SelectQuote Q2 revenue slightly beats estimates, 2026 guidance revised

Overview

• Insurance comparison platform's Q2 revenue of $537.1 mln slightly beat analyst expectations

• Net income for Q2 increased to $69.3 mln from $53.2 mln yr/yr

• Q2 adjusted EBITDA decreased to $84.7 mln from $87.5 mln yr/yr

Outlook

• Fiscal 2026 guidance impacted by a national carrier's decision to limit MA policy volume and PBM reimbursement changes

• SelectQuote projects fiscal year 2026 revenue between $1.61 bln and $1.71 bln

• SelectQuote expects fiscal year 2026 adjusted EBITDA between $90 mln and $100 mln

• Company cites partner-driven headwinds impacting fiscal 2026 guidance

Result Drivers

• SENIOR SEGMENT - Stable revenue and adjusted EBITDA margins despite volatility in Medicare Advantage benefits, highlighting strong execution

• HEALTHCARE SERVICES GROWTH - Significant revenue and membership growth in Healthcare Services, driven by SelectRx

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance & brokers peer group is "buy"

• Wall Street's median 12-month price target for SelectQuote Inc is $4.50, about 210.3% above its February 4 closing price of $1.45

Press Release: ID:nBw6pwBKma

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