SelectQuote, Inc.
For the period ended Jun 30, 2026. Filed Aug 25, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2026 · Filed Aug 25, 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-K
Period ended 2025-06-30; filed 2025-08-21.
0001794783-25-000081
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2026-06-30; filed 2026-08-25.
0001794783-26-000057
Item 7. 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 182 previous paragraphs and 195 current paragraphs.
95 unchanged; 63 reworded; 34 added; 22 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 23 previous and 24 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
In fiscal year 2026, the Company began making strategic investments in artificial intelligence (“AI”) capabilities across its operations, including contact center voice technology, AI-assisted software development, and enterprise-wide productivity tools. We view these initial investments as foundational to improving agent productivity and reducing the cost of consumer acquisition and servicing. Our AI-powered contact center technology expanded our licensed agent capacity during fiscal year 2026, enabling our agents to focus on complex sales and service interactions while AI handled defined consumer workflows.
Current report
In addition to the factors described above, our pharmacy and healthcare services operations are subject to a distinct set of factors that affect our results. The primary driver of SelectRx revenue is the number of active pharmacy members and the volume of prescriptions fulfilled per member per period. Pharmacy margins are also influenced by the mix of generic versus brand-name medications dispensed, as generic drugs generally carry a different margin profile than branded drugs. In addition, pharmacy reimbursement rates, which are subject to negotiation with pharmacy benefit managers, can affect the profitability of our pharmacy operations. Changes to member cost-sharing obligations, whether driven by federal healthcare regulation or payer benefit design decisions, can also influence member retention and prescription volume. Member retention and medication adherence rates are critical to sustaining recurring prescription revenue and to demonstrating the clinical and financial value of our integrated model to our carrier partners.
Current report
2026 compared to 2025—Commission and other services revenue decreased $10.2 million, or 1%, for the year ended June 30, 2026, primarily due to a $23.2 million decrease in other Senior services revenue, a $1.2 million decrease in Senior commissions revenue, partially offset by a $13.1 million increase in Life revenue, and a $2.2 million increase in Other revenue. The decrease in other Senior services revenue was primarily due to a lower volume of production bonuses following the AEP cycle. The decrease in Senior commissions revenue was driven by a 4% decrease in approved policies. The increase in Life revenue was primarily driven by a $6.8 million increase in final expense revenue due to a 4% increase in the number of policies sold and a 1% increase in the average premium per policy sold. Pharmacy revenue increased $102.1 million, or 14%, primarily due to a 16% increase in average prescriptions shipped per day, reflecting the full-year contribution of our fulfillment facility in Olathe, Kansas, combined with a 1% increase in total SelectRx members, partially offset by $23.8 million of manufacturer refunds received in lieu of payer reimbursement revenue as a result of the Inflation Reduction Act. Beginning in calendar year 2026, the Company began receiving refunds from pharmaceutical manufacturers on certain drugs that are part of the Medicare Prescription Drug Inflation Rebate Program under the Inflation Reduction Act. The Company reports these refunds as a reduction of cost of goods sold—pharmacy revenue rather than as pharmacy revenue.
Current report
2026 compared to 2025—Cost of commissions and other service revenue increased $7.0 million, or 2%, for the year ended June 30, 2026, primarily due to a $6.4 million increase in compensation costs, and a $1.1 million increase in fulfillment costs. These increases were partially offset by a $0.7 million decrease in depreciation and amortization. The $6.4 million increase in compensation costs was primarily driven by increases in sales and customer care agent costs of $5.1 million in Life and $2.4 million in Healthcare Services, partially offset by a $1.1 million decrease in Senior.
Current report
2026 compared to 2025—Cost of goods sold-pharmacy revenue increased $100.4 million, or 16%, for the year ended June 30, 2026, primarily due to a $115.9 million increase in medication costs, a $4.3 million increase in compensation costs, a $2.5 million increase in fulfillment costs, and a $0.9 million increase in depreciation and amortization, partially offset by a $23.8 million decrease from refunds recognized as a reduction of cost of goods sold—pharmacy revenue rather than as pharmacy revenue discussed above. Medication costs increased largely due to a 16% increase in average prescriptions shipped per day, reflecting the full-year contribution of our fulfillment facility in Olathe, Kansas, combined with 1% 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
2026 compared to 2025—Marketing and advertising expenses decreased $5.8 million, or 2%, for the year ended June 30, 2026, primarily due to an $8.1 million decrease in lead costs, partially offset by a $2.6 million increase in creative marketing costs. The decrease in lead costs was attributable to a greater utilization of leads sourced through our own direct marketing channels for the Senior division, which ultimately reduced the cost per queued call. The increase in creative marketing costs was primarily driven by the production of new television advertising for our Life division.
Current report
2026 compared to 2025—Selling, general, and administrative expenses decreased $15.4 million, or 9%, for the year ended June 30, 2026, primarily due to a $13.0 million decrease in corporate development costs, and a $3.2 million decrease in impairment of long-lived assets and equity investments. The decrease in corporate development costs is a result of additional expenses incurred in the prior period related to the securitization and
Current report
Senior Non-Convertible Preferred Stock transactions. Impairment of long-lived assets and equity investments is further discussed in Notes 6 and 16 of the consolidated financial statements.
