Financial Transactions - The Borrower has received not less than $350,000,000 in cash proceeds from the sale of preferred stock[10] - The Borrower will prepay Term Loans in an aggregate principal amount of $260,000,000 on the Twelfth Amendment Effective Date[11] - The Borrower has entered into a Senior Preferred Stock Purchase Agreement dated February 10, 2025[10] - The company secured a $425 million senior secured term loan facility and a $75 million senior secured revolving credit facility[67] - Proceeds from the term loans will be used for specified equity payments totaling up to $325 million, funding cash to the balance sheet for at least two years of interest payments, and general corporate purposes[68] - The company has drawn $145 million from the first amendment incremental term loans and established a delayed draw term loan commitment of $145 million, which has been fully drawn[69] - The second amendment included a fully drawn delayed draw term loan A commitment of $100 million and an undrawn term loan B commitment of $100 million[70] - The aggregate amount of revolving loan commitments was increased to $135 million following the third amendment[71] - Following the fourth amendment, all second amendment delayed draw term loan B commitments were terminated, and the aggregate amount of revolving loan commitments was reduced to $100 million[72] Loan Agreement Conditions - The amendments to the Credit Agreement will become effective upon satisfaction of specified conditions[9] - The Borrower must ensure that no Default or Event of Default has occurred prior to the effectiveness of the amendments[9] - The Administrative Agent will receive a written opinion from counsel for the Credit Parties as part of the conditions for effectiveness[11] - The Borrower must provide incumbency certificates and good standing certificates as part of the conditions for effectiveness[12] - The effectiveness of any Extension Amendment is subject to the satisfaction of specific conditions, including solvency and no existing defaults[161] - The Borrower must provide an Extension Request at least five Business Days prior to the response date for Lenders[159] - No Event of Default shall have occurred at the time an Extension Request is delivered to Lenders[158] - The Administrative Agent must receive a solvency certificate from the Borrower's chief financial officer prior to closing[166] Compliance and Obligations - The Borrower must comply with all Requirements of Law to avoid Material Adverse Effects[183] - The Borrower has no pending litigation that would reasonably be expected to have a Material Adverse Effect[186] - The Borrower must ensure compliance with representations and warranties as of the borrowing date, maintaining material accuracy[175] - No Default or Event of Default should occur as a result of the Loan or Letter of Credit obligations[176] - The Borrower must maintain a minimum Asset Coverage Ratio of 2.35:1.00 for January 31, 2025, following the sale of Non-Core Assets[178] - The operations of each Credit Party and its subsidiaries are in compliance with all applicable Environmental Laws, with no pending or threatened violations[195] - As of the Closing Date, the Borrower and its subsidiaries are solvent[196] - There are no strikes or work stoppages involving any Credit Party or its subsidiaries that would have a Material Adverse Effect[197] - Each Credit Party and its subsidiaries own or have the right to use all necessary Intellectual Property for their business operations[199] - As of the Closing Date, no Credit Party or its subsidiaries have any outstanding equity interests that are subject to liens other than permitted liens[200] Payment and Interest Terms - The Term Loan and Revolving Loans bear interest at a rate equal to Adjusted Term SOFR or the Base Rate plus the Applicable Margin[88] - Interest on each Loan is paid in arrears on each Interest Payment Date, with specific provisions for past due amounts[89] - The Borrower must pay an Unused Commitment Fee of 0.50% per annum on the daily balance of the Aggregate Revolving Loan Commitment, less the sum of all Revolving Loans and Letter of Credit Obligations[130] - Upon termination of all Revolving Loan Commitments, the Borrower shall pay a fee of $500,000 to the Revolver Agent[133] - A prepayment premium of 1.0% will be applicable if the Borrower makes a voluntary prepayment of Term Loans before specified termination dates[135] - The Borrower must pay all amounts due without set-off or deduction, and payments must be made in immediately available funds by 2:00 p.m. New York