SelectQuote (SLQT) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 revenue reached $1.62 billion, up from $1.53 billion, with net income of $62.2 million and a $44 million year-over-year improvement in operating cash flow, driven by Healthcare Services scale and efficiency.

• Adjusted EBITDA for fiscal 2026 was $109.1 million, with Q4 Adjusted EBITDA rising to $12 million from $3 million in the prior year.

• Healthcare Services became the largest revenue contributor, with SelectRx achieving a $50 million annual run rate by Q4.

• Senior business maintained high profitability with 26% Adjusted EBITDA margins despite a challenging Medicare Advantage environment.

• Technology and AI-driven efficiencies, including a new pharmacy management system and Kansas facility, delivered over $30 million in annualized run rate expense improvements.

Financial highlights

• Fiscal 2026 consolidated revenue was $1.62 billion (+6% year-over-year); Adjusted EBITDA was $109.1 million, with net income of $62.2 million.

• Q4 2026 revenue was $322 million (down from $345 million prior year), but Adjusted EBITDA rose to $12 million from $3 million.

• Healthcare Services revenue grew 14% to $845 million; Life Insurance revenue increased 8% to $186 million.

• Senior segment revenue declined 4% to $576 million, but maintained strong margins.

• Operating cash flow for fiscal 2026 was $31.9 million, a $44 million improvement over 2025.

Outlook and guidance

• Fiscal 2027 revenue guidance is $1.35–$1.45 billion, a 14% decrease at midpoint, reflecting MA policy declines and IRA headwinds.

• Adjusted EBITDA guidance for 2027 is $90–$115 million, with consolidated margin expansion of 60 basis points.

• Operating cash flow expected to exceed $60 million, nearly doubling year-over-year; free cash flow projected at $50 million.

• Over $30 million in annual expense savings expected from technology-enabled efficiencies.

• Senior margins expected to remain above 20%, while healthcare services margins are projected to double.