SelectQuote, Inc.
For the period ended Sep 30, 2025. Filed Nov 6, 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.
Sep 30, 2025 · Filed Nov 6, 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 2025-03-31; filed 2025-05-12.
0001794783-25-000046
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001794783-25-000096
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 148 previous paragraphs and 143 current paragraphs.
76 unchanged; 40 reworded; 25 added; 29 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 25 previous and 22 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 (25)
Current report
In recent years, we have increasingly focused on expanding our healthcare services platform as a natural extension of our core Senior distribution insurance business. This strategic shift reflects our prioritization of higher-growth opportunities in areas such as pharmacy services and chronic care management through offerings like SelectRx and SelectPatient Management (“SPM”). At the same time, we have de-emphasized production within our Auto & Home distribution insurance business, which no longer represents a core area of focus. Our strategy is focused on delivering more comprehensive and personalized healthcare solutions that meet the evolving needs of our senior customers.
Current report
Total submitted policies for all products decreased 26% for thethree months ended September 30, 2025, compared to thethree months ended September 30, 2024. The decrease was primarily driven by changes in regulations that limited special enrollment period eligibility and election opportunities for Medicare Advantage members outside of the standard AEP. These regulatory changes reduced the number of consumers eligible to switch or enroll in new plans during the three months ended September 30, 2025.
Current report
Three Months Ended September 30, 2025 and 2024–Cost of goods sold-pharmacy revenue increased $63.3 million, or 49%, for the three months ended September 30, 2025, primarily due to a $59.5 million increase in medication costs, a $1.4 million increase in fulfillment costs, and a $1.8 million increase in compensation costs. Medication and fulfillment costs increased largely due to a 24% increase in the number of SelectRx members over the prior year. The increase in compensation costs reflects higher staffing levels required to support growth in pharmacy order volume and member fulfillment activity.
Current report
Three Months Ended September 30, 2025 and 2024–Selling, general, and administrative expenses decreased $0.3 million, or 1%, for the three months ended September 30, 2025, primarily due to $0.4 decrease in professional services fees. The decrease in professional services fees is a result of additional expenses incurred in the prior period related to the securitization transaction.
Current report
Non-GAAP Financial Measures
Current report
This report includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we have presented in this report Adjusted EBITDA, which, when presented on a consolidated basis, is a non-GAAP financial measure. This non-GAAP financial measure is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to any similarly titled measure presented by other companies.
Current report
We define Adjusted EBITDA as net income (loss) plus interest expense, income taxes, depreciation and amortization, changes in fair value of warrant liabilities, transaction costs, and certain add-backs for non-cash or non-recurring expenses, including restructuring and share-based compensation expenses. The most directly comparable GAAP measure is net income (loss). We monitor and have presented Adjusted EBITDA herein because it is a key measure used by our management and Board of Directors to understand and evaluate our operating performance, establish budgets, and develop operational goals for managing our business. In particular, we believe that excluding the impact of these expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance.
Current report
The following table sets forth a reconciliation of the differences between net income (loss) and Adjusted EBITDA for the periods presented.
Current report
(1) For the three months ended September 30, 2025, these expenses primarily consist of financing transaction costs ($0.1 million) and non-restructuring severance expenses (less than $0.1 million). For the three months ended September 30, 2024, these expenses primarily consist of non-restructuring severance expenses ($0.5 million) and financing transaction costs ($0.3 million).
Current report
(3) For Senior and Life, these costs are primarily comprised of allocations from corporate related to payroll and related benefits for administrative support functions and facilities. Within Healthcare Services, it primarily consists of payroll and related benefit costs for licensed pharmacists and pharmacy technicians performing one-time customer onboarding work for enrollments that don’t actually become members.
Current report
(5) Corporate is not an operating segment and consists primarily of unallocated corporate overhead costs, such as payroll and related benefits ($17.8 million), professional services ($4.1 million), and facilities ($1.4 million).
Current report
(6) These expenses primarily consist of financing transaction costs ($0.1 million) and non-restructuring severance expenses (less than $0.1 million).
Current report
(3) For Senior and Life, these costs are primarily comprised of allocations from corporate related to payroll and related benefits for administrative support functions and facilities. Within Healthcare Services, it primarily consists of payroll and related benefit costs for licensed pharmacists and pharmacy technicians performing one-time customer onboarding work for enrollments that don’t actually become members.
Current report
(5) Corporate is not an operating segment and consists primarily of unallocated corporate overhead costs, such as payroll and related benefits ($15.5 million), professional services ($4.9 million), and facilities ($1.4 million).
Current report
Three Months Ended September 30, 2025 and 2024–Revenue from Senior was $59.0 million for the three months ended September 30, 2025, a $33.9 million, or 37%, decrease compared to revenue of $92.9 million for the three months ended September 30, 2024. The decrease was due to a $26.3 million decrease in commissions revenue due to a 27% decrease in approved policies, and a $7.6 million decrease in other revenue.
