NEW YORK, Aug. 26, 2025 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, announces the filing of a class action lawsuit against SelectQuote, Inc. (“SelectQuote” or the “Company”) (NYSE: SLQT) for violations of the federal securities laws on behalf of investors who purchased or acquired SelectQuote securities between September 9, 2020 and May 1, 2025, inclusive (the “Class Period”). On August 11, 2025, a complaint was filed against the Compan ...

SAN FRANCISCO, Aug. 25, 2025 (GLOBE NEWSWIRE) -- A new securities class-action lawsuit has been filed against SelectQuote, Inc. (NYSE: SLQT) and its executives after the U.S. Department of Justice (DOJ) announced its intervention in a separate lawsuit against the company. This federal involvement triggered a sharp 19% decline in SelectQuote’s stock price on May 1, 2025, leading to significant investor losses. The lawsuit, known as Pahlkotter v. SelectQuote, Inc. et al., is on behalf of investors who purchas ...

Core Viewpoint - Rosen Law Firm is reminding investors who purchased SelectQuote, Inc. securities between September 9, 2020, and May 1, 2025, of the upcoming lead plaintiff deadline on October 10, 2025, for a class action lawsuit [1][2]. Group 1: Class Action Details - Investors who bought SelectQuote securities during the specified Class Period may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [1]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by the October 10, 2025 deadline [2][6]. Group 2: Allegations Against SelectQuote - The lawsuit alleges that SelectQuote made false and misleading statements, including directing Medicare beneficiaries to plans that compensated SelectQuote rather than providing unbiased comparisons [4]. - It is claimed that SelectQuote received illegal kickbacks to steer Medicare beneficiaries to certain insurers, which resulted in non-compliance with laws and regulations [4]. - The lawsuit asserts that the misleading statements about SelectQuote's business operations led to investor damages when the true details became public [4]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time and being ranked No. 1 for securities class action settlements in 2017 [3]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [3].

Core Viewpoint - A class action lawsuit has been filed against SelectQuote, Inc. for allegedly violating the False Claims Act by directing Medicare beneficiaries to insurers that compensated the company the most, rather than providing unbiased comparisons of insurance plans [1][2][3]. Group 1: Allegations and Legal Issues - The complaint alleges that SelectQuote failed to disclose that it directed Medicare beneficiaries to plans based on compensation rather than quality [2]. - SelectQuote is accused of not providing unbiased comparisons for Medicare Advantage plans and receiving illegal kickbacks from insurers [2]. - The U.S. Department of Justice filed a complaint stating that SelectQuote received "tens of millions of dollars" in illegal kickbacks from 2016 to 2021, leading to a significant drop in its stock price by 19.2% on May 1, 2025 [3]. Group 2: Class Action Participation - Shareholders interested in participating as lead plaintiffs in the class action must file their papers by October 10, 2025 [4]. - Shareholders can remain absent class members and still be eligible for recovery without participating in the case [4]. Group 3: Company Background - Robbins LLP is a law firm specializing in shareholder rights litigation, dedicated to helping shareholders recover losses and improve corporate governance since 2002 [5].

Over the past few weeks, the stock market has shown signs of nervousness at all-time highs. Investors are beginning to retreat from crowded large-cap trades like Palantir ( PLTR ) while breathing more life intoWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha sin ...

Core Viewpoint - Rosen Law Firm is reminding investors who purchased SelectQuote, Inc. securities between September 9, 2020, and May 1, 2025, of the upcoming lead plaintiff deadline on October 10, 2025, for a class action lawsuit [1][2]. Group 1: Class Action Details - Investors who purchased SelectQuote securities during the specified Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by the deadline [2]. - The Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions [3]. Group 2: Allegations Against SelectQuote - The lawsuit alleges that SelectQuote made false and misleading statements, including directing Medicare beneficiaries to plans that compensated SelectQuote rather than providing unbiased comparisons [4]. - It is claimed that SelectQuote received illegal kickbacks to steer beneficiaries to certain insurers and limit enrollment in competitors' plans, violating applicable laws and regulations [4]. - The lawsuit asserts that the misleading statements about SelectQuote's business operations led to investor damages when the true details became public [4].