time[136] Borrowing Procedures - The Borrower must deliver a duly executed Notice of Borrowing to the Applicable Agent[176] - The Borrower must provide written notice for each Revolving Loan borrowing, which must be received by the Revolver Agent before 3:00 p.m. on the requested date[99] - The proceeds of each requested Borrowing will be promptly made available to the Borrower by deposit into its operating account[100] - The Borrower has the option to convert or continue loans as SOFR Loans, with a minimum amount of $250,000 required for such elections[102] - The Borrower may prepay Revolving Loans in whole or in part without penalty or premium[105] - Any prepayment of Term Loans must be in amounts greater than or equal to $100,000, with prior written notice required[106] - The Borrower can permanently reduce the Aggregate Revolving Loan Commitment by at least $500,000, with reductions allocated pro rata among all Lenders[107] - The Borrower is required to prepay an aggregate principal amount of Term Loans equal to 50% of Excess Cash Flow for the Excess Cash Flow Period, minus voluntary prepayments made during that period[121] Financial Reporting - The Borrower provided audited consolidated financial statements for the fiscal year ended June 30, 2019, including balance sheet and cash flow statements[173] - The unaudited consolidated profit and loss statements for July and August 2019 were also delivered[173] - The audited consolidated balance sheet for the fiscal year ended June 30, 2019, presents a fair view of the financial condition of the Borrower and its subsidiaries[192] - Since June 30, 2019, there have been no events that could reasonably be expected to have a Material Adverse Effect[193] - All financial performance projections have been prepared in good faith, acknowledging that actual results may vary significantly from these projections[194] Legal and Jurisdictional Provisions - The agreement includes a waiver of personal service for legal processes, allowing service by mail to specified addresses[25] - Each party consents to non-exclusive jurisdiction, permitting legal proceedings in various jurisdictions[26] - The parties waive the right to a jury trial in any actions related to the agreement[27] - The agreement includes provisions for the treatment of unknown claims and defenses[34] - The agreement reaffirms all payment and performance obligations under existing loan documents[30] - Each Credit Party releases claims against the Administrative Agent and Lenders related to the Loans and Loan Documents[31] Loan Modifications and Amendments - The agreement has undergone multiple amendments since its original date, with the latest being the Twelfth Amendment[49] - The transactions are treated as a "significant modification" of existing Term Loans for tax purposes[37] - New Term Loans will be treated as issued in "registered form" for tax purposes[38] - The exchange of Term Loans is treated as a "recapitalization" under U.S. tax law[40] - Non-Funding Lenders do not have voting or consent rights under Loan Documents[151] - Non-Funding Lenders will not earn or receive their portion of the Unused Commitment Fee during the period they are classified as such[155] - The Aggregate Excess Funding Amount for a Non-Funding Lender includes all unpaid obligations and Letter of Credit Obligations reallocated to other Lenders[154] - Each Applicable Agent is authorized to use cash collateral to pay the Aggregate Excess Funding Amount on behalf of Non-Funding Lenders[153]

Financial Data and Key Metrics Changes - The company reported a consolidated revenue growth of 26% year-over-year, reaching $292 million in Q1 2025 [26] - Adjusted EBITDA improved by nearly $10 million compared to the previous year, driven by a highly-tenured agent force and strong profitability in the Healthcare Services segment [26][30] - The Medicare Advantage Lifetime Value (LTV) increased by 7% year-over-year to $812, indicating stable persistence and career mix [27] Business Line Data and Key Metrics Changes - Revenue for the Senior distribution business was up modestly to $93 million, with adjusted EBITDA improving significantly to $8 million [28] - The Healthcare Services business generated $156 million in revenue and achieved adjusted EBITDA of $5 million, marking the highest quarter of profitability since its launch [29] - The Life insurance distribution business reported revenue of $39 million, up modestly year-over-year, with adjusted EBITDA growing by almost 14% [31] Market Data and Key Metrics Changes - Membership in the SelectRx program increased to over 