SelectQuote(SLQT) - 2026 Q1 - Quarterly Results

Financial Performance - Consolidated revenue for Q1 FY 2026 was $328.8 million, up from $292.3 million in Q1 FY 2025, representing a 12.5% increase[1] - Consolidated net loss for Q1 FY 2026 was $30.5 million, an improvement from a net loss of $44.5 million in Q1 FY 2025[1] - Adjusted EBITDA for Q1 FY 2026 was $(32.1) million, compared to $(1.7) million in Q1 FY 2025[1] - The net loss attributable to common shareholders for the quarter was $47.9 million, compared to a net loss of $44.5 million in the same quarter last year[38] - Net loss for Q3 2025 was $30,459,000, a decrease from a net loss of $44,546,000 in Q3 2024, representing a 31.6% improvement[45] - Total revenue from reportable segments in Q3 2025 was $326,994,000, compared to $287,937,000 in Q3 2024, reflecting a 13.6% increase[41] - Adjusted EBITDA for Q3 2025 was $(32,079,000), compared to $(1,683,000) in Q3 2024, indicating a significant decline in profitability[45] Segment Performance - The Senior segment reported revenue of $59.0 million, down 37% from $92.9 million in the same period last year[6] - The Healthcare Services segment generated revenue of $221.4 million, a 42% increase from $155.7 million in Q1 FY 2025[14] - The Life segment reported revenue of $46.6 million, a 19% increase from $39.3 million in Q1 FY 2025[23] - Pharmacy revenue reached $218.5 million, up 43% from $152.9 million year-over-year[38] - Adjusted Segment EBITDA for Healthcare in Q3 2025 was $7,212,000, down from $7,724,000 in Q3 2024, a decrease of 6.6%[41] Customer Metrics - The number of SelectRx members increased by 24% year-over-year, reaching 106,914 members as of September 30, 2025[16] - The revenue to customer acquisition cost (CAC) ratio reached an all-time high of 6.4x, nearly 40% higher than the previous year[2] - Approved Medicare Advantage policies decreased by 32% to 62,510 in Q1 FY 2026 from 91,680 in Q1 FY 2025[11] Financial Outlook - The company maintains its fiscal 2026 financial outlook of $1.65 to $1.75 billion in revenue and $120 to $150 million in Adjusted EBITDA[4] Cash Flow and Assets - Cash used in operating activities for Q3 2025 was $21,623,000, compared to $16,610,000 in Q3 2024, showing an increase in cash outflow[45] - Cash and cash equivalents at the end of Q3 2025 were $15,699,000, down from $42,690,000 at the beginning of the period[45] - Total current assets decreased to $332.0 million from $341.0 million as of June 30, 2025[36] - Total liabilities as of September 30, 2025, were $660.1 million, a decrease from $673.8 million as of June 30, 2025[37] - Commissions receivable-current increased to $193.4 million from $132.1 million, indicating growth in expected revenue[36] Business Structure - The company has three core business lines: SelectQuote Senior, SelectQuote Healthcare Services, and SelectQuote Life, focusing on various insurance and healthcare services[33] Other Financial Metrics - The company reported a loss from operations of $40.7 million for the quarter, compared to a loss of $12.0 million in the prior year[38] - SelectQuote's accumulated deficit increased to $252.6 million as of September 30, 2025, from $222.2 million as of June 30, 2025[37] - Proceeds from the revolving credit facility in Q3 2025 were $80,000,000, with payments of $65,000,000, resulting in a net increase of $15,000,000[45] - Total cash used in investing activities for Q3 2025 was $3,984,000, an increase from $2,574,000 in Q3 2024[45] - The company reported a change in fair value of warrants of $(15,036,000) in Q3 2025, compared to no such change in Q3 2024[45]