SelectQuote reports fiscal 2026 revenue up 6%, guides FY27 EBITDA
SelectQuote says fiscal 2026 revenue rose 6% to $1.62 billion and adjusted EBITDA reached $109 million, and it guides fiscal 2027 adjusted EBITDA to $90 million to $115 million.
On Tuesday, SelectQuote (NYSE: SLQT ) discussed fourth-quarter financial results during its earnings call.
The full transcript is provided below.
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For comprehensive financial data and transcripts, visit Access the full call at Summary SelectQuote reported a strong fiscal 2026, with a 6% increase in revenue to $1.62 billion, and adjusted EBITDA of $109 million, surpassing guidance.
The company emphasized its focus on driving profitable cash flow and reducing leverage, highlighting a $40 million year-over-year improvement in operating cash flow.
Healthcare Services became the largest revenue contributor, achieving $25 million in adjusted EBITDA and exiting fiscal 2026 at a $50 million annual run rate.
Strategic initiatives include AI-enabled tools to improve operational efficiency and a new pharmacy management system enhancing the Kansas facility's efficiency by 30%.
For fiscal 2027, SelectQuote anticipates a 14% decline in revenue due to market dynamics and focuses on maintaining strong margins, with adjusted EBITDA guidance of $90 to $115 million.
Management expressed confidence in leveraging technology to drive further cost savings and outlined a strategic focus on cash flow generation and leverage reduction.
The company plans to approximately double operating cash flow in fiscal 2027 to over $60 million, with an expected free cash flow of around $50 million.
Full Transcript OPERATOR Earnings conference call.
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Again, it is now my pleasure to introduce Matt Gunter, SelectQuote Investor Relations.
Mr.
Gunter, you may begin the conference.
Matt Gunter, Investor Relations Thank you and good morning, everyone.
Welcome to SelectQuote's fiscal fourth quarter earnings call.
Before we begin our call, I would like to mention that on our website we have provided a slide presentation to help guide our discussion.
After today's call, a replay will also be available on our website.
Joining me from the company, I have our Chief Executive Officer, Tim Danker, and Chief Financial Officer, Ryan Clement.
Following Tim and Ryan's comments today, we will have a question-and-answer session as referenced on slide 2.
During this call we will be discussing some non-GAAP financial measures.
The most directly comparable GAAP financial measures and a reconciliation of the differences between the GAAP and non-GAAP financial measures are available in our earnings release and investor presentation on our website.
And finally, a reminder that certain statements made today may be forward-looking statements.
These statements are made based upon management's current expectations and beliefs concerning future events impacting the company and therefore involve a number of uncertainties and risks, including but not limited to those described in our earnings release, annual report on Form 10-K for the period ended June 30, 2026, and subsequent filings with the SEC.
Therefore, the actual results of operations or financial condition of the company could differ materially from those expressed or implied in our forward-looking statements.
And with that, I'd like to turn the call over to our Chief Executive Officer, Tim Danker.
Tim Danker, CEO Thank you, Matt, and thanks to everyone joining us this morning.
Before we begin, I'd like to start with what we believe is the most important takeaway from today's call.
SelectQuote's highest priority continues to be driving profitable cash flow, and our fiscal 2026 results demonstrate meaningful progress against that objective.
As you'll hear throughout our remarks, we're managing the business with a focus on cash generation and leverage reduction, which we believe is the best way to create long-term shareholder value.
We believe the platform we've built is capable of generating substantially more cash flow over time, and we are beginning to see that potential translate into tangible results.
Looking towards the future, we expect the Medicare Advantage industry to remain fluid as our carrier partners continue to right-size and get closer to their own operating margin targets.