[PART I](index=4&type=section&id=PART%20I) [Business](index=4&type=section&id=Item%201.%20Business) SelectQuote operates as a technology-enabled, direct-to-consumer (DTC) distribution platform for insurance policies and healthcare services, strategically shifting focus to its higher-growth Healthcare Services platform. - The company is strategically prioritizing its healthcare services platform, including offerings like SelectRx and SelectPatient Management (SPM), while reducing focus on the Auto & Home insurance distribution business[12](index=12&type=chunk) - SelectQuote's business model is centered on being an insurance distributor, earning commissions from carrier partners for policies sold, without bearing underwriting risk[13](index=13&type=chunk)[19](index=19&type=chunk) - The company utilizes a proprietary technology platform that integrates AI and machine learning to analyze consumer leads, optimize marketing spend, and route leads to the most suitable agents, aiming to maximize the lifetime value of commissions (LTV)[13](index=13&type=chunk)[34](index=34&type=chunk) - The business operates through three main insurance distribution segments: Senior (Medicare Advantage, Medicare Supplement), Life (Term Life, Final Expense), and Auto & Home, in addition to the growing Healthcare Services segment[25](index=25&type=chunk) - The Senior segment's operations are highly seasonal, with a significant portion of revenue generated during the second fiscal quarter due to the Medicare Annual Enrollment Period (AEP)[97](index=97&type=chunk) [Our Business Model and Products](index=5&type=section&id=Our%20Business%20Model%20and%20Products) The company's business model combines a technology-driven platform with skilled agents to provide a transparent, direct-to-consumer (DTC) experience for insurance and healthcare services, earning commissions without underwriting risk. - The company's value proposition is built on combining proprietary technology with skilled, licensed agents to offer consumers transparency, choice, and personalized guidance in selecting complex insurance products[14](index=14&type=chunk)[20](index=20&type=chunk) Product Segment Offerings | Segment | Key Offerings | FY2025 Policy/Premium Mix | | :--- | :--- | :--- | | **Healthcare Services** | Prescription medications (SelectRx), health assessments (Healthcare Select), chronic care management (SPM) | N/A | | **Senior** | Medicare Advantage (MA), Medicare Supplement (MS), DVH, critical illness | 90% of approved policies were MA and MS | | **Life** | Term life, final expense, critical illness, accidental death | 40% Term Life, 60% Final Expense (by new premium) | | **Auto & Home** | Homeowners, auto, dwelling fire | 83% Homeowners and Auto (by new premium) | [Our Technology and Partners](index=7&type=section&id=Our%20Technology%20and%20Partners) SelectQuote's competitive advantage is rooted in its proprietary technology platform, which uses over 40 years of data, AI, and machine learning for lead acquisition, intelligent routing, sales enablement, and customer lifecycle management. - The technology platform is built on over **40 years of data**, encompassing approximately **32 million leads** and over **1 billion data points**, which fuels AI and machine learning models for lead acquisition, scoring, and routing[34](index=34&type=chunk)[58](index=58&type=chunk) - Proprietary systems like SelectBid (lead scoring), GAL (lead routing), and ARC/AQE (quoting engines) are core to the platform's efficiency and are integrated into the overarching CRM, SelectCare[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) - Key insurance carrier partners include UnitedHealthcare (UHC), Humana, Aetna, and WellCare in the Senior segment, serving as the company's primary customers by providing revenue through commissions[41](index=41&type=chunk)[43](index=43&type=chunk) [Market Opportunity and Growth Strategy](index=9&type=section&id=Market%20Opportunity%20and%20Growth%20Strategy) SelectQuote identifies significant market opportunities driven by demographic trends and industry shifts, focusing its growth strategy on maximizing lifetime value, optimizing agents, deepening partnerships, and expanding Healthcare Services. - The company targets a large and growing market, including an estimated **$640 billion+ US pharmaceutical market** and a senior population where Medicare Advantage enrollment is projected to grow from **54% in 2024 to 64% by 2034**[45](index=45&type=chunk)[47](index=47&type=chunk) - SelectRx, the company's pharmacy business, reached over **108,000 active members** as of