SelectQuote, Inc.
For the period ended Dec 31, 2025. Filed Feb 5, 2026.
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.
Dec 31, 2025 · Filed Feb 5, 2026
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 2025-09-30; filed 2025-11-06.
0001794783-25-000096
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-05.
0001794783-26-000012
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 143 previous paragraphs and 177 current paragraphs.
92 unchanged; 42 reworded; 34 added; 9 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 22 previous and 26 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 (34)
Current report
Total submitted policies for all products increased 1% for thethree months ended December 31, 2025, compared to thethree months ended December 31, 2024. The increase was primarily due to a 7% increase in the number of average productive agents, offset by a 12% decrease in overall close rates.
Current report
Total submitted policies for all products decreased 6% for the six months ended December 31, 2025, compared to the six months ended December 31, 2024. The decrease was primarily due to a 13% decrease in overall close rates, partially offset by a 3% increase in the number of average productive agents.
Current report
The LTV per MA approved policy decreased 3% for the six months ended December 31, 2025, compared to the six months ended December 31, 2024, primarily due to shifts in carrier mix, along with plan terminations and changes to plan designs.
Current report
Total term premiums increased 14% for the six months ended December 31, 2025, compared to the six months ended December 31, 2024, due to a 4% increase in the average premium per policy sold and a 9% increase in the number of policies sold. Final expense premiums increased 22% for the six months ended December 31, 2025, compared to the six months ended December 31, 2024, due to a 23% increase in the number of policies sold, partially offset by a 1% decrease in the average premium per policy sold. The increase in the number of final expense policies sold was driven by a 39% increase in average agent headcount due to flex agents onboarded from the Senior segment during the three months ended September 30, 2025 and new external agents onboarded during the three months ended December 31, 2025, all of which were less productive then our tenured agents.
Current report
Six Months Ended December 31, 2025 and 2024–Pharmacy revenue increased $112.9 million or 34%, primarily due to the 17% increase in members due to the continued growth of the SelectRx business. Commission and other services revenue decreased $20.3 million, or 5%, for the six months ended December 31, 2025, primarily due to decreases in Senior commission revenue and other Senior revenue of $24.1 million and $3.8 million, respectively. The decrease in Senior commission revenue was primarily driven by a 5% decrease in approved policies. These decreases were partially offset by an increase in Life commission revenue of $10.5 million, which was primarily driven by a $7.7 million increase in final expense revenue due to a 23% increase in the number of policies sold. The increase in number of policies sold was partially offset by a 1% decrease in the average premium per policy sold.
Current report
Three Months Ended December 31, 2025 and 2024–Cost of goods sold-pharmacy revenue increased $49.0 million, or 31%, for the three months ended December 31, 2025, primarily due to a $47.2 million increase in medication costs and a $1.5 million increase in compensation costs. Medication costs increased largely due to a 17% 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 December 31, 2025 and 2024–Marketing and advertising expenses increased $7.3 million, or 7%, for the three months ended December 31, 2025, primarily due to a $5.8 million increase in lead costs. The increase in lead costs was attributable to higher call volume requirements associated with increased agent headcount. The headcount change was driven by increased utilization of flex hiring, which led to a year-over-year shift in the mix of agents; specifically, tenured core agents comprised of 69% of the workforce for the three months ended December 31, 2025, relative to 92% for the three months ended December 31, 2024.
Current report
Six Months Ended December 31, 2025 and 2024–Marketing and advertising expenses increased $5.5 million, or 3%, for the six months ended December 31, 2025, primarily due to a $4.2 million increase in lead costs. The increase in lead costs was attributable to higher call volume requirements associated with increased agent headcount. The headcount change was driven by increased utilization of flex hiring, which led to a year-over-year shift in the mix of agents; specifically, tenured core agents comprised of 64% of the workforce for the six months ended December 31, 2025, relative to 91% for the six months ended December 31, 2024
Current report
Six Months Ended December 31, 2025 and 2024–Selling, general, and administrative expenses decreased $6.4 million, or 8%, for the six months ended December 31, 2025, primarily due to $6.5 decrease in corporate development costs. The decrease in corporate development costs is a result of additional expenses incurred in the prior period related to the securitization and Senior Non-Convertible Preferred Stock transactions.
