SelectQuote Reports Strong Q2 2025 Results, Raises Guidance

SelectQuote shines in its Q2 2025 earnings report, boosting guidance on revenue, EBITDA, and net income as its agent-led model proves effective. Despite challenging market conditions, investments in technology and infrastructure signal positive momentum for the company's growth strategy.

Date: 11-02-2025

AI Rating: 7

Financial Performance Summary: SelectQuote's fiscal Q2 2025 earnings call highlights considerable growth in several key financial metrics. Revenue for the quarter reached $481 million, marking a 19% increase year over year, driven primarily by robust performance in the SelectRx business and the senior segment.

Adjusted EBITDA also saw substantial improvement, totaling $88 million—up 30% compared to the previous year. This translates to a consistent margin of 18%. The senior segment delivered adjusted EBITDA margins of 39%, outperforming last year, showcasing efficiency gains amidst a challenging Medicare Advantage environment.

Net Income: The company raised its net income guidance, now expected to range from a loss of $24 million to a profit of $11 million, an improvement from prior estimates. This positive trend further signifies management's confidence in sustaining profitability as growth accelerates.

Revenue Growth: SelectQuote revised its fiscal 2025 revenue guidance up to $1.5 billion to $1.575 billion. This upward adjustment underscores the company's strong sales performance amid challenging market conditions.

Operating and Profit Margins: The overall company-wide adjusted EBITDA margin remains consistent even with rapid growth in SelectRx. The healthcare services segment also experienced engaging growth, emphasizing the potential for sustained EBITDA improvements in the future.

Capital Structure Improvements: The company successfully completed a $350 million preferred equity offering, which enhances financial flexibility and is intended for debt reduction, fostering long-term growth strategies.

Stocks: SLQT