June 30, 2025, with capacity to serve over **150,000**[45](index=45&type=chunk) - The core growth strategy is to maximize policyholder lifetime value (LTV) through investments in agent experience, carrier negotiations, technology, and the Healthcare Select platform to improve policy persistency[69](index=69&type=chunk) - A key strategy is to deepen consumer penetration and drive cross-selling, particularly leveraging the Senior customer base to grow the Healthcare Services segment[72](index=72&type=chunk) [Competition, Employees, and Regulation](index=15&type=section&id=Competition%2C%20Employees%2C%20and%20Regulation) SelectQuote operates in a highly competitive and fragmented insurance distribution market, facing extensive federal and state regulations across its insurance, healthcare, and pharmacy operations. - The company's primary competitors in insurance distribution are eHealth, Inc. and GoHealth, Inc., while in the pharmacy market, it competes with both online and traditional brick-and-mortar pharmacies[79](index=79&type=chunk) - As of June 30, 2025, the company employed **1,181 agents** and **3,088 non-agent full-time equivalent employees**, with an additional **431 external employees** hired for the 2024 AEP[81](index=81&type=chunk) - The business is heavily regulated, subject to state insurance laws, CMS regulations for Medicare marketing, federal and state anti-kickback laws, DEA and FDA rules for its pharmacy operations, and data privacy laws like HIPAA and GLBA[85](index=85&type=chunk)[86](index=86&type=chunk)[88](index=88&type=chunk)[90](index=90&type=chunk) [Risk Factors](index=19&type=page&id=Item%201A.%20Risk%20Factors) The company faces significant risks, primarily related to its heavy reliance on a small number of insurance carrier partners, changes in the health insurance market, and regulatory compliance. - A substantial portion of revenue is derived from a limited number of insurance carriers; for fiscal year 2025, carriers owned by UHC, Aetna, and Humana accounted for **37%, 15%, and 11% of total revenue**, respectively, making the loss of any of these relationships a significant business risk[117](index=117&type=chunk) - The Senior segment is subject to a complex and frequently changing legal framework, particularly regulations from CMS governing the marketing and sale of Medicare plans, where non-compliance could lead to termination of carrier relationships or other penalties[200](index=200&type=chunk)[201](index=201&type=chunk) - The business model is dependent on obtaining a large quantity of quality sales leads in a cost-effective manner and successfully converting those leads into policy sales, with failure in either area adversely affecting profitability[135](index=135&type=chunk)[137](index=137&type=chunk) - The company is a defendant in a qui tam action partially intervened by the Department of Justice, alleging violations of the False Claims Act, where an unfavorable outcome could have a material adverse effect on the business[217](index=217&type=chunk)[218](index=218&type=chunk)[553](index=553&type=chunk) - Operating results are impacted by estimates of the lifetime value of commissions, which rely on assumptions about policy persistency (lapse rates), and higher-than-expected lapse rates may require revenue reversal[173](index=173&type=chunk)[174](index=174&type=chunk) - A cybersecurity breach could expose the company to data loss, litigation, regulatory fines, and reputational damage, given its collection and storage of sensitive consumer information[186](index=186&type=chunk)[191](index=191&type=chunk) [Cybersecurity](index=43&type=section&id=Item%201C.%20Cybersecurity) SelectQuote has established a formal cybersecurity program focused on risk management, strategy, and governance, with Board oversight and no material incidents reported to date. - The company's cybersecurity strategy is a formal approach to enterprise risk management, focusing on identifying, protecting, detecting, responding to, and recovering from cybersecurity events[227](index=227&type=chunk) - Governance includes day-to-day management by the Director of IT Security, who reports to the CIO, with oversight from the Board of Directors' Audit Committee, which receives periodic updates[230](index=230&type=chunk)[232](index=232&type=chunk) - As of the date of the report, the company has not experienced any cybersecurity incidents that have been determined to be material[234](index=234&type=chunk) [Properties](index=44&type=section&id=Item%202.