Current report
2026 compared to 2025—Interest expense, net decreased $34.9 million, or 44%, for the year ended June 30, 2026. The decrease was primarily due to a lower weighted-average principal balance outstanding during the year ended June 30, 2026 following the $260.0 million principal repayment of the Previous Term Loans balance using the proceeds from the Senior Non-Convertible Preferred Stock issuance in February 2025.
Current report
Non-GAAP Financial Measures
Current report
This Annual Report on Form 10-K 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 herein 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, impairment charges, loss on extinguishment of debt, 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.
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 year ended June 30, 2026, 2025, and 2024 these expenses primarily consist of financing transaction costs ($0.8 million, $13.8 million, and $9.1 million) and non-restructuring severance expenses ($1.3 million, $0.8 million, and $2.4 million).
Current report
(2) During the year ended June 30, 2026, the Company recognized an impairment charge of $1.0 million representing a full write-off of its equity-method investment.
Current report
(1) Represents revenue from SelectQuote Auto & Home (“SQAH”), a non-reportable segment.
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 do not 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 ($69.3 million), professional services ($19.1 million), and facilities ($5.2 million).
Current report
(7) During the year ended June 30, 2026, the Company recognized an impairment charge of $1.0 million representing a full write-off of its equity-method investment.
Current report
(6) These expenses primarily consist of financing transaction costs ($9.1 million) and non-restructuring severance expenses ($2.4 million).
Current report
2026 compared to 2025—Revenue from Senior was $575.9 million for the year ended June 30, 2026, a $24.4 million, or 4%, decrease compared to revenue of $600.4 million for the year ended June 30, 2025. The decrease was due to a $23.2 million decrease in other Senior services revenue, and a $1.2 million decrease in commissions revenue. The decrease in other Senior services revenue was primarily due to a lower volume of production bonuses and a decrease in marketing development funds for the AEP cycle. The decrease in Senior commissions revenue was driven by a 4% decrease in approved policies.
Current report
Revenue from Healthcare Services was $844.9 million for the year ended June 30, 2026, a $102.2 million, or 14%, increase compared to revenue of $742.7 million for the year ended June 30, 2025, primarily due to a $102.1 million increase in SelectRx pharmacy revenue primarily driven by a 16% increase in average prescriptions shipped per day, reflecting the full-year contribution of our fulfillment facility in Olathe, Kansas, combined with a 1% increase in total SelectRx members, partially offset by $23.8 million of manufacturer refunds received in lieu of payer reimbursement revenue as a result of the Inflation Reduction Act. Beginning in calendar year 2026, the Company began receiving refunds from pharmaceutical manufacturers on certain drugs that are part of the Medicare Prescription Drug Inflation Rebate Program under the Inflation Reduction Act. The Company reports these refunds as a reduction of cost of goods sold—pharmacy revenue rather than as pharmacy revenue.
Current report
Revenue from Life was $186.0 million for the year ended June 30, 2026, a $13.1 million, or 8%, increase compared to revenue of $173.0 million for the year ended June 30, 2025, due to a $6.8 million increase in final expense revenue, and a $5.4 million increase in term revenue. Final expense revenue increased due to a 4% increase in the number of policies sold and a 1% increase in the average premium per policy sold. Term revenue increased due to a 3% increase in the number of policies sold and a 2% increase in the average premium per policy sold.
Current report
2026 compared to 2025—Adjusted EBITDA from Senior was $148.0 million for the year ended June 30, 2026, a $13.6 million decrease compared to Adjusted EBITDA of $161.7 million for the year ended June 30, 2025. The decrease was primarily due to a $24.4 million decrease in revenue as discussed above, partially offset by an $11.4 million decrease in marketing expenses. The decrease in marketing expenses was due to an $11.7 million decrease in lead costs attributable to an increase in the consumption of internal leads, which ultimately reduced the cost per queued call.
Current report
Adjusted EBITDA from Healthcare Services was $25.5 million for the year ended June 30, 2026, a $0.1 million increase compared to Adjusted EBITDA of $25.4 million for the year ended June 30, 2025. The increase was primarily due to a $102.2 million increase in revenue as discussed above, a $0.8 million decrease in technical development costs, and a $0.2 million decrease in marketing expenses, partially offset by a $99.5 million increase in cost of goods sold - pharmacy revenue, a $2.1 million increase in cost of commissions and other services revenue, and a $1.5 million increase in selling, general, and administrative expenses. Cost of goods sold - pharmacy revenue increased primarily as a result of a $115.9 million increase in medication costs combined with a $4.3 million increase in compensation costs, and a $2.5 million increase in fulfillment costs, partially offset by a $23.8 million decrease from refunds recognized as a reduction of costs of goods sold-pharmacy revenue rather than as pharmacy revenue as discussed above. Cost of commissions and other services revenue increased due to a $2.4 million increase in compensation costs. Selling, general, and administrative expenses increased due to a $3.2 million increase in compensation costs, a $2.4 million increase in other operating expenses, offset by a $4.2 million decrease in bad debt expense. Medication costs increased largely due to a 16% increase in average prescriptions shipped per day, reflecting the full-year contribution of our fulfillment facility in Olathe, Kansas, combined with 1% 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
Adjusted EBITDA from Life was $27.0 million for the year ended June 30, 2026, a $0.3 million increase compared to Adjusted EBITDA of $26.7 million for the year ended June 30, 2025. The increase was primarily due to a $13.1 million increase in revenue as discussed above, partially offset by a $7.5 million increase in marketing expenses and a $5.2 million increase in cost of commissions and other services revenue. The increase in marketing expenses was due to a $5.4 million increase in lead costs and a $1.9 million increase in creative marketing costs driven by the production of new television advertising for our Life division. The increase in cost of commissions and other services revenue was due to a $5.4 million increase in compensation costs.
