SLQT SelectQuote Inc

First Quarter of Fiscal Year 2025 – Consolidated Earnings Highlights

• Revenue of $292.3 million
• Net loss of $44.5 million
• Adjusted EBITDA* of $(1.7) million

Fiscal Year 2025 Guidance Ranges:

• Revenue expected in a range of $1.425 billion to $1.525 billion
• Net income (loss) expected in a range of $(59) million to $3 million
• Adjusted EBITDA* expected in a range of $100 million to $130 million

First Quarter Fiscal Year 2025 – Segment Highlights

Senior

• Revenue of $92.9 million
• Adjusted EBITDA* of $7.7 million
• Approved Medicare Advantage policies of 91,680

Healthcare Services

• Revenue of $155.7 million
• Adjusted EBITDA* of $4.9 million
• 86,521 SelectRx members

Life

• Revenue of $39.3 million
• Adjusted EBITDA* of $6.0 million

SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the first quarter of fiscal year 2025 of $292.3 million compared to consolidated revenue for the first quarter of fiscal year 2024 of $232.7 million. Consolidated net loss for the first quarter of fiscal year 2025 was $44.5 million compared to consolidated net loss for the first quarter of fiscal year 2024 of $31.1 million. Finally, consolidated Adjusted EBITDA* for the first quarter of fiscal year 2025 was $(1.7) million compared to consolidated Adjusted EBITDA* for the first quarter of fiscal year 2024 of $(11.4) million.

SelectQuote Chief Executive Officer, Tim Danker, remarked, “SelectQuote opened our fiscal 2025 with a strong quarter and our holistic approach to healthcare connectivity between Americans in need of care, and the insurers and caregivers that provide it, has never been more valuable. As reported in the market, benefit coverage for Medicare Advantage plans shifted significantly this season, and we are pleased to say that both seniors and insurance carriers have increasingly turned to SelectQuote’s agent-led, true-choice platform to ensure individual care needs are met with the best plan available. When our customers and carrier partners benefit, so do our performance metrics and shareholders, and we proud of this alignment.”

Mr. Danker continued, “This quarter was also a success for our broadening Healthcare Services platform led by SelectRx. Our bespoke prescription drug service now has over 86 thousand members, which represents growth of over 64% compared to a year ago. Separately, SelectQuote recently announced our initial receivable securitization, which was a critical first step in our ongoing strategy to improve our capital flexibility.”

“We look forward to sharing our AEP results next quarter and are excited by the value our differentiated model continues to provide to a large and growing population of American seniors,” Mr. Danker concluded.

* See “Non-GAAP Financial Measures” below.

Segment Results

We currently have three reportable segments: 1) Senior, 2) Healthcare Services and 3) Life. The performance measures of the segments include total revenue and Adjusted EBITDA.* Costs of commissions and other services revenue, cost of goods sold-pharmacy revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect costs of revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses are allocated to each segment based on varying metrics such as headcount. Adjusted EBITDA is our segment profit measure to evaluate the operating performance of our business. We define Adjusted EBITDA as net loss plus: (i) interest expense, net; (ii) expense (benefit) for income taxes; (iii) depreciation and amortization; (iv) share-based compensation; (v) goodwill, long-lived asset, and intangible assets impairments; (vi) transaction costs; (vii) loss on disposal of property, equipment and software, net; and (viii) other non-recurring expenses and income. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by revenue.

Senior

Financial Results

The following table provides the financial results for the Senior segment for the periods presented:

(in thousands)

 

1Q 2025

 

 

 

1Q 2024

 

 

% Change

Revenue

$

92,908

 

 

$

89,918

 

 

3

%

Adjusted EBITDA*

 

7,724

 

 

 

(1,335

)

 

679

%

Adjusted EBITDA Margin*

 

8

%

 

 

(1

)%

 

 

Operating Metrics

Submitted Policies

Submitted policies are counted when an individual completes an application with our licensed agent and provides authorization to the agent to submit the application to the insurance carrier partner. The applicant may have additional actions to take before the application will be reviewed by the insurance carrier.

The following table shows the number of submitted policies for the periods presented:

 

1Q 2025

 

1Q 2024

 

% Change

Medicare Advantage

102,281

 

104,532

 

(2

)%

All other (1)

16,256

 

14,920

 

9

%

Total

118,537

 

119,452

 

(1

)%

(1) Represents the submitted policies for medicare supplement, dental, vision and hearing, prescription drug plan and other.