Current report
Revenue from Life was $46.6 million for the three months ended September 30, 2025, a $7.4 million, or 19%, increase compared to revenue of $39.3 million for the three months ended September 30, 2024, due to a $3.6 million increase in final expense revenue, and a $2.9 million increase in term revenue due to an increase in the number of policies sold.
Current report
Three Months Ended September 30, 2025 and 2024–Adjusted EBITDA from Senior was $(21.0) million for the three months ended September 30, 2025, a $28.8 million decrease compared to Adjusted EBITDA of $7.7 million for the three months ended September 30, 2024. The decrease was primarily due to a $33.9 million decrease in revenue as discussed above, offset by a $5.7 million decrease in marketing expenses. The decrease in marketing expenses was primarily due to a $5.3 million decrease in lead costs.
Current report
Adjusted EBITDA from Healthcare Services was $7.2 million for the three months ended September 30, 2025, a $2.3 million increase compared to Adjusted EBITDA of $4.9 million for the three months ended September 30, 2024. The increase was due to a $65.6 million increase in revenue as discussed above, partially offset by a $63.0 million increase in cost of goods sold - pharmacy revenue. Cost of goods sold - pharmacy revenue increased primarily as a result of a $59.5 million increase in medication costs and a $2.4 million increase in compensation costs related to the increased volume.
Current report
Adjusted EBITDA from Life was $5.6 million for the three months ended September 30, 2025, a $0.4 million decrease compared to Adjusted EBITDA of $6.0 million for the three months ended September 30, 2024. The decrease was due to a $4.3 million increase in marketing expenses and a $3.4 million increase in cost of commissions and other services revenue, partially offset by a $7.4 million increase in revenue as discussed above. The increase in marketing expenses was due to a $4.0 million increase in lead costs. The increase in cost of commissions and other services revenue was due to an increase in compensation costs.
Current report
Securitization and Indenture
Current report
During the three months ended September 30, 2025, the Company had outstanding borrowings of $78.9 million and repaid $4.5 million of the notes issued in connection with the Indenture. Refer to Note 6 to the condensed consolidated financial statements for further information.
Current report
Three Months Ended September 30, 2024—Net cash used in operating activities was $16.6 million, consisting of net loss of $44.5 million, adjustments for non-cash items of $26.3 million, and a net cash inflow from changes in operating assets and liabilities of $1.6 million. Adjustments for non-cash items primarily consisted of
Current report
Critical Accounting Estimates
Current report
The Company’s critical accounting estimates are described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our Annual Report on Form 10-K for the fiscal year ended June 30, 2025. These estimates include assumptions used in revenue recognition related to lifetime value (“LTV”) of commission receivables, the fair value of warrant liabilities, and goodwill impairment testing.
Current report
There were no material changes to these critical accounting estimates during the three months ended September 30, 2025.
Removed paragraphs (29)
Previous report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 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.
Previous report
Nine Months Ended March 31, 2025:
Previous report
Nine Months Ended March 31, 2024
Previous report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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.
Previous report
Senior Non-Convertible Preferred Stock
Previous 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.
Previous 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.
Reworded paragraphs (40)
Previous wording
You should read the following discussion and analysis of our financial condition and result of operations together with our condensed consolidated financial statements and footnotes included elsewhere in this Quarterly Report on Form 10-Q. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. The forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry, business and future financial results. Please refer to a discussion of the Company’s forward-looking statements and associated risks in “Cautionary Note Regarding Forward-Looking Statements” in our Annual Report. Our actual results may differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section titled “Risk Factors” in our Annual Report and in Part II, Item 1A hereof.
Current wording
You should read the following discussion and analysis of our financial condition and result of operations together with our condensed consolidated financial statements and footnotes included elsewhere in this Quarterly Report on Form 10-Q. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. The forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions, and projections about our industry, business and future financial results. Please refer to a discussion of the Company’s forward-looking statements and associated risks in “Cautionary Note Regarding Forward-Looking Statements” in our 2025 Annual Report. Our actual results may differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section titled “Risk Factors” in our 2025 Annual Report and in Part II, Item 1A hereof.
