SelectQuote Inc
For the period ended Mar 31, 2025. Filed May 12, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 12, 2025
SLQT$0.48+23.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-02-10.
0001794783-25-000009
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0001794783-25-000046
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 149 previous paragraphs and 148 current paragraphs.
85 unchanged; 54 reworded; 8 added; 9 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 25 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
The LTV per MA approved policy decreased 3% for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024, primarily due to carrier mix and specific carriers shifting away from upfront payment contracts, combined with deterioration in provision for losses and persistency due to recent plan terminations.
Current report
Nine Months Ended March 31, 2025 and 2024–Interest expense decreased $3.0 million, or 4%, for the nine months ended March 31, 2025, as a result of the Company’s lower cost of capital after completing the securitization transaction and utilizing the proceeds from the Senior Non-Convertible Preferred Stock transaction to repay $260.0 million of the Company’s outstanding Term Loan balance.
Current report
Nine Months Ended March 31, 2025:
Current report
Nine Months Ended March 31, 2024
Current report
Senior Non-Convertible Preferred Stock
Current report
On February 10, 2025, the Company completed a$350.0 million Senior Non-Convertible Pref erred Stock transaction and received net proceeds of $337.9 million. Refer to Note 7 to the condensed consolidated financial statements for further information.
Current report
Senior Secured Credit Facility
Current report
On February 10, 2025 and in connection with the Senior Non-Convertible Preferred Stock transaction, the Company entered into a Twelfth Amendment to the Senior Secured Credit Facility. The Twelfth Amendment permits certain amendments to the Senior Secured Credit Facility to, among other things, (1) made certain modifications to the applicable asset coverage and minimum liquidity covenants and (2) adjusted the cash and payable in kind interest applicable to the outstanding term loans.
Removed paragraphs (9)
Previous report
The LTV per MA approved policy decreased less than 1% for the six months ended December 31, 2024, compared to the six months ended December 31, 2023, primarily due to carrier mix.
Previous report
Six Months Ended December 31, 2024 and 2023–Interest expense increased $0.9 million, or 2%, for the six months ended December 31, 2024, as a result of higher interest rates during the period.
Previous report
Six Months Ended December 31, 2024:
Previous report
Six Months Ended December 31, 2023
Previous report
Securitization and Indenture
Previous report
On October 15, 2024, the Company completed a $100.0 million securitization transaction to provide advanced financing against the expected collections for policies previously sold. The Company used the proceeds to pay down a portion of its outstanding term loans. During the six months ended December 31, 2024, the Company received proceeds of $99.1 million, and as of December 31, 2024, had outstanding borrowings of $93.7 million. Refer to Note 6 for further information.
Previous report
On October 15, 2024 and in connection with the Indenture, the Company entered into the Eleventh Amendment to its Credit Agreement to (1) extend the scheduled maturity date of the existing term loans, (2) modify financial covenant ratios required to be maintained by the Company for various reporting dates to allow the Company to stay in compliance with the required covenants, and (3) allow the Company to enter into the securitization transaction.
Previous report
On February 10, 2025, the Company entered into the Senior Preferred Stock Purchase Agreements, pursuant to which the Company will receive aggregate cash proceeds of $339.5 million in connection with the issuance of the Preferred Stock and Preferred Warrants after giving effect to a 3% original issue discount. The Company will use the proceeds to pay $23.0 million of fees incurred in connection with the transactions contemplated by the Senior Preferred Stock Purchase Agreements, pay down $260.0 million of the outstanding term loan balance, and the remainder to fund operations and pay down the revolving credit facility.
Previous report
We do not expect to generate sufficient cash flows from operations to enable us to make the remaining milestone payments contemplated in the Eleventh Amendment. If we are unable to secure additional financing from outside sources or otherwise amend the Senior Secured Credit Facility, we will need to obtain additional capital through other means, including future securitization transactions, selling one or more material assets, or substantially reducing the scope of certain of our operations. If we are unable to satisfy our repayment obligations under the Senior Secured Credit Facility or maintain compliance with the covenants therein, we may be in default, which would significantly affect our liquidity.
Reworded paragraphs (54)
Previous wording
Senior was launched in 2010 and provides unbiased comparison shopping for Medicare Advantage (“MA”) and Medicare Supplement (“MS”) insurance plans as well as prescription drug and dental, vision, and hearing (“DVH”) plans, and critical illness products. We represent approximately 25 leading, nationally-recognized insurance carrier partners, including UHC, Humana, Aetna, and Wellcare. MA and MS plans accounted for 93% and 92% of our approved Senior policies for the three months ended December 31, 2024 and 2023, respectively, and 91% and 91% for the six months ended December 31, 2024, and 2023, respectively, with other ancillary type policies accounting for the remainder.
