SelectQuote, Inc. reported significant financial performance for the second quarter of fiscal year 2025, ending December 31, 2024, with total revenue reaching $481.1 million, a 19% increase from $405.4 million in the same period last year. The company's net income for the quarter was $53.2 million, or $0.30 per diluted share, compared to a net income of $19.4 million, or $0.11 per diluted share, in the prior year. For the six months ended December 31, 2024, total revenue was $773.3 million, up 21% from $638.2 million, with net income of $8.7 million, a turnaround from a net loss of $11.7 million in the same period last year.
The company experienced notable growth in its Healthcare Services segment, which saw revenue increase by 64% to $183.4 million, primarily driven by a 54% rise in SelectRx members. The Senior segment also contributed positively, with revenue increasing by 3% to $255.6 million, attributed to a rise in approved policies. However, the Life segment's revenue grew modestly by 7% to $39.9 million, reflecting a mixed performance in term and final expense premiums.
SelectQuote's operational metrics indicated a 5% increase in total submitted policies for the quarter, driven by improved close rates and production per agent, despite a decrease in the average number of productive agents. The company also reported a 54% increase in SelectRx members, highlighting its strategic focus on expanding healthcare services. The total number of prescriptions shipped per day rose significantly, further supporting revenue growth in this segment.
In terms of strategic developments, SelectQuote completed a $100 million securitization transaction in October 2024, which allowed it to pay down a portion of its outstanding term loans. The company also entered into a Senior Preferred Stock Purchase Agreement in February 2025, expected to provide $350 million in cash to support operations and reduce debt. As of December 31, 2024, SelectQuote's total debt obligations stood at $711.9 million, reflecting a slight increase from $683.3 million at the end of the previous fiscal year.
Looking ahead, SelectQuote anticipates continued growth driven by its technology-enabled distribution platform and expanding healthcare services. The company remains focused on optimizing its marketing strategies and enhancing customer engagement to improve profitability. However, management has acknowledged the need for additional financing to meet future obligations, emphasizing the importance of maintaining compliance with debt covenants.
About SelectQuote, Inc.
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