Current report
Six Months Ended December 31, 2025 and 2024–Technical development expenses increased $0.4 million, or 2%, for the three months ended December 31, 2025, primarily due to a $1.0 million increase in compensation costs due to an increase in headcount for technology personnel. The increase in compensation costs were partially offset by a $0.7 million decrease in data center costs. The decrease in data center costs was driven by a reduction in cloud infrastructure capacity to align with current demand.
Current report
(2) During the three and six months ended December 31, 2025, the Company recognized an impairment charge of $1.0 million representing a full write-off of its equity-method investment.
Current report
(7) During the three months ended December 31, 2025, the Company recognized an impairment charge of $1.0 million representing a full write-off of its equity-method investment.
Current report
(5) Corporate is not an operating segment and consists primarily of unallocated corporate overhead costs, such as payroll and related benefits ($17.3 million), professional services ($4.0 million), and facilities ($1.3 million).
Current report
(6) These expenses primarily consist of financing transaction costs ($6.7 million).
Current report
Six Months Ended December 31, 2025:
Current report
(5) Corporate is not an operating segment and consists primarily of unallocated corporate overhead costs, such as payroll and related benefits ($35.2 million), professional services ($9.1 million), and facilities ($2.7 million).
Current report
(6) These expenses primarily consist of financing transaction costs ($0.5 million) and non-restructuring severance expenses ($0.4 million).
Current report
(7) During the six months ended December 31, 2025, the Company recognized an impairment charge of $1.0 million representing a full write-off of its equity-method investment.
Current report
Six Months Ended December 31, 2024:
Current report
(5) Corporate is not an operating segment and consists primarily of unallocated corporate overhead costs, such as payroll and related benefits ($32.8 million), professional services ($8.8 million), and facilities ($2.8 million).
Current report
Three Months Ended December 31, 2025 and 2024–Revenue from Senior was $261.5 million for the three months ended December 31, 2025, a $6.0 million, or 2%, increase compared to revenue of $255.6 million for the three months ended December 31, 2024. The increase was due to a $3.8 million and $2.2 million increase in other revenue and commissions revenue, respectively. The increase in commission revenue was due to a 4% increase in approved policies.
Current report
Revenue from Life was $43.6 million for the three months ended December 31, 2025, a $3.8 million, or 9%, increase compared to revenue of $39.9 million for the three months ended December 31, 2024, due to a $4.1 million increase in final expense revenue, partially offset by a $0.2 million decrease in term revenue. The increase in final expense revenue was due to an increase in the number of policies sold.
Current report
Six Months Ended December 31, 2025 and 2024–Revenue from Healthcare Services was $452.0 million for the six months ended December 31, 2025, a $112.9 million, or 33%, increase compared to revenue of $339.1 million for the six months ended December 31, 2024, due to a $112.9 million increase in SelectRx pharmacy revenue driven by a 17% increase in members from the growth of the SelectRx business.
Current report
Revenue from Senior was $320.5 million for the six months ended December 31, 2025, a $28.0 million, or 8%, decrease compared to revenue of $348.5 million for the six months ended December 31, 2024. The decrease was primarily due to a $24.1 million decrease in commission revenue, and a $3.8 million decrease in other revenue. The decrease in commission revenue was due to a 5% decrease in approved policies.
Current report
Adjusted EBITDA from Healthcare Services was $0.8 million for the three months ended December 31, 2025, a $1.4 million decrease compared to Adjusted EBITDA of $2.2 million for the three months ended December 31, 2024. The decrease was primarily due to a $48.8 million increase in cost of goods sold - pharmacy revenue, partially offset by a $47.3 million increase in revenue as discussed above. Cost of goods sold - pharmacy revenue increased primarily as a result of a $47.2 million increase in medication costs combined with a $2.1 million increase in compensation costs. Medication costs increased largely due to a 17% 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
Six Months Ended December 31, 2025 and 2024–Adjusted EBITDA from Senior was $81.4 million for the six months ended December 31, 2025, a $26.8 million decrease compared to Adjusted EBITDA of $108.2 million for the six months ended December 31, 2024. The decrease was primarily due to a $28.0 million decrease in revenue as discussed above.
Current report
Adjusted EBITDA from Life was $11.2 million for the six months ended December 31, 2025, a $2.2 million decrease compared to Adjusted EBITDA of $13.4 million for the six months ended December 31, 2024. The decrease was due to a $7.5 million increase in marketing expenses and a $5.8 million increase in cost of commissions and other services revenue partially offset by a $11.1 million increase in revenue, as discussed above. The increase in marketing expenses was due to a $6.7 million increase in lead costs. The increase in cost of commissions and other services revenue was due to a $5.7 million increase in compensation costs.