Current wording
Senior was launched in 2010 and provides unbiased comparison shopping for Medicare Advantage (“MA”) and Medicare Supplement (“MS”) insurance plans as well as prescription drug and dental, vision, and hearing (“DVH”) plans, and critical illness products. We represent approximately 25 leading, nationally-recognized insurance carrier partners, including UHC, Humana, Aetna, and Wellcare. MA and MS plans accounted for 91% and 92% of our approved Senior policies for the three months ended March 31, 2025 and 2024, respectively, and 91% and 92% for the nine months ended March 31, 2025, and 2024, respectively, with other ancillary type policies accounting for the remainder.
Previous wording
Life is one of the country’s largest and most established DTC insurance distributors for term life insurance, having sold over 2.4 million policies nationwide since our founding in 1985. Our platform provides unbiased comparison shopping for life insurance products such as term life, final expense, and other ancillary products like critical illness, accidental death, and juvenile insurance. We represent approximately 20 leading, nationally-recognized insurance carrier partners, with many of these relationships exceeding 20 years. Term life policies accounted for 44% and 47% of new premium within the Life segment for the three months ended December 31, 2024 and 2023, respectively, with final expense policies accounting for 56% and 53% for the three months ended December 31, 2024 and 2023, respectively. For the six months ended December 31, 2024 and 2023, term life policies accounted for 41% and 48% of new premium within Life, respectively, with final expense policies accounting for 59% and 52%, respectively.
Current wording
Life is one of the country’s largest and most established DTC insurance distributors for term life insurance, having sold over 2.5 million policies nationwide since our founding in 1985. Our platform provides unbiased comparison shopping for life insurance products such as term life, final expense, and other ancillary products like critical illness, accidental death, and juvenile insurance. We represent approximately 20 leading, nationally-recognized insurance carrier partners, with many of these relationships exceeding 20 years. Term life policies accounted for 41% and 41% of new premium within the Life segment for the three months ended March 31, 2025 and 2024, respectively, with final expense policies accounting for 59% and 59% for the three months ended March 31, 2025 and 2024, respectively. For the nine months ended March 31, 2025 and 2024, term life policies accounted for 41% and 45% of new premium within Life, respectively, with final expense policies accounting for 59% and 55%, respectively.
Previous wording
The three and six months ended December 31 referenced throughout the commentary below refers to the second quarter and fiscal year-to-date performance of our fiscal years ending on June 30, 2025 and 2024.
Current wording
The three and nine months ended March 31 referenced throughout the commentary below refers to the third quarter and fiscal year-to-date performance of our fiscal years ending on June 30, 2025 and 2024.
Previous wording
Total submitted policies for all products increased 5% for thethree months ended December 31, 2024, compared to thethree months ended December 31, 2023. This was driven by a 24% increase in overall close rates, a 33% increase in production per productive agent offset by a 25% decrease in average total productive agents.
Current wording
Total submitted policies for all products decreased 8% for thethree months ended March 31, 2025, compared to thethree months ended March 31, 2024. This was driven by a 19% decrease in average total productive agents, offset by a 15% increase in overall close rates.
Previous wording
Total submitted policies for all products increased 4% for the six months ended December 31, 2024, compared to the six months ended December 31, 2023. This was driven by a 12% increase in overall close rates, a 19% increase in production per productive agent offset by a 13% decrease in average total productive agents.
Current wording
Total submitted policies for all products decreased 1% for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024.This was driven by a 22% decrease in average total productive agents, offset by a 13% increase in overall close rates.
Previous wording
Total approved policies for all products increased by 5% for thethree months ended December 31, 2024, compared to thethree months ended December 31, 2023, which correlates to the increase in submitted policies.
Current wording
Total approved policies for all products decreased by 8% for thethree months ended March 31, 2025, compared to thethree months ended March 31, 2024, which correlates to the decrease in submitted policies.
Previous wording
Total approved policies for all products increased 2% for the six months ended December 31, 2024, compared to the six months ended December 31, 2023. Fluctuations in approved policies are normally in direct correlation to submitted policies; however, the approved policies increased slightly less than submitted policies due to carrier mix.
Current wording
Total approved policies for all products decreased 2% for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. Fluctuations in approved policies are normally in direct correlation to submitted policies; however, the approved policies decreased slightly more than submitted policies due to carrier mix.
Previous wording
The LTV per MA approved policy decreased 3% for thethree months ended December 31, 2024, compared to thethree months ended December 31, 2023, primarily due to carrier mix.
Current wording
The LTV per MA approved policy decreased 8% for thethree months ended March 31, 2025, compared to thethree months ended March 31, 2024, primarily due to carrier mix and specific carriers shifting away from upfront payment contracts, combined with deterioration in persistency due to recent plan terminations.