%20Properties) SelectQuote leases all its principal properties, which are in good operating condition, including its corporate headquarters in Overland Park, Kansas, and other significant locations supporting various business segments. Principal Leased Properties as of August 21, 2025 | Location | Primary Use | Occupied Square Footage | | :--- | :--- | :--- | | Overland Park, Kansas | Corporate headquarters, operations for all segments | 136,194 | | Centennial, Colorado | Subleased | 13,064 | | Monaca, Pennsylvania | Healthcare Services (SelectRx) operations | 22,000 | | Indianapolis, Indiana | Healthcare Services (SelectRx) operations | 32,630 | | Oakland, California | Life segment operations | 8,623 | | San Diego, California | Life segment operations | 5,874 | | Olathe, Kansas | Healthcare Services (SelectRx) operations | 27,000 | [Legal Proceedings](index=45&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings, including a qui tam action alleging False Claims Act violations and securities class action lawsuits, which it is vigorously defending. - The company is a defendant in the DOJ Action, a qui tam lawsuit alleging violations of the Federal False Claims Act related to sales and marketing practices, with a motion to dismiss filed in August 2025[553](index=553&type=chunk)[554](index=554&type=chunk) - A securities class action (`In re SelectQuote, Inc. Securities Litigation`) was dismissed by the district court in April 2025, but the plaintiffs filed a notice of appeal in May 2025[550](index=550&type=chunk) - A related stockholder derivative action (`Jadlow v. Danker, et al.`) remains stayed pending the resolution of the motion to dismiss the Securities Class Action[551](index=551&type=chunk)[552](index=552&type=chunk) [PART II](index=46&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=46&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) SelectQuote's common stock trades on the NYSE under 'SLQT', with no anticipated cash dividends due to reinvestment plans and debt covenants, and no share repurchases in FY2025. - The company's common stock trades on the NYSE under the symbol **'SLQT'**[240](index=240&type=chunk) - SelectQuote does not expect to pay any cash dividends on its common stock in the foreseeable future due to reinvestment plans and restrictions under its credit facilities[242](index=242&type=chunk) - No shares of common stock were repurchased by the company during the fiscal year ended June 30, 2025[243](index=243&type=chunk) - The stock performance graph shows that an initial **$100 investment** in SLQT at its IPO in May 2020 would be worth **$8.81** as of June 30, 2025, compared to **$179.97** for the NYSE Composite Index[247](index=247&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2025, SelectQuote's total revenue grew 16% to $1.53 billion, driven by a 57% increase in Pharmacy revenue, resulting in a net income of $47.6 million and a significantly improved capital structure. Consolidated Financial Performance (FY2025 vs. FY2024) | Metric | FY 2025 | FY 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$1,526.6M** | **$1,321.8M** | **+$204.8M** | **+16%** | | Pharmacy Revenue | $728.8M | $464.9M | +$263.9M | +57% | | Commissions & Other Services | $797.8M | $856.9M | -$59.1M | -7% | | **Income from Operations** | **$68.5M** | **$64.6M** | **+$3.9M** | **+6%** | | **Net Income (Loss)** | **$47.6M** | **($34.1M)** | **+$81.7M** | **N/A** | - The company's strategic shift to healthcare is evident, with Pharmacy revenue now constituting **48% of total revenue** in FY2025, up from **35% in FY2024**[286](index=286&type=chunk) - The company significantly improved its liquidity and capital structure in FY2025 through a **$350.0 million Senior Non-Convertible Preferred Stock transaction** and a **$100.0 million securitization transaction**, using proceeds to repay **$388.2 million of term loans**[349](index=349&type=chunk)[351](index=351&type=chunk)[352](index=352&type=chunk) - Net cash used in operating activities was **$11.7 million** in FY2025, a decrease from **$15.2 million provided by operating activities** in FY2024, primarily due to changes in working capital, including a **$69.5 million increase in commissions receivable**[356](index=356&type=chunk)[360](index=360&type=chunk) [Key Business and Operating Metrics by Segment](index=50&type=section&id=Key%20Business%20and%20Operating%20Metrics%20by%20Segment) The company's performance is tracked through segment-specific metrics, showing a 4% decrease in Senior approved policies, a 31% increase in SelectRx members, and a 12% growth in total Life segment premiums in FY2025. Senior Segment Metrics (FY2025 vs. FY2024) | Metric | FY 