SelectQuote Inc (SLQT) Shares Soar 12.3% on Healthcare Services Surge

SelectQuote Inc (NYSE:SLQT) reported fourth-quarter fiscal 2025 results that showed mixed performance relative to analyst expectations. The company posted revenue of $345.1 million, exceeding the consensus estimate of $340.8 million, while its earnings per share came in at -$0.17, slightly better than the anticipated -$0.19. This represents a notable improvement from the same quarter last year, when the company reported a consolidated net loss of $31.0 million compared to this quarter's net income of $12.9 million.

The company's top-line growth of 12.3% year-over-year was primarily driven by strong performance in its Healthcare Services segment, which saw revenue surge 47% to $214.0 million for the quarter. This growth was supported by a 31% increase in SelectRx members, reaching 108,018 as of June 30, 2025. The Senior segment experienced a revenue decline of 28% to $82.5 million, reflecting challenges in Medicare Advantage submissions, which decreased 27% year-over-year. The Life segment showed modest growth with revenue increasing 14% to $48.0 million.

The Healthcare Services segment demonstrated remarkable improvement in profitability, with Adjusted EBITDA increasing to $11.9 million from $0.9 million in the prior year quarter. This segment's growth was fueled by both membership expansion and increased prescriptions per day, which rose to 30,630 from 22,950 in the comparable period. The Senior segment, while showing revenue pressure, maintained positive Adjusted EBITDA of $7.7 million, though this represented a significant decrease from the $27.9 million reported in the prior year period. The company attributed this performance to changes in the Medicare Advantage landscape while highlighting growth in "all other" products within this segment. Life insurance operations showed stable performance with revenue growth and Adjusted EBITDA of $6.9 million, slightly down from $7.2 million in the prior year quarter, but showing strong full-year improvement.

While the press release did not provide specific financial guidance, management expressed confidence in their holistic healthcare services model and its ability to drive substantial value for stakeholders. CEO Tim Danker highlighted that the company has exceeded initial expectations for the third consecutive year, with Adjusted EBITDA results outperforming forecasts by more than 20% annually during this period. Analysts currently project revenue of $341.95 million for the first quarter of fiscal 2026 and full-year revenue of $1.76 billion for fiscal 2026. The company's performance this quarter, particularly in Healthcare Services, suggests potential for upside to these estimates if current growth trajectories continue.