Current report
Subsequent to the end of the quarter, on January 8, 2026, we refinanced this indebtedness through a new $415.0 million credit facility (the "2026 Credit Agreement"), as further described below. Based on our financial projections and the enhanced liquidity provided by this refinancing, we believe we will remain in compliance with our debt covenants and have sufficient liquidity to fund our operations for at least the next 12 months following the date of issuance of these condensed consolidated financial statements.
Current report
Senior Secured Credit Facility and Subsequent Refinancing
Current report
On January 8, 2026, the Company entered into the 2026 Credit Agreement, which provided for a $325.0 million senior secured term loan and a senior secured revolving credit facility with revolving commitments up to $90.0 million (the “2026 Revolving Credit Facility”), both maturing on January 8, 2031. The proceeds were used to pay off the existing term loans and revolving loans. In accordance with ASC 470, Debt, this post-balance-sheet date agreement demonstrated the Company’s ability and intent to refinance its short-term obligations under the previous credit facility on a long-term basis. Accordingly, the Company has reclassified the outstanding debt under the previous credit facility to long-term as of December 31, 2025.
Current report
The 2026 Revolving Credit Facility includes a seasonal flex feature where the aggregate commitment is $71.7 million, but increases to $90.0 million during the calendar months of January and December each year to support the Company’s peak operational cycles.
Current report
These cash inflows were partially offset by cash outflows that included an increase of $143.0 million in commissions receivable and a $2.3 million decrease in operating lease liabilities. The increase in commissions receivable is primarily driven by the high volume of revenue recognized during the AEP season. Refer to Note 12 to the condensed consolidated financial statements for further detail into the change in commissions receivable during the period. The decrease in operating lease liabilities is consistent with the principal repayments on existing lease obligations, as the Company did not enter into any material leases during the six months ended December 31, 2025.
Current report
Six Months Ended December 31, 2024—Net cash used in operating activities was $45.3 million, consisting of net income of $8.7 million, adjustments for non-cash items of $41.0 million, and cash used in operating assets and liabilities of $95.0 million. Adjustments for non-cash items primarily consisted of $10.7 million of depreciation and amortization, $8.5 million of share-based compensation expense, $9.7 million of accrued interest payable in kind on the term loans, $2.4 million of amortization of debt issuance costs and debt discount, $1.8 million of non-cash lease expense, $4.2 million in deferred income taxes, $4.2 million in bad debt expense, and $7.6 million in the change in fair value of warrant liabilities. The change in fair value of warrant liabilities is a non-cash expense resulting from the increase in our stock price impacting the fair value measurement of the warrants. The $95.0 million cash decrease resulting from changes in net operating assets and liabilities was primarily driven by the timing of cash receipts and strategic cash management decisions. The cash inflows included a decrease of $30.0 million in accounts receivable, and an increase of $46.2 million in accounts payable and accrued expenses. The decrease in accounts receivable consistent with the Company’s seasonality as the majority of policies sold have January 1st effective dates, allowing the current accounts receivable balances to be depleted at the end of the Company’s second fiscal quarter. The increase in accounts payable and accrued expenses was driven by management’s strategic decision to make investments for the upcoming AEP season including increased agent headcount and marketing expenditures. This strategic decision is not indicative of future operational cash flow generation and is expected to fluctuate inline with the Company’s cash availability throughout the year.
Current report
These inflows were partially offset by cash outflows that included an increase of $155.5 million in commissions receivable, a decrease of $8.7 million in other liabilities, a decrease of $2.3 million in operating lease liabilities, and an increase of $4.8 million in other assets. The increase in commissions receivable was directly tied to the 2% increase in approved policies for the six months. Under our contract terms, the Company recognizes the corresponding revenue, however, the related cash receipt for the commission often lags the policy approval date. The decrease in other liabilities is primarily related to a $7.1 million decrease in our contract liability and a $1.9 million decrease in accrued compensation and benefits. The decrease in contract liabilities indicates a satisfaction of performance obligations and conversion of the non-cash liability to revenue. Refer to Note 12 to the condensed consolidated financial statements for further detail into the change in commissions receivable and contract liabilities during the period. The decrease in operating lease liabilities is consistent with the principal repayments on existing lease obligations, as the Company did not enter into any material leases during six months ended December 31, 2024. Lastly, the increase in other assets was primarily related to the Company’s interest rate swap that expired in November 2025.