2025 | FY 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Approved Policies | 663,169 | 687,664 | -4% | | LTV per MA Approved Policy | $884 | $910 | -3% | Healthcare Services Metrics (as of June 30) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total SelectRx Members | 108,018 | 82,385 | +31% | | Prescriptions Per Day (Avg) | 27,867 | 18,935 | +47% | Life Segment Premiums (in thousands) | Metric | FY 2025 | FY 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Term Premiums | $71,448 | $70,450 | +1% | | Final Expense Premiums | $105,099 | $86,600 | +21% | | **Total** | **$176,547** | **$157,050** | **+12%** | [Results of Operations Analysis](index=54&type=section&id=Results%20of%20Operations%20Analysis) Fiscal 2025 revenue increased 16% to $1.53 billion, driven by a 57% surge in pharmacy revenue, leading to a net income of $47.6 million, significantly aided by a positive change in warrant fair value. - Pharmacy revenue increased by **$263.9 million (57%)** in FY2025, driven by a **31% increase in SelectRx members**[290](index=290&type=chunk) - Commissions and other services revenue decreased by **$59.1 million (7%)** in FY2025, primarily due to a decline in Senior commissions revenue from fewer approved policies[290](index=290&type=chunk) - Marketing and advertising expenses decreased by **$39.4 million (11%)** in FY2025, attributed to improved close rates and a decrease in submitted policies for the Senior segment[301](index=301&type=chunk) - Interest expense decreased by **$14.2 million (15%)** in FY2025 due to a lower cost of capital following the securitization and preferred stock transactions used to repay higher-cost debt[308](index=308&type=chunk) - The company recorded a **$59.5 million gain** from the change in fair value of warrant liabilities, which was a major contributor to the positive net income in FY2025[286](index=286&type=chunk) [Segment Information Analysis](index=59&type=section&id=Segment%20Information%20Analysis) In fiscal 2025, the Healthcare Services segment was the primary growth driver, with revenue increasing 55% and Adjusted EBITDA rising to $25.4 million, while the Auto & Home business was reclassified to 'All Other'. Segment Revenue and Adjusted EBITDA (FY2025 vs. FY2024, in millions) | Segment | FY2025 Revenue | FY2024 Revenue | FY2025 Adj. EBITDA | FY2024 Adj. EBITDA | | :--- | :--- | :--- | :--- | :--- | | **Senior** | $600.4 | $655.8 | $161.7 | $166.7 | | **Healthcare Services** | $742.7 | $478.5 | $25.4 | $7.8 | | **Life** | $173.0 | $157.9 | $26.7 | $20.2 | - The Healthcare Services segment's Adjusted EBITDA increased by **$17.6 million**, driven by strong revenue growth that outpaced the increase in cost of goods sold and operating expenses[342](index=342&type=chunk) - The Senior segment's Adjusted EBITDA decreased by **$5.1 million**, as the **$55.5 million revenue decline** was mostly offset by lower marketing and commission costs[341](index=341&type=chunk) - Effective July 1, 2024, the Auto & Home business was reclassified into an 'All Other' category and is no longer a separate reportable segment[313](index=313&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) The company significantly restructured its capital in fiscal 2025, completing a $350.0 million preferred stock transaction and a $100.0 million securitization, reducing total debt from $683.3 million to $385.1 million. - Completed a **$350.0 million Senior Non-Convertible Preferred Stock transaction** on February 10, 2025, receiving net proceeds of **$337.9 million**[349](index=349&type=chunk) - Completed a **$100.0 million securitization transaction** on October 15, 2024, by issuing notes backed by a pool of renewal commissions[351](index=351&type=chunk) Debt Summary (in millions) | Debt Component | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Senior Secured Credit Facility & Notes | $385.1 | $683.3 | | Cash, cash equivalents, and restricted cash | $37.1 | $42.7 | [Financial Statements and Supplementary Data](index=72&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for fiscal years 2025, 2024, and 2023, along with Deloitte & Touche LLP's unqualified opinion and a critical audit matter regarding Medicare Advantage renewal commissions. - The independent auditor, Deloitte & Touche LLP, issued an unqualified opinion on the consolidated financial statements and the company's internal control over financial reporting as of June 30, 2025[394](index=394&type=chunk)[395](index=395&type=chunk) - A Critical Audit Matter was identified related to the estimation of Medicare Advantage renewal commissions due to