The strong Q3 beat and reaffirmed guidance suggest operational momentum, particularly in Senior margins and Healthcare Services growth. However, the stock's small market cap ($143M) and low analyst coverage (1 analyst) mean any positive surprise could have outsized impact. Monitor the earnings call for commentary on Medicare Advantage policy volume constraints and PBM reimbursement headwinds mentioned in the prior quarter.
Price Chart
Executive Summary
SelectQuote reported Q3 FY2026 revenue of $430.9M (+5.6% YoY) and net income of $40.2M (+54.5% YoY), beating consensus estimates. The company reaffirmed its FY2026 guidance of $1.61B-$1.71B revenue and $90M-$100M Adjusted EBITDA. The beat was driven by strong Senior segment margins (32% Adjusted EBITDA) and continued Healthcare Services growth, though the Life segment saw a slight Adjusted EBITDA decline.
Key Financial Metrics
Key Facts
- Q3 FY2026 revenue of $430.9M vs $408.2M YoY (+5.6%)
- Net income of $40.2M vs $26.0M YoY (+54.5%)
- Adjusted EBITDA of $44.6M vs $37.7M YoY (+18.3%)
- Senior segment revenue $182.9M (+8% YoY), Adjusted EBITDA $58.6M (+28% YoY) with 32% margins
- Healthcare Services revenue $199.4M (+5% YoY), SelectRx members up 11% to 116,616
- Life segment revenue $47.9M (+4% YoY), Adjusted EBITDA $6.1M (-4% YoY)
- FY2026 guidance reaffirmed: revenue $1.61B-$1.71B, Adjusted EBITDA $90M-$100M
- Revenue-to-CAC multiple reached a record 6.7x
- Commissions receivable balance grew to nearly $1B, including a $14M positive change in estimate
Financial Impact
Revenue beat consensus by ~$8M (1.8%), EPS beat by $0.24 (1200%) vs $0.02 estimate
Risk Factors
- Medicare Advantage policy volume constraints from national carrier decisions
- PBM reimbursement changes impacting Healthcare Services margins
- Seasonal fluctuations in Senior segment (AEP/OEP periods)
- High leverage with $375.8M total debt vs $35.2M cash
- Preferred stock liquidation preference of $408.4M exceeds common equity
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001794783-26-000027 |
| Document: slqt-20260505.htm | 0001794783-26-000027 |
| Document: selectquoteincmarch31202.htm | 0001794783-26-000027 |
| Document: 0001794783-26-000027-index-headers.html | 0001794783-26-000027 |
| Document: 0001794783-26-000027-index.html | 0001794783-26-000027 |
| Document: 0001794783-26-000027.txt | 0001794783-26-000027 |
| 8-K Data (Synthetic) | 0001794783-26-000027 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 30, 2026 26d ago | DEFA14A | $0.4260 | awaiting T+60 | — | $0.3070 (−27.93%) |
Sep 30, 2026 26d ago | DEF 14A | $0.4260 | awaiting T+60 | — | $0.3070 (−27.93%) |
Aug 25, 2026 8w ago | 8-K | $0.5483 | awaiting T+60 | — | $0.3070 (−44.01%) |
Jun 11, 2026 19w ago | Institutional Cluster | $0.9165 $0.5362 | ▲ +41.49% | ▲ +45.89% | $0.3070 (+66.50%) |
May 5, 2026 24w ago | 8-K | $1.24 $0.7266 | ▼ −41.40% | ▼ −44.14% | $0.3070 (−75.24%) |
US Market Status
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