SelectQuote (NYSE:SLQT) Issues Quarterly Earnings Results

Key Points

• SelectQuote reported an EPS of $0.15, beating the consensus of ($0.02), with revenue of $431 million and $45 million of Adjusted EBITDA (18% YoY), and management reaffirmed fiscal 2026 guidance.
• The company holds a nearly $1 billion commissions receivable asset and is actively pursuing capital-market options (securitization, potential M&A or other transactions) to unlock that value while committing to maintain its NYSE listing.
• Shares jumped about 53% on heavy volume to $1.25 after the results; the firm has a market cap of roughly $219 million and a consensus analyst rating of "Hold" with an average target of $2.92.

SelectQuote (NYSE:SLQT - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.02) by $0.17, Zacks reports. SelectQuote had a return on equity of 14.85% and a net margin of 4.80%.

Here are the key takeaways from SelectQuote's conference call:

• SelectQuote reported a strong quarter with $431 million in revenue and $45 million of Adjusted EBITDA (18% YoY growth), and management reaffirmed its fiscal 2026 guidance.
• Senior segment revenue rose 8% to $183 million; Senior Adjusted EBITDA was $59 million including a $14 million favorable change in estimate to commissions receivable, and management highlights a nearly $1 billion commissions receivable asset on the balance sheet.
• Healthcare services (SelectRx) generated $199 million of revenue; sequential top-line decline was driven by the Inflation Reduction Act but EBITDA impact was limited to low single-digit millions, and management expects SelectRx can reach a $40–50 million EBITDA run rate in the near term.
• Management is actively pursuing capital-market options (securitization, potential M&A or other transactions) to unlock receivable value and has committed to maintaining the company’s NYSE listing, signaling steps to address the equity valuation disconnect.
• The company introduced SelectQuote Local, a franchise model to broaden its addressable market with minimal capital investment, but it will not be a meaningful revenue driver in the near term.

SelectQuote Trading Up 53.0%

NYSE:SLQT traded up $0.43 during mid-day trading on Tuesday, reaching $1.25. 17,802,257 shares of the company's stock traded hands, compared to its average volume of 1,534,870. SelectQuote has a 12-month low of $0.56 and a 12-month high of $2.80. The firm has a market capitalization of $219.48 million, a price-to-earnings ratio of 123.82 and a beta of 1.62. The company has a debt-to-equity ratio of 1.07, a current ratio of 5.65 and a quick ratio of 5.65. The company has a 50 day moving average price of $0.74 and a 200-day moving average price of $1.23.

Analyst Ratings Changes

SLQT has been the subject of several research analyst reports. Zacks Research raised SelectQuote from a "hold" rating to a "strong-buy" rating in a research note on Friday, February 6th. Royal Bank Of Canada dropped their price target on SelectQuote from $5.00 to $3.00 and set a "sector perform" rating for the company in a research note on Wednesday, February 11th. Weiss Ratings lowered SelectQuote from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, March 3rd. Craig Hallum set a $3.00 price target on SelectQuote in a research note on Friday, February 6th. Finally, Wall Street Zen raised SelectQuote from a "sell" rating to a "hold" rating in a research note on Saturday, February 7th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $2.92.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SLQT. AQR Capital Management LLC increased its holdings in SelectQuote by 37.8% during the 1st quarter. AQR Capital Management LLC now owns 53,081 shares of the company's stock valued at $177,000 after purchasing an additional 14,551 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in SelectQuote by 6.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 81,854 shares of the company's stock valued at $273,000 after purchasing an additional 4,947 shares during the period. Caxton Associates LLP purchased a new position in SelectQuote during the 1st quarter valued at about $172,000. Acadian Asset Management LLC purchased a new position in SelectQuote during the 1st quarter valued at about $514,000. Finally, Creative Planning increased its holdings in SelectQuote by 8.5% during the 2nd quarter. Creative Planning now owns 121,597 shares of the company's stock valued at $289,000 after purchasing an additional 9,504 shares during the period. Hedge funds and other institutional investors own 34.59% of the company's stock.

SelectQuote Company Profile

SelectQuote, Inc NYSE: SLQT is a U.S.-based insurance brokerage and lead generation company that connects consumers with a range of insurance products through proprietary technology and licensed agents. The company specializes in life insurance, supplemental health coverage and Medicare plans, leveraging its digital platform and call center operations to help individuals compare policies and find cost-effective solutions tailored to their needs.

Through a single point of contact, policy seekers can evaluate offerings from multiple carriers, including term life, whole life, accidental death, critical illness and long-term care products.

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