SelectQuote (NYSE:SLQT) Q2 2026 Earnings call February 05, 2026 08:00 AM ET Company ParticipantsBen Hendrix - VPBob Grant - PresidentDavid Windley - Managing DirectorMatt Gunter - Head of Investor RelationsRyan Clement - CFOTim Danker - CEOConference Call ParticipantsGeorge Sutton - Senior Research AnalystPat McCann - Equity Research AnalystOperatorWelcome to SelectQuote's second quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks ...

Financial Data and Key Metrics Changes - For Q4 2024, the company reported revenue of $339 million, a 20% increase year-on-year, and adjusted EBITDA of $26 million, representing a 30% increase compared to the same quarter last year [2][3] - For the full year 2024, total revenue reached $1.228 billion, up 17% from the previous year, with adjusted EBITDA of $91 million, reflecting a 19% year-over-year increase [2] Business Line Data and Key Metrics Changes - The resident count at the end of Q4 2024 was approximately 186,000, marking a 14% increase from the same quarter last year [2][3] - The growth in revenue was driven by organic growth, acquisitions (Heartland and Freedom), and seasonal factors related to vaccine clinics [3] Market Data and Key Metrics Changes - The company experienced strong organic growth in the high single digits, combined with M&A activity leading to low double-digit growth expectations for 2025 [6] - The flu season's extended duration did not materially impact the company's vaccine administration, as nearly all residents are inoculated regardless of season severity [8] Company Strategy and Development Direction - The company is focused on leveraging its M&A pipeline, which remains robust, and is comfortable with the ongoing process related to the IRA [7][12] - The management is optimistic about the integration of clinical intervention services and data analytics to enhance customer offerings [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenges posed by the IRA and indicated that it has not significantly hindered M&A opportunities [12] - The company anticipates steady drug mix and reimbursement trends as it looks towards 2025 [21] Other Important Information - The company ended Q4 2024 with $4.7 million in cash [3] - Management highlighted the positive influence of vaccine-related revenue on Q4 EBITDA growth [18] Q&A Session Summary Question: Impact of IRA on M&A opportunities - Management stated that the M&A pipeline remains robust and the IRA has not significantly affected it, possibly even providing slight benefits [12] Question: Changes in contracting with PBM partners - Management refrained from discussing specific negotiations but acknowledged that various factors are under consideration [14] Question: Year-over-year improvement in vaccine administration - Management noted that the benefits from flu and COVID vaccines were primarily realized in Q4, with limited tailwind expected for 2025 [16] Question: Observed drug mix trends and pricing perspective for 2025 - Management indicated that there are no substantial changes expected in drug mix or reimbursement as they look to 2025 [21] Question: Progress on clinical intervention initiatives - Management expressed pride in the progress made by the data analytics and clinical teams in delivering value-added services [22]