Previous wording
The total number of SelectRx members increased by 54% asof December 31, 2024, compared to December 31, 2023, due to our continued operating strategy to grow SelectRx.
Current wording
The total number of SelectRx members increased by 41% asof March 31, 2025, compared to March 31, 2024, due to our strategy to grow SelectRx membership.
Previous wording
Total term premiums decreased 9% for the six months ended December 31, 2024, compared to the six months ended December 31, 2023, due to a 4% increase in the average premium per policy sold and a 12% decrease in the number of policies sold. Final expense premiums increased 19% for the six months ended December 31, 2024, compared to the six months ended December 31, 2023, due to a 3% increase in the average premium per policy sold and a 16% increase in the number of policies sold.
Current wording
Total term premiums increased 13% for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due to an 8% increase in the number of policies sold, and a 4% increase in the average premium per policy sold. Final expense premiums increased 17% for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due to a 1% increase in the average premium per policy sold and a 15% increase in the number of policies sold.
Previous wording
Total term premiums decreased 1% for thethree months ended December 31, 2024, compared to thethree months ended December 31, 2023, due to a 7% decrease in the number of policies sold, partially offset by a 7% increase in the average premium per policy sold. Final expense premiums increased 14% for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, due to a 4% increase in the average premium per policy sold and a 9% increase in the number of policies sold.
Current wording
Total term premiums decreased 2% for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024, due to a 6% decrease in the number of policies sold, partially offset by a 4% increase in the average premium per policy sold. Final expense premiums increased 18% for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024, due to a 2% increase in the average premium per policy sold and a 16% increase in the number of policies sold.
Previous wording
Three Months Ended December 31, 2024 and 2023–Commissions and other services revenue increased $4.4 million, or 1%, for the three months ended December 31, 2024 primarily due to an increase in Senior and Life commissions revenue by $7.9 million and $2.4 million, respectively, offset by a decrease in other commissions revenue of $6.3 million. Senior’s increase was primarily due to a $7.9 million increase in commissions revenue driven by a 5% increase in approved policies. The $2.4 million increase in Life commissions revenue was primarily driven by a $1.8 million increase in final expense revenue. The decrease in other commissions revenue is driven by a $6.3 million decrease in Auto & Home commissions revenue due to the change in strategic direction to reduce revenue growth for Auto & Home based on our limited resources. Pharmacy revenue increased $71.2 million, or 65%, primarily due to the 54% increase in members from the growth of the SelectRx business.
Current wording
Three Months Ended March 31, 2025 and 2024– Pharmacy revenue increased $65.0 million, or 54%, primarily due to the 41% increase in members from the growth of the SelectRx business. Commissions and other services revenue decreased $33.2 million, or 13%, for the three months ended March 31, 2025 primarily due to an increase in Life commissions revenue of $5.0 million, offset by a decrease in Senior commissions revenue of $38.7 million. The $5.0 million increase in Life commissions revenue was driven by a $2.7 million increase in final expense revenue and $2.4 million increase in term revenue. Senior’s decrease of $38.7 million in commissions revenue was primarily driven by a 8% decrease in approved policies.
Previous wording
Six Months Ended December 31, 2024 and 2023–Commission and other services revenue increased $5.9 million, or 1%, for the six months ended December 31, 2024, primarily due to increases in Senior and Life commissions revenue of $8.8 million, and $3.8 million, offset by a decrease in other commissions revenue of $9.3 million, respectively. For Senior, this was driven by a 2% increase in approved policies. The increase in Life commissions revenue was primarily by a $6.0 million increase in final expense revenue offset by a $2.2 million decrease in term revenue. The decrease in other commissions revenue is driven by a $9.3 million decrease in Auto & Home commissions revenue due to the change in strategic direction to reduce revenue growth for Auto & Home based on our limited resources. The $129.3 million increase in pharmacy revenue was due to the increase in members due to the expansion of the SelectRx business.
Current wording
Nine Months Ended March 31, 2025 and 2024–Pharmacy revenue increased $194.3 million, or 60%, primarily due to the 41% increase in members due to the expansion of the SelectRx business. Commission and other services revenue decreased $27.4 million, or 4%, for the nine months ended March 31, 2025, primarily due to increases in Life commissions revenue and other Senior revenue of $8.8 million and $6.2 million, offset by decreases in Senior and other commissions revenue of $30.0 million and $13.2 million, respectively. The increase in Life commissions revenue was primarily driven by a $8.7 million increase in final expense revenue. For Senior, this was driven by a 2% decrease in approved policies. The decrease in other commissions revenue was primarily driven by a $13.2 million decrease in Auto & Home commissions revenue due to the change in strategic direction to reduce revenue growth for Auto & Home based on our limited resources.
