SelectQuote, Inc. reported a total revenue of $408.2 million for the three months ended March 31, 2025, marking an increase of 8% compared to $376.4 million in the same period last year. The company's revenue growth was primarily driven by a significant rise in its Healthcare Services segment, which saw a 53% increase in pharmacy revenue, totaling $185.3 million, up from $120.3 million. However, the Senior segment experienced a decline, with revenue falling to $169.4 million from $204.3 million, largely due to a decrease in approved Medicare Advantage policies.
In terms of profitability, SelectQuote reported a net income of $26.0 million for the quarter, compared to $8.6 million in the prior year, reflecting a substantial increase in net income attributable to common shareholders, which rose to $20.2 million from $8.6 million. The company’s operating income for the quarter was $22.1 million, down from $33.1 million a year earlier, primarily due to increased operating costs, which totaled $386.1 million, up from $343.3 million. The increase in costs was driven by higher expenses in marketing and advertising, which decreased by 15% to $92.7 million, and selling, general, and administrative expenses, which rose by 19% to $41.7 million.
SelectQuote's operational metrics showed a decrease in the number of submitted Medicare Advantage policies, which fell by 11% to 224,675 for the quarter. The company attributed this decline to a 19% decrease in average total productive agents, although it noted a 15% increase in overall close rates. In contrast, the total number of SelectRx members increased by 41% year-over-year, reaching 105,523, contributing to the growth in pharmacy revenue.
Strategically, SelectQuote completed a $350 million Senior Non-Convertible Preferred Stock transaction in February 2025, which provided net proceeds of approximately $337.9 million. This capital was utilized to repay $260 million of outstanding term loans and to fund operations. The company also made significant changes to its debt structure, reducing total debt obligations from $683.3 million as of June 30, 2024, to $391.5 million by March 31, 2025. The company remains optimistic about its future, projecting continued growth in its Healthcare Services segment and a stabilization of its Senior segment as it adapts to market conditions.
About SelectQuote, Inc.
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