significant management judgment involved in assumptions for persistency, renewal provisions, and constraints used to determine the lifetime value (LTV) of policies[399](index=399&type=chunk)[401](index=401&type=chunk) Key Consolidated Balance Sheet Items (in thousands) | Account | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents, and restricted cash | $35,733 | $42,690 | | Total Commissions Receivable (Current & Non-current) | $950,828 | $881,317 | | Goodwill | $29,438 | $29,438 | | Total Liabilities | $673,838 | $877,107 | | Total Shareholders' Equity | $351,144 | $316,801 | Key Consolidated Income Statement Items (in thousands) | Account | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | Total Revenue | $1,526,594 | $1,321,776 | $1,002,848 | | Income from Operations | $68,499 | $64,550 | $11,583 | | Net Income (Loss) | $47,580 | $(34,125) | $(58,544) | | Diluted EPS | $0.01 | $(0.20) | $(0.35) | [Controls and Procedures](index=124&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of June 30, 2025, with an unqualified opinion from Deloitte & Touche LLP. - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[630](index=630&type=chunk) - Based on the COSO framework, management concluded that the company's internal control over financial reporting was effective as of June 30, 2025[632](index=632&type=chunk) - The independent registered public accounting firm, Deloitte & Touche LLP, provided an unqualified opinion on the effectiveness of the company's internal control over financial reporting[637](index=637&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[634](index=634&type=chunk) [PART III](index=128&type=section&id=PART%20III) [Directors, Executive Compensation, Security Ownership, and Related Party Transactions](index=128&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%2C%2014) Information for Items 10 through 14, covering directors, executive compensation, security ownership, and related party transactions, is incorporated by reference from the forthcoming 2025 Proxy Statement. - Information regarding Directors, Executive Officers, Corporate Governance (Item 10), Executive Compensation (Item 11), Security Ownership (Item 12), Certain Relationships and Related Transactions (Item 13), and Principal Accountant Fees (Item 14) is incorporated by reference from the forthcoming 2025 Proxy Statement[7](index=7&type=chunk)[647](index=647&type=chunk)[653](index=653&type=chunk)[655](index=655&type=chunk)[657](index=657&type=chunk)[659](index=659&type=chunk) [PART IV](index=130&type=section&id=PART%20IV) [Exhibit and Financial Statement Schedules](index=130&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Form 10-K, including corporate governance documents and material contracts. - The consolidated financial statements are filed under Item 8 of this report[661](index=661&type=chunk) - All financial statement schedules have been omitted because they are not applicable or the information is included within the consolidated financial statements[662](index=662&type=chunk) - Exhibits filed with the report include the company's certificate of incorporation, bylaws, various credit agreements and their amendments, employment agreements, and stock incentive plans[666](index=666&type=chunk)[668](index=668&type=chunk)

Core Viewpoint - A class action lawsuit has been filed against SelectQuote, Inc. concerning allegations of securities fraud and unlawful business practices [1][2] Group 1: Lawsuit Details - The class action lawsuit involves claims that SelectQuote and its officers engaged in securities fraud or other unlawful business practices [2] - Investors have until October 10, 2025, to request to be appointed as Lead Plaintiff if they purchased SelectQuote securities during the Class Period [2] Group 2: Allegations by the DOJ - On May 1, 2025, the U.S. Department of Justice filed a False Claims Act complaint against SelectQuote, alleging the company received "tens of millions of dollars" in illegal kickbacks from health insurance companies from 2016 to at least 2021 [4] - The DOJ claims SelectQuote conspired with major insurers to discriminate against less profitable beneficiaries, including those with disabilities [4] - SelectQuote allegedly made materially false claims about offering "unbiased coverage comparisons," directing Medicare beneficiaries to plans that paid them the most money [4] - Following the DOJ's announcement, SelectQuote's stock price fell by $0.61 per share, or 19.24%, closing at $2.56 per share on May 1, 2025 [4]