Removed paragraphs (9)
Previous 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.
Previous report
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 report
(6) These expenses primarily consist of financing transaction costs ($0.1 million) and non-restructuring severance expenses (less than $0.1 million).
Previous 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).
Previous 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.
Previous report
Senior Secured Credit Facility
Previous 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
Previous report
$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 report
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.
Reworded paragraphs (42)
Previous wording
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 wording
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 expansion in offerings reflects our prioritization of synergistic high-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.
Previous 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.
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 policies from consumers with insurance carrier partners that best meet our clients’ needs. 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
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.
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 93%, and 93%, of our approved Senior policies for the three months ended December 31, 2025, and 2024, respectively, and 91% and 91% for the six months ended December 31, 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, 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.
Current wording
Healthcare Services, launched in 2021, offers various health-related products and services through SelectRx, Healthcare Select, and SPM. SelectRx provides patients with one cohesive pharmacy solution by combining their prescription and over-the-counter (“OTC”) medications in customized medication packaging. The solution improves adherence and drives positive health outcomes while reducing adverse drug interactions, hospital stays, and reduces waste. 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 2.6 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.
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 39%, and 44% of new premium within the Life segment for the three months ended December 31, 2025, and 2024, respectively, with final expense policies accounting for 61%, and 56% for the three months ended December 31, 2025, and 2024, respectively. For the six months ended December 31, 2025, and 2024, term life policies accounted for 39% and 41% of new premium within Life, respectively, with final expense policies accounting for 61% and 59%, respectively.
Previous 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.
Current 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, 2026, and 2025.
Previous 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.
Current wording
Total approved policies for all products increased by 4% for thethree months ended December 31, 2025, compared to thethree months ended December 31, 2024, which correlates to the increase in submitted policies.
Previous 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.
Current wording
The LTV per MA approved policy decreased 4% for thethree months ended December 31, 2025, compared to thethree months ended December 31, 2024, primarily due to shifts in carrier mix, along with plan terminations and changes to plan designs.
Previous 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.
Current wording
The total number of SelectRx members increased by 17% asof December 31, 2025, compared to December 31, 2024, due to our continued strategy to grow SelectRx membership.
Previous 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.
Current wording
Total term premiums increased 1% for the three months ended December 31, 2025, compared to the three months ended December 31, 2024, due to a 4% increase in the number of policies sold, partially offset by a 3% decrease in the average premium per policy sold. Final expense premiums increased 24% for the three months ended December 31, 2025, compared to the three months ended December 31, 2024, due to a 28% increase in the number of policies sold, partially offset by a 3% decrease in the average premium per policy sold. The increase in the number of final expense policies sold was driven by a 42% increase in average agent headcount due to the addition of new external agents onboarded during the three months ended December 31, 2025.
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 (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.
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 income as commissions and other services revenue. Pharmacy revenue on the condensed consolidated statements of comprehensive income includes revenue from the sale of prescription and OTC medication products from SelectRx.
Previous 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.
Current wording
Three Months Ended December 31, 2025 and 2024– Commission and other services revenue increased $8.8 million, or 3%, for the three months ended December 31, 2025, primarily due to a $3.8 million increase in Life revenue, a $3.8 million increase in other Senior revenue, and a $2.2 million increase in Senior commissions revenue. The increase in Life revenue was primarily driven by a $4.1 million increase in final expense revenue due to a 28% increase in the number of policies sold. The increase in number of policies sold was partially offset by a 3% decrease in the average premium per policy sold. The increase in Senior revenue, was driven by a 4% increase in approved policies. Pharmacy revenue increased $47.2 million, or 26%, primarily due to a 17% increase in members due to the continued growth of the SelectRx business.
Previous wording
Cost of commissions and other services revenue represents the direct costs associated with fulfilling our obligations to our customers in Senior, Life, and Healthcare Services (excluding SelectRx discussed below); primarily compensation, benefits, and licensing for sales agents, customer success agents, fulfillment specialists, and others directly engaged in serving customers. It also includes allocations for facilities, telecommunications, and software maintenance costs, which are all based on headcount. Facilities costs include rent and utilities expenses and other costs to maintain our office locations. Telecommunications and software maintenance costs includes costs related to the internal phone systems and various software applications that our agents use to make sales. These costs directly correlate to the number of agents we have as we are primarily charged based on per person usage for the phone systems and software applications.
