SelectQuote's Q4 2025: Shifting Focus from Membership Growth to EBITDA Amid Securitization Plans and AI Enhancements

Focus on membership growth vs. EBITDA growth in SelectRx, capital allocation priorities and balance sheet improvement, SelectRx business model and growth strategy, securitization plans, AI and agent efficiency are the key contradictions discussed in SelectQuote's latest 2025Q4 earnings call.



Record Revenue and Growth in Healthcare Services:
- SelectQuote ended fiscal 2025 with consolidated revenue of $1.5 billion, growing 16% year-on-year.
- The increase was primarily driven by the rapid growth of the company's Healthcare Services business, specifically SelectRx, with a 55% increase in revenue to nearly $0.75 billion.

Senior Medicare Advantage Segment Performance:
- The Senior Medicare Advantage segment produced 593,000 approved policies in fiscal 2025, despite a 5% decline compared to the previous year.
- This was due to a strategic decision to reduce agent headcount, which resulted in 24% more policies per agent and an increase in EBITDA margins.

Healthcare Services Margin and EBITDA Improvement:
- Healthcare Services reported an adjusted EBITDA of $25 million in fiscal 2025, up significantly from the previous year.
- The improvement in profitability was attributed to concurrent investments in a new distribution facility and refined member targeting, resulting in better unit economics.

Cash Flow and Financial Strategy:
- SelectQuote aims to be cash flow positive in fiscal 2026, with Healthcare Services expected to generate more than $50 million in adjusted EBITDA.
- The focus is on balancing growth with cash flow generation, driven by the increasing cash efficiency and strategic capital allocation.