SelectQuote, Inc.

For fiscal 2026, revenue was $1.62 billion, up 6% year over year, and adjusted EBITDA was $109 million, ahead of guidance of $90 million to $100 million. Fourth-quarter revenue was $322 million versus $345 million in the prior year, and fourth-quarter adjusted EBITDA was $12 million versus $3 million last year. Senior revenue declined 4% to $576 million for the full year and generated a 26% adjusted EBITDA margin; Healthcare Services revenue rose 14% to $845 million and produced $25 million of adjusted EBITDA; Life Insurance revenue was $186 million, up 8%, with $27 million of adjusted EBITDA. For fiscal 2027, management guided to consolidated revenue of $1.35 billion to $1.45 billion, adjusted EBITDA of $90 million to $115 million, operating cash flow of $60 million plus, and free cash flow of around $50 million.

Tim Danker framed the quarter around cash flow, saying SelectQuote’s highest priority is profitable cash generation and leverage reduction. He called fiscal 2026 a meaningful step forward, highlighting Healthcare Services’ inflection, Senior’s durability in a tough Medicare Advantage market, and more than $30 million of annualized run-rate expense improvement identified for fiscal 2027 through AI, technology, and cost actions. His tone was confident but disciplined: management wants to be prudent on MA growth in fiscal 2027 while focusing on compounding cash flow and improving equity value.

Ryan Clement emphasized the company’s financial progress and the cash conversion of the business. He cited $1.62 billion of revenue, $109 million of adjusted EBITDA, and a $44 million year-over-year improvement in operating cash flow, then guided to 2027 operating cash flow of $60 million plus and free cash flow of around $50 million. He also noted debt and preferred equity of around $800 million at a cost of approximately 12%, annual cash interest of approximately $45 million, and said every 100-basis-point reduction in funding cost would save nearly $8 million. On margins, he said 2027 consolidated margin should expand about 60 basis points, Senior margins should stay above the 20% target, and Healthcare Services margins should approximately double.

Analysts focused on whether Healthcare Services could grow beyond its tie to Senior, how much of the Kansas facility is penetrated, the impact of the IRA on pharmacy economics, and what leverage reduction or receivables actions might look like. Management said Healthcare Services remains heavily cross-sell-driven today but has room to test third-party growth later; near term, the priority is margin expansion, AI-driven efficiency, and scaling the Kansas facility, which they said is about 30% more efficient than legacy sites. On leverage, they said operating cash flow is the main lever, but future refinancing, cash pay of the PIK, and other deleveraging options are also on the table. They also explained that approved policies can exceed submitted policies because of timing, and said conversion rates remain strong.