Current wording
primarily compensation, benefits, and licensing for sales agents, customer success agents, fulfillment specialists, and others directly engaged in serving customers. It also includes allocations for facilities, telecommunications, and software maintenance costs, which are all based on headcount. Facilities costs include rent and utilities expenses and other costs to maintain our office locations. Telecommunications and software maintenance costs includes costs related to the internal phone systems and various software applications that our agents use to make sales. These costs directly correlate to the number of agents we have as we are primarily charged based on per person usage for the phone systems and software applications.
Previous 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.
Current wording
Three Months Ended December 31, 2025 and 2024–Cost of commissions and other service revenue increased $1.9 million, or 2%, for the three months ended December 31, 2025, primarily due to a $2.1 million increase in compensation costs, partially offset by $0.2 million decrease in depreciation and amortization. The $2.1 million increase in compensation costs is primarily comprised of a $2.3 million and $0.6 million increase in costs for sales and customer care agents in Life and Healthcare Services, respectively. The increase is partially offset by a $0.9 million decrease in costs for our sales and customer care agents in Senior.
Previous wording
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 wording
Six Months Ended December 31, 2025 and 2024–Cost of goods sold-pharmacy revenue increased $112.2 million, or 39%, for the six months ended December 31, 2025, primarily due to a $106.7 million increase in medication costs, a $3.3 million increase in compensation costs, and a $1.3 million increase in fulfillment costs. Medication and fulfillment costs increased largely due to a 17% 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.
Previous wording
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 wording
Three Months Ended December 31, 2025 and 2024–Selling, general, and administrative expenses decreased $6.1 million, or 14%, for the three months ended December 31, 2025, primarily due to $6.3 million decrease in corporate development costs. The decrease in corporate development costs is a result of additional expenses incurred in the prior period related to the securitization and Senior Non-Convertible Preferred Stock transactions.
Previous 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.
Current wording
Three Months Ended December 31, 2025 and 2024–Technical development expenses decreased $0.4 million, or 4%, for the three months ended December 31, 2025, primarily due to a $0.1 million decrease in compensation costs due to a decrease in headcount for technology personnel combined with a $0.1 million decrease in depreciation and amortization.
Previous 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.
Current wording
Three Months Ended December 31, 2025 and 2024–Interest expense decreased $12.1 million, or 51%, for the three months ended December 31, 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 Loans balance using the proceeds from the Senior Non-Convertible Preferred Stock issuance.
Previous 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.
Current wording
Three Months Ended December 31, 2025 and 2024–For the three months ended December 31, 2025, and 2024, the Company recognized an income tax expense of $13.7 million and income tax benefit of $13.7 million, representing an effective tax rate of 16.5% and (34.6)%, respectively. The differences from the federal statutory tax rate to the effective tax rate for the three months ended December 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 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 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.
Previous wording
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 wording
We define Adjusted EBITDA as net income 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, impairment charges, and share-based compensation expenses. The most directly comparable GAAP measure is net income. 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.
Previous wording
The following table sets forth a reconciliation of the differences between net income (loss) and Adjusted EBITDA for the periods presented.
Current wording
The following table sets forth a reconciliation of the differences between net income and Adjusted EBITDA for the periods presented.
Previous wording
(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 wording
(1) For the three and six months ended December 31, 2025, these expenses primarily consist of financing transaction costs ($0.3 million and $0.5 million) and non-restructuring severance expenses ($0.3 million and $0.4 million). For the three and six months ended December 31, 2024, these expenses primarily consist of financing transaction costs ($6.7 million and $7.0 million) and non-restructuring severance expenses ($0.0 million and $0.5 million).
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, 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.
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, impairment charges, 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
(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 wording
(5) Corporate is not an operating segment and consists primarily of unallocated corporate overhead costs, such as payroll and related benefits ($17.4 million), professional services ($5.0 million), and facilities ($1.4 million).
Previous wording
(6) These expenses primarily consist of non-restructuring severance expenses ($0.5 million) and financing transaction costs ($0.3 million).
Current wording
(6) These expenses primarily consist of financing transaction costs ($0.3 million) and non-restructuring severance expenses ($0.3 million).