Approved Policies

Approved policies represents the number of submitted policies that were approved by our insurance carrier partners for the identified product during the indicated period. Not all approved policies will go in force.

* See “Non-GAAP Financial Measures” below.

The following table shows the number of approved policies for the periods presented:

 

1Q 2025

 

1Q 2024

 

% Change

Medicare Advantage

91,680

 

97,681

 

(6

)%

All other (1)

12,979

 

12,195

 

6

%

Total

104,659

 

109,876

 

(5

)%

(1) Represents the approved policies for medicare supplement, dental, vision and hearing, prescription drug plan and other.

Lifetime Value of Commissions per Approved Policy

Lifetime value of commissions 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 lifetime value of commissions 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 following table shows the lifetime value of commissions per approved policy for the periods presented:

(dollars per policy):

 

1Q 2025

 

 

1Q 2024

 

% Change

Medicare Advantage

$

812

 

$

761

 

7

%

All other (1)

 

165

 

 

164

 

—

%

(1) Represents the weighted average LTV per approved policy.

Healthcare Services

Financial Results

The following table provides the financial results for the Healthcare Services segment for the periods presented:

(in thousands)

 

1Q 2025

 

 

 

1Q 2024

 

 

% Change

Revenue

$

155,739

 

 

$

97,368

 

 

60

%

Adjusted EBITDA*

 

4,878

 

 

 

2,322

 

 

110

%

Adjusted EBITDA Margin*

 

3

%

 

 

2

%

 

 

Operating Metrics

Members

The total number of SelectRx members represents the amount of active customers to which an order has been shipped and the prescriptions per day represents the total average prescriptions shipped per business day. These two metrics are the primary drivers of revenue for Healthcare Services.

The following table shows the total number of SelectRx members as of the periods presented:

 

 

September 30, 2024

 

September 30, 2023

Total SelectRx Members

 

86,521

 

52,750

The total number of SelectRx members increased by 64% as of September 30, 2024, compared to September 30, 2023, due to our continued operating strategy to grow SelectRx.

* See “Non-GAAP Financial Measures” below.

The following table shows the average prescriptions shipped per day for the periods presented:

 

 

September 30, 2024

 

September 30, 2023

Prescriptions Per Day

 

24,998

 

15,479

Combined Senior and Healthcare Services - Consumer Per Unit Economics

The opportunity to leverage our existing database and distribution model to improve access to healthcare services for our consumers has created a need for us to review our key metrics related to our per unit economics. As we think about the revenue and expenses for Healthcare Services, we note that they are derived from the marketing acquisition costs associated with the sale of an MA or MS policy, some of which costs are allocated directly to Healthcare Services, and therefore determined that our per unit economics measure should include components from both Senior and Healthcare Services. See details of revenue and expense items included in the calculation below.

Combined Senior and Healthcare Services consumer per unit economics represents total MA and MS commissions; other product commissions; other revenues, including revenues from Healthcare Services; and operating expenses associated with Senior and Healthcare Services, each shown per number of approved MA and MS policies over a given time period. Management assesses the business on a per-unit basis to help ensure that the revenue opportunity associated with a successful policy sale is attractive relative to the marketing acquisition cost. Because not all acquired leads result in a successful policy sale, all per-policy metrics are based on approved policies, which is the measure that triggers revenue recognition.

The MA and MS commission per MA/MS policy represents the LTV for policies sold in the period. Other commission per MA/MS policy represents the LTV for other products sold in the period, including DVH prescription drug plan, and other products, which management views as additional commission revenue on our agents’ core function of MA/MS policy sales. Pharmacy revenue per MA/MS policy represents revenue from SelectRx, and other revenue per MA/MS policy represents revenue from Population Health, production bonuses, marketing development funds, lead generation revenue, and adjustments from the Company’s reassessment of its cohorts’ transaction prices. Total operating expenses per MA/MS policy represents all of the operating expenses within Senior and Healthcare Services. The revenue to customer acquisition cost (“CAC”) multiple represents total revenue as a multiple of total marketing acquisition cost, which represents the direct costs of acquiring leads. These costs are included in marketing and advertising expense within the total operating expenses per MA/MS policy.