Previous wording
SelectQuote, Inc. (together with its subsidiaries, “SelectQuote”, the “Company”, “we”, “us”) is a leading technology-enabled, direct-to-consumer (“DTC”) distribution and engagement platform for selling insurance policies and healthcare services. Our insurance distribution business, which has operated continuously for nearly 40 years, allows consumers to transparently and conveniently shop for senior health, life, and automobile and home insurance policies from a curated panel of the nation’s leading insurance carriers. As an insurance distributor, we do not insure the consumer, but rather identify consumers looking to acquire insurance products and place these consumers with insurance carrier partners that provide these products. In return, we earn commissions from our insurance carrier partners for the policies we sell on their behalf. Our proprietary technology allows us to take a broad funnel approach to marketing by analyzing and identifying high-quality consumer leads sourced from a wide variety of online and offline marketing channels including digital marketing, radio, television, and third-party marketing partners. We monitor our acquisition costs to dynamically allocate our marketing spend to the most attractive channels, benefiting from nearly 40 years of data accumulated through our proprietary, purpose-built technologies. Our advanced workflow processing system scores each acquired lead in real time, matching it with a sales agent whom we determine is best suited to meet the consumer’s need. Our platform then captures and utilizes our experience to further build upon the millions of data points that feed our marketing algorithms, further enhancing our ability to deploy subsequent marketing dollars efficiently and target more high-quality consumer leads. We have built our business model to maximize commissions collected over the life of an approved policy, a metric we refer to as “ lifetime value of commissions” or “LTV”, which is a key component to our overall profitability.
Current wording
Our insurance distribution business, which has operated continuously for over 40 years, allows consumers to transparently and conveniently shop for senior health, life, and automobile and home insurance policies from a curated panel of the nation’s leading insurance carriers. As an insurance distributor, we do not insure the consumer, but rather identify consumers looking to acquire insurance products and place these consumers with insurance carrier partners that provide these products. In return, we earn commissions from our insurance carrier partners for the policies we sell on their behalf. Our proprietary technology platform integrates artificial intelligence and data science based machine learning models to analyze and identify high-quality consumer leads from diverse online and offline channels, such as digital marketing, radio, television, and third-party partnerships. Leveraging over 40 years of accumulated data and advanced predictive analytics, our technology dynamically optimizes marketing spend in real-time. Our intelligent workflow system instantly evaluates each acquired lead, routing it efficiently to the most suitable sales agent based on consumer needs and agent expertise. Our platform then captures and utilizes our experience to further build upon the millions of data points that feed our marketing algorithms, further enhancing our ability to deploy subsequent marketing dollars efficiently and target more high-quality consumer leads. We have built our business model to maximize commissions collected over the life of an approved policy, a metric we refer to as “ lifetime value of commissions” or “LTV”, which is a key component to our overall profitability.
Previous wording
Our proprietary routing and workflow system is a key competitive advantage and driver of our business performance. Our systems analyze and intelligently route consumer leads to agents and allow us to monitor, segment, and enhance our agents’ performance. This technological advantage also allows us to rapidly conduct a needs-based, tailored analysis for each consumer that maximizes sales, enhances customer retention, and ultimately maximizes LTV’s. Our expertise and value add stems from the coupling of our technology with our skilled agents, which provides greater transparency in pricing terms and choice and an overall better consumer experience. When customers are satisfied, their propensity to switch policies decreases, thereby improving retention rates (“persistency”), increasing LTV’s and, ultimately, optimizing our financial performance and shareholder value.
Current wording
Our proprietary routing and workflow system is a key competitive advantage and driver of our business performance. Our systems analyze and intelligently route consumer leads to agents and allow us to monitor, segment, and enhance our agents’ performance. This technological advantage also allows us to rapidly conduct a needs-based, tailored analysis for each consumer that maximizes sales, enhances customer retention, and ultimately maximizes LTVs. Our expertise and value add stems from the coupling of our technology with our skilled agents, which provides greater transparency in pricingand choice and an overall better consumer experience. When customers are satisfied, their propensity to switch policies decreases, thereby improving retention rates (“persistency”), increasing LTVs and, ultimately, optimizing our financial performance and shareholder value.
Previous wording
SelectQuote has a long history of successful DTC product distribution and consumer engagement, and we bring this same capability to healthcare services. We saw a large opportunity to leverage our existing customer base and distribution model to improve education and access to healthcare services for our senior consumers and to create value for our shareholders and insurance carrier partners. SelectQuote’s value lies in our ability to engage the consumer, capture critical self-reported information in real-time, and then take action on that information to offer each consumer personalized solutions. Our healthcare services business seeks to provide consumers with a wide breadth of products supporting their needs, such as SelectRx, our Patient-Centered Pharmacy Home TM (“PCPH”) accredited pharmacy, which has already demonstrated SelectQuote’s ability to leverage our strong consumer engagement to drive immediate value using our existing operational infrastructure. Whether through acquisitions or new partnerships, we continue to look for more opportunities to leverage our strengths to expand our healthcare services business.
Current wording
SelectQuote has a long history of successful DTC product distribution and consumer engagement, and we bring this same capability to healthcare services. We saw a large opportunity to leverage our existing customer base and distribution model to improve education and access to healthcare services for our senior consumers and to create value for our shareholders and insurance carrier partners. SelectQuote’s value lies in our ability to engage the consumer, capture critical self-reported information in real-time, and then take action on that information to offer each consumer personalized solutions. Our healthcare services business seeks to provide consumers with a wide breadth of products supporting their needs, such as SelectRx, our Patient-Centered Pharmacy Home TM accredited pharmacy, which has already demonstrated SelectQuote’s ability to leverage our strong consumer engagement to drive immediate value using our existing operational infrastructure. Whether through acquisitions or new partnerships, we continue to look for more opportunities to leverage our strengths to expand our healthcare services business.
