote 2025 Q4 Earnings Strong Performance as Net Income Surges 141.5%

SelectQuote (SLQT) delivered a strong earnings report for fiscal 2025 Q4, far exceeding expectations and narrowing losses significantly. The company beat revenue growth projections and turned a net loss into a net profit, signaling a strategic pivot toward profitability. It also raised its revenue and adjusted EBITDA guidance for 2026, reflecting confidence in its Healthcare Services segment.

Revenue
SelectQuote reported total revenue of $345.10 million in fiscal 2025 Q4, a 12.3% increase from $307.21 million in the prior year. The growth was primarily driven by the rapid expansion of its Healthcare Services business, which includes SelectRx. This segment alone contributed $743 million in revenue and $25 million in adjusted EBITDA. The strong performance in this area offset more stable results in the company’s other lines of business and underscored the strategic focus on healthcare solutions.

Earnings/Net Income
The company significantly improved its bottom-line performance, narrowing its loss per share to $0.02 from $0.18 in the prior year, a 87.7% improvement. More notably, SelectQuote posted a net income of $12.87 million for fiscal 2025 Q4, a 141.5% turnaround from a net loss of $31.02 million in the same period last year. This marked a significant milestone for the firm, which had faced considerable financial challenges in the prior year.

Price Action
SelectQuote’s stock has seen a strong rebound across timeframes, with a 16.14% surge on the latest trading day, a 30.15% increase over the past week, and a 22.17% gain month-to-date. The recent performance reflects growing investor optimism about the company’s strategic direction and earnings momentum.

Post Earnings Price Action Review
The strategy of purchasing SelectQuote shares following the release of a revenue decline in its quarterly report and holding them for 30 days yielded moderate returns, though it underperformed the broader market. The approach returned 5.69% over the period, lagging the benchmark by 48.15%. While the maximum drawdown was 0.00%, the low Sharpe ratio of 0.02 suggests conservative performance with limited risk-adjusted returns. This strategy may appeal to risk-averse investors seeking stability in the wake of post-earnings volatility.

CEO Commentary
Timothy Robert Danker, CEO & Director, credited the company’s improved performance to the strong growth of its Healthcare Services business and enhanced agent productivity. He noted a 24% increase in agent productivity and stable EBITDA margins. Danker also highlighted the company’s strategic investments in technology and artificial intelligence to improve efficiency and scalability. Looking ahead, he expressed optimism about leveraging the company’s informational and connectivity advantages to expand its healthcare offerings and generate sustainable cash flows, balancing growth with profitability in 2026.

Guidance
SelectQuote provided upbeat guidance for fiscal 2026, forecasting total revenue in the range of $1.65 billion to $1.75 billion and adjusted EBITDA between $120 million and $150 million. The company anticipates relatively flat senior policy volumes but expects strong continued growth in Healthcare Services, with a projected 20% revenue increase and over $50 million in adjusted EBITDA. The CEO and CFO emphasized a strategic shift toward cash flow generation, leveraging the Health Care Services segment’s improved margin profile and a $1 billion commission receivable balance. CFO Ryan Clement added that the company expects positive operating cash flow in 2026 and is focused on optimizing its capital structure and reducing its cost of capital.

Additional News
A securities class action lawsuit was filed on August 18, 2025, against SelectQuote following a 19% drop in its stock price on May 1, 2025, due to a U.S. Department of Justice intervention alleging illegal kickbacks from health insurers. The DOJ accused SelectQuote of directing Medicare beneficiaries to certain insurers in exchange for financial compensation, violating its own claims of offering unbiased insurance advice. The class action lawsuit, Pahlkotter v. SelectQuote, Inc., seeks to represent investors who purchased shares between September 9, 2020, and May 1, 2025. The firm Hagens Berman is leading the investigation and is urging affected investors to submit claims. The lead plaintiff deadline is October 10, 2025. The firm is also encouraging whistleblowers with relevant information to come forward, as they could be eligible for rewards under the SEC Whistleblower program.