Previous wording
Three Months Ended December 31, 2024 and 2023—Cost of commissions and other service revenue increased $3.7 million, or 4%, for the three months ended December 31, 2024, primarily due to a $4.8 million increase in compensation costs, offset by a $0.8 million decrease in other operating expenses in Senior. The $4.8 million increase in compensation costs is primarily made up of a $3.6 million increase in costs for our sales and customer care agents in Senior, and a $0.4 million increase in costs for sales and customer care agents in Life.
Current wording
Three Months Ended March 31, 2025 and 2024—Cost of commissions and other service revenue decreased $4.9 million, or 6%, for the three months ended March 31, 2025, primarily due to a $2.7 million decrease in compensation costs, a $1.3 million decrease in other operating expenses, and a $0.8 million decrease in depreciation and amortization. The $2.7 million decrease in compensation costs is primarily made up of a $2.7 million decrease in costs for our sales and customer care agents in Senior and a $2.3 million decrease in costs for other commissions agents, partially offset by a $1.4 million increase in costs for sales and customer care agents in Life.
Previous wording
Six Months Ended December 31, 2024 and 2023—Cost of commissions and other service revenue decreased $3.1 million, or 2%, for the six months ended December 31, 2024, primarily due to a $1.0 million decrease in licensing fees in Senior, combined with a $0.7 million decrease in compensation costs and a $1.1 million decrease in other operating expenses in Senior. The $0.7 million decrease in compensation costs is primarily made up of a $3.2 million decrease in costs for our sales and customer care agents in Senior, offset by a $5.4 million increase in costs for sales and customer care agents in Healthcare Services and a $0.9 million increase in Life.
Current wording
Nine Months Ended March 31, 2025 and 2024—Cost of commissions and other service revenue decreased $8.0 million, or 3%, for the nine months ended March 31, 2025, primarily due to a $1.3 million decrease in licensing fees in Senior, combined with a $3.4 million decrease in compensation costs and a $2.4 million decrease in other operating expenses. The $3.4 million decrease in compensation costs is primarily made up of a $6.0 million decrease in costs for our sales and customer care agents in Senior, offset by a $2.3 million increase in costs for sales and customer care agents in Life.
Previous wording
Three Months Ended December 31, 2024 and 2023–Cost of goods sold-pharmacy revenue increased $62.0 million, or 66%, for the three months ended December 31, 2024, primarily due to a $53.8 million increase in medication costs as the number of SelectRx members increased 54% over the prior year as well as a $4.7 million increase in compensation costs due to a 64% increase in the number of employees directly associated with fulfilling pharmacy orders.
Current wording
Three Months Ended March 31, 2025 and 2024–Cost of goods sold-pharmacy revenue increased $56.1 million, or 53%, for the three months ended March 31, 2025, primarily due to a $51.0 million increase in medication costs as the number of SelectRx members increased 41% over the prior year as well as a $3.0 million increase in compensation costs due to a 43% increase in the number of employees directly associated with fulfilling pharmacy orders.
Previous wording
Six Months Ended December 31, 2024 and 2023–Cost of goods sold-pharmacy revenue increased $107.5 million, or 60%, for the six months ended December 31, 2024, primarily due to an $92.0 million increase in medication costs as the number of SelectRx members increased 54% over the prior year as well as a $10.0 million increase in compensation costs due to a 74% increase in the number of employees directly associated with fulfilling pharmacy orders.
Current wording
Nine Months Ended March 31, 2025 and 2024–Cost of goods sold-pharmacy revenue increased $163.7 million, or 58%, for the nine months ended March 31, 2025, primarily due to an $143.0 million increase in medication costs as the number of SelectRx members increased 41% over the prior year as well as a $13.0 million increase in compensation costs due to a 62% increase in the number of employees directly associated with fulfilling pharmacy orders.
Previous wording
Three Months Ended December 31, 2024 and 2023–Marketing and advertising expenses decreased $19.4 million, or 17%, for the three months ended December 31, 2024, primarily due to a $16.3 million decrease in lead costs and a $2.2 million decrease in compensation costs. The decrease in lead costs was attributable to an increase in close rates of approximately 25% for Senior during the 2024 AEP period.
Current wording
Three Months Ended March 31, 2025 and 2024–Marketing and advertising expenses decreased $16.5 million, or 15%, for the three months ended March 31, 2025, primarily due to a $12.9 million decrease in lead costs and a $2.4 million decrease in compensation costs. The decrease in lead costs was attributable to an increase in close rates of approximately 15% for Senior during the period.