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 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.
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 82%, and 88%, of our approved Senior policies for the three months ended September 30, 2025, and 2024, respectively, with other ancillary type policies accounting for the remainder.
Previous wording
Healthcare Services, launched in 2021, offers various health-related products and services through SelectRx, Population Health, and most recently, SelectPatient Management. SelectRx offers essential prescription medications, OTC medications, customized medication packaging, and medication therapy management, providing long-term pharmacy care that enables patients to optimize medication adherence to drive positive health outcomes, while enabling patients managing polypharmacy and multiple chronic conditions to remain at home. Through Population Health, we utilize our excellent consumer engagement capabilities to capture valuable self-reported information in real-time for our insurance carrier partners by completing Health Risk Assessments (“HRAs”). We then use that data to take a real-time, proactive, and personalized approach to offer various health-related products and services to the consumer, such as our pharmacy services from SelectRx. In 2024, we launched SelectPatient Management (“SPM”), via a $4.0 million acquisition of an existing chronic care management platform, which offers providers, payers, and Accountable Care Organizations scalable, technology-enhanced services for patients living with chronic conditions. Through consistent, trust-based patient engagement, SPM helps patients navigate the care continuum, focusing on non-clinical factors so physicians can focus on the more critical needs of their patients. We believe that offering these services enables healthcare to be more accessible, convenient, and personalized for our members.
Current wording
Healthcare Services, launched in 2021, offers various health-related products and services through SelectRx, Healthcare Select, and SPM. SelectRx offers essential prescription medications, over-the-counter (“OTC”) medications, customized medication packaging, and medication therapy management, providing long-term pharmacy care that enables patients to optimize medication adherence to drive positive health outcomes, while enabling patients managing polypharmacy and multiple chronic conditions to remain at home. Through Healthcare Select, we utilize our excellent consumer engagement capabilities to capture valuable self-reported information in real-time for our insurance carrier partners by completing health risk and lifestyle assessments. We then use that data to take a real-time, proactive, and personalized approach to offer various health-related products and services to the consumer, such as our pharmacy services from SelectRx. In 2024, we launched SPM, via a $4.0 million acquisition of an existing chronic care management platform, which offers providers, payers, and Accountable Care Organizations scalable, technology-enhanced services for patients living with chronic conditions. Through consistent, trust-based patient engagement, SPM helps patients navigate the care continuum, focusing on non-clinical factors so physicians can focus on the more critical needs of their patients. We believe that offering these services enables healthcare to be more accessible, convenient, and personalized for our members.
Previous 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.
Current wording
Life is one of the country’s largest and most established DTC insurance distributors for term life insurance, having sold over 2.6 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 15 years. Term life policies accounted for 40%, and 38% of new premium within the Life segment for the three months ended September 30, 2025 and, 2024, respectively, with final expense policies accounting for 60%, and 62% for the three months ended September 30, 2025, and 2024, respectively.
Previous 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.
Current wording
The three months ended September 30, referenced throughout the commentary below refers to the first quarter and fiscal year-to-date performance of our fiscal years ending on June 30, 2026 and 2025.
Previous 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.
Current wording
Total approved policies for all products decreased by 27% for thethree months ended September 30, 2025, compared to thethree months ended September 30, 2024, which correlates to the decrease in submitted policies.
Previous 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.
Current wording
The LTV per MA approved policy decreased 5% for thethree months ended September 30, 2025, compared to thethree months ended September 30, 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 41% asof March 31, 2025, compared to March 31, 2024, due to our strategy to grow SelectRx membership.
Current wording
The total number of SelectRx members increased by 24% asof September 30, 2025, compared to September 30, 2024, due to our strategy to grow SelectRx membership.
Previous 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.
Current wording
Total term premiums increased 28% for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, due to a 12% increase in the average premium per policy sold and a 13% increase in the number of policies sold. Final expense premiums increased 20% for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, due to a 1% increase in the average premium per policy sold and a 19% increase in the number of policies sold.
Previous wording
We earn revenue in the form of commission payments from our insurance carrier customers, for the initial year the insurance policy is in effect (“first year”) and, where applicable, for each subsequent year the policy renews (“renewal year”), in addition to production bonuses and marketing development funds received from some insurance carriers. Production bonuses are based on attaining various predetermined target sales levels or other agreed upon objectives, whereas marketing development funds may or may not contain such predetermined targets and are used to purchase leads. These, along with other services revenue from Healthcare Services (excluding SelectRx revenue discussed below) and our lead generation business, InsideResponse (of which the majority is eliminated as intersegment revenue), are presented in our consolidated statements of comprehensive income (loss) as commissions and other services revenue. Pharmacy revenue on the consolidated statements of comprehensive income (loss) includes revenue from the sale of prescription and OTC medication products from SelectRx.