86,000, a 64% year-over-year growth [15][29] - The company expects more modest growth in SelectRx members in the first half of fiscal 2025 due to normal seasonal trends [30] Company Strategy and Development Direction - The company is focused on optimizing its balance sheet and has initiated a recapitalization plan, raising $100 million through a securitization of Medicare Advantage commissions receivable [20][21] - The strategic focus includes improving agent productivity and maintaining a high-touch service model to navigate the complexities of the Medicare Advantage market [9][14] - The company aims to achieve a target term debt leverage range of 2x to 3x to enhance capital flexibility [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing Annual Enrollment Period (AEP) season, noting strong early results and high consumer engagement [47] - The company is optimistic about capturing efficiencies and leveraging its experienced agent force to drive growth [51] - Management highlighted the importance of technology enhancements in improving agent efficiency and consumer interactions [56] Other Important Information - The company has expanded its AI tools to enhance call screening and process efficiency during the AEP [18] - The management team emphasized the need to balance customer acquisition and retention strategies amid changing market dynamics [35] Q&A Session Summary Question: How is the company balancing policy education and agent productivity? - Management noted that they are seeing high consumer engagement and strong close rates, which has led to enhanced marketing efficiency despite increased time spent on calls [35][36] Question: How does SelectRx fit into the sales process? - Management clarified that SelectRx operates as a separate opt-in model, not affecting the time agents spend on Medicare Advantage sales [39][40] Question: What are the implications of the political environment on AEP? - Management indicated that they have not seen significant negative impacts from the political environment due to their diversified marketing strategy [48][49] Question: How flexible is the marketing strategy during AEP? - Management confirmed that they have a wide funnel approach, allowing them to adjust marketing strategies in real-time based on performance [57][58] Question: What are the company's plans for future acquisitions in Healthcare Services? - Management expressed interest in exploring acquisition opportunities to enhance their healthcare ecosystem once balance sheet improvements are made [60][62]

Policy Submissions and Approvals - Total submitted policies decreased by 1% to 118,537 for the three months ended September 30, 2024, compared to 119,452 in the same period of 2023[90] - Total approved policies decreased by 5% to 104,659 for the three months ended September 30, 2024, compared to 109,876 in the same period of 2023[92] - Medicare Advantage plans accounted for 88% of approved Senior policies for the three months ended September 30, 2024[83] Financial Performance - Total revenue for the three months ended September 30, 2024, was $292,263,000, representing a 26% increase from $232,730,000 in the same period of 2023[102] - Revenue from the Senior segment was $92.9 million for the three months ended September 30, 2024, a $3.0 million, or 3%, increase compared to $89.9 million for the same period in 2023[124] - Revenue from Healthcare Services was $155.7 million for the three months ended September 30, 2024, a $58.4 million, or 60%, increase compared to $97.4 million for the same period in 2023[125] - Revenue from the Life segment was $39.3 million for the three months ended September 30, 2024, a $1.5 million, or 4%, increase compared to $37.8 million for the same period in 2023[126] - The company completed a $100.0 million securitization transaction on October 15, 2024, to provide advanced financing against expected collections for previously sold policies[131] - The company expects to remain in compliance with debt covenants for the next 12 months based on financial projections[130] Expenses and Losses - Selling, general, and administrative expenses increased by $7.5 million, or 26%, primarily due to a $5.2 million increase in compensation costs[110] - Marketing and advertising expenses rose by $1.4 million, or 2%, mainly due to a $0.8 million increase in lead costs[108] - Net loss for the three months ended September 30, 2024, was $44,546,000, compared to a net loss of $31,051,000 in the same period of 2023[99] - Interest expense increased by $1.6 million, or 8%, due to higher interest rates during the period[112] - Technical