SelectQuote, Inc.

SelectQuote reported fiscal third-quarter revenue of $431 million, up 6% year over year, and adjusted EBITDA of $45 million, up 18% year over year. Senior revenue increased 8% to $183 million; Senior adjusted EBITDA was $59 million, including a positive $14 million change in estimate to commissions receivable, and normalized Senior EBITDA margin was 26%. Healthcare Services revenue grew 5% to $199 million, with adjusted EBITDA of $5 million; Life revenue rose 4% to $48 million with adjusted EBITDA of $6 million. Management reaffirmed fiscal 2026 revenue guidance of $1.61 billion to $1.71 billion and adjusted EBITDA guidance of $90 million to $100 million.

Tim Danker framed the quarter as evidence that SelectQuote is executing through a difficult industry backdrop, saying the company is focused on profitability, cash flow, and deleveraging over time. He highlighted four straight years of strong Senior operating performance, improving visibility into Medicare Advantage, and what he described as a large disconnect between the market value of the equity and the company’s cash-flow potential. He also introduced SelectQuote Local as a capital-light way to extend the platform, though he said it would not be a meaningful near-term revenue driver.

Ryan Clement said consolidated revenue was $431 million, up 6% year over year, and adjusted EBITDA was $45 million, helped by a positive change in estimate to commissions receivable. He noted that excluding that favorable adjustment, consolidated fiscal 3Q EBITDA margin would have been 7%, and reiterated full-year revenue guidance of $1.61 billion to $1.71 billion and adjusted EBITDA guidance of $90 million to $100 million. In Healthcare Services, he said the IRA drove the sequential revenue decline, but the EBITDA impact was only in the low single-digit millions and was already in forecast; he also said the company received $13 million in refunds in the quarter and that the Olathe facility is already producing 30% plus efficiency gains on shipments, with less than 20% of prescriptions currently flowing through it.

Analysts focused on SelectRx reimbursement, the IRA impact, cash flow acceleration in 2027, Medicare Advantage visibility, and whether the $14 million receivables adjustment should be added to the run rate. Management said PBM reimbursement is now stable after resolving earlier rate pressure and securing a multi-year agreement with its largest PBM partner, while the IRA’s revenue effect was largely optical because refunds flow through cost of goods. On cash flow, management said SelectRx, Senior efficiency, and capital structure changes should help accelerate cash generation in 2027, but they kept guidance unchanged and said they want to see how Q4 develops. On receivables, they said the $14 million adjustment reflected broader visibility into the book and persistency, not a single cohort.