Previous wording
Six Months Ended December 31, 2024 and 2023–Marketing and advertising expenses decreased $17.9 million, or 10%, for the six months ended December 31, 2024, due to a $15.2 million decrease in lead costs and a $1.9 million decrease in compensation costs. The decrease in lead costs was attributable to an increase in close rates of approximately 25% for Senior during the 2024 AEP period.
Current wording
Nine Months Ended March 31, 2025 and 2024–Marketing and advertising expenses decreased $34.5 million, or 12%, for the nine months ended March 31, 2025, due to a $27.8 million decrease in lead costs and a $4.2 million decrease in compensation costs. The decrease in lead costs was attributable to an increase in close rates of approximately 13% for Senior during the period.
Previous wording
Three Months Ended December 31, 2024 and 2023–Selling, general, and administrative expenses increased $11.6 million, or 35%, for the three months ended December 31, 2024, primarily due to a $4.9 million increase in compensation costs, a $2.0 million increase in bad debt expense related to SelectRx, and a $4.5 million increase in corporate development. The increase in compensation costs was primarily related the growth of SelectRx. The increase in corporate development is related to the securitization transaction.
Current wording
Three Months Ended March 31, 2025 and 2024–Selling, general, and administrative expenses increased $6.7 million, or 19%, for the three months ended March 31, 2025, primarily due to a $4.2 million increase in compensation costs, and a $2.9 million increase in corporate development costs. The increase in compensation costs was primarily related the growth of SelectRx. The increase in corporate development costs is related to the Senior Non-Convertible Preferred Stock transaction.
Previous wording
Six Months Ended December 31, 2024 and 2023–Selling, general, and administrative expenses increased $19.1 million, or 31%, for the six months ended December 31, 2024, primarily due to $10.1 million increase in compensation costs, a $4.2 million increase in bad debt expense related to SelectRx and a $3.1 million increase in corporate development. The increase in compensation costs was primarily related the growth of SelectRx. The increase in corporate development is related to the securitization transaction.
Current wording
Nine Months Ended March 31, 2025 and 2024–Selling, general, and administrative expenses increased $25.8 million, or 27%, for the nine months ended March 31, 2025, primarily due to $14.3 million increase in compensation costs, a $4.2 million increase in bad debt expense related to SelectRx, and a $6.0 million increase in corporate development costs. The increase in compensation costs was primarily related the growth of SelectRx. The increase in corporate development costs is related to the securitization and Senior Non-Convertible Preferred Stock transactions.
Previous wording
Six Months Ended December 31, 2024 and 2023–Technical development expenses increased $3.4 million, or 22%, for the six months ended December 31, 2024, primarily due to a $3.2 million increase in compensation costs due to an increase in headcount for technology personnel.
Current wording
Three Months Ended March 31, 2025 and 2024–Technical development expenses increased $1.4 million, or 16%, for the three months ended March 31, 2025, primarily due to a $1.5 million increase in compensation costs due to an increase in headcount for technology personnel.
Previous wording
Three Months Ended December 31, 2024 and 2023–Technical development expenses increased $2.0 million, or 25%, for the three months ended December 31, 2024, primarily due to a $1.6 million increase in compensation costs due to an increase in headcount for technology personnel and a $0.2 million increase in costs related to trainings and seminars.
Current wording
Nine Months Ended March 31, 2025 and 2024–Technical development expenses increased $4.8 million, or 20%, for the nine months ended March 31, 2025, primarily due to a $4.7 million increase in compensation costs due to an increase in headcount for technology personnel.
Previous wording
Three Months Ended December 31, 2024 and 2023–Interest expense decreased $0.7 million, or 3%, for the three months ended December 31, 2024, as a result of the Company’s lower cost of capital after completing the securitization transaction.
Current wording
Three Months Ended March 31, 2025 and 2024–Interest expense decreased $3.9 million, or 16%, for the three months ended March 31, 2025, as a result of the Company’s lower cost of capital after completing the securitization transaction and utilizing the proceeds from the Senior Non-Convertible Preferred Stock transaction to repay $260.0 million of the Company’s outstanding Term Loan balance
Previous wording
Three Months Ended December 31, 2024 and 2023–For the three months ended December 31, 2024 and 2023, we recognized income tax benefit and expense of $13.7 million and $11.5 million, respectively, representing effective tax rates of (34.6)% and 37.2%, respectively. The differences from the federal statutory tax rate to the effective tax rates for the three months ended December 31, 2024, were primarily related to state income taxes, the recording of a valuation allowance for federal and state tax attributes that the Company does not expect to utilize prior to expiration, vesting of restricted stock units, and non-deductibility of warrant market adjustments. The differences from the federal statutory tax rate to the effective tax rates for the three months ended December 31, 2023, were primarily related to state income taxes and the recording of a valuation allowance for federal tax attributes that the Company does not expect to utilize prior to expiration.
