Yahoo Finance

• Revenue: $481 million for the second quarter, up 19% year over year.

• Adjusted EBITDA: $88 million, up 30% year over year, with a margin of 18%.

• Senior Segment Revenue: $256 million for the second quarter.

• Senior Segment Adjusted EBITDA: $101 million, up 28% year over year, with a margin of 39%.

• Medicare Advantage Policy Volume: 248,000 policies, representing 6% growth.

• Medicare Advantage Lifetime Value: $907, a 3% decrease year over year.

• SelectRX Membership: 97,000 members, up 54% year over year.

• SelectRX Revenue: $183 million, up 64% year over year.

• Healthcare Services Adjusted EBITDA: $2 million.

• Life Business Revenue: $40 million.

• Life Business Adjusted EBITDA: $7 million, up 62% year over year, with a margin of 19%.

• Fiscal 2025 Revenue Guidance: Raised to $1.5 billion to $1.575 billion.

• Fiscal 2025 Adjusted EBITDA Guidance: Raised to $115 million to $140 million.

• Fiscal 2025 Net Income Guidance: Adjusted to a range of a loss of $24 million to income of $11 million.

• Warning! GuruFocus has detected 4 Warning Signs with SLQT.

Release Date: February 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SelectQuote Inc (NYSE:SLQT) reported a 19% increase in revenue year-over-year, driven by strong performance in both the Senior and Healthcare Services segments.

• The company achieved a 30% growth in consolidated adjusted EBITDA, with a margin of 18%, indicating strong operational efficiency.

• The Senior segment delivered robust results with a 39% EBITDA margin, surpassing last year's performance, due to high agent productivity and close rates.

• SelectRX, part of the Healthcare Services segment, showed significant growth with a 54% increase in membership and a 64% increase in revenue year-over-year.

• SelectQuote Inc (NYSE:SLQT) successfully raised its 2025 guidance for revenue, EBITDA, and net income, reflecting confidence in future performance.

Negative Points

• The company faced a challenging Medicare Advantage season with a higher-than-usual 6% termination rate of plans by carriers.

• Despite strong performance, the Senior segment's Medicare Advantage lifetime values decreased by 3% year-over-year due to carrier mix changes.

• SelectQuote Inc (NYSE:SLQT) had to operate with a 22% lower agent headcount compared to the previous year, which could have limited potential growth.

• The company is still in the process of optimizing its capital structure, indicating ongoing financial adjustments and potential instability.

• SelectQuote Inc (NYSE:SLQT) reported a net income range that includes a potential loss, highlighting ongoing financial challenges despite revenue growth.