development expenses increased by $1.4 million, or 19%, primarily due to a $1.6 million increase in compensation costs for technology personnel[112] - The net loss for the three months ended September 30, 2024, was $44.5 million, with non-cash adjustments totaling $26.3 million[138] Membership and Operations - Total number of SelectRx members increased by 64% to 86,521 as of September 30, 2024, compared to 52,750 in the same period of 2023[96] - Average prescriptions shipped per day increased to 24,998 for the three months ended September 30, 2024, compared to 15,479 in the same period of 2023[97] - The increase in Healthcare Services revenue was primarily due to a $58.1 million increase in SelectRx pharmacy revenue[125] Cash Flow and Debt - Cash and cash equivalents decreased to $10.4 million as of September 30, 2024, from $42.7 million as of June 30, 2024[134] - Net cash used in operating activities for the three months ended September 30, 2024, was $16.6 million, compared to $23.7 million for the same period in 2023[138][140] - Net cash used in investing activities was $2.6 million for the three months ended September 30, 2024, primarily due to $2.1 million in software purchases[142] - Net cash used in financing activities was $13.1 million for the three months ended September 30, 2024, mainly due to $8.5 million in principal payments on term loans[144] - As of September 30, 2024, total debt obligations amounted to $680.4 million, slightly down from $683.3 million as of June 30, 2024[132] Market and Competitive Position - The company continues to seek opportunities for market expansion through acquisitions and partnerships in healthcare services[82] - The proprietary routing and workflow system is a key competitive advantage that enhances sales and customer retention[81] - The company remains exposed to market risks associated with unfavorable movements in interest rates, with no material changes to its risk policies[147]

Policy Performance and Trends - Total submitted policies for all products increased 7% for the year ended June 30, 2024, compared to the year ended June 30, 2023, driven by increases in overall close rates (11%), the number of average productive agents (7%), and productivity per agent (9%)[261] - Total submitted policies for all products decreased 25% for the year ended June 30, 2023, compared to the year ended June 30, 2022, due to a strategic shift to reduce the Senior distribution business and focus on Healthcare Services[262] - Total approved policies for all products increased by 6% for the year ended June 30, 2024, compared to the year ended June 30, 2023, with fluctuations primarily due to carrier mix[265] - Total approved policies for all products decreased by 20% for the year ended June 30, 2023, compared to the year ended June 30, 2022[266] - Submitted-to-approved conversion rates improved by 6% for the year ended June 30, 2023, compared to the year ended June 30, 2022[266] Medicare Advantage and Senior Policies - Medicare Advantage plans accounted for 91%, 89%, and 82% of approved Senior policies for the years ended June 30, 2024, 2023, and 2022, respectively[249] - Medicare Advantage enrollment as a share of the eligible Medicare population grew from 19% in 2007 to 51% in 2023 and is projected to grow to 62% by 2033[254] - Senior segment revenue increased by $65.7 million (11%) to $655.8 million in 2024 compared to 2023, driven by a $71.7 million (14%) increase in commissions revenue[309] - Senior segment Medicare Advantage commissions grew by $69.1 million (14%) to $569.6 million in 2024[308] - The Senior segment's revenue is highest in the second and third quarters due to Medicare annual enrollment periods[379] Life Insurance Segment - Term life policies accounted for 45%, 47%, and 36% of new premium within the Life segment for the years ended June 30, 2024, 2023, and 2022, respectively[251] - Life segment revenue grew by $12.1 million (8%) to $157.9 million in 2024, mainly due to an $11.5 million increase in commissions revenue[309] - Adjusted EBITDA from the Life segment decreased by $2.9 million (13%) to $20.2 million for the year ended June 30, 2024, primarily due to a $15.0 million increase in operating costs[315] Auto & Home Segment - Homeowners and 12-month auto products accounted for 74% of new premium within the Auto & Home segment for the years ended June 30, 2024 and 2023, and 76% for the year ended June 30, 2022[252] - Auto & Home segment revenue rose by $14.4 million (66%) to $36.2 million in 2024, driven by a $14.8 million increase in commissions revenue[310] - Adjusted