Current wording
Three Months Ended March 31, 2025 and 2024–For the three months ended March 31, 2025 and 2024, the Company recognized income tax expenses of $8.6 million and $0.2 million, respectively, representing effective tax rates of 24.8% and 1.9%, respectively. The differences from the federal statutory tax rate to the effective tax rates for the three months ended March 31, 2025, were primarily related to state income taxes and the recording of a valuation allowance for federal and state tax attributes that the Company does not expect to utilize prior to expiration, non-deductible change in fair value of warrants and excess officer compensation. The differences from the federal statutory tax rate to the effective tax rates for the three months ended March 31, 2024, were primarily related to state income taxes and the recording of a valuation allowance for federal tax attributes that the Company does not expect to utilize prior to expiration.
Previous wording
Six Months Ended December 31, 2024 and 2023–For the six months ended December 31, 2024 and 2023, the Company recognized income tax benefits of $4.2 millionand $1.3 million, respectively, representing effective tax rates of (91.6)% and 10.1%, respectively. The differences from the federal statutory tax rate to the effective tax rate for the six months ended December 31, 2024, were primarily related to state income taxes, the recording of a valuation allowance for federal and state tax attributes that the Company does not expect to utilize prior to expiration, vesting of restricted stock units, and non-deductibility of warrant market adjustments. The differences from the federal statutory tax rate to the effective tax rate for the six months ended December 31, 2023, were primarily related to state income taxes and the recording of a valuation allowance for federal tax attributes that the Company does not expect to utilize prior to expiration.
Current wording
Nine Months Ended March 31, 2025 and 2024–For the nine months ended March 31, 2025 and 2024, the Company recognized an income tax expense and benefit of $4.4 million and $1.1 million, respectively, representing effective tax rates of 11.3% and 26.9%, respectively. The differences from the federal statutory tax rate to the effective tax rate for thenine months ended March 31, 2025, were primarily related to state income taxes and the recording of a valuation allowance for federal and state tax attributes that the Company does not expect to utilize prior to expiration, non-deductible warrant mark-to-market adjustment and excess officer compensation. Thedifferences from the federal statutory tax rate to the effective tax rate for the Nine Months Ended March 31, 2024, were primarily related to state income taxes and the recording of a valuation allowance for federal tax attributes that the Company does not expect to utilize prior to expiration.
Previous wording
The Company’s operating segments have been determined in accordance with ASC 280. We currently have three reportable segments: i) Senior, ii) Healthcare Services, and iii) Life. Senior primarily sells senior Medicare-related health insurance products. Healthcare Services includes SelectRx, Population Health, and most recently, SelectPatient Management. Healthcare Services provides products and services to our Medicare policyholders, which are focused on improving patient health outcomes. Life primarily sells term life and final expense products. The All Other category is reflective of the revenue generated from selling individual automobile and homeowners’ insurance. Additionally, the Company accounts for non-operating activity, share-based compensation expense, depreciation and amortization, goodwill, long-lived asset and intangible asset impairments, certain intersegment eliminations, and the costs of providing corporate and other administrative services in our administrative division, Corporate & Eliminations. These services are not directly identifiable with our reportable segments and are shown in the tables below to reconcile the reportable segments to the consolidated financial statements. We have not aggregated any operating segments together to represent a reportable segment.
Current wording
SelectPatient Management. Healthcare Services provides products and services to our Medicare policyholders, which are focused on improving patient health outcomes. Life primarily sells term life and final expense products. The All Other category is reflective of the revenue generated from selling individual automobile and homeowners’ insurance. Additionally, the Company accounts for non-operating activity, share-based compensation expense, depreciation and amortization, goodwill, long-lived asset and intangible asset impairments, certain intersegment eliminations, and the costs of providing corporate and other administrative services in our administrative division, Corporate & Eliminations. These services are not directly identifiable with our reportable segments and are shown in the tables below to reconcile the reportable segments to the consolidated financial statements. We have not aggregated any operating segments together to represent a reportable segment.
Previous wording
(1) These expenses primarily consist of non-restructuring severance expenses ($0.5 million) and financing transaction costs ($7.0 million).
Current wording
(1) These expenses primarily consist of non-restructuring severance expenses ($0.6 million) and financing transaction costs ($12.8 million).
Previous wording
Three Months Ended December 31, 2024 and 2023–Revenue from our Senior segment was $255.6 million for the three months ended December 31, 2024, a $8.0 million, or 3%, increase compared to revenue of $247.5 million for the three months ended December 31, 2023. The increase was due to an $7.9 million, or 4%, increase in commissions revenue.