Current wording
We earn revenue in the form of commission payments from our insurance carrier customers, for the initial year the insurance policy is in effect (“first year”) and, where applicable, for each subsequent year the policy renews (“renewal year”), in addition to production bonuses and marketing development funds received from some insurance carriers. Production bonuses are based on attaining various predetermined target sales levels or other agreed upon objectives, whereas marketing development funds may or may not contain such predetermined targets and are used to purchase leads. These, along with other services revenue from Healthcare Services (excluding SelectRx revenue discussed below) and our lead generation business (of which the majority is eliminated as intersegment revenue), are presented in our condensed consolidated statements of comprehensive loss as commissions and other services revenue. Pharmacy revenue on the condensed consolidated statements of comprehensive loss includes revenue from the sale of prescription and OTC medication products from SelectRx.
Previous wording
Revenue is recognized at different milestones for Senior and Life and is based on the contractual enforceable rights, our historical experience, and established customer business practices. Other services revenues from our Healthcare Services segment (excluding SelectRx revenue discussed below) is recognized when the performance obligation has been met, which is at different times for our various services (e.g. the HRA has been performed, a transfer has been made to a health-related partner, or SPM has provided care management services to a member), the transaction price is known based on volume and contractual prices, and we have no further performance obligations. Lead generation revenue is recognized when the generated lead is accepted by our customers, which is the point of sale, and we have no performance obligation after the delivery. Revenues generated from SelectRx are recognized upon shipment. At the time of shipment, we have performed all of our performance obligations and control of the product has been transferred to the customer. There are no future revenue streams or variable consideration associated as the transaction price is fixed at time of shipment, and any subsequent new order is its own performance obligation.
Current wording
Revenue is recognized at different milestones for Senior and Life and is based on the contractual enforceable rights, our historical experience, and established customer business practices. Other services revenues from our Healthcare Services segment (excluding SelectRx revenue discussed below) is recognized when the performance obligation has been met, which is at different times for our various services (e.g. the health risk and lifestyle assessments has been performed, a transfer has been made to a health-related partner, or SPM has provided care management services to a member), the transaction price is known based on volume and contractual prices, and we have no further performance obligations. Lead generation revenue is recognized when the generated lead is accepted by our customers, which is the point of sale, and we have no performance obligation after the delivery. Revenues generated from SelectRx are recognized upon shipment. At the time of shipment, we have performed all of our performance obligations and control of the product has been transferred to the customer. There are no future revenue streams, or material variable consideration with respect to the implicit price concession for co-pays, as the transaction price is fixed at time of shipment, and any subsequent new order is its own performance obligation.
Previous 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.
Current wording
Three Months Ended September 30, 2025 and 2024–Pharmacy revenue increased $65.7 million, or 43%, primarily due to the 24% increase in members due to the continued growth of the SelectRx business. Commission and other services revenue decreased $29.1 million, or 21%, for the three months ended September 30, 2025, primarily due to a $26.3 million, and $2.3 million decrease in Senior commissions revenue, and other services revenue, respectively. The decrease in Senior revenue, was driven by a 27% decrease in approved policies. This decrease was partially offset by a $7.4 million increase in Life revenue. The increase in Life revenue was primarily driven by a $3.6 million increase in final expense revenue due to a 19% increase in the number of policies sold.
Previous 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.
Current wording
Three Months Ended September 30, 2025 and 2024–Cost of commissions and other service revenue increased $3.4 million, or 5%, for the three months ended September 30, 2025, primarily due to a $3.5 million increase in compensation costs and a $0.5 million increase in licensing fees, offset by $0.4 million increase in depreciation and amortization. The $3.5 million increase in compensation costs is primarily comprised of a $2.9 million increase in costs for sales and customer care agents in Life and a $0.2 million increase in costs for our sales and customer care agents in Senior.
Previous 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.
Current wording
Three Months Ended September 30, 2025 and 2024–Marketing and advertising expenses decreased $1.8 million, or 3%, for the three months ended September 30, 2025, primarily due to a $1.5 million decrease in lead costs. The decrease in lead costs was attributable to a 26% decrease in the number of submitted policies for Senior during the period.
Previous 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.
Current wording
Three Months Ended September 30, 2025 and 2024–Technical development expenses increased $0.8 million, or 9%, for the three months ended September 30, 2025, primarily due to a $1.1 million increase in compensation costs due to an increase in headcount for technology personnel.
Previous 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
Current wording
Three Months Ended September 30, 2025 and 2024–Interest expense decreased $11.2 million, or 49%, for the three months ended September 30, 2025. The decrease was primarily driven by the Company’s lower cost of capital following the completion of the securitization transaction and the repayment of $260.0 million of the Term Loan balance using the proceeds from the Senior Non-Convertible Preferred Stock issuance.
