SelectQuote (NYSE:SLQT) Issues Quarterly Earnings Results, Misses Expectations By $0.03 EPS

SelectQuote (NYSE:SLQT) released its quarterly earnings results on Tuesday. The company reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.16) by ($0.03), Zacks reports. SelectQuote had a net margin of 5.60% and a return on equity of 20.49%. The firm had revenue of $321.65 million during the quarter, compared to the consensus estimate of $353.44 million.

Here are the key takeaways from SelectQuote’s conference call:

• Fiscal 2026 exceeded expectations, with revenue up 6% to $1.62 billion and Adjusted EBITDA of $109 million, ahead of the $90 million–$100 million guidance range. Operating cash flow improved by $44 million year over year.
• Healthcare Services revenue rose 14% to $845 million, while SelectRx generated $25 million of Adjusted EBITDA and exited the year at an annualized run rate near $50 million. The Kansas facility is delivering approximately 30% greater shipment efficiency than legacy sites, supporting management’s expectation that segment margins will roughly double in fiscal 2027.
• Management expects fiscal 2027 revenue to decline to $1.35 billion–$1.45 billion, driven by a 10%–15% reduction in Medicare Advantage approved policies and a 10%–15% Healthcare Services revenue decline related primarily to Inflation Reduction Act effects. The company is deliberately prioritizing profitability and cash flow over near-term growth.
• SelectQuote identified more than $30 million of annualized expense improvements through AI, automation, process changes, and organizational restructuring. Management forecasts fiscal 2027 operating cash flow of more than $60 million and free cash flow of approximately $50 million, with potential for debt reduction and lower funding costs.
• Medicare Advantage conditions are showing early signs of improvement, but carriers continue to target 3%–4% operating margins and may reduce benefits or terminate plans. SelectQuote plans to remain disciplined in fiscal 2027 while preserving the ability to respond if the market supports responsible growth in plan year 2028.

SelectQuote Stock Down 29.5%

SLQT stock opened at $0.55 on Wednesday. The company has a market cap of $96.46 million, a PE ratio of 6.08 and a beta of 1.66. The business has a 50-day simple moving average of $0.77 and a 200 day simple moving average of $0.82. SelectQuote has a 52 week low of $0.48 and a 52 week high of $2.58. The company has a quick ratio of 5.63, a current ratio of 5.63 and a debt-to-equity ratio of 0.92.

Analyst Upgrades and Downgrades

SLQT has been the subject of a number of research reports. Noble Financial raised SelectQuote to a “strong-buy” rating in a report on Wednesday, May 6th. Weiss Ratings downgraded shares of SelectQuote from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, August 17th. Finally, Zacks Research lowered shares of SelectQuote from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, SelectQuote currently has a consensus rating of “Hold” and a consensus price target of $3.00.

Hedge Funds Weigh In On SelectQuote

Several hedge funds and other institutional investors have recently made changes to their positions in SLQT. AQR Capital Management LLC increased its stake in shares of SelectQuote by 37.8% in the 1st quarter. AQR Capital Management LLC now owns 53,081 shares of the company’s stock valued at $177,000 after purchasing an additional 14,551 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of SelectQuote by 6.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 81,854 shares of the company’s stock valued at $273,000 after purchasing an additional 4,947 shares in the last quarter. Caxton Associates LLP acquired a new stake in shares of SelectQuote in the 1st quarter valued at approximately $172,000. Acadian Asset Management LLC bought a new stake in shares of SelectQuote during the 1st quarter valued at approximately $514,000. Finally, Creative Planning grew its holdings in shares of SelectQuote by 8.5% during the 2nd quarter. Creative Planning now owns 121,597 shares of the company’s stock valued at $289,000 after purchasing an additional 9,504 shares during the last quarter. 34.59% of the stock is currently owned by institutional investors and hedge funds.

About SelectQuote

SelectQuote, Inc (NYSE: SLQT) is a U.S.-based insurance brokerage and lead generation company that connects consumers with a range of insurance products through proprietary technology and licensed agents. The company specializes in life insurance, supplemental health coverage and Medicare plans, leveraging its digital platform and call center operations to help individuals compare policies and find cost-effective solutions tailored to their needs.

Through a single point of contact, policy seekers can evaluate offerings from multiple carriers, including term life, whole life, accidental death, critical illness and long-term care products.