Current report
Credit Agreement
Current report
On January 8, 2026, the Company entered into a new Senior Secured Credit Facility that provided for (i) a senior secured term loan in the aggregate principal amount of $325.0 million and (ii) a senior secured revolving credit facility with an aggregate commitment up to $90.0 million. The proceeds were used to repay the outstanding obligations under the previous credit agreement. Refer to Note 7 to the consolidated financial statements for further discussion.
Current report
As of June 30, 2026, the Company had $323.0 million and $0.0 million in outstanding borrowings related to the term loan and revolving credit facility, respectively.
Current report
Year Ended June 30, 2026—Net cash provided by operating activities was $31.9 million, consisting of net income of $62.2 million, adjustments for non-cash items of $6.2 million, and cash used in operating assets and liabilities of $36.5 million. Adjustments for non-cash items primarily consisted of $17.5 million of depreciation and amortization, $14.9 million of share-based compensation expense, $4.3 million of amortization of debt issuance costs and debt discount, $4.1 million of non-cash lease expense, $11.6 million in deferred income taxes, $8.7 million in loss on extinguishment of debt, $1.0 million of impairment of equity investment, and $55.8 million in the change in fair value of warrant liabilities. The change in fair value of warrant liabilities is a non-cash gain resulting from the decrease in our stock price impacting the fair value measurement of the warrants. The $36.5 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 $21.9 million increase in accounts payable and accrued expenses, a $4.7 million increase in other liabilities. The period-over-period increase in accounts payable and accrued expenses is consistent with seasonal trends, operational growth, and the timing of vendor disbursements near fiscal year-end. Further, during the period, we transitioned to 30-day payment terms with our primary inventory supplier, resulting in higher outstanding balances for inventory purchases. While this change resulted in a one-time cash inflow benefit in the current period, this benefit is not expected to recur in future periods as payment terms are now established at 30 days. The increase in other liabilities is primarily related to a $3.5 million increase in accrued compensation and benefits.
Current report
These cash inflows were partially offset by cash outflows that included a $40.6 million increase in commissions receivable, a $15.4 million increase in accounts receivable, a $2.5 million increase in other assets, and a $4.6 million decrease in operating lease liabilities. Refer to Note 2 of the consolidated financial statements for further detail into the change in commissions receivable during the period. The increase in accounts receivable is consistent with the Company’s seasonality as the policies sold during the AEP season have January 1st effective dates, allowing the current accounts receivable balances to increase at the start of the Company’s third fiscal quarter. The increase in other assets is primarily driven by the timing of prepaid expense payments, which can vary period to 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 year ended June 30, 2026.
Current report
These cash inflows were partially offset by cash outflows that included a $69.5 million increase in commissions receivable, a $5.6 million increase in accounts receivable, an increase of $6.3 million in other assets, a $5.5 million decrease in other liabilities, and a decrease of $4.7 million in operating lease liabilities. Refer to Note 2 of the consolidated financial statements for further detail into the change in commissions receivable during the period. The increase in accounts receivable is consistent with the Company’s seasonality as the policies sold during the AEP season have January 1st effective dates, allowing the current accounts receivable balances to increase at the start of the Company’s third fiscal quarter. The increase in other assets was primarily related to hedge activities. The decrease in other liabilities was primarily related to a $7.4 million decrease in our contract liability. The decrease in operating lease liabilities is consistent with the principal repayments on existing lease obligations.
Current report
These cash inflows were partially offset by cash outflows that included an increase of $40.8 million in commissions receivable, a decrease of $4.9 million of operating lease liabilities and an increase of $2.0 million in other assets. The increase in commissions receivable was due to a 6% increase in approved policies for the year. The decrease in operating lease liabilities is consistent with the principal repayments on existing lease obligations. The change in other assets period over period fluctuates with timing in prepaid expenses and operational assets.
Current report
Year Ended June 30, 2026—Net cash used in financing activities of $31.1 million was primarily due to $316.0 million of principal payments on the term loans, $358.0 million of payments on the revolving credit facility, $19.5 million of payments on the notes issued in connection with the Indenture, $7.7 million of payments for debt issuance costs and $2.5 million of payments on tax withholdings related to net share settlement of equity awards, partially offset by $315.2 million of net proceeds on the Term Loan and $358.0 million of proceeds from the revolving credit facility.
Removed paragraphs (22)
Previous report
2024 compared to 2023—Total approved policies for all products increased by 6% for the year ended June 30, 2024, compared to the year ended June 30, 2023. Fluctuations in approved policies are normally in direct correlation to submitted policies; however, primarily due to carrier mix, we experienced a slight decrease in the submitted-to-approved conversion rates for the year ended June 30, 2024, compared to the year ended June 30, 2023.