Previous 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.
Current wording
Three Months Ended September 30, 2025 and 2024–For the three months ended September 30, 2025, and 2024, the Company recognized an income tax benefit of $7.2 million and income tax expense of $9.5 million, representing an effective tax rate of 19.1% and (27.2)%, respectively. The differences from the federal statutory tax rate to the effective tax rate for the three months ended September 30, 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 and stock-based compensation and general business credits. The differences from the federal statutory tax rate to the effective tax rates for the three months ended September 30, 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, and vesting of restricted stock units.
Previous wording
As of July 1, 2024, the Company has realigned its reportable segments for fiscal year 2025. The Auto & Home business does not meet the quantitative thresholds to be required to continue to be separately disclosed as a reportable segment in accordance with ASC 280. As a result, the Auto & Home business will be included in an “All Other” category. Prior period information has been recast to conform to the current presentation.
Current wording
As of July 1, 2024, the Company realigned its reportable segments. The Auto & Home business does not meet the quantitative thresholds to be required to continue to be separately disclosed as a reportable segment in accordance with ASC 280, Segment Reporting (“ASC 280”). As a result, the Auto & Home business will be included in an “All Other” category. Prior period information has been recast to conform to the current presentation.
Previous 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.
Current 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, Healthcare Select, and SPM. 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. We have not aggregated any operating segments together to represent a reportable segment.
Previous wording
Our operating segments are determined based on how our chief executive officer, who also serves as our CODM manages our business, regularly accesses information, and evaluates performance for operating decision-making purposes, including allocation of resources. Adjusted EBITDA is our segment profit measure and a key measure used by our CODM and Board of Directors to understand and evaluate the operating performance of our business and on which internal budgets and forecasts are based and approved. We define Adjusted EBITDA as income (loss) before income tax expense (benefit) plus: (i) interest expense, net; (ii) depreciation and amortization; (iii) share-based compensation; (iv) goodwill, long-lived asset, and intangible assets impairments; (v) transaction costs; (vi) loss on disposal of property, equipment and software, net; (vii) other non-recurring expenses and income; and (viii) changes in fair value of warrant liabilities.
Current wording
Our operating segments are determined based on how our chief executive officer, who also serves as our CODM, manages our business, regularly accesses information, and evaluates performance for operating decision-making purposes, including allocation of resources. Adjusted EBITDA is our segment profit measure and a key measure used by our CODM and Board of Directors to understand and evaluate the operating performance of our business and on which internal budgets and forecasts are based and approved.
Previous wording
Our segment disclosure includes intersegment revenues, which consist of affiliate marketing fees for services provided by our Senior segment to our Healthcare Services and Life segments as well as services provided by Life to other segments. These intersegment transactions are recorded by each segment at amounts that we believe approximate fair value as if the transactions were between third parties and, therefore, impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation. The elimination of such intersegment transactions is included within the “Eliminations of intersegment revenues” and “Corporate & elimination of intersegment profits’ captions in the tables below.
Current wording
Our segment disclosure includes intersegment revenues, which consist of affiliate marketing fees for services provided by our Senior segment to our Healthcare Services and Life segments as well as services provided by Life to other segments. These intersegment transactions are recorded by each segment at amounts that we believe approximate fair value as if the transactions were between third parties and, therefore, impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation. The elimination of such intersegment transactions is included within the “Eliminations of intersegment revenues” in the tables below. Apart from these intersegment transactions, the accounting policies of the reportable segments are the same as the Company’s described Note 1 of the Company’s 2025 Annual Report.
Previous wording
The following tables present information about the reportable segments for the periods presented. We do not report total assets by segment as our CODM does not use this information to evaluate operating segment performance. Accordingly, we do not regularly provide such information by segment to our CODM.
Current wording
We do not report total assets by segment as our CODM does not use this information to evaluate operating segment performance. Accordingly, we do not regularly provide such information by segment to our CODM.
Previous wording
(1) These expenses primarily consist of non-restructuring severance expenses ($0.6 million) and financing transaction costs ($12.8 million).
Current wording
(6) These expenses primarily consist of non-restructuring severance expenses ($0.5 million) and financing transaction costs ($0.3 million).
Previous 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.
Current wording
Revenue from Healthcare Services was $221.4 million for the three months ended September 30, 2025, a $65.6 million, or 42%, increase compared to revenue of $155.7 million for the three months ended September 30, 2024, primarily due to a $65.7 million increase in SelectRx pharmacy revenue due to a 24% increase in members from the growth of the SelectRx business.
Previous wording
Significant changes and activity related to our long-term debt since our Quarterly Report on Form 10-Q for the quarter ended December 31, 2024 are discussed below. Refer to Note 6 to the condensed consolidated financial statements for further discussion on our debt agreements and activity.
Current wording
Significant changes and activity related to our long-term debt during the three months ended September 30, 2025, are discussed below. Refer to Note 6 to the condensed consolidated financial statements for further discussion on our debt agreements and activity.
