SelectQuote Reports 13% Revenue Growth to $328.8 Million, Faces Increased Losses

SelectQuote, Inc. reported its financial results for the three months ended September 30, 2025, revealing a total revenue of $328.8 million, a 13% increase from $292.3 million in the same period last year. The growth was primarily driven by a significant rise in pharmacy revenue, which surged 43% to $218.5 million, attributed to a 24% increase in SelectRx members. However, commissions and other services revenue fell by 21% to $110.3 million, largely due to a 37% decline in revenue from the Senior segment, which was impacted by regulatory changes affecting Medicare Advantage enrollment.

The company's operating costs also increased, totaling $369.6 million, up from $304.2 million a year earlier. This rise was driven by a 49% increase in the cost of goods sold related to pharmacy revenue, reflecting higher medication costs and increased staffing to support the growing volume of pharmacy orders. Despite the revenue growth, SelectQuote reported a loss from operations of $40.7 million, compared to a loss of $12.0 million in the prior year. The net loss attributable to common shareholders was $47.9 million, consistent with the loss per share of $(0.26).

In terms of strategic developments, SelectQuote has been focusing on expanding its healthcare services platform, particularly through its SelectRx pharmacy services and the recently launched SelectPatient Management (SPM) program, which aims to enhance chronic care management. The company has also de-emphasized its Auto & Home insurance business, which no longer represents a core focus. As of September 30, 2025, SelectQuote's total assets stood at $1.2 billion, with total liabilities of $660.1 million, reflecting a decrease in cash and cash equivalents from $37.1 million to $15.7 million over the quarter.

Operationally, SelectQuote reported a decrease in submitted policies for Medicare Advantage, down 26% to 87,414, and a corresponding 27% drop in approved policies. The company attributed these declines to regulatory changes that limited enrollment opportunities. In contrast, the number of SelectRx members increased to 106,914, contributing to the growth in pharmacy revenue. The company also reported a total of 3.3 million shares of common stock outstanding as of September 30, 2025, with a weighted average of 185.8 million shares used in the calculation of net loss per share.

Looking ahead, SelectQuote anticipates continued growth in its healthcare services segment, driven by the expansion of SelectRx and SPM. The company remains focused on leveraging its technology platform to enhance consumer engagement and optimize marketing efforts. However, it also acknowledges the challenges posed by regulatory changes in the Medicare space and the need to adapt its strategies accordingly. The management expressed confidence in maintaining compliance with debt covenants and expects to utilize existing cash and operational cash flows to meet liquidity needs in the coming months.