The following table shows combined Senior and Healthcare Services consumer per unit economics for the periods presented. Based on the seasonality of Senior and the fluctuations between quarters, we believe that the most relevant view of per unit economics is on a rolling 12-month basis. All per MA/MS policy metrics below are based on the sum of approved MA/MS policies, as both products have similar commission profiles.

 

Twelve Months Ended September 30,

(dollars per approved policy):

 

2025

 

 

 

2024

 

MA and MS approved policies

 

621,040

 

 

 

594,554

 

MA and MS commission per MA / MS policy

$

919

 

 

$

872

 

Other commission per MA/MS policy

 

12

 

 

 

13

 

Pharmacy revenue per MA/MS policy

 

842

 

 

 

493

 

Other revenue per MA/MS policy

 

152

 

 

 

151

 

Total revenue per MA / MS policy

 

1,925

 

 

 

1,529

 

Total operating expenses per MA / MS policy

 

(1,626

)

 

 

(1,278

)

Adjusted EBITDA per MA/MS policy *

$

299

 

 

$

251

 

Adjusted EBITDA Margin per MA/MS policy *

 

16

%

 

 

16

%

Revenue / CAC multiple

4.6X

 

4.3X

Total revenue per MA/MS policy increased 26% for the twelve months ended September 30, 2024, compared to the twelve months ended September 30, 2023, primarily due to the increase in pharmacy revenue. Total operating expenses per MA/MS policy increased 27% for the twelve months ended September 30, 2024, compared to the twelve months ended September 30, 2023, driven by an increase in cost of goods sold-pharmacy revenue for Healthcare Services due to the growth of the business.

Life

Financial Results

The following table provides the financial results for the Life segment for the periods presented:

(in thousands)

 

1Q 2025

 

 

 

1Q 2024

 

 

% Change

Revenue

$

39,290

 

 

$

37,803

 

 

4

%

Adjusted EBITDA*

 

5,960

 

 

 

5,240

 

 

14

%

Adjusted EBITDA Margin*

 

15

%

 

 

14

%

 

 

Operating Metrics

Life premium represents the total premium value for all policies that were approved by the relevant insurance carrier partner and for which the policy document was sent to the policyholder and payment information was received by the relevant insurance carrier partner during the indicated period. Because our commissions are earned based on a percentage of total premium, total premium volume for a given period is the key driver of revenue for our Life segment.

The following table shows term and final expense premiums for the periods presented:

(in thousands)

 

1Q 2025

 

 

1Q 2024

 

% Change

Term Premiums

$

15,218

 

$

18,190

 

(16

)%

Final Expense Premiums

 

24,473

 

 

19,699

 

24

%

Total

$

39,691

 

$

37,889

 

5

%

* See “Non-GAAP Financial Measures” below.

Earnings Conference Call

SelectQuote, Inc. will host a conference call with the investment community on November 4, 2024, beginning at 8:30 a.m. ET. To register for this conference call, please use this link: https://registrations.events/direct/Q4I1559258472. After registering, a confirmation will be sent via email, including dial-in details and unique conference call codes for entry. Registration is open through the live call, but to ensure you are connected for the full call we suggest registering at least 10 minutes before the start of the call. The event will also be webcasted live via our investor relations website https://ir.selectquote.com/investor-home/default.aspx.

Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We define Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, 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 define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. The most directly comparable GAAP measure is net income margin. We monitor and have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin because they are key measures used by our management and Board of Directors to understand and evaluate our operating performance, to establish budgets, and to 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. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in the calculations of these non-GAAP financial measures. Accordingly, we believe that these financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects. Reconciliations of net income (loss) to Adjusted EBITDA are presented below beginning on page 13.