EBITDA from the Auto & Home segment increased by $14.0 million to $14.1 million for the year ended June 30, 2024, driven by a $14.4 million increase in revenue[315] - The company will realign its reportable segments effective July 1, 2024, removing Auto & Home as a separate segment due to reduced revenue growth and resource allocation challenges[300] Healthcare Services and Pharmacy Revenue - Total SelectRx members increased by 68% as of June 30, 2024, compared to June 30, 2023[271] - Average prescriptions shipped per day increased to 18,935 in 2024 from 10,657 in 2023[272] - Pharmacy revenue increased $225.3 million, or 94%, for the year ended June 30, 2024, compared to the year ended June 30, 2023[279] - Healthcare Services segment revenue surged by $226.4 million (90%) to $478.5 million in 2024, primarily due to a $225.3 million increase in SelectRx pharmacy revenue[309] - Healthcare Services pharmacy revenue surged by $225.3 million (94%) to $464.9 million in 2024[308] - SelectRx members increased by 68% in 2024 compared to 2023, contributing to higher medication and compensation costs[284] Revenue and Financial Performance - Total consolidated revenue increased by $318.9 million (32%) to $1,321.8 million in 2024 compared to 2023[308] - Total revenue for the year ended June 2024 was $1,321.8 million, a 31.8% increase from $1,002.8 million in 2023[372] - Net loss for the year ended June 2024 was $34.1 million, compared to a net loss of $58.5 million in 2023[372] - Commissions and other services revenue increased by 12.3% to $856.9 million in 2024 from $763.3 million in 2023[372] - Pharmacy revenue surged by 94.1% to $464.9 million in 2024 from $239.5 million in 2023[372] - Net loss for the fiscal year 2024 was $34.1 million, compared to $58.5 million in 2023 and $297.5 million in 2022[376] Expenses and Costs - Cost of commissions and other services revenue increased by $17.3 million (6%) in 2024 compared to 2023, driven by higher compensation costs[283] - Cost of goods sold-pharmacy revenue surged by $179.0 million (79%) in 2024 compared to 2023, primarily due to a $158.9 million increase in medication costs and a 68% growth in SelectRx members[284] - Marketing and advertising expenses rose by $57.6 million (19%) in 2024 compared to 2023, attributed to a $50.7 million increase in lead costs and higher customer acquisition costs[287] - Selling, general, and administrative expenses increased by $4.5 million (3%) in 2024 compared to 2023, mainly due to an $11.2 million rise in compensation costs related to SelectRx growth[289] - Technical development expenses grew by $7.5 million (29%) in 2024 compared to 2023, driven by a $7.3 million increase in compensation costs for technology personnel[292] - Interest expense, net increased by $12.9 million (16%) in 2024 compared to 2023, due to higher interest rates[293] - Income tax expense increased by $15.7 million (148%) in 2024 compared to 2023, with an effective tax rate of 17.4%[295] - Marketing and advertising expenses increased by 19.1% to $358.9 million in 2024 from $301.2 million in 2023[372] - Technical development expenses rose by 28.9% to $33.5 million in 2024 from $26.0 million in 2023[372] Cash Flow and Financial Position - Net cash provided by operating activities was $15.2 million for the year ended June 30, 2024, compared to $(19.4) million in 2023 and $(338.3) million in 2022[321] - Net cash used in investing activities was $14.8 million for the year ended June 30, 2024, primarily due to $8.3 million in software purchases and $3.4 million in property and equipment purchases[329] - Net cash used in financing activities was $40.9 million for the year ended June 30, 2024, primarily due to $38.9 million of principal payments on Term Loans[333] - The company's cash and cash equivalents totaled $42.7 million as of June 30, 2024, compared to $83.2 million as of June 30, 2023[320] - Cash and cash equivalents decreased to $42.69 million in 2024 from $83.16 million in 2023, with a significant drop in money market funds from $31.93 million to $0.31 million[437] - Net cash provided by operating activities improved to $15.2 million in 2024 from a net cash used of $19.4 million in 2023 and $338.3 million in 2022[376] Market and Industry Trends - The total addressable market for the insurance products distributed by the company is estimated to be greater than $180 billion[253] - The U.S. life insurance market has experienced annual premium growth of 2.9% since 2013, driven by population growth, economic growth, and individual wealth accumulation[255] - The auto insurance industry grew