Group 1 - SelectQuote reported a quarterly loss of $0.17 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.18, and an improvement from a loss of $0.18 per share a year ago, resulting in an earnings surprise of +5.56% [1] - The company posted revenues of $345.1 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 3.50%, and showing an increase from year-ago revenues of $307.21 million [2] - SelectQuote shares have declined approximately 50.8% year-to-date, contrasting with the S&P 500's gain of 8.7% [3] Group 2 - The earnings outlook for SelectQuote is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.16 on revenues of $339.4 million, and $0.12 on revenues of $1.73 billion for the current fiscal year [7] - The Zacks Industry Rank for Insurance - Multi line is currently in the top 40% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8]

Financial Data and Key Metrics Changes - Consolidated revenue for fiscal year 2025 reached $1.5 billion, representing a 16% increase year-over-year [5] - Adjusted EBITDA totaled $126 million, with an EBITDA margin of 8%, consistent with the previous year despite revenue growth from lower-margin healthcare services [6][26] - Healthcare Services revenue grew approximately 55% to nearly $500 million, driven by the SelectRx platform [5][11] Business Line Data and Key Metrics Changes - Senior Medicare Advantage business generated $600 million in revenue, with adjusted EBITDA of $162 million, reflecting a 200 basis point increase in EBITDA margins despite a smaller agent workforce [27] - Healthcare Services segment saw membership grow by 31%, with revenue of $743 million and adjusted EBITDA of $25 million, indicating significant progress in scale and profitability [11][30] - Life division revenues grew 10% to $173 million, with a 32% increase in adjusted EBITDA to $27 million, representing a 15% margin [31] Market Data and Key Metrics Changes - The company noted a challenging market backdrop for the Senior Medicare Advantage business due to significant plan changes by carriers and new eligibility parameters [6] - The addressable market for SelectRx is described as massive, with expectations for continued strong growth in healthcare services [30] Company Strategy and Development Direction - The company aims to leverage its information and connectivity advantage within healthcare to drive profitability and cash flow [10][14] - SelectQuote's strategic vision includes becoming a holistic solution provider across the $5 trillion U.S. healthcare market, focusing on efficiency and cash flow generation [13][22] - The company plans to balance growth with sustainable cash flows, with expectations for a flatter year in Medicare Advantage submissions [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 20% plus EBITDA margins driven by technology and agent-led models [23] - The company anticipates generating positive operating cash flow in fiscal 2026, with a focus on capital allocation to improve the balance sheet [38] - Management highlighted the importance of technology and AI in enhancing operational efficiency and customer service [17][19] Other Important Information - The company has made significant investments in technology to automate tasks and optimize decision-making, which has improved enrollment times by 25% [20][68] - The Kansas distribution facility is expected to enhance capacity and drive margin improvements in the healthcare services segment [12][44] Q&A Session Summary Question: Can you discuss the path to target margins as SelectRx scales? - Management indicated that as the business scales, they expect to drive variable costs down and enhance margins through automation and operational refinements [40][43] Question: Is there a catalytic level of EBITDA contribution that could accelerate the securitization program? - Management noted that while there is no specific threshold, increasing EBITDA generation will open up various paths for capital structure improvements [46][47] Question: What dynamics have changed regarding SelectRx growth? - Management clarified that while membership growth may slow, they expect strong EBITDA growth due to operational refinements and partnerships with carriers [51][52] Question: How significant is AI in serving more customers? - Management highlighted that AI is used to enhance agent efficiency and improve customer interactions, resulting in significant time savings [54][66] Question: What are the capital allocation priorities moving forward? - Management emphasized the importance of balancing growth with cash flow generation, focusing on improving the capital structure while exploring growth opportunities in healthcare services [74][78]