Current wording
Three Months Ended March 31, 2025 and 2024–Revenue from our Senior segment was $169.4 million for the three months ended March 31, 2025, a $34.8 million, or 17%, decrease compared to revenue of $204.3 million for the three months ended March 31, 2024. The decrease was due to an $38.7 million, or 21%, decrease in commissions revenue from fewer approved policies.
Previous wording
Revenue from Healthcare Services was $183.4 million for the three months ended December 31, 2024, a $71.7 million, or 64%, increase compared to revenue of $111.7 million for the three months ended December 31, 2023, primarily due to a $71.2 million increase in SelectRx pharmacy revenue.
Current wording
Revenue from Healthcare Services was $189.6 million for the three months ended March 31, 2025, a $65.4 million, or 53%, increase compared to revenue of $124.2 million for the three months ended March 31, 2024, primarily due to a $65.0 million increase in SelectRx pharmacy revenue.
Previous wording
Revenue from our Life segment was $39.9 million for the three months ended December 31, 2024, a $2.5 million, or 7%, increase compared to revenue of $37.4 million for the three months ended December 31, 2023, primarily due to an $2.4 million increase in commissions revenue.
Current wording
Revenue from our Life segment was $45.8 million for the three months ended March 31, 2025, a $5.2 million, or 13%, increase compared to revenue of $40.7 million for the three months ended March 31, 2024, primarily due to an $5.0 million increase in commissions revenue.
Previous wording
Six Months Ended December 31, 2024 and 2023–Revenue from Senior was $348.5 million for the six months ended December 31, 2024, a $11.0 million, or 3%, increase compared to revenue of $337.4 million for the six months ended December 31, 2023. The increase was due to a $8.8 million, or 3%, increase in commission revenue combined with a $2.3 million increase in other revenue.
Current wording
Nine Months Ended March 31, 2025 and 2024–Revenue from Senior was $517.9 million for the nine months ended March 31, 2025, a $23.8 million, or 4%, decrease compared to revenue of $541.7 million for the nine months ended March 31, 2024. The decrease was due to a $6.2 million increase in other revenue, offset by a $30.0 million, or 6%, decrease in commission revenue due to a decrease in approved policies.
Previous wording
Revenue from Healthcare Services was $339.1 million for the six months ended December 31, 2024, a $130.0 million, or 62%, increase compared to revenue of $209.1 million for the six months ended December 31, 2023, primarily due to a $129.3 million increase in SelectRx pharmacy revenue.
Current wording
Revenue from Healthcare Services was $528.7 million for the nine months ended March 31, 2025, a $195.4 million, or 59%, increase compared to revenue of $333.3 million for the nine months ended March 31, 2024, primarily due to a $194.3 million increase in SelectRx pharmacy revenue.
Previous wording
Revenue from Life was $79.2 million for the six months ended December 31, 2024, a $4.0 million, or 5%, increase compared to revenue of $75.2 million for the six months ended December 31, 2023, in line with our updated operating strategy to stabilize our distribution business.
Current wording
Revenue from Life was $125.0 million for the nine months ended March 31, 2025, a $9.1 million, or 8%, increase compared to revenue of $115.9 million for the nine months ended March 31, 2024, in line with our updated operating strategy to stabilize our distribution business.
Previous wording
Three Months Ended December 31, 2024 and 2023–Adjusted EBITDA from our Senior segment was $100.5 million for the three months ended December 31, 2024, a $21.8 million, or 28%, increase compared to Adjusted EBITDA of $78.7 million for the three months ended December 31, 2023. The increase was due to a $8.0 million increase in revenue and a $13.8 million decrease in operating costs and expenses, primarily due to a $14.4 million decrease in lead costs partially offset by a $3.6 million increase in compensation costs in Senior.
Current wording
Three Months Ended March 31, 2025 and 2024–Adjusted EBITDA from our Senior segment was $45.7 million for the three months ended March 31, 2025, a $15.8 million, or 26%, decrease compared to Adjusted EBITDA of $61.5 million for the three months ended March 31, 2024. The decrease was due to a $34.8 million decrease in revenue, offset by a $19.0 million decrease in operating costs and expenses, primarily due to a $12.0 million decrease in lead costs and a $4.8 million decrease in compensation costs in Senior.
Previous wording
Adjusted EBITDA from Healthcare Services was $2.2 million for the three months ended December 31, 2024, a $0.8 million decrease compared to Adjusted EBITDA of $3.0 million for the three months ended December 31, 2023. The decrease was due to a $71.7 million increase in revenue, offset by a $72.4 million increase in operating costs and expenses primarily as a result of a $53.8 million increase in medication costs and a $12.7 million increase in compensation costs to support and invest in the growth of SelectRx.
