Insurance distributor SelectQuote's Q3 revenue rises less than expected

Selectquote

05/05/2026 12:34

Overview

US insurance distributor's fiscal Q3 revenue rose yr/yr but missed analyst expectations

Fiscal Q3 net income increased to $40.2 mln from $26 mln a yr earlier

Company cites profit and cash flow growth despite market shifts, reaffirms fiscal 2026 outlook

Outlook

SelectQuote expects fiscal 2026 revenue between $1.61 bln and $1.71 bln

Company sees fiscal 2026 adjusted EBITDA between $90 mln and $100 mln

SelectQuote says improvement to capital structure and SelectRx business expected to expand cash flow

Result Drivers

AGENT EXECUTION & TECHNOLOGY - Co said operating execution by agents and technology advantages supported profit and cash flow growth

SELECTRX GROWTH - SelectRx pharmacy business contributed to higher revenue, with SelectRx members up 11% yr/yr

IMPROVED CUSTOMER ACQUISITION EFFICIENCY - Revenue to customer acquisition cost of 6.7X reached a high for the company, reflecting increased efficiency

Company press release: ID:nBw15yfFKa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$430.90 mln
$439.02 mln (4 Analysts)
Q3 EPS
$0.11
Q3 Net Income
$40.20 mln
Q3 Adjusted EBITDA
$44.60 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the multiline insurance & brokers peer group is "buy"

Wall Street's median 12-month price target for SelectQuote Inc is $3.00, about 268.8% above its May 4 closing price of $0.81

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)