PART I FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited condensed consolidated financial statements for the period ended March 31, 2025, show a significant increase in total assets to $1.30 billion from $1.19 billion at June 30, 2024, primarily driven by an increase in cash and commissions receivable [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $1.296 billion, an increase from $1.194 billion at June 30, 2024 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash, cash equivalents, and restricted cash | $84,795 | $42,690 | | Commissions Receivable—Net | $839,757 | $761,446 | | Total Assets | $1,295,833 | $1,193,908 | | **Liabilities & Equity** | | | | Total current liabilities | $193,703 | $174,587 | | Long-term debt, net | $362,493 | $637,480 | | Total liabilities | $738,008 | $877,107 | | Senior Non-Convertible Preferred Stock | $207,613 | $0 | | Total shareholders' equity | $350,212 | $316,801 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) For the nine months ended March 31, 2025, the company reported a net income of $34.7 million, compared to a net loss of $3.1 million for the same period in 2024 Financial Performance for the Nine Months Ended March 31 (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $1,181,492 | $1,014,567 | | - Commissions and other services | $663,338 | $690,702 | | - Pharmacy | $518,154 | $323,865 | | Income from Operations | $81,022 | $65,941 | | Change in Fair Value of Warrants | $25,344 | $0 | | Net Income (Loss) | $34,712 | $(3,108) | | Net Income (Loss) Attributable to Common Shareholders | $28,925 | $(3,108) | | Diluted EPS | $0.13 | $(0.02) | Financial Performance for the Three Months Ended March 31 (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $408,160 | $376,400 | | Income from Operations | $22,059 | $33,062 | | Net Income | $26,022 | $8,551 | | Diluted EPS | $0.03 | $0.05 | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) For the nine months ended March 31, 2025, total shareholders' equity increased from $316.8 million to $350.2 million - Shareholders' equity for the nine months ended March 31, 2025, increased by **$33.4 million**, primarily due to net income of **$34.7 million**[14](index=14&type=chunk) - Share-based compensation expense for the nine months ended March 31, 2025, was **$13.5 million**, compared to **$10.5 million** in the prior-year period[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended March 31, 2025, net cash provided by operating activities was $25.8 million, a significant improvement from the $4.8 million used in the prior-year period Cash Flow Summary for the Nine Months Ended March 31 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $25,816 | $(4,759) | | Net cash used in investing activities | $(8,203) | $(8,926) | | Net cash provided by (used in) financing activities | $25,919 | $(31,663) | | **Net Increase (Decrease) in Cash** | **$43,532** | **$(45,348)** | | **Cash at End of Period** | **$86,222** | **$37,808** | - Significant financing activities in the nine months to March 31, 2025 include proceeds from Senior Non-Convertible Preferred Stock (**$337.9M**), proceeds from ABS Notes (**$99.1M**), and payments on Term Loans (**$384.6M**)[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies and significant financial events [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 17% year-over-year revenue growth for the nine months ended March 31, 2025, to the successful expansion of the Healthcare Services segment, particularly the SelectRx pharmacy business, which saw revenue increase by 60% - The company operates through three reportable segments: Senior (Medicare products), Healthcare Services (pharmacy and health services), and Life (term life and final expense insurance)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) - As of July 1, 2024, the Auto & Home business was reclassified from a reportable segment to the "All Other" category due to not meeting quantitative thresholds[135](index=135&type=chunk)[204](index=204&type=chunk) - The company's primary performance measure for segments is Adjusted EBITDA, which excludes items like interest, taxes, depreciation, amortization, share-based compensation, and changes in fair value of warrants[137](index=137&type=chunk)[207](index=207&type=chunk) [Key Business and Operating Metrics by Segment](index=40&type=section&id=Key%20Business%20and%20Operating%20Metrics%20by%20Segment) In the Senior segment, for the nine months ended March 31, 2025, total approved policies decreased by 2% to 557,846, and the LTV per Medicare Advantage policy fell 3% to $892 Senior Segment - Approved Policies | Period | Medicare Advantage | Total Approved Policies | YoY Change (Total) | | :--- | :--- | :--- | :--- | | **Nine Months Ended Mar 31, 2025** | 507,530 | 557,846 | -2% | | **Nine Months Ended Mar 31, 2024** | 517,973 | 566,543 | | Senior Segment - LTV per MA Approved Policy | Period | LTV per MA Policy | YoY Change | | :--- | :--- | :--- | | **Nine Months Ended Mar 31, 2025** | $892 | -3% | | **Nine Months Ended Mar 31, 2024** | $923 | | Healthcare Services & Life Segment Metrics | Metric | As of/For Nine Months Ended Mar 31, 2025 | YoY Change | | :--- | :--- | :--- | | Total SelectRx Members | 105,523 | +41% | | Life - Total Premiums (in thousands) | $125,751 | +9% | [Results of Operations](index=44&type=section&id=Results%20of%20Operations) For the nine months ended March 31, 2025, total revenue grew 17% to $1.18 billion, driven by a 60% increase in Pharmacy revenue Results of Operations for the Nine Months Ended March 31 (in thousands) | Line Item | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$1,181,492** | **$1,014,567** | **17%** | | - Pharmacy Revenue | $518,154 | $323,865 | 60% | | **Total Operating Costs** | **$1,100,470** | **$948,626** | **16%** | | - Cost of goods sold—pharmacy | $448,029 | $284,360 | 58% | | - Marketing and advertising | $254,222 | $288,676 | -12% | | - Selling, general, and administrative | $122,850 | $97,049 | 27% | | **Income from Operations** | **$81,022** | **$65,941** | **23%** | - Interest expense for the nine months ended March 31, 2025 decreased by **4%** to **$67.2 million**, resulting from a lower cost of capital following debt restructuring[200](index=200&type=chunk)[201](index=201&type=chunk) [Segment Information Analysis](index=49&type=section&id=Segment%20Information%20Analysis) For the nine months ended March 31, 2025, the Senior segment's revenue decreased 4% to $517.9 million, but its Adjusted EBITDA increased 11% to $153.9 million due to cost efficiencies Segment Revenue and Adjusted EBITDA for the Nine Months Ended March 31 (in millions) | Segment | Revenue 2025 | Revenue 2024 | Adj. EBITDA 2025 | Adj. EBITDA 2024 | | :--- | :--- | :--- | :--- | :--- | | Senior | $517.9 | $541.7 | $153.9 | $138.9 | | Healthcare Services | $528.7 | $333.3 | $13.5 | $6.9 | | Life | $125.0 | $115.9 | $19.7 | $12.9 | - Senior segment's Adjusted EBITDA increased despite lower revenue, driven by a **$38.9 million** decrease in operating costs, including a **$25.1 million** reduction in sales and marketing[228](index=228&type=chunk) - Healthcare Services' growth was fueled by a **$195.4 million** revenue increase, partially offset by a **$188.8 million** rise in operating costs to support the expansion[229](index=229&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had $86.2 million in cash, cash equivalents, and restricted cash - On February 10, 2025, the company completed a **$350.0 million** Senior Non-Convertible Preferred Stock transaction, receiving net proceeds of **$337.9 million**[233](index=233&type=chunk) - During the nine months ended March 31, 2025, the company repaid **$384.6 million** of its outstanding term loans[236](index=236&type=chunk) Cash Flow Summary for the Nine Months Ended March 31 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $25,816 | $(4,759) | | Net cash used in investing activities | $(8,203) | $(8,926) | | Net cash provided by (used in) financing activities | $25,919 | $(31,663) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to unfavorable movements in interest rates - The company is primarily exposed to market risk from unfavorable movements in interest rates[253](index=253&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025 - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[254](index=254&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of fiscal 2025[256](index=256&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings - The company is involved in a securities class action lawsuit, which was dismissed on April 3, 2025, but the plaintiffs filed a notice of appeal on May 5, 2025[97](index=97&type=chunk) - On May 1, 2025, the company became aware of a qui tam action in which the U.S. Attorney's Office has partially intervened, alleging violations of the Federal False Claims Act. The company denies the allegations[100](index=100&type=chunk) [Item 1A. Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the Annual Report, except for an update highlighting the risks associated with legal proceedings - The company highlights the risk from various legal proceedings, specifically mentioning a subpoena received in August 2022 and a qui tam action where the U.S. Attorney's Office partially intervened on May 1, 2025[260](index=260&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Except for what was previously disclosed on Form 8-K reports, the company did not sell any unregistered securities during the period covered by this Form 10-Q - No unregistered sales of equity securities occurred during the period, other than those previously reported on Form 8-K[261](index=261&type=chunk) [Item 5. Other Information](index=61&type=section&id=Item%205.%20Other%20Information) On November 21, 2024, Sarah Anderson, Executive Vice President of Pharmacy, adopted a Rule 10b5-1 trading plan for the potential sale of up to 50,000 shares of common stock - Sarah Anderson, EVP of Pharmacy, adopted a Rule 10b5-1 trading arrangement on November 21, 2024, for the sale of up to **50,000 shares**[265](index=265&type=chunk) [Item 6. Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act and XBRL data files