Previous wording
During the nine months ended March 31, 2025, the Company repaid $384.6 million of the outstanding term loans, and as of March 31, 2025, had outstanding borrowings of $316.9 million related to the term loans. Refer to Note 6 to the condensed consolidated financial statements for further information.
Current wording
During the three months ended September 30, 2025, the Company repaid $3.6 million of the outstanding term loans, and as of September 30, 2025, had outstanding borrowings of $310.4 million related to the term loans. Refer to Note 6 to the condensed consolidated financial statements for further information.
Previous wording
During the nine months ended March 31, 2025, the Company received proceeds of $166.9 million and repaid $166.9 million, and as of March 31, 2025, had no outstanding borrowings related to the revolving credit facility. Refer to Note 6 to the condensed consolidated financial statements for further information.
Current wording
During the three months ended September 30, 2025, the Company received proceeds of $80.0 million and repaid $65.0 million related to the revolving credit facility, and as of September 30, 2025, had $15.0 million in outstanding borrowings. Refer to Note 6 to the condensed consolidated financial statements for further information.
Previous wording
As of March 31, 2025 and June 30, 2024, the Company had total debt obligations of $391.5 million and $683.3 million, respectively, under the Senior Secured Credit Facility and the Notes. Management expects that our existing cash, cash equivalents, funds available under the revolving credit facility and cash provided from operations will be sufficient to finance normal working capital needs, investments in properties, facilities and equipment and debt services.
Current wording
As of September 30, 2025 and June 30, 2025, the Company had total debt obligations of $393.1 million and $385.1 million, respectively, under the Senior Secured Credit Facility and the Notes. Management expects that our existing cash, cash equivalents, funds available under the revolving credit facility and cash provided from operations will be sufficient to finance normal working capital needs, investments in properties, facilities and equipment and debt services.
Previous wording
As of March 31, 2025 and June 30, 2024, our cash, cash equivalents, and restricted cash totaled $86.2 million and $42.7 million, respectively. Additionally, the following table presents a summary of our cash flows for the periods presented below:
Current wording
As of September 30, 2025 and June 30, 2025, our cash, cash equivalents, and restricted cash totaled $15.7 million and $37.1 million, respectively. Additionally, the following table presents a summary of our cash flows for the periods presented below:
Previous wording
Nine Months Ended March 31, 2025—Net cash provided by operating activities was $25.8 million, consisting of net income of $34.7 million, adjustments for non-cash items of $32.7 million, and cash used in operating assets and liabilities of $41.6 million. Adjustments for non-cash items primarily consisted of $15.6 million of depreciation and amortization, $13.5 million of share-based compensation expense, $13.3 million of accrued interest payable in kind on the term loans, $3.9 million of amortization of debt issuance costs and debt discount, $2.8 million of non-cash lease expense, $4.4 million in deferred income taxes, $4.2 million in bad debt expense, and $25.3 million in the change in fair value of warrant liabilities. The cash decrease resulting from changes in net operating assets and liabilities primarily consisted of an increase of $39.0 million in accounts receivable, an increase of $33.8 million in commissions receivable, a decrease of $6.0 million in other liabilities, primarily related to an $7.1 million decrease in our contract liability, a decrease of $3.6 million in operating lease liabilities and an increase of $0.3 million in other assets, primarily related to hedge activities, offset by an increase of $41.2 million in accounts payable and accrued expenses
Current wording
Three Months Ended September 30, 2025—Net cash used in operating activities was $21.6 million, consisting of net loss of $30.5 million, adjustments for non-cash items of $13.4 million, and a net cash inflow from changes in operating assets and liabilities of $22.2 million. Adjustments for non-cash items primarily consisted of $4.3 million of depreciation and amortization, $4.3 million of share-based compensation expense, $1.2 million of amortization of debt issuance costs and debt discount, $1.0 million of non-cash lease expense, $9.2 million in deferred income taxes, and $15.0 million in the change in fair value of warrant liabilities. The cash increase resulting from changes in net operating assets and liabilities was primarily driven by a $46.9 million decrease in accounts receivable, a $11.4 million increase in accounts payable and accrued expenses, and a $2.4 million decrease in other assets. These inflows were partially offset by a $29.0 million increase in commissions receivable, a decrease of $8.4 million in other liabilities primarily related to a $9.0 million decrease in accrued compensation and benefits, and a $1.1 million decrease in operating lease liabilities.