Previous report
2024 compared to 2023—Pharmacy revenue increased $225.3 million, or 94%, due to the increase in members from the growth of the SelectRx business. Commissions and other services revenue increased $93.6 million, or 12%, primarily due to increases in Senior, Life, and Auto & Home of $65.7 million, $12.1 million, and $14.4 million, respectively. Senior’s increase was primarily due to a $71.7 million increase in commissions revenue driven by a 6% increase in approved policies and a 6% increase in LTVs. Life’s increase was driven by a $3.9 million increase in term revenue and a $7.7 million increase in final expense revenue.
Previous report
2024 compared to 2023—Cost of commissions and other service revenue increased $17.3 million, or 6%, in 2024 compared to 2023, primarily due to an $18.2 million increase in compensation costs related to a $4.8 million increase in costs for our sales and customer care agents in Senior, a $4.4 million increase for Healthcare Services related to the growth of SelectRx, and a $6.4 million increase for Life related to compensation structure changes for our final expense sales agents.
Previous report
2024 compared to 2023–Cost of goods sold-pharmacy revenue increased $179.0 million, or 79%, in 2024 compared to 2023, primarily due to a $158.9 million increase in medication costs as the number of SelectRx members increased 68% over the prior year as well as a $11.0 million increase in compensation costs due to an increase in employees directly associated with fulfilling pharmacy orders.
Previous report
2024 compared to 2023—Marketing and advertising expenses increased $57.6 million, or 19%, in 2024 compared to 2023, primarily due to a $50.7 million increase in lead costs and a $5.8 million increase in compensation costs for marketing personnel. This increase can be attributed to the increase in MA submitted policies and an increase in customer acquisition costs on a per policy basis.
Previous report
2024 compared to 2023—Selling, general, and administrative expenses increased $4.5 million, or 3%, in 2024 compared to 2023, primarily due to an $11.2 million increase in compensation costs related to the growth of SelectRx, a $6.2 million increase for both financing transaction costs and SelectRx bad debt expense, offset by a $2.0 million decrease in depreciation and amortization and a $17.3 million decrease in long-lived asset impairment expense.
Previous report
2024 compared to 2023—Interest expense increased $12.9 million, or 16%, in 2024 compared to 2023, as a result of higher interest rates during the period. The increase was partially offset by $2.6 million of interest received on our money market account during the period.
Previous report
(5) Corporate is not an operating segment and consists primarily of unallocated corporate overhead costs, such as payroll and related benefits ($51.4 million), professional services ($19.4 million), and facilities ($5.4 million).
Previous report
2024 compared to 2023—Revenue from our Senior segment was $655.8 million for the year ended June 30, 2024, a $65.7 million, or 11%, increase compared to revenue of $590.1 million for the year ended June 30, 2023. The increase was due to a $71.7 million, or 14%, increase in commissions revenue, offset by a $5.9 million decrease in other services revenue.
Previous report
Revenue from Healthcare Services was $478.5 million for the year ended June 30, 2024, a $226.4 million, or 90%, increase compared to revenue of $252.1 million for the year ended June 30, 2023, primarily due to a $225.3 million increase in SelectRx pharmacy revenue.
Previous report
Revenue from our Life segment was $157.9 million for the year ended June 30, 2024, a $12.1 million, or 8%, increase compared to revenue of $145.8 million for the year ended June 30, 2023, primarily due to an $11.5 million increase in commissions revenue and a $0.6 million increase in other services revenue.
Previous report
2024 compared to 2023—–Adjusted EBITDA from our Senior segment was $166.7 million for the year ended June 30, 2024, a $11.7 million, or 8%, increase compared to Adjusted EBITDA of $155.1 million for the year ended June 30, 2023. The increase was due to a $65.7 million increase in revenue, offset by a $48.3 million increase in marketing expenses. The increase in marketing expenses was primarily due to a $42.1 million increase in lead costs.
Previous report
Adjusted EBITDA from Healthcare Services was $7.8 million for the year ended June 30, 2024, a $30.6 million increase compared to Adjusted EBITDA of $(22.8) million for the year ended June 30, 2023. The increase was due to a $226.4 million increase in revenue, offset by a $178.5 million increase in cost of goods sold - pharmacy revenue, and $11.4 million increase in selling, general and administrative expenses. Cost of goods sold - pharmacy revenue increased primarily as a result of a $158.9 million increase in medication costs and a $13.9 million increase in compensation costs. Selling, general and administrative expenses increased primarily due to a $6.2 million increase in bad debt expense, and a $4.4 million increase in compensation costs.
Previous report
Adjusted EBITDA from our Life segment was $20.2 million for the year ended June 30, 2024, a $2.9 million, or 13%, decrease compared to Adjusted EBITDA of $23.1 million for the year ended June 30, 2023. The decrease in Adjusted EBITDA was due to a $12.1 million increase in revenue as discussed above, offset by a $8.6 million increase in marketing expenses. The increase in marketing expenses was primarily due to a $7.8 million increase in marketing and advertising 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 9 to the consolidated financial statements for further information.
Previous report
On October 15, 2024, the Company completed a $100.0 million securitization transaction to provide advanced financing against the expected collections for policies previously sold. The Company used the proceeds to pay down a portion of its outstanding term loans. During the year ended June 30, 2025, the Company received proceeds of $99.1 million, and as of June 30, 2025, had outstanding borrowings of $83.4 million. Refer to Note 8 for further information.
