SelectQuote Q1 revenue up 12.5%, beats estimates

Overview

• SelectQuote fiscal Q1 2026 revenue of $328.8 mln beats analyst expectations

• Net loss for fiscal Q1 2026 reduced to $30.5 mln from $44.5 mln last year

• Adjusted EBITDA for fiscal Q1 2026 was $(32.1) mln, down from $(1.7) mln last year

Outlook

• SelectQuote maintains fiscal 2026 revenue outlook of $1.65 bln to $1.75 bln

• Company expects Healthcare Services adjusted EBITDA around breakeven in fiscal Q2

• SelectQuote anticipates Healthcare Services adjusted EBITDA run rate of $40 to $50 mln by fiscal year-end

Result Drivers

• SENIOR SEGMENT CHALLENGES - Revenue and adjusted EBITDA declined due to a decrease in Medicare Advantage policies

• HEALTHCARE SERVICES GROWTH - Revenue and adjusted EBITDA increased, driven by a 24% rise in SelectRx members and higher pharmacy revenue

• LIFE SEGMENT PERFORMANCE - Revenue grew by 19% but adjusted EBITDA declined slightly

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance & brokers peer group is "buy"

• Wall Street's median 12-month price target for SelectQuote Inc is $5.50, about 61.3% above its November 5 closing price of $2.13

Press Release: ID:nBw2mLf8a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)