SelectQuote (NYSE:SLQT) Issues Earnings Results, Beats Expectations By $0.17 EPS

SelectQuote (NYSE:SLQT - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported $0.15 earnings per share for the quarter, topping analysts' consensus estimates of ($0.02) by $0.17, Zacks reports. The company had revenue of $430.93 million for the quarter, compared to analyst estimates of $438.93 million. SelectQuote had a net margin of 5.60% and a return on equity of 20.49%.

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 Down 3.6%

Shares of NYSE SLQT opened at $1.20 on Thursday. SelectQuote has a 1-year low of $0.56 and a 1-year high of $2.80. The business has a fifty day moving average price of $0.75 and a 200 day moving average price of $1.22. The stock has a market capitalization of $210.67 million, a P/E ratio of 13.28 and a beta of 1.62. The company has a debt-to-equity ratio of 0.92, a current ratio of 5.63 and a quick ratio of 5.65.

Hedge Funds Weigh In On SelectQuote

A number of large investors have recently added to or reduced their stakes in the company. Dynamic Technology Lab Private Ltd bought a new stake in shares of SelectQuote in the 3rd quarter valued at about $27,000. CIBC Bancorp USA Inc. bought a new position in shares of SelectQuote during the 3rd quarter worth approximately $29,000. Aquatic Capital Management LLC purchased a new stake in SelectQuote during the third quarter valued at approximately $29,000. Russell Investments Group Ltd. lifted its position in SelectQuote by 90.7% during the second quarter. Russell Investments Group Ltd. now owns 16,133 shares of the company's stock valued at $38,000 after acquiring an additional 7,675 shares during the last quarter. Finally, Mackenzie Financial Corp acquired a new stake in SelectQuote in the third quarter valued at approximately $43,000. 34.59% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research firms recently weighed in on SLQT. Zacks Research upgraded SelectQuote from a "hold" rating to a "strong-buy" rating in a report on Friday, February 6th. Wall Street Zen raised shares of SelectQuote from a "sell" rating to a "hold" rating in a research report on Saturday, February 7th. Craig Hallum set a $3.00 price target on shares of SelectQuote in a report on Friday, February 6th. Weiss Ratings cut shares of SelectQuote from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, March 3rd. Finally, Royal Bank Of Canada dropped their price objective on shares of SelectQuote from $5.00 to $3.00 and set a "sector perform" rating on the stock in a research note on Wednesday, February 11th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $2.92.

About SelectQuote

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.