Previous report
Senior Secured Credit Facility
Previous report
During the year ended June 30, 2025, the Company received proceeds of $166.9 million and repaid $166.9 million, and as of June 30, 2025, had no outstanding borrowings related to the revolving credit facility. Refer to Note 8 to the consolidated financial statements for further information.
Previous report
Year Ended June 30, 2023—Net cash used in operating activities was $19.4 million, consisting of net loss of $58.5 million, adjustments for non-cash items of $71.7 million, and cash used in operating assets and liabilities of $32.5 million. Adjustments for non-cash items primarily consisted of $27.9 million of depreciation and amortization, $17.3 million of charges for impairment of long-lived assets, $11.3 million of share-based compensation expense, $12.0 million of accrued interest payable in kind on the Term Loans, $8.7 million of amortization of debt issuance costs and debt discount, and $4.2 million of non-cash lease expense, offset by $11.2 million in deferred income taxes. The cash decrease resulting from changes in net operating assets and liabilities primarily consisted of an increase of $24.8 million in accounts receivable, net, an increase of $1.9 million in commissions receivable, and a decrease of $3.6 million in accounts payable and accrued expenses, partially offset by an increase of $3.3 million in other liabilities.
Previous report
Year Ended June 30, 2023—Net cash used in investing activities of $9.1 million was due to $1.4 million of purchases of property and equipment, primarily to support the growth of SelectRx infrastructure, and $7.7 million in purchases of software and capitalized internal-use software development costs.
Previous report
Year Ended June 30, 2023—Net cash used in financing activities of $29.3 million was primarily due to $10.1 million of debt issuance costs related to the Fourth Amendment, $17.8 million of principal payments on the Term Loans, and $2.4 million of holdback remitted as part of the Express Med acquisition, partially offset by $1.2 million in proceeds from common stock options exercised and the employee stock purchase plan.
Reworded paragraphs (63)
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 strategic shift reflects our prioritization of higher-growth opportunities in areas such as pharmacy services. 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
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 90%, 91%, and 89% of our approved Senior policies for the years ended June 30, 2025, 2024, and 2023, respectively, with other ancillary type policies accounting for the remainder.
Current wording
Senior was launched in 2010 and provides unbiased comparison shopping for Medicare Advantage (“MA”) and Medicare Supplement (“MS”) insurance plans as well as prescription drug and dental, vision, and hearing (“DVH”) plans, and critical illness products. We represent approximately 25 leading, nationally-recognized insurance carrier partners, including UHC, Humana, Aetna, and Wellcare. MA plans accounted for 89%, 89%, and 91% of our approved Senior policies for the years ended June 30, 2026, 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 most recently, 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 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 2.6 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%, 45%, and 47% of new premium within the Life segment for the years ended June 30, 2025, 2024, and 2023, respectively, with final expense policies accounting for 60%, 55%, and 53% for the years ended June 30, 2025, 2024, and 2023, respectively.
Current wording
Life is one of the country’s largest and most established DTC insurance distributors for term life insurance, having sold over 2.7 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 41%, 40%, and 45% of new premium within the Life segment for the years ended June 30, 2026, 2025, and 2024, respectively, with final expense policies accounting for 59%, 60%, and 55% for the years ended June 30, 2026, 2025, and 2024, respectively.
Previous wording
2025, on average, 11,400 “Baby Boomers” are expected to turn 65 every day, or nearly 4.2 million people will reach the traditional retirement age in a single year. As a result, Medicare Advantage enrollment has more than doubled since 2010 and is projected to grow from 54% of the eligible population in 2024 to 64% by 2034. According to the Congressional Budget Office’s projections, Medicare enrollment is expected to rise from 60 million in 2023 to 74 million in 2034. Of this, Medicare Advantage plans are representing an increasing share of the Medicare market. According to the Kaiser Family Foundation, in 2024, Medicare Advantage enrollment held 54% market penetration, with nearly 33 million Medicare Advantage enrollees. Between 2023 and 2024, total Medicare Advantage enrollment grew by about 7%. The Congressional Budget Office projects that the share of all Medicare beneficiaries enrolled in Medicare Advantage plans will rise to 64% by 2034. The degree to which we will realize a corresponding increase in revenue will be determined by our ability to continue to successfully place new Medicare policies for this enlarged potential consumer base.
Current wording
Our Senior and Healthcare Services segments serve consumers predominantly in the over 65 age category. According to the United States Census Bureau, the over 65 age category grew from 13% of the total population in 2010 to 17% of the total population in 2022, and is expected to reach 21% in 2030. Based upon a research study, in 2025, on average, 11,400 “Baby Boomers” were expected to turn 65 every day, or nearly 4.2 million people were to reach the traditional retirement age in a single year. As a result, Medicare Advantage enrollment has more than doubled since 2010 and is projected to grow from 54% of the eligible population in 2025 to 64% by 2034. According to the Congressional Budget Office’s projections, Medicare enrollment is expected to rise from 60 million in 2023 to 74 million in 2034. Of this, Medicare Advantage plans are representing an increasing share of the Medicare market. According to the Kaiser Family Foundation, in 2025, Medicare Advantage enrollment held 54% market penetration, with nearly 34 million Medicare Advantage enrollees. Between 2024 and 2025, total Medicare Advantage enrollment grew by about 4%. The Congressional Budget Office projects that the share of all Medicare beneficiaries enrolled in Medicare Advantage plans will rise to 64% by 2034. The degree to which we will realize a corresponding increase in revenue will be determined by our ability to continue to successfully place new Medicare policies for this enlarged potential consumer base.