Current wording
Adjusted EBITDA from Healthcare Services was $6.4 million for the three months ended March 31, 2025, a $4.8 million increase compared to Adjusted EBITDA of $1.6 million for the three months ended March 31, 2024. The increase was due to a $65.4 million increase in revenue, partially offset by a $60.5 million increase in operating costs and expenses, primarily as a result of a $51.0 million increase in medication costs and a $7.7 million increase in compensation costs to support and invest in the growth of SelectRx.
Previous wording
Adjusted EBITDA from our Life segment was $7.4 million for the three months ended December 31, 2024, a $2.9 million, or 62%, increase compared to Adjusted EBITDA of $4.6 million for the three months ended December 31, 2023. The increase in Adjusted EBITDA was due to a $2.5 million increase in revenue and a $0.3 million decrease in operating costs. The decrease in operating costs was primarily due to a $0.8 million decrease in marketing and advertising, partially offset by a $0.7 million increase in compensation costs.
Current wording
Adjusted EBITDA from our Life segment was $6.4 million for the three months ended March 31, 2025, a $3.2 million, or 103%, increase compared to Adjusted EBITDA of $3.1 million for the three months ended March 31, 2024. The increase in Adjusted EBITDA was due to a $5.2 million increase in revenue, partially offset by a $1.9 million increase in operating costs. The increase in operating costs was primarily due to a $1.8 million increase in compensation costs.
Previous wording
Six Months Ended December 31, 2024 and 2023–Adjusted EBITDA from Senior was $108.2 million for the six months ended December 31, 2024, a $30.9 million increase compared to Adjusted EBITDA of $77.4 million for the six months ended December 31, 2023. The increase was due to a $11.0 million increase in revenue and a $19.8 million decrease in operating costs and expenses primarily due to a $14.4 million reduction in sales and marketing costs, and a $4.5 million reduction in compensation costs.
Current wording
Nine Months Ended March 31, 2025 and 2024–Adjusted EBITDA from Senior was $153.9 million for the nine months ended March 31, 2025, a $15.1 million increase compared to Adjusted EBITDA of $138.9 million for the nine months ended March 31, 2024. The increase was primarily due to a $38.9 million decrease in operating costs and expenses related to a $25.1 million reduction in sales and marketing costs, and a $9.3 million reduction in compensation costs partially offset by a $23.8 million decrease in revenue.
Previous wording
Adjusted EBITDA from Healthcare Services was $7.1 million for the six months ended December 31, 2024, a $1.8 million increase compared to Adjusted EBITDA of $5.3 million for the six months ended December 31, 2023. The increase was due to a $128.2 million increase in operating costs and expenses primarily as a result of the $92.0 million increase in medication costs and a $24.6 million increase in compensation costs to support and invest in the growth of SelectRx. The increase in operating costs and expenses was offset by the $130.0 million increase in revenue as discussed above.
Current wording
Adjusted EBITDA from Healthcare Services was $13.5 million for the nine months ended March 31, 2025, a $6.6 million increase compared to Adjusted EBITDA of $6.9 million for the nine months ended March 31, 2024. The increase was due to a $195.4 million increase in revenue as discussed above, partially offset by a $188.8 million increase in operating costs and expenses primarily as a result of the $143.0 million increase in medication costs and a $32.3 million increase in compensation costs to support and invest in the growth of SelectRx.
Previous wording
Adjusted EBITDA from Life was $13.4 million for the six months ended December 31, 2024, a $3.6 million increase compared to Adjusted EBITDA of $9.8 million for the six months ended December 31, 2023. The increase was due to a $0.4 million increase in operating costs and expenses primarily due to a $1.6 million increase in compensation costs, offset by a $1.0 million decrease in advertising and marketing costs. The decrease in operating costs and expenses was offset by the $4.0 million increase in revenue as discussed above.
Current wording
Adjusted EBITDA from Life was $19.7 million for the nine months ended March 31, 2025, a $6.8 million increase compared to Adjusted EBITDA of $12.9 million for the nine months ended March 31, 2024. The increase was due to a $9.1 million increase in revenue as discussed above and a $0.9 million decrease in advertising and marketing costs, partially offset by a $3.4 million increase in compensation costs.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The Company’s operating segments have been determined in accordance with ASC 280. We currently have three reportable segments: i) Senior, ii) Healthcare Services, and iii) Life. Senior primarily sells senior Medicare-related health insurance products. Healthcare Services includes SelectRx, Population Health, and most recently,
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
(1) These expenses primarily consist of financing transaction costs ($6.7 million).