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SelectQuote Stock Surges Following Q4 Earnings Beat
ByAinvest
Friday, Aug 22, 2025 6:43 am ET1min read
SelectQuote Inc (SLQT) shares surge 38.75% after Q4 earnings beat estimates, with revenue at $345.102 million and EPS loss of 2 cents. CEO Tim Danker praises the results, citing strong guidance for fiscal year 2026, with revenue expected between $1.65 billion and $1.75 billion and Adjusted EBITDA between $120 million and $150 million.
SelectQuote Inc. (SLQT) saw its shares surge 38.75% in pre-market trading following the release of its fourth-quarter 2025 earnings report. The company reported an earnings per share (EPS) loss of 2 cents, significantly beating the forecast of -$0.16. Revenue for the quarter came in at $345.1 million, slightly above the expected $343.94 million.The stock price increase reflects investor optimism driven by the company's better-than-expected earnings and growth prospects in its Healthcare Services segment, which saw a 55% increase in revenue. SelectQuote's CEO, Tim Danker, praised the results and provided strong guidance for fiscal year 2026, with revenue expected between $1.65 billion and $1.75 billion and adjusted EBITDA projected between $120 million and $150 million.
The company's full-year consolidated revenue reached $1.53 billion, marking a 15.5% growth year-over-year. Despite a decline in approved Medicare Advantage policies, SelectQuote improved its revenue to customer acquisition cost ratio, showcasing its ability to adapt in a challenging market. The company maintains a market capitalization of $316.08 million and an EV/EBITDA ratio of 9.26, indicating a balanced valuation profile.
SelectQuote's performance in Q4 2025 was driven by significant growth in its Healthcare Services segment, which saw a 55% increase in revenue. The company's full-year consolidated revenue reached $1.53 billion, marking a 15.5% growth year-over-year. Despite a decline in approved Medicare Advantage policies, SelectQuote improved its revenue to customer acquisition cost ratio, showcasing its ability to adapt in a challenging market.
Looking ahead, SelectQuote expects continued growth in its Healthcare Services segment, projecting a 20% increase in revenue and over $50 million in EBITDA for fiscal 2026. The company also expects to maintain flat Medicare Advantage policy volumes.
References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-selectquote-q4-2025-beats-eps-expectations-93CH-4204811
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