Previous 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.
Current wording
Revenue from Healthcare Services was $230.7 million for the three months ended December 31, 2025, a $47.3 million, or 26%, increase compared to revenue of $183.4 million for the three months ended December 31, 2024, primarily due to a $47.2 million increase in SelectRx pharmacy revenue due to a 17% increase in members from the growth of the SelectRx business.
Previous wording
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 wording
Revenue from Life was $90.3 million for the six months ended December 31, 2025, a $11.1 million, or 14%, increase compared to revenue of $79.2 million for the six months ended December 31, 2024, due to a $7.7 million increase in final expense revenue, and a $2.7 million increase in term revenue due to an increase in the number of policies sold.
Previous wording
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 wording
Three Months Ended December 31, 2025 and 2024–Adjusted EBITDA from Senior was $102.5 million for the three months ended December 31, 2025, a $1.9 million increase compared to Adjusted EBITDA of $100.5 million for the three months ended December 31, 2024. The increase was primarily due to a $6.0 million increase in revenue as discussed above, partially offset by a $4.7 million increase in marketing expenses. The increase in marketing expenses was primarily due to a $3.7 million increase in lead costs.
Previous wording
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 wording
Adjusted EBITDA from Life was $5.6 million for the three months ended December 31, 2025, a $1.8 million decrease compared to Adjusted EBITDA of $7.4 million for the three months ended December 31, 2024. The decrease was primarily due to a $3.2 million increase in marketing expenses and a $2.4 million increase in cost of commissions and other services revenue partially offset by by a $3.8 million increase in revenue as discussed above. The increase in marketing expenses was due to a $2.7 million increase in lead costs. The increase in cost of commissions and other services revenue was due to a $2.3 million increase in compensation costs.
Previous wording
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 wording
Adjusted EBITDA from Healthcare Services was $8.1 million for the six months ended December 31, 2025, a $1.0 million increase compared to Adjusted EBITDA of $7.1 million for the six months ended December 31, 2024. The increase was due to a $112.9 million increase in revenue as discussed above, partially offset by a $111.8 million increase in cost of goods sold- pharmacy revenue. Cost of goods sold - pharmacy revenue increased primarily as a result of a $106.7 million increase in medication costs and a $4.5 million increase in compensation costs related to the increased volume.
Previous wording
Our liquidity needs primarily include working capital and debt service requirements. Additionally, we are required under the Senior Secured Credit Facility and Indenture to maintain compliance with certain debt covenants, as discussed further in Note 6 to the condensed consolidated financial statements. Based on our financial projections, we believe we will remain in compliance with the debt covenants through the 12 months following the date of issuance of our condensed consolidated financial statements.
Current wording
Our liquidity needs primarily include working capital and debt service requirements. Additionally, we are required under the Senior Secured Credit Facility and Indenture to maintain compliance with certain debt covenants, as discussed further in Note 6 to the condensed consolidated financial statements.
Previous 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.
Current wording
Significant changes and activity related to our long-term debt during the six months ended December 31, 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 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 wording
During the six months ended December 31, 2025, the Company had outstanding borrowings of $73.4 million and repaid $10.1 million of the notes issued in connection with the Indenture. Refer to Note 6 to the condensed consolidated financial statements for further information.
Previous 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.
Current wording
During the six months ended December 31, 2025, the Company repaid $9.6 million of the outstanding term loans under its previous credit facility. As of December 31, 2025, The Company had outstanding borrowings of $304.4 million related to those term loans.
Previous 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.
Current wording
During the six months ended December 31, 2025, the Company received proceeds of $257.0 million and repaid $219.0 million related to its previous revolving credit facility. As of December 31, 2025, the Company had $38.0 million in outstanding borrowings related to the previous revolving credit facility.
Previous 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.
Current wording
As of December 31, 2025 and June 30, 2025, the Company had total debt obligations of $405.8 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 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:
Current wording
As of December 31, 2025 and June 30, 2025, our cash, cash equivalents, and restricted cash totaled $23.3 million and $37.1 million, respectively. Additionally, the following table presents a summary of our cash flows for the periods presented below:
Previous 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.