at an annual rate of 5.3% from 2013 to 2021, with 2021 written premium totaling $261 billion[255] Segment Performance and Adjusted EBITDA - Senior segment Adjusted EBITDA increased by $11.7 million (8%) to $166.7 million in 2024, driven by higher revenue offset by increased operating costs[314] - Healthcare Services segment Adjusted EBITDA improved by $30.6 million to $7.8 million in 2024, due to revenue growth offset by higher operating costs[314] - Adjusted EBITDA from the Senior segment increased by $316.8 million (196%) to $155.1 million for the year ended June 30, 2023, due to a $62.2 million increase in revenue and a $254.6 million decrease in operating costs[316] - Adjusted EBITDA from Healthcare Services increased by $9.3 million to $(22.8) million for the year ended June 30, 2023, driven by a $182.0 million increase in revenue, offset by a $172.7 million increase in operating costs[316] Acquisitions and Investments - The company acquired a chronic care management platform for $4.0 million on April 2, 2024, resulting in $0.3 million of goodwill and $3.3 million of intangibles[332] - The company acquired Express Med Pharmaceuticals (now SelectRx) for up to $24.0 million, with $17.5 million paid at closing and additional payments made in 2023[421] - Simple Meds was acquired for $7.0 million in cash, with goodwill allocated to the Healthcare Services reporting unit[422] Financial Instruments and Fair Value - The company uses a combination of historical experience, insurance carrier data, and industry trends to estimate renewal commission revenue[341] - The company recognizes a significant deferred tax liability due to the timing of revenue recognition for tax purposes[343] - The company uses the Black-Scholes-Merton pricing model to determine the fair value of stock options[344] - The company's financial instruments exposed to credit risk primarily consist of accounts and commissions receivable[349] - The company's fair value estimation for reporting units involves significant unobservable inputs and judgmental assumptions[347] Assets and Liabilities - Total current assets decreased by 8.3% to $332.9 million in 2024 from $363.2 million in 2023[370] - Long-term debt, net of current portion, decreased by 4.1% to $637.5 million in 2024 from $664.6 million in 2023[370] - Total shareholders' equity declined by 8.7% to $316.8 million in 2024 from $347.0 million in 2023[370] - Total shareholders' equity decreased from $391.1 million in 2022 to $316.8 million in 2024[375] - The company's total assets decreased to $580.8 million in 2024 from $567.3 million in 2023 and $554.8 million in 2022[375] Leases and Intangible Assets - Total rental payments for leases are expected to be $3.6 million over the initial ten-year term plus a five-year extension[427] - New lease liabilities of $0.7 million and $4.5 million were incurred in 2024 due to lease amendments and additional office facilities in Overland Park, KS[428] - Operating lease right-of-use assets totaled $23.44 million in 2024, slightly down from $23.56 million in 2023[430] - Total net lease costs decreased to $4.38 million in 2024 from $6.66 million in 2023, with sublease income of $2.29 million in 2024[432] - Intangible assets' net carrying value decreased from $10,200 thousand in 2023 to $10,194 thousand in 2024[441] - The company recorded $3.3 million in intangible assets related to proprietary software from the acquisition of a chronic care management platform in 2024[442] - Impairment charges of $15.1 million and $0.5 million were recorded for vendor relationships and non-compete agreements, respectively, in 2023 due to terminated relationships[443] - Customer relationships' net carrying amount decreased from $8,875 thousand in 2023 to $6,556 thousand in 2024[441] - Trade name's net carrying amount decreased from $983 thousand in 2023 to $447 thousand in 2024[441] - Proprietary software's net carrying amount increased from $284 thousand in 2023 to $3,153 thousand in 2024[441] - Non-compete agreements' net carrying amount decreased from $58 thousand in 2023 to $38 thousand in 2024[441] - Vendor relationships' net carrying amount was fully impaired, decreasing from $5,289 thousand in 2023 to $0 in 2024[441] Revenue Recognition and Accounting Policies - The company has two revenue streams: commissions and other services revenue, and pharmacy revenue, recognized when control of goods or services is transferred to the customer[393] - Commission revenue includes first-year commissions and renewal commissions, with renewal commission revenue estimated using a portfolio approach grouped