SelectQuote Inc. (SLQT) reports earnings

The report was filed on February 10, 2025

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SelectQuote Inc. (SLQT0.00%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.

The filing reports total revenue of $481.1 million for the quarter, a 19% increase from $405.4 million in the same quarter the previous year. This increase was driven by growth in the Healthcare Services segment, particularly from SelectRx pharmacy revenue.

Commissions and other services revenue for the quarter was $301.1 million, a 1% increase from $296.6 million in the previous year. Pharmacy revenue increased by 65% to $180 million from $108.8 million.

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Operating costs and expenses for the quarter totaled $410.1 million, representing 84% of total revenue, compared to 86% in the same quarter of the previous year. The decrease in cost ratio is attributed to reduced marketing and advertising expenses.

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The company reported income from operations of $70.9 million, up from $55.3 million in the previous year. Net income for the quarter was $53.2 million, compared to $19.4 million in the previous year.

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Cash used in operating activities was $45.3 million for the six months ended December 31, 2024, compared to $49.2 million in the previous year. This improvement is attributed to changes in working capital.

SelectQuote reported total debt obligations of $711.9 million as of December 31, 2024, up from $683.3 million as of June 30, 2024, primarily due to a securitization transaction completed in October 2024.

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The filing also details a Senior Preferred Stock Purchase Agreement entered on February 10, 2025, which will provide an aggregate investment of $350 million in cash to the company.

SelectQuote's Senior segment reported revenue of $255.6 million for the quarter, a 3% increase from the previous year, driven by a 5% increase in approved policies.

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Healthcare Services revenue increased by 64% to $183.4 million, driven by a 54% increase in SelectRx members.

Life segment revenue increased by 7% to $39.9 million, attributed to growth in final expense commissions.

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The company continues to focus on expanding its Healthcare Services segment and managing its debt obligations through strategic financial transactions.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the SelectQuote Inc. quarterly 10-Q report dated February 10, 2025. To report an error, please email earnings@qz.com.