Previous wording
The U.S. life insurance market is mature and has experienced annual premium growth of 3% in 2024. Growth in the life insurance sector is driven by a number of macro-economic factors including population growth, general economic growth and individual wealth accumulation.
Current wording
The U.S. life insurance market is mature and has experienced industry-wide new annualized premium growth of 10% in 2025. Growth in the life insurance sector is driven by a number of macro-economic factors including population growth, general economic growth and individual wealth accumulation.
Previous wording
The following table shows the number of submitted policies for the years ended June 30:
Current wording
The following table shows the number of submitted policies for the periods presented:
Previous wording
2024 compared to 2023—Total submitted policies for all products increased 7% for the year ended June 30, 2024, compared to the year ended June 30, 2023. This was driven by an 11% increase in overall close rates, 7% increase in the number of average productive agents, and 9% increase in productivity per agent.
Current wording
2026 compared to 2025—Total submitted policies for all products decreased 6% for theyear ended June 30, 2026, compared to theyear ended June 30, 2025. The decrease was primarily due to a 13% decrease in overall close rates, and a 1% decrease in the number of average productive agents.
Previous wording
2025 compared to 2024—Total submitted policies for all products decreased 4% for theyear ended June 30, 2025, compared to theyear ended June 30, 2024. This was driven by a 26% decrease in the number of average productive agents, offset by a 11% increase in overall close rates and 24% increase in productivity per agent.
Current wording
2025 compared to 2024—Total submitted policies for all products decreased 4% for theyear ended June 30, 2025, compared to theyear ended June 30, 2024. This was driven by a 26% decrease in the number of average productive agents, offset by an 11% increase in overall close rates and a 24% increase in productivity per agent.
Previous wording
The following table shows the number of approved policies for the years ended June 30:
Current wording
The following table shows the number of approved policies for the periods presented:
Previous wording
The lifetime value of commissions (the “LTV”) per approved policy represents commissions estimated to be collected over the estimated life of an approved policy based on multiple factors, including but not limited to, contracted commission rates, carrier mix, and expected policy persistency with applied constraints. The LTV per approved policy is equal to the sum of the commission revenue due upon the initial sale of a policy, and when applicable, an estimate of future renewal commissions. The estimate of the future renewal commissions is determined using contracted renewal commission rates, which does not include marketing development funds or production bonuses, constrained by a persistency-adjusted 10-year renewal period based on a combination of our historical experience and available insurance carrier historical experience to estimate renewal revenue only to the extent probable that a significant reversal in revenue would not be expected to occur. These factors may result in varying values from period to period. The LTV per approved policy represents commissions only from policies sold during the period; it does not include any updated estimates of prior period variable consideration based on actual policy renewals in the current period.
Current wording
The lifetime value of commissions (the “LTV”) per approved policy represents commissions estimated to be collected over the estimated life of an approved policy based on multiple factors, including but not limited to, contracted commission rates, carrier mix, and expected policy persistency with applied constraints. The LTV per approved policy is equal to the sum of the commission revenue due upon the initial sale of a policy, and when applicable, an estimate of future renewal commissions. The estimate of the future renewal commissions is determined using contracted renewal commission rates, which does not include marketing development funds or production bonuses, constrained by a persistency-adjusted 10-year renewal period based on our historical experience to estimate renewal revenue only to the extent probable that a significant reversal in revenue would not be expected to occur. These factors may result in varying values from period to period. The LTV per approved policy represents commissions only from policies sold during the period; it does not include any updated estimates of prior period variable consideration based on actual policy renewals in the current period.
Previous wording
The following table shows the LTV per approved policy for the years ended June 30:
Current wording
The following table shows the LTV per approved policy for the periods presented:
Previous wording
2024 compared to 2023—The LTV per MA approved policy increased 4% for the year ended June 30, 2024, compared to the year ended June 30, 2023, primarily due to carrier mix.
Current wording
2026 compared to 2025—The LTV per MA approved policy decreased 1% for theyear ended June 30, 2026, compared to theyear ended June 30, 2025, primarily due to shifts in carrier mix and changes to plan designs.
Previous wording
The following table shows the total number of SelectRx members as of June 30:
Current wording
The following table shows the total number of SelectRx members as of the date presented:
Previous wording
The total number of SelectRx members increased by 31% asof June 30, 2025, compared to June 30, 2024, and 68% as of June 30, 2024, compared to June 30, 2023, due to our strategy to grow SelectRx membership.
Current wording
The total number of SelectRx members increased by 1% asof June 30, 2026, compared to June 30, 2025, and 31% asof June 30, 2025, compared to June 30, 2024, due to a growth in membership during the AEP season.