Forward Looking Statements

This release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: impacts of the COVID-19 pandemic and any other significant public health events; our reliance on a limited number of insurance carrier partners and any potential termination of those relationships or failure to develop new relationships; existing and future laws and regulations affecting the health insurance market; changes in health insurance products offered by our insurance carrier partners and the health insurance market generally; insurance carriers offering products and services directly to consumers; changes to commissions paid by insurance carriers and underwriting practices; competition with brokers, exclusively online brokers and carriers who opt to sell policies directly to consumers; competition from government-run health insurance exchanges; developments in the U.S. health insurance system; our dependence on revenue from carriers in our senior segment and downturns in the senior health as well as life, automotive and home insurance industries; our ability to develop new offerings and penetrate new vertical markets; risks from third-party products; failure to enroll individuals during the Medicare annual enrollment period; our ability to attract, integrate and retain qualified personnel; our dependence on lead providers and ability to compete for leads; failure to obtain and/or convert sales leads to actual sales of insurance policies; access to data from consumers and insurance carriers; accuracy of information provided from and to consumers during the insurance shopping process; cost-effective advertisement through internet search engines; ability to contact consumers and market products by telephone; global economic conditions, including inflation; disruption to operations as a result of future acquisitions; significant estimates and assumptions in the preparation of our financial statements; impairment of goodwill; our ability to regain and maintain compliance with NYSE listing standards; potential litigation and other legal proceedings or inquiries; our existing and future indebtedness; our ability to maintain compliance with our debt covenants; access to additional capital; failure to protect our intellectual property and our brand; fluctuations in our financial results caused by seasonality; accuracy and timeliness of commissions reports from insurance carriers; timing of insurance carriers’ approval and payment practices; factors that impact our estimate of the constrained lifetime value of commissions per policyholder; changes in accounting rules, tax legislation and other legislation; disruptions or failures of our technological infrastructure and platform; failure to maintain relationships with third-party service providers; cybersecurity breaches or other attacks involving our systems or those of our insurance carrier partners or third-party service providers; our ability to protect consumer information and other data; failure to market and sell Medicare plans effectively or in compliance with laws; and other factors related to our pharmacy business, including manufacturing or supply chain disruptions, access to and demand for prescription drugs, and regulatory changes or other industry developments that may affect our pharmacy operations. For a further discussion of these and other risk factors that could impact our future results and performance, see the section entitled “Risk Factors” in the most recent Annual Report on Form 10-K (the “Annual Report”) and subsequent periodic reports filed by us with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

About SelectQuote:

Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions that help consumers protect their most valuable assets: their families, health, and property. The company pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads.

With an ecosystem offering high touchpoints for consumers across Insurance, Medicare, Pharmacy, and Value-Based Care, the company now has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a specialized medication management pharmacy, and Population Health which proactively connects its members with best-in-class healthcare services that fit each member's unique healthcare needs. The platform improves health outcomes and lowers healthcare costs through proactive engagement and access to high-value healthcare solutions.

Source: SelectQuote, Inc.

SELECTQUOTE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 

September 30, 2024

 

June 30, 2024

ASSETS

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

10,444

 

 

$

42,690

 

Accounts receivable, net of allowances of $10.1 million and $8.2 million, respectively

 

99,534

 

 

 

150,035

 

Commissions receivable-current

 

176,760

 

 

 

119,871

 

Other current assets

 

20,144

 

 

 

20,327

 

Total current assets

 

306,882

 

 

 

332,923

 

COMMISSIONS RECEIVABLE—Net

 

743,024

 

 

 

761,446

 

PROPERTY AND EQUIPMENT—Net

 

18,191

 

 

 

18,973

 

SOFTWARE—Net

 

14,224

 

 

 

13,978

 

OPERATING LEASE RIGHT-OF-USE ASSETS

 

22,591

 

 

 

23,437

 

INTANGIBLE ASSETS—Net

 

9,162

 

 

 

10,194

 

GOODWILL

 

29,438

 

 

 

29,438

 

OTHER ASSETS

 

3,359

 

 

 

3,519

 

TOTAL ASSETS

$

1,146,871

 

 

$

1,193,908

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

Accounts payable

$

51,108

 

 

$

36,587

 

Accrued expenses

 

15,409

 

 

 

16,904

 

Accrued compensation and benefits

 

44,735

 

 

 

57,594

 

Operating lease liabilities—current

 

4,764

 

 

 

4,709

 

Current portion of long-term debt

 

43,290

 

 

 

45,854

 

Contract liabilities

 

2,952

 

 

 

8,066

 

Other current liabilities

 

4,487

 

 

 

4,873

 

Total current liabilities

 

166,745

 

 

 

174,587

 

LONG-TERM DEBT, NET—less current portion

 