by segment, carrier, product type, and quarter[397] - The company estimates renewal commission revenue using assumptions based on historical experience, carrier data, and industry trends, with persistency being the most sensitive assumption[399] - Production bonus revenue is recognized proportionally as policies are sold, based on agreed-upon targets in customer contracts[405] - Population Health revenue is recognized when performance obligations are met, such as HRA completion or transfers to health-related partners, with transaction prices based on volume and contractual terms[407] - SelectRx pharmaceutical sales revenue is recognized upon shipment to customers, with no future revenue streams or variable consideration as the transaction price is fixed at shipment[408] Credit Losses and Allowances - The company recorded an allowance for credit losses of $8.2 million as of June 30, 2024, compared to $2.7 million in 2023, with write-offs of $1.4 million in 2024[410] Advertising and Marketing - Advertising expenses were $294.7 million for the year ended June 30, 2024, compared to $242.5 million in 2023 and $418.0 million in 2022[415] - Marketing efficiency improved in 2023 compared to 2022, with a decrease in customer acquisition cost (CAC) per approved policy due to enhanced agent training and development[288] Property, Equipment, and Software - Property and equipment net value was $18.973 million as of June 30, 2024, compared to $27.452 million in 2023, with depreciation expenses of $12.8 million in 2024[424] - Work in progress as of June 30, 2024, primarily represents equipment for SelectRx operations not yet in service, with depreciation expenses of $12.8 million for the year[425] - Software—net decreased to $13.98 million in 2024 from $14.74 million in 2023, with capitalized internal-use software costs of $8.4 million in 2024 and $7.8 million in 2023[426] - The company recorded an impairment charge of $1.0 million in 2023 for software no longer utilized in the Healthcare Services segment[426] Other Financial Metrics - Total term premiums increased 2% for the year ended June 30, 2024, compared to the year ended June 30, 2023[272] - Final expense premiums increased 11% for the year ended June 30, 2024, compared to the year ended June 30, 2023[272] - Total premiums for Auto & Home increased 11% for the year ended June 30, 2024, compared to the year ended June 30, 2023[274] - LTV per MA approved policy increased 4% for the year ended June 30, 2024, compared to the year ended June 30, 2023[268] - The company increased the product-specific constraint for Medicare Advantage from 6% to 15% for policies sold after December 31, 2021[341] - The estimated duration of expected renewals used in the calculation of LTV is ten years[340] - Two insurance carrier customers accounted for 32% and 23% of total accounts and commissions receivable as of June 30, 2024[350] - The company recorded $44.6 million in goodwill impairment for the year ended June 30, 2022[348] - The company had $42.4 million in non-interest bearing accounts and $0.3 million in a money market account as of June 30, 2024[351] - The company capitalizes costs related to internal-use software development, with amortization generally over 3-5 years[386] - The company recognizes a right-of-use asset and lease liability at lease commencement, using the incremental borrowing rate to determine the present value of future lease payments[389] - Goodwill is tested for impairment annually and whenever events indicate potential impairment, with the annual test performed as of April 1[392] - Share-based compensation expense increased to $13.8 million in 2024 from $11.3 million in 2023 and $7.1 million in 2022[376] - Depreciation and amortization expenses were $25.0 million in 2024, $27.9 million in 2023, and $24.7 million in 2022[376] - Cash and cash equivalents include money market accounts invested in cash, U.S. Government securities, and fully collateralized repurchase agreements, classified as Level 1 fair value measurements[383] - Two insurance carrier customers accounted for 32% and 23% of total accounts and commissions receivable as of June 30, 2024[384] - For the year

4 th Quarter Fiscal 2024 | We shop. You save. Earnings Conference Call Presentation September 13, 2024 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," ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR 6800 West 115th Street Suite 2511 66211 Overland Park Kansas (Zip Code) (Address of principal executive offices) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 001-39295 (Commission File Number) ...