Previous wording
The following table shows the average prescriptions shipped per day for the years ended June 30:
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The following table shows the average prescriptions shipped per day for the periods presented:
Previous wording
The following table shows term and final expense premiums for the years ended June 30:
Current wording
The following table shows term and final expense premiums for the periods presented:
Previous wording
2024 compared to 2023—Total term premiums increased 2% for the year ended June 30, 2024, compared to the year ended June 30, 2023, due to a 5% increase in the average premium per policy sold, offset by a 3% decrease in the number of policies sold. Final expense premiums increased 11% for the year ended June 30, 2024, compared to the year ended June 30, 2023, due to a 3% increase in the average premium per policy sold and a 9% increase in the number of policies sold.
Current wording
2026 compared to 2025—Total term premiums increased 5% for the year ended June 30, 2026, compared to the year ended June 30, 2025, due to a 3% increase in the number of policies sold and a 2% increase in the average premium per policy sold. Final expense premiums increased 5% for the year ended June 30, 2026, compared to the year ended June 30, 2025, due to a 4% increase in the number of policies sold and a 1% increase in the average premium per policy 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 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.
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 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.
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 satisfied our performance obligation 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
The following table presents our revenue for the years ended June 30 and the percentage changes from the prior year:
Current wording
The following table presents our revenue for the periods presented and the percentage changes from the prior year:
Previous wording
2025 compared to 2024— Pharmacy revenue increased $263.9 million, or 57%, primarily due to the 31% increase in members due to the expansion of the SelectRx business. Commission and other services revenue decreased $59.1 million, or 7%, for the year ended June 30, 2025, primarily due to a $51.5 million, and $18.2 million decrease in Senior commissions revenue, and other services revenue, respectively. The decrease was partially offset by a $15.0 million increase in Life revenue. The decrease in Senior revenue, was driven by a 4% decrease in approved policies. The increase in Life revenue was primarily driven by a $14.0 million increase in final expense revenue.
Current wording
2025 compared to 2024—Commission and other services revenue decreased $59.1 million, or 7%, for the year ended June 30, 2025, primarily due to a $51.5 million, and $18.2 million decrease in Senior commissions revenue, and other services revenue, respectively. The decrease was partially offset by a $15.0 million increase in Life revenue. The decrease in Senior revenue, was driven by a 4% decrease in approved policies. The increase in Life revenue was primarily driven by a $14.0 million increase in final expense revenue. Pharmacy revenue increased $263.9 million, or 57%, primarily due to the 31% increase in members due to the expansion of the SelectRx business.
Previous wording
The following table presents our cost of commissions and other services revenue for the years ended June 30 and the percentage change from the prior year:
Current wording
The following table presents our cost of commissions and other services revenue for the periods presented and the percentage change from the prior year:
Previous wording
The following table presents our cost of goods sold-pharmacy revenue for the years ended June 30 and the percentage change from the prior year:
Current wording
The following table presents our cost of goods sold-pharmacy revenue for the periods presented and the percentage change from the prior year:
Previous wording
2025 compared to 2024—Cost of goods sold-pharmacy revenue increased $225.3 million, or 56%, in 2025 compared to 2024, primarily due to an $200.9 million increase in medication costs as the number of SelectRx members increased 31% over the prior year as well as a $15.4 million increase in compensation costs due to an increase in the number of employees directly associated with fulfilling pharmacy orders.
Current wording
2025 compared to 2024—Cost of goods sold-pharmacy revenue increased $225.3 million, or 56%, in 2025 compared to 2024, primarily due to a $200.9 million increase in medication costs as the number of SelectRx members increased 31% over the prior year as well as a $15.4 million increase in compensation costs due to an increase in the number of employees directly associated with fulfilling pharmacy orders.
Previous wording
The following table presents our marketing and advertising expenses for the years ended June 30 and the percentage changes from the prior year:
Current wording
The following table presents our marketing and advertising expenses for the periods presented and the percentage changes from the prior year:
Previous wording
The following table presents our selling, general, and administrative expenses for the years ended June 30 and the percentage changes from the prior year:
Current wording
The following table presents our selling, general, and administrative expenses for the periods presented and the percentage changes from the prior year:
Previous wording
2025 compared to 2024—Selling, general, and administrative expenses increased $23.4 million, or 17%, in 2025 compared to 2024, primarily due to $18.2 million increase in compensation costs, a $4.2 million increase in impairment of long-lived assets, and a $3.0 million increase in corporate development costs. The increase in compensation costs was primarily related the growth of SelectRx. The increase in impairment of long-lived assets was due to the write-off of the InsideResponse customer relationship intangible asset. The increase in corporate development costs is a result of expenses incurred related to the securitization and Senior Non-Convertible Preferred Stock transactions.
Current wording
2025 compared to 2024—Selling, general, and administrative expenses increased $23.4 million, or 17%, in 2025 compared to 2024, primarily due to a $18.2 million increase in compensation costs, a $4.2 million increase in impairment of long-lived assets, and a $3.0 million increase in corporate development costs. The increase in compensation costs was primarily related the growth of SelectRx. The increase in impairment of long-lived assets was due to the write-off of the InsideResponse customer relationship intangible asset. The increase in corporate development costs is a result of expenses incurred related to the securitization and Senior Non-Convertible Preferred Stock transactions.
Previous wording
The following table presents our technical development expenses for the years ended June 30 and the percentage changes from the prior year:
Current wording
The following table presents our technical development expenses for the periods presented and the percentage changes from the prior year:
Previous wording
2024 compared to 2023—Technical development expenses increased $7.5 million, or 29%, in 2024 compared to 2023, primarily due to a $7.3 million increase in compensation costs due to an increase in headcount for technology personnel.
