SelectQuote (SLQT) Q3 2025 Earnings Call May 12, 2025 08:30 AM ET Company Participants Matthew Gunter - Chief Communication Officer & Investor RelationsTimothy Danker - Chief Executive OfficeRyan Clement - Chief Financial OfficerRobert Grant - PresidentMichael Murray - Equity Research Associate Conference Call Participants George Sutton - Partner & Senior Research AnalystPatrick McCann - Equity Research Analyst Operator Welcome to SelectQuote's Third Quarter Earnings Conference Call. All lines have been pla ...

Financial Data and Key Metrics Changes - SelectQuote reported consolidated revenues of $408 million for Q3 2025, an 8% increase compared to the previous year [4][21] - Consolidated EBITDA for the quarter was $38 million, reflecting a margin of 9% despite a mix shift towards lower-margin Healthcare Services [5][21] - The trailing twelve-month revenue to customer acquisition cost (CAC) ratio improved to 5.8x from 4.2x a year ago, indicating enhanced marketing efficiency [9][10] Business Line Data and Key Metrics Changes - The Senior segment generated $169 million in revenue with an adjusted EBITDA of $46 million, achieving a margin of 27% despite a 26% reduction in agent headcount [22][24] - Healthcare Services revenue grew 53% year-over-year to $190 million, with adjusted EBITDA of $6 million [27] - Life Insurance revenues increased by 13% to $46 million, with adjusted EBITDA more than doubling to $6 million, resulting in a margin of 14% [29] Market Data and Key Metrics Changes - SelectQuote's SelectRx business saw membership grow to 106,000, a 41% increase year-over-year, contributing to significant revenue growth [4][27] - The company noted a favorable final rate notice for the 2026 plan year, which is expected to alleviate pressures in the Medicare Advantage market [7][58] Company Strategy and Development Direction - The company aims to enhance profitability in its Healthcare Services segment by refining membership parameters and focusing on efficiency [15][51] - SelectQuote plans to leverage its scale and improve margin consistency, even if it results in slower membership growth in the near term [16][51] - The company is committed to maintaining high integrity and compliance in the Medicare Advantage industry amid ongoing legal challenges [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the Medicare Advantage landscape, citing improved agent efficiency and customer attachment rates [36][38] - The company anticipates potential headwinds in Q4 due to new beneficiary eligibility parameters and the ramp-up of its Kansas distribution facility [30][62] - Management remains optimistic about the long-term growth prospects of the Healthcare Services segment, despite short-term profitability challenges [16][62] Other Important Information - SelectQuote has made significant progress on its capital structure, including a $100 million securitization and a $350 million strategic investment [31][32] - The company ended the quarter with an operating cash flow of $71 million and a cash balance of $86 million [32][33] Q&A Session Summary Question: Can you walk through the separation of growth in Medicare Advantage and SelectRx? - Management noted that while there was a decline in Medicare Advantage volume due to a smaller agent count, the efficiency of tenured agents helped drive strong performance in SelectRx [35][36] Question: What are the plans for agent growth in the upcoming season? - Management indicated that hiring is underway and they feel positive about the early stages of recruitment for the next season [40][42] Question: Can you discuss the impact of receivable securitization? - Management confirmed that they are exploring additional securitization options and have made progress on their capital structure [43][45] Question: How should investors think about MA LTV moving forward? - Management expects MA LTV to be down year-over-year in Q4 due to the shift in commission structure but will provide more details in the next earnings call [48] Question: What are the expected benefits from the new Kansas facility? - Management anticipates long-term benefits in operating efficiency and customer experience, although there will be a short-term drag on profitability [61][62]

3rd Quarter Fiscal 2025 Earnings Presentation May 12, 2025 | We shop. You save. Disclaimer Forward-Looking Statements This presentation contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," ...

Exhibit 99.1 SelectQuote, Inc. Reports Third Quarter of Fiscal Year 2025 Results Third Quarter of Fiscal Year 2025 – Consolidated Earnings Highlights Fiscal Year 2025 Guidance Ranges: Third Quarter Fiscal Year 2025 – Segment Highlights Senior Healthcare Services Life OVERLAND PARK, Kan., May 12, 2025--(BUSINESS WIRE)--SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the third quarter of fiscal year 2025 of $408.2 million compared to consolidated revenue for the third quarter of fiscal year 2 ...

SAN FRANCISCO, May 9, 2025 /PRNewswire/ -- On May 1, 2025, investors in SelectQuote (NYSE: SLQT) saw the price of their shares tumble over 19% after the U.S. Department of Justice announced it had filed a lawsuit against the company, other insurance brokers, and three of the nation's largest health insurance companies, claiming violations of the False Claims Act. Hagens Berman urges SelectQuote investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowled ...

LOS ANGELES, May 8, 2025 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of SelectQuote, Inc. ("SelectQuote" or "the Company") (NYSE: SLQT) for violations of the securities laws.The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. SelectQuote is the subject of a DOJ False Claims Act filed on May 1, 2025. The f ...

SAN FRANCISCO, May 07, 2025 (GLOBE NEWSWIRE) -- On May 1, 2025, investors in SelectQuote (NYSE: SLQT) saw the price of their shares tumble over 19% after the U.S. Department of Justice announced it had filed a lawsuit against the company, other insurance brokers, and three of the nation's largest health insurance companies, claiming violations of the False Claims Act. Hagens Berman urges SelectQuote investors who suffered substantial losses to submit your losses now. The firm also encourages persons with kn ...

NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP is investigating potential claims against SelectQuote, Inc. (“SelectQuote” or the “Company”) (NYSE:SLQT). The investigation concerns whether SelectQuote and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices. [LEARN MORE ABOUT THE INVESTIGATION] On May 1, 2025, the U.S. Department of Justice filed a False Claims Act complaint against SelectQuote, alleging that ...

NEW YORK, May 6, 2025 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of SelectQuote, Inc. ("SelectQuote" or the "Company") (NYSE: SLQT). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.The investigation concerns whether SelectQuote and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action]On May 1, 2025, the U ...

ATLANTA, May 06, 2025 (GLOBE NEWSWIRE) -- Holzer & Holzer, LLC is investigating whether SelectQuote, Inc. (“SelectQuote” or the “Company”) (NYSE: SLQT) complied with federal securities laws. On May 1, 2025, the Department of Justice filed a False Claims Act complaint against SelectQuote, alleging that for six years Humana agreed to pay millions in kickbacks to the Company, conditioning the payments on “(1) SelectQuote delivering specific quantities of Medicare Advantage enrollments for Humana, (2) SelectQuo ...