SelectQuote reported first‑quarter fiscal 2026 revenue of $328.8 million, a 12.5% increase from $292.3 million a year earlier, beating the consensus estimate of $316.7 million by $12.1 million (3.8%). The company’s net loss narrowed to $30.5 million from $44.5 million in Q1 FY2025, while adjusted EBITDA swung to a loss of $32.1 million versus a $1.7 million loss a year ago, reflecting a sharp decline in profitability as the firm continues to invest in growth initiatives.
The revenue mix shifted markedly. Senior business revenue fell to $58.9 million, a 37% decline from $92.9 million, largely due to lower policy production under new Medicare Advantage Special Enrollment Period (SEP) eligibility rules. In contrast, Healthcare Services revenue rose to $221.4 million, up 42% from $155.7 million, driven by higher enrollment in the SelectRx pharmacy platform and increased demand for ancillary services. Life segment revenue grew 19% to $46.6 million. SelectRx membership reached 106,914, underscoring the platform’s traction despite a temporary reimbursement rate headwind that is expected to bring the segment’s EBITDA toward breakeven in Q2.
EPS was reported at $‑0.26. Consensus estimates varied: some analysts projected $‑0.24, others $‑0.27, and a few $‑0.33. Depending on the reference point, the result could be viewed as a $0.02 miss or a $0.01 beat. The narrow margin between estimate and actual reflects the company’s ongoing cost‑control efforts amid a mix shift toward lower‑margin Healthcare Services, which offsets the higher revenue growth.
SelectQuote maintained its fiscal 2026 outlook, reaffirming revenue guidance of $1.65 billion to $1.75 billion and adjusted EBITDA guidance of $120 million to $150 million. Management reiterated that the Healthcare Services segment is expected to finish the year with an adjusted EBITDA run rate of $40 million to $50 million, signaling confidence that the segment’s growth will eventually translate into profitability.
CEO Tim Danker emphasized that the integrated healthcare model is delivering “strong revenue to customer acquisition cost (CAC) ratios” and that the company remains “operating cash‑flow positive” for fiscal 2026. He noted that resources were reallocated to address the anticipated decline in Senior volume, positioning the business for a strong season. The company’s focus on AI‑driven efficiencies and strategic investments in high‑return verticals is intended to offset short‑term margin pressure.
Investors reacted with caution, focusing on the widened EBITDA loss and the 37% decline in Senior revenue. The market’s concern centers on profitability, as the company’s shift toward lower‑margin Healthcare Services and the temporary reimbursement headwind create short‑term margin compression. Despite the revenue beat, the loss of scale in the core Senior segment and the need for continued investment in growth initiatives temper enthusiasm for the near‑term outlook.
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