637,155

 

 

 

637,480

 

DEFERRED INCOME TAXES

 

46,018

 

 

 

37,478

 

OPERATING LEASE LIABILITIES

 

24,560

 

 

 

25,685

 

OTHER LIABILITIES

 

2,954

 

 

 

1,877

 

Total liabilities

 

877,432

 

 

 

877,107

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY:

 

 

 

Common stock, $0.01 par value

 

1,715

 

 

 

1,694

 

Additional paid-in capital

 

580,712

 

 

 

580,764

 

Accumulated deficit

 

(314,315

)

 

 

(269,769

)

Accumulated other comprehensive income

 

1,327

 

 

 

4,112

 

Total shareholders’ equity

 

269,439

 

 

 

316,801

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,146,871

 

 

$

1,193,908

 

SELECTQUOTE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)

 

Three Months Ended September 30,

 

 

2024

 

 

 

2023

 

REVENUE:

 

 

 

Commissions and other services

$

139,380

 

 

$

137,942

 

Pharmacy

 

152,883

 

 

 

94,788

 

Total revenue

 

292,263

 

 

 

232,730

 

 

 

 

 

OPERATING COSTS AND EXPENSES:

 

 

 

Cost of commissions and other services revenue

 

65,733

 

 

 

72,511

 

Cost of goods sold—pharmacy revenue

 

129,524

 

 

 

84,008

 

Marketing and advertising

 

63,764

 

 

 

62,323

 

Selling, general, and administrative

 

36,145

 

 

 

28,666

 

Technical development

 

9,074

 

 

 

7,637

 

Total operating costs and expenses

 

304,240

 

 

 

255,145

 

 

 

 

 

LOSS FROM OPERATIONS

 

(11,977

)

 

 

(22,415

)

 

 

 

 

INTEREST EXPENSE, NET

 

(23,031

)

 

 

(21,397

)

OTHER EXPENSE, NET

 

(12

)

 

 

(38

)

LOSS BEFORE INCOME TAX EXPENSE (BENEFIT)

 

(35,020

)

 

 

(43,850

)

INCOME TAX EXPENSE (BENEFIT)

 

9,526

 

 

 

(12,799

)

 

 

 

 

NET LOSS

$

(44,546

)

 

$

(31,051

)

 

 

 

 

NET LOSS PER SHARE:

 

 

 

Basic

$

(0.26

)

 

$

(0.19

)

Diluted

$

(0.26

)

 

$

(0.19

)

 

 

 

 

WEIGHTED-AVERAGE COMMON STOCK OUTSTANDING USED IN PER SHARE AMOUNTS:

 

 

 

Basic

 

170,431

 

 

 

167,453

 

Diluted

 

170,431

 

 

 

167,453

 

 

 

 

 

OTHER COMPREHENSIVE LOSS NET OF TAX:

 

 

 

Change in cash flow hedge

 

(2,785

)

 

 

(2,010

)

OTHER COMPREHENSIVE LOSS

 

(2,785

)

 

 

(2,010

)

COMPREHENSIVE LOSS

$

(47,331

)

 

$

(33,061

)

SELECTQUOTE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

Three Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net loss

 

$

(44,546

)

 

$

(31,051

)

Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:

 

 

 

 

—

 

Depreciation and amortization

 

 

5,599

 

 

 

5,989

 

Loss on disposal of property, equipment, and software

 

 

68

 

 

 

9

 

Share-based compensation expense

 

 

3,846

 

 

 

3,175

 

Deferred income taxes

 

 

9,526

 

 

 

(13,049

)

Amortization of debt issuance costs and debt discount

 

 

1,064

 

 

 

1,612

 

Accrued interest payable in kind

 

 

5,289

 

 

 

3,622

 

Non-cash lease expense

 

 

903

 

 

 

784

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable, net

 

 

50,501

 

 

 

38,693

 

Commissions receivable

 

 

(38,466

)

 

 

(29,148

)

Other assets

 

 

(3,516

)

 

 

(2,027

)

Accounts payable and accrued expenses

 

 

12,761

 

 

 

5,257

 

Operating lease liabilities

 

 

(1,127

)

 

 

(1,498

)

Other liabilities

 

 

(18,512

)

 

 

(6,039

)

Net cash used in operating activities

 