Current wording
Six Months Ended December 31, 2025—Net cash used in operating activities was $21.6 million, consisting of net income of $38.8 million, adjustments for non-cash items of $8.2 million, and a cash used in operating assets and liabilities of $52.2 million. Adjustments for non-cash items primarily consisted of $8.6 million of depreciation and amortization, $7.8 million of share-based compensation expense, $2.4 million of amortization of debt issuance costs and debt discount, $2.0 million of non-cash lease expense, $4.2 million in deferred income taxes, and $34.3 million in the change in fair value of warrant liabilities. The change in fair value of warrant liabilities is a non-cash expense resulting from the decrease in our stock price impacting the fair value measurement of the warrants. The $52.2 million cash decrease resulting from changes in net operating assets and liabilities was primarily driven by the timing of cash receipts and seasonal trends. The cash inflows included a $23.7 million decrease in accounts receivable, a $63.6 million increase in accounts payable and accrued expenses, a $5.5 million increase in other liabilities, and a $0.2 million decrease in other assets. The decrease in accounts receivable is consistent with the Company’s seasonality as the majority of policies sold have January 1st effective dates, allowing the current accounts receivable balances to be depleted at the end of the Company’s second fiscal quarter. The period-over-period increase in accounts payable and accrued expenses is consistent with seasonal trends, reflecting the ramp-up of agent incentives and marketing outreach required for the AEP cycle. The increase in other liabilities is primarily related to a $3.4 million increase in accrued compensation and benefits and a $1.1 million increase in our contract liabilities. The increase in contract liabilities indicates a deferral of performance obligations and the receipt of cash resulting in a new liability. Refer to Note 12 for further detail into the change in contract liabilities during the period. The decrease in other assets was due to depleting inventory balances. The decrease in inventory was primarily driven by a strategic reduction in stock levels for products impacted by anticipated regulatory pricing shifts to optimize working capital.
Previous 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.
Current wording
Six Months Ended December 31, 2025—Net cash used in investing activities of $7.6 million was due to $5.5 million in purchases of software and capitalized internal-use software development costs and $2.1 million of purchases of property and equipment, primarily made up of machinery and equipment and leasehold improvements.
Previous 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.
Current wording
Six Months Ended December 31, 2024—Net cash used in investing activities of $4.8 million was due to $4.1 million in purchases of software and capitalized internal-use software development costs and $0.7 million of purchases of property and equipment, primarily made up of machinery and equipment and leasehold improvements.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
Total approved policies decreased by 5% for the six months ended December 31, 2025, compared to the six months ended December 31, 2024, which correlates to the decrease in submitted policies.
Current report — wording carried from elsewhere
Cost of commissions and other services revenue represents the direct costs associated with fulfilling our obligations to our customers in Senior, Life, and Healthcare Services (excluding SelectRx discussed below);
Current report — wording carried from elsewhere
Six Months Ended December 31, 2025 and 2024–Cost of commissions and other service revenue increased $5.3 million, or 3%, for the six months ended December 31, 2025, primarily due to a $5.5 million increase in compensation costs and a $0.7 million increase in licensing fees. These increases were partially offset by $0.6 million decrease in depreciation and amortization. The $5.5 million increase in compensation costs is primarily comprised of a $5.3 million increase in costs for sales and customer care agents in Life.
Current report — wording carried from elsewhere
Six Months Ended December 31, 2025 and 2024–Interest expense decreased $23.3 million, or 50%, for the six months ended December 31, 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 Loans balance using the proceeds from the Senior Non-Convertible Preferred Stock issuance.
Current report — wording carried from elsewhere
Six Months Ended December 31, 2025 and 2024–For the six months ended December 31, 2025 and 2024, the Company recognized income tax expense of $6.5 million and income tax benefit of $4.2 million, respectively, representing effective tax rates of 14.3% and (91.6)%, respectively. The differences from the federal statutory tax rate to the effective tax rate for the six months ended December 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 and stock-based compensation and general business credits. 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.
Current report — wording carried from elsewhere
(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 — wording carried from elsewhere
(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 — wording carried from elsewhere
(6) These expenses primarily consist of non-restructuring severance expenses ($0.5 million) and financing transaction costs ($7.0 million).
Current report — wording carried from elsewhere
Six Months Ended December 31, 2024—Net cash provided in financing activities of $21.1 million was primarily due to $123.2 million of principal payments on the term loans, $6.3 million of payments on the notes issued in connection with the Indenture, $26.9 million of payments on the revolving credit facility, offset by $99.1 million of proceeds on the notes issued in connection with the Indenture and $84.9 million of proceeds from the revolving credit facility.