Previous wording
Nine Months Ended March 31, 2024—Net cash used in operating activities was $4.8 million, consisting of a net loss of $3.1 million, adjustments for non-cash items of $48.4 million, and cash used in operating assets and liabilities of $50.0 million. Adjustments for non-cash items primarily consisted of $18.6 million of depreciation and amortization, $10.5 million of share-based compensation expense, $14.3 million of accrued interest payable in kind, $4.9 million of amortization of debt issuance costs and debt discount, $1.9 million of non-cash lease expense, and $4.6 million of bad debt expense, offset by $2.2 million in deferred income taxes. The cash decrease resulting from changes in net operating assets and liabilities primarily consisted of a $103.1 million increase in accounts receivable, net, offset by a $36.1 million increase in accounts payable and accrued expenses, an $11.5 million increase in other liabilities due to an increase in accrued compensation, and a $7.4 million decrease in commissions receivables.
Current wording
$5.6 million of depreciation and amortization, $3.8 million of share-based compensation expense, $5.3 million of accrued interest payable in kind on the Term Loans, $1.1 million of amortization of debt issuance costs and debt discount, $0.9 million of non-cash lease expense, and $9.5 million in deferred income taxes. The cash increase resulting from changes in net operating assets and liabilities primarily consisted of an increase of $50.5 million in accounts receivable, related to an increase in revenue, an increase of $12.8 million in accounts payable and accrued expenses, offset by a decrease of $38.5 million in commissions receivable, due to a 5% decrease in approved policies for the three months, a decrease of $18.5 million in other liabilities, primarily related to an $5.1 million decrease in our contract liability, and a $12.9 million decrease in accrued compensation and benefits, a decrease of $1.1 million in operating lease liabilities and a decrease of $3.5 million in other assets, primarily related to hedge activities.
Previous wording
Nine Months Ended March 31, 2025—Net cash used in investing activities of $8.2 million was due to $6.5 million in purchases of software and capitalized internal-use software development costs and $1.7 million of purchases of property and equipment, primarily made up of machinery and equipment and leasehold improvements.
Current wording
Three Months Ended September 30, 2025—Net cash used in investing activities of $4.0 million was due to $2.9 million in purchases of software and capitalized internal-use software development costs and $1.1 million of purchases of property and equipment, primarily made up of machinery and equipment and leasehold improvements.
Previous wording
Nine Months Ended March 31, 2024—Net cash used in investing activities of $8.9 million was due to $6.1 million in purchases of software and capitalized internal-use software development costs and $3.1 million of purchases of property and equipment, primarily equipment utilized in SelectRx operations, leasehold improvements, and computer equipment.
Current wording
Three Months Ended September 30, 2024—Net cash used in investing activities of $2.6 million was due to $2.1 million in purchases of software and capitalized internal-use software development costs and $0.4 million of purchases of property and equipment, primarily made up of machinery and equipment and leasehold improvements.
Previous wording
Our financing activities primarily consist of proceeds from the issuance of senior non-convertible preferred stock, payments on term loans, proceeds and payments related to the revolving credit facility, payments on notes issued in connection with the Indenture, payments for debt issuance costs, and proceeds and payments related to stock-based compensation.
Current wording
Our financing activities primarily consist of payments on term loans, proceeds and payments related to the revolving credit facility, payments on notes issued in connection with the Indenture, payments for debt issuance costs, and proceeds and payments related to stock-based compensation.
Previous wording
Nine Months Ended March 31, 2025—Net cash provided by financing activities of $25.9 million was primarily due to $384.6 million of principal payments on the term loans, $11.7 million of payments on the notes issued in connection with the Indenture, $166.9 million of payments on the revolving credit facility, offset by $337.9 million of proceeds from the issuance of senior non-convertible preferred stock, $99.1 million of proceeds on the notes issued in connection with the Indenture, and $166.9 million of proceeds from the revolving credit facility.
Current wording
Three Months Ended September 30, 2025—Net cash provided by financing activities of $4.2 million was primarily due to $80.0 million of proceeds from the revolving credit facility, offset by $65.0 million of payments on the revolving credit facility, $3.6 million of principal payments on the term loans, and $4.5 million of payments on the notes issued in connection with the Indenture.
Previous wording
Nine Months Ended March 31, 2024—Net cash used in financing activities of $31.7 million was primarily due to $30.4 million of principal payments on the Term Loans.
Current wording
Three Months Ended September 30, 2024—Net cash used in financing activities of $13.1 million was primarily due to $8.5 million of principal payments on the term loans and $3.9 million of tax payments for stock-based compensation.
Previous wording
Other than the discussions in Notes 6, 7, and 8 to the condensed consolidated financial statements, as of March 31, 2025, there have been no material changes to our contractual obligations as previously described in our Annual Report.
Current wording
Other than the discussions in Note 6 and Note 10 to the condensed consolidated financial statements, as of September 30, 2025, there have been no material changes to our contractual obligations as previously described in our Annual Report.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
SelectQuote, Inc. (together with its subsidiaries, “SelectQuote”, the “Company”, “we”, “us”) is a leading technology-enabled, direct-to-consumer (“DTC”) distribution and engagement platform for selling insurance policies and healthcare services.
Current report — wording carried from elsewhere
The following tables present information about the reportable segments for the periods presented.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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 report — wording carried 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,