SelectQuote (SLQT) came out with quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations hav ...

Financial Data and Key Metrics Changes - Consolidated revenues for the third quarter reached $408 million, an 8% increase compared to the previous year [5][24] - Consolidated EBITDA totaled $38 million, maintaining healthy margins despite a shift in business mix [6][24] - 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 [10][11] Business Line Data and Key Metrics Changes - Senior segment revenues totaled $169 million, with adjusted EBITDA of $46 million, resulting in a 27% EBITDA margin despite a 26% reduction in agent headcount [25][26] - Healthcare Services revenue grew 53% year-over-year to $190 million, with adjusted EBITDA of $6 million [29] - Life Insurance revenues increased by 13% to $46 million, with adjusted EBITDA more than doubling to $6 million, resulting in a 14% EBITDA margin [31] Market Data and Key Metrics Changes - The SelectRx business saw membership grow by 41% year-over-year, reaching 106,000 members [5][29] - The Medicare Advantage environment was characterized by a strong close rate despite a smaller agent force, with policies totaling 168,000, down less than 10% [12][26] Company Strategy and Development Direction - The company aims to enhance profitability in the Healthcare Services segment by refining membership parameters and focusing on efficiency [18][55] - Plans to increase agent hiring are underway to capitalize on market improvements, particularly in the Medicare Advantage space [42][43] - The opening of a new facility in Kansas is expected to drive long-term operational efficiency and margin expansion, although it may initially drag profitability [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the final rate notice for Medicare Advantage, which is expected to improve carrier reimbursement rates and market conditions [60] - The company anticipates potential headwinds in the fourth quarter due to new beneficiary eligibility parameters and the ramp-up of the Kansas facility [32][62] - Overall, management remains confident in the business model's ability to generate operating leverage and shareholder value [66] Other Important Information - The company is facing a Department of Justice complaint related to the Medicare Advantage system but plans to mount a vigorous defense [21][22] - Significant progress has been made on the capital structure, including a $100 million securitization and a $350 million strategic investment [34][35] 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 26% reduction in agent count, the close rates were strong due to tenured agents, which helped drive efficiency and attach rates to SelectRx [37][39] Question: What are the plans for agent growth in the upcoming season? - Hiring is currently underway, with expectations to discuss more in the upcoming guidance [42][43] Question: Can you provide insights on the receivable securitization? - Management indicated that securitization is a potential path for capital structure optimization, with several options being explored [44][45] Question: How should investors think about MA LTV moving forward? - A decline in MA LTV is expected in the fourth quarter due to the shift in commission structure, with further details to be shared in the next earnings call [49][51] Question: What benefits are expected from the new Kansas facility? - The facility is anticipated to improve operating efficiency and customer experience, although there will be a short-term drag on profitability [61][62]

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 ...

Core Viewpoint - SelectQuote's stock price dropped over 19% following a lawsuit filed by the U.S. Department of Justice, alleging violations of the False Claims Act related to its business practices in the Medicare Advantage sector [1][3]. Company Investigation - Hagens Berman is investigating SelectQuote for potential misconduct regarding its sales practices and disclosures, particularly in its Senior business that offers Medicare Advantage plans [2][4]. - The investigation is focused on whether SelectQuote's claims of providing unbiased advice and comparison shopping for Medicare plans were misleading [3][4]. Allegations Against SelectQuote - The DOJ's complaint alleges that from 2016 to at least 2021, SelectQuote and other brokers received substantial payments from insurers for enrollments into Medicare Advantage plans, which may have influenced their sales practices [7]. - It is claimed that SelectQuote directed beneficiaries to plans that provided the highest kickbacks, rather than those that were most suitable for the beneficiaries [7]. - The company allegedly incentivized employees to prioritize plans based on kickbacks and discriminated against Medicare Advantage beneficiaries with disabilities [7].

Core Viewpoint - The Schall Law Firm is investigating SelectQuote, Inc. for potential violations of securities laws related to misleading statements and undisclosed information [1][2]. Investigation Details - The investigation centers on claims that SelectQuote may have issued false or misleading statements and failed to disclose critical information to investors [2]. - A DOJ False Claims Act was filed against SelectQuote on May 1, 2025, alleging that from 2016 to at least 2021, insurers paid hundreds of millions of dollars in illegal kickbacks to brokers for enrollments in Medicare Advantage plans [2]. - Following the news of the investigation, SelectQuote's shares dropped by 16% on the same day [2].

Core Viewpoint - SelectQuote's share price dropped over 19% following a lawsuit filed by the U.S. Department of Justice, alleging violations of the False Claims Act related to its business practices in the Medicare Advantage market [1][3]. Group 1: Lawsuit and Allegations - The U.S. Department of Justice filed a lawsuit against SelectQuote and other insurance brokers, claiming they violated the False Claims Act [1]. - The investigation focuses on SelectQuote's disclosures regarding its sales practices, particularly in its Senior business offering Medicare Advantage plans [2]. - Allegations include that SelectQuote directed Medicare beneficiaries to plans that provided the highest kickbacks to brokers, rather than acting in the best interest of the beneficiaries [5]. Group 2: Financial Impact - Following the announcement of the lawsuit, SelectQuote's shares fell by over 19% on May 1, 2025 [1][3]. - The lawsuit raises concerns about the potential inflation of SelectQuote's financial results due to alleged steering practices [4]. Group 3: Whistleblower Information - Whistleblowers with non-public information regarding SelectQuote are encouraged to assist in the investigation, with potential rewards of up to 30% of any successful recovery made by the SEC [4].

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 ...