SelectQuote Reports 12% Revenue Growth to $537.1 Million in Q4 2025

SelectQuote, Inc. reported a total revenue of $537.1 million for the three months ended December 31, 2025, marking a 12% increase from $481.1 million in the same period last year. The company's revenue for the six months ending December 31, 2025, also rose to $865.9 million, up from $773.3 million in the prior year. The growth was primarily driven by a significant increase in pharmacy revenue, which surged by 26% to $227.2 million for the quarter, and 34% to $445.8 million for the half-year, attributed to a 17% increase in SelectRx members. However, commissions and other services revenue saw a slight decline of 5% for the six-month period, primarily due to decreased Senior commission revenue.

In terms of profitability, SelectQuote reported a net income of $69.3 million for the three months ended December 31, 2025, compared to $53.2 million in the prior year, reflecting a 30% increase. For the six-month period, net income rose to $38.8 million from $8.7 million, indicating a substantial improvement in profitability. The company’s operating income for the quarter was $75.3 million, up from $70.9 million a year earlier, while the operating margin slightly decreased from 15% to 14% due to increased costs associated with pharmacy operations and marketing.

SelectQuote has made strategic moves to enhance its market position, including the acquisition of a chronic care management platform, SelectPatient Management (SPM), in 2024. This acquisition is part of the company's broader strategy to expand its healthcare services segment, which has shown promising growth. The company has also focused on increasing its agent headcount, which rose by 42% in the last quarter, contributing to higher policy sales, particularly in the Life segment, where final expense revenue increased by 25%.

Operationally, SelectQuote reported a total of 315,622 submitted policies for the three months ended December 31, 2025, a 1% increase from the previous year, driven by a 7% rise in average productive agents. However, the overall close rates decreased by 12%, impacting the number of approved policies. The company’s total cash, cash equivalents, and restricted cash stood at $23.3 million as of December 31, 2025, down from $37.1 million at the end of June 2025, reflecting the seasonal nature of its business and the timing of cash receipts from commissions.

Looking ahead, SelectQuote has entered into a new credit agreement to refinance its existing debt, which is expected to enhance liquidity and support operational needs. The company anticipates that its existing cash, along with the new credit facilities, will be sufficient to fund operations for at least the next 12 months. Despite the challenges posed by fluctuating close rates and market conditions, SelectQuote remains focused on leveraging its technology and expanding its healthcare services to drive future growth.