SelectQuote, Inc. (NYSE:SLQT) Q3 2024 Results Conference Call May 9, 2024 9:00 AM ET Company Participants Matt Gunter - Investor Relations Tim Danker - Chief Executive Officer Ryan Clement - Chief Financial Officer Bob Grant - President Conference Call Participants Ben Hendrix - RBC Pat McCann - Noble Capital Markets Operator Hello, all, and welcome to SelectQuote's Fiscal Third Quarter Earnings Conference Call. [Operator instructions]. It's now my pleasure to introduce Matt Gunter, SelectQuote Investor Re ...

Exhibit 99.1 SelectQuote, Inc. Reports Third Quarter 2024 Results Third Quarter of Fiscal Year 2024 – Consolidated Earnings Highlights Raising Fiscal Year 2024 Guidance Ranges: Third Quarter of Fiscal Year 2024 – Segment Highlights Senior Healthcare Services Life Auto & Home OVERLAND PARK, Kan., May 9, 2024--(BUSINESS WIRE)--SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the third quarter of fiscal year 2024 of $376.4 million, compared to consolidated revenue for the third quarter of fisca ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 001-39295 (Commission File Number) SelectQuote, Inc. (Exact name of registrant as specified in its charter) Delaware 94-3339273 (State or other j ...

Financial Data and Key Metrics Changes - SelectQuote reported consolidated revenue of $405 million, a 27% year-over-year increase, and adjusted EBITDA of $67 million compared to $64 million a year ago [13][28] - Adjusted EBITDA margin declined due to a higher mix of healthcare services revenue, with healthcare services revenue more than doubling year-over-year to $112 million [13][28] - The company expects to approach breakeven free cash flow for fiscal 2024, with cash flow generation anticipated to expand as healthcare services scale [7][12] Business Line Data and Key Metrics Changes - In the Senior segment, revenue grew to $248 million, an 11% increase year-over-year, driven primarily by Medicare Advantage policy growth [36] - The lifetime value (LTV) of policies increased by 7% to $934 per policy, reflecting stable policyholder persistency [9][36] - The Healthcare Services segment surpassed original member growth expectations, reaching nearly 63,000 members, with a sequential growth of 19% compared to the previous quarter [16][29] Market Data and Key Metrics Changes - The company noted a more rational competitive landscape in the industry compared to previous years, with stable agent efficiency despite increased marketing costs due to new CMS marketing rules [9][15] - The average prescription shipped per member grew by 76% year-over-year, indicating significant scale in the distribution business [38] Company Strategy and Development Direction - SelectQuote aims to generate stable and attractive EBITDA margins while focusing on returns to invested capital and growing cash flow [6] - The company is leveraging its existing marketing spend to create new revenue streams, particularly in healthcare services, which is expected to drive future growth [49][74] - The strategic focus includes enhancing automation and improving system architecture to reduce costs while continuing to grow [68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain persistency and stability in policyholder retention, despite increased shopping behavior in the market [23][65] - The company is optimistic about the future, citing strong performance in both the Senior and Healthcare Services divisions, and has increased revenue and adjusted EBITDA outlooks for fiscal 2024 [27][40] Other Important Information - SelectQuote is actively working on restructuring its balance sheet to improve its earnings profile and operating flexibility, with a focus on securitization as a potential solution [20][56] - The company highlighted that it is on track to produce approximately $100 million of unlevered operating cash flow in fiscal 2024 [20] Q&A Session Summary Question: What are the prospects for continued synergies between the pharmacy business and the senior segment? - Management highlighted strong growth in SelectRx, indicating significant synergy with the Medicare Advantage customer base and potential for further adoption [63][64] Question: How does the company view its debt levels as it progresses towards free cash flow generation? - Management acknowledged the meaningful debt balance and emphasized that addressing it is a priority, with ongoing negotiations for a long-term solution [56][70] Question: Can you comment on the lifetime value outlook and the impact of carrier mix? - Management expressed confidence in maintaining persistency and noted that the stabilization observed is a strong foundation for future growth [22][45]