SelectQuote reported a fiscal fourth-quarter loss and missed Wall Street estimates on revenue and adjusted earnings, sending shares down 16.28% in premarket trading. The Kansas-based insurer posted a Q4 adjusted loss of $0.19 per share, wider than the $0.15 loss forecast, while revenue fell 6.8% to $321.7 million against expectations of $345.3 million.
For the full fiscal year ended June 2026, SelectQuote generated $1.62 billion in revenue, up 6% year-over-year, and adjusted EBITDA of $109 million, topping its guidance range of $90 million to $100 million. Operating cash flow improved by $44 million, while free cash flow totaled about $50 million. The company’s debt-to-equity ratio stood at 1.05, with total debt and preferred equity near $800 million.
Segment performance showed mixed results. Senior insurance revenue declined 4% to $576 million, though the division maintained a 26% adjusted EBITDA margin for the fourth straight year. Healthcare services, led by SelectRx, grew 14% to $845 million, becoming the company’s largest revenue contributor. Adjusted EBITDA in this segment reached $25 million for the year, with an annualized run rate of nearly $50 million by Q4. Life insurance revenue rose 8% to $186 million, with adjusted EBITDA of $27 million.
SelectQuote’s shares, trading at $0.65 premarket from a prior close of $0.776, remain 74.9% below their 52-week high of $2.585 and 15.5% above the low of $0.563. Analysts maintain a "Buy" consensus with price targets ranging from $1.25 to $5.00.
For fiscal 2027, the company guided for consolidated revenue of $1.35 billion to $1.45 billion, a decline from fiscal 2026 at the midpoint. Adjusted EBITDA is projected between $90 million and $115 million, with operating cash flow expected to double to over $60 million and free cash flow remaining around $50 million. Management highlighted plans to cut $30 million in annual expenses through AI, automation, and process improvements.
Senior insurance policy volume and healthcare services revenue are both expected to decline by 10% to 15% year-over-year, citing Medicare Advantage transitions and Inflation Reduction Act pressures. Healthcare services margins are projected to roughly double as the Kansas pharmacy facility scales with a new management system.