Current wording
2026 compared to 2025—Technical development expenses increased $0.3 million, or 1%, for the year ended June 30, 2026, primarily due to a $1.4 million increase in compensation costs due to an increase in headcount for technology personnel. The increase in compensation costs was partially offset by a $0.8 million decrease in information technology related expenses, and a $0.2 million decrease in depreciation and amortization. The decrease in information technology related expenses was primarily driven by a decrease in data center costs due to a reduction in cloud infrastructure capacity to align with current demand.
Previous wording
The following table presents our interest expense, net for the years ended June 30 and the percentage changes from the prior year:
Current wording
The following table presents our interest expense, net for the periods presented and the percentage changes from the prior year:
Previous wording
The following table presents our provision for income taxes for the years ended June 30 and the percentage changes from the prior year:
Current wording
The following table presents our provision for income taxes for the periods presented and the percentage changes from the prior year:
Previous wording
2024 compared to 2023—Income tax expense (benefit) increased $15.7 million, or 148%, in 2024 compared to 2023. For the year ended June 30, 2024, we recognized an income tax expense of $5.1 million, representing an effective tax rate of 17.4%. The differences from our federal statutory tax rate to the effective tax rate 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. For the year ended June 30, 2023, we recognized an income tax benefit of $10.6 million, representing an effective tax rate of 15.3%. The differences from our federal statutory tax rate to the effective tax rate were primarily related to state income taxes, RSU vestings, executive officer compensation, and the recording of a valuation allowance for state tax attributes that the Company does not expect to utilize prior to expiration.
Current wording
2026 compared to 2025—Income tax expense increased $13.2 million, or 1414%, in 2026 compared to 2025. For the year ended June 30, 2026, the Company recognized an income tax expense of $14.1 million, representing an effective tax rate of 18.5%. The differences from the federal statutory tax rate to the effective tax rate for the year ended June 30, 2026, 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. For the year ended June 30, 2025, the Company recognized an income tax expense of $0.9 million, representing an effective tax rate of 1.9%. The differences from the federal statutory tax rate to the effective tax rate for the year ended June 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, excess officer and stock-based compensation and general business credits.
Previous wording
2025 compared to 2024—Income tax expense (benefit) decreased $4.1 million, or 82%, in 2025 compared to 2024. For the year ended June 30, 2025, the Company recognized an income tax expense of $0.9 million, representing an effective tax rate of 1.9%. The differences from the federal statutory tax rate to the effective tax rate for the year ended June 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, excess officer and stock-based compensation and general business credits. For the year ended June 30, 2024, we recognized an income tax expense of $5.1 million, representing an effective tax rate of 17.4%. The differences from our federal statutory tax rate to the effective tax rate 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.
Current wording
2025 compared to 2024—Income tax expense decreased $4.1 million, or 82%, in 2025 compared to 2024. For the year ended June 30, 2025, the Company recognized an income tax expense of $0.9 million, representing an effective tax rate of 1.9%. The differences from the federal statutory tax rate to the effective tax rate for the year ended June 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, excess officer and stock-based compensation and general business credits. For the year ended June 30, 2024, we recognized an income tax expense of $5.1 million, representing an effective tax rate of 17.4%. The differences from our federal statutory tax rate to the effective tax rate 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.
Previous wording
As of July 1, 2024, the Company 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, 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.
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 is included in an “All Other” category. Prior period information has been recast to conform to the current presentation.
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.
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” 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 to the consolidated financial statements.
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 those described in Note 1 of the consolidated financial statements.
Previous wording
The following tables present information about the reportable segments for the periods presented. The significant expense categories align with the segment-level information that is regularly provided to the CODM. Segment Cost of commissions and other services revenue, Cost of goods sold - pharmacy revenue, Segment marketing expenses, Segment technical development expenses, and Segment general and administrative expenses were adjusted to exclude certain items, as reflected in the Reconciliation of total segment Adjusted EBITDA sections below, that are not included in the Segment Adjusted EBITDA profitability.
Current wording
The following tables present information about the reportable segments for the periods presented.
Previous wording
The following table depicts the disaggregation of revenue by segment and product for the years ended June 30:
Current wording
The following table depicts the disaggregation of revenue by segment and product for the periods presented:
Showing the first 40 of 63 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
2026 compared to 2025—Total approved policies for all products decreased by 4% for theyear ended June 30, 2026, compared to theyear ended June 30, 2025, which correlates to the decrease in submitted policies, partially offset by increased submission-to-approval rates during the current period.
Current report — wording carried from elsewhere
(6) These expenses primarily consist of non-restructuring severance expenses ($1.3 million) and financing transaction costs ($0.8 million).
Current report — wording carried from elsewhere
Year Ended June 30, 2026—Net cash used in investing activities of $16.1 million was due to $11.9 million in purchases of software and capitalized internal-use software development costs and $4.2 million of purchases of property and equipment, primarily made up of machinery and equipment and leasehold improvements.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Our Senior and Healthcare Services segments serve consumers predominantly in the over 65 age category. According to the United States Census Bureau, the over 65 age category grew from 13% of the total population in 2010 to 18% of the total population in 2023, and is expected to reach 21% in 2030. Based upon a research study, in
Previous report — wording carried 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.