 

(16,610

)

 

 

(23,671

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Purchases of property and equipment

 

 

(442

)

 

 

(616

)

Proceeds from sales of property and equipment

 

 

—

 

 

 

253

 

Purchases of software and capitalized software development costs

 

 

(2,132

)

 

 

(1,782

)

Net cash used in investing activities

 

 

(2,574

)

 

 

(2,145

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Payments on Term Loans

 

 

(8,471

)

 

 

(8,471

)

Payments on other debt

 

 

(30

)

 

 

(37

)

Proceeds from common stock options exercised and employee stock purchase plan

 

 

38

 

 

 

—

 

Payments of tax withholdings related to net share settlement of equity awards

 

 

(3,915

)

 

 

(346

)

Payments of debt issuance costs

 

 

(684

)

 

 

—

 

Net cash used in financing activities

 

 

(13,062

)

 

 

(8,854

)

NET DECREASE IN CASH AND CASH EQUIVALENTS

 

 

(32,246

)

 

 

(34,670

)

CASH AND CASH EQUIVALENTS—Beginning of period

 

 

42,690

 

 

 

83,156

 

CASH AND CASH EQUIVALENTS—End of period

 

$

10,444

 

 

$

48,486

 

 

 

 

 

 

SELECTQUOTE, INC. AND SUBSIDIARIES

Adjusted EBITDA to Loss before income tax expense (benefit) Reconciliation

(Unaudited)

 

Three Months Ended September 30, 2024

(in thousands)

Senior

 

Healthcare Services

 

Life

 

Total

Adjusted Segment EBITDA

$

7,724

 

$

4,878

 

$

5,960

 

$

18,562

 

All other Adjusted EBITDA

 

 

 

 

 

 

 

3,797

 

Corporate & elimination of intersegment profits

 

 

 

 

 

 

 

(24,042

)

Adjusted EBITDA

 

 

 

 

 

 

 

(1,683

)

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

 

 

 

 

 

(3,846

)

Transaction costs (1)

 

 

 

 

 

 

 

(826

)

Depreciation and amortization

 

 

 

 

 

 

 

(5,599

)

Loss on disposal of property, equipment, and software, net

 

 

 

 

 

 

 

(35

)

Interest expense, net

 

 

 

 

 

 

 

(23,031

)

Loss before income tax expense (benefit)

 

 

 

 

 

 

$

(35,020

)

 

Three Months Ended September 30, 2023

(in thousands)

Senior

 

Healthcare Services

 

Life

 

Total

Adjusted Segment EBITDA

$

(1,335

)

 

$

2,322

 

$

5,240

 

$

6,227

 

All other Adjusted EBITDA

 

 

 

 

 

 

 

3,319

 

Corporate & elimination of intersegment profits

 

 

 

 

 

 

 

(20,922

)

Adjusted EBITDA

 

 

 

 

 

 

 

(11,376

)

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

 

 

 

 

 

(3,175

)

Transaction costs (1)

 

 

 

 

 

 

 

(1,904

)

Depreciation and amortization

 

 

 

 

 

 

 

(5,989

)

Loss on disposal of property, equipment, and software

 

 

 

 

 

 

 

(9

)

Interest expense, net

 

 

 

 

 

 

 

(21,397

)

Loss before income tax expense (benefit)

 

 

 

 

 

 

$

(43,850

)

SELECTQUOTE, INC. AND SUBSIDIARIES

Net Income (Loss) to Adjusted EBITDA Reconciliation

(Unaudited)

Guidance Net income (loss) to Adjusted EBITDA reconciliation, year ending June 30, 2025:

(in thousands)

Range

Net income (loss)

$

(59,000

)

 

$

3,000

Income tax expense

 

13,000

 

 

 

1,000

Interest expense, net

 

100,000

 

 

 

90,000

Depreciation and amortization

 

24,000

 

 

 

20,000

Share-based compensation expense

 

16,000

 

 

 

13,000

Transaction costs

 

6,000

 

 

 

3,000

Adjusted EBITDA

$

100,000

 

 

$

130,000

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241104387638/en/

Investor Relations: Sloan Bohlen 877-678-4083 investorrelations@selectquote.com Media: Matt Gunter 913-286-4931 matt.gunter@selectquote.com