SelectQuote(US:SLQT)2026-02-05 14:01Policy Submissions and Approvals - Total submitted policies for all products increased by 1% for the three months ended December 31, 2025, compared to the same period in 2024, primarily due to a 7% increase in the number of average productive agents[185]. - Total approved policies for all products increased by 4% for the three months ended December 31, 2025, compared to the same period in 2024, correlating with the increase in submitted policies[190]. - Medicare Advantage plans accounted for 93% of approved Senior policies for the three months ended December 31, 2025, consistent with the previous year[178]. - Total approved policies decreased by 5% for the six months ended December 31, 2025, compared to the same period in 2024, correlating with the decrease in submitted policies[191]. Membership and Growth - The total number of SelectRx members increased by 17% as of December 31, 2025, compared to December 31, 2024, reflecting the company's strategy to grow SelectRx membership[197]. - Average prescriptions shipped per day increased to 32,578 for the three months ended December 31, 2025, compared to 26,846 for the same period in 2024[198]. - The number of SelectRx members increased by 17% over the prior year, contributing to the rise in medication and fulfillment costs[216]. Revenue and Income - Total revenue for the three months ended December 31, 2025, was $537,102,000, a 12% increase from $481,069,000 in the prior year[203]. - Pharmacy revenue increased by 26% to $227,209,000 for the three months ended December 31, 2025, primarily due to a 17% increase in members[207]. - Operating income for the three months ended December 31, 2025, was $75,311,000, representing a 6% increase from $70,940,000 in the prior year[203]. - Net income for the three months ended December 31, 2025, was $69,293,000, a 30% increase from $53,236,000 in the prior year[203]. - Total consolidated revenue for the three months ended December 31, 2025, was $537.1 million, an increase from $481.1 million in the same period of 2024, representing a year-over-year growth of approximately 11.7%[241][247]. Expenses and Costs - Cost of goods sold for pharmacy revenue increased by 31% to $205,194,000 for the three months ended December 31, 2025, mainly due to a $47.2 million rise in medication costs[214]. - Marketing and advertising expenses increased by $7.3 million, or 7%, for the three months ended December 31, 2025, primarily due to a $5.8 million increase in lead costs[218]. - Selling, general, and administrative expenses decreased by $6.1 million, or 14%, for the three months ended December 31, 2025, primarily due to a $6.3 million decrease in corporate development costs[222]. - Cost of commissions and other services revenue increased by 2% to $103,034,000 for the three months ended December 31, 2025, primarily due to a rise in compensation costs[211]. Segment Performance - Healthcare Services segment generated external revenue of $259.2 million for the three months ended December 31, 2025, up from $253.8 million in the same period of 2024, reflecting a growth of approximately 2.7%[241][247]. - Senior segment reported external revenue of $230.4 million for the three months ended December 31, 2025, compared to $183.3 million in the same period of 2024, marking a significant increase of about 25.7%[241][247]. - Revenue from Healthcare Services increased by $112.9 million, or 33%, to $452.0 million for the six months ended December 31, 2025, driven by a 17% increase in SelectRx members[268]. - Revenue from Senior decreased by $28.0 million, or 8%, to $320.5 million for the six months ended December 31, 2025, primarily due to a $24.1 million decrease in commission revenue[269]. Financial Position and Debt - The Company had total debt obligations of $405.8 million as of December 31, 2025, up from $385.1 million as of June 30, 2025[286]. - The Company entered into a new $415.0 million credit facility on January 8, 2026, which includes a $325.0 million senior secured term loan and a revolving credit facility of up to $90.0 million[284]. - As of December 31, 2025, the Company had $23.3 million in cash, cash equivalents, and restricted cash, down from $37.1 million as of June 30, 2025[287]. Adjusted EBITDA - Adjusted EBITDA for the three months ended December 31, 2025, was $84.7 million, compared to $87.5 million for the same period in 2024[234]. - Adjusted Segment EBITDA for the three months ended December 31, 2025, was $108.9 million, compared to $110.2 million for the same period in 2024, indicating a slight decrease of about 1.2%[242][248]. - Adjusted EBITDA from Senior for the six months ended December 31, 2025, was $81.4 million, a decrease of $26.8 million compared to the prior year[274]. - Adjusted EBITDA from Healthcare Services increased to $8.1 million for the six months ended December 31, 2025, reflecting a $112.9 million revenue increase, despite a $111.8 million rise in cost of goods sold[275]. Impairments and Charges - The Company recognized an impairment charge of $1.0 million during the three months ended December 31, 2025, representing a full write-off of its equity-method investment[246][257]. Interest and Tax Expenses - Interest expense decreased by $12.1 million, or 51%, for the three months ended December 31, 2025, primarily driven by a lower cost of capital following the completion of the securitization transaction[227]. - Income tax expense for the three months ended December 31, 2025, was $13.7 million, with an effective tax rate of 16.5%[229].