SelectQuote Q1 revenue slightly beats estimates on higher pharmacy sales
Overview
U.S. insurance distributor's fiscal Q1 revenue fell 15% but slightly beat analyst expectations
Adjusted EBITDA loss narrowed yr/yr, reflecting improved operational efficiencies
Company cites operational efficiencies for improved adjusted EBITDA despite lower revenue
Outlook
SelectQuote expects FY27 revenue between $1.35 bln and $1.45 bln
Company forecasts FY27 adjusted EBITDA between $90 mln and $115 mln
SelectQuote projects FY27 operating cash flow of more than $60 mln
Result Drivers
OPERATIONAL EFFICIENCIES - Co said improved adjusted EBITDA was driven by growing efficiencies and process management, including lower agent headcount in Senior and scaling Healthcare Services
MEMBER PROFITABILITY - Co said profitability per SelectRx member rose 60% due to refined customer qualification and focus on long-term profitability
PHARMACY REVENUE - Co attributed increase in per-policy revenue to higher pharmacy revenue
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Slight Beat* | $280 mln | $277.91 mln (4 Analysts) |
Q1 Net Loss | $20.30 mln | ||
Q1 Adjusted EBITDA | -$17 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the multiline insurance & brokers peer group is "buy"
Wall Street's median 12-month price target for Selectquote, Inc is $2.50, about 509.8% above its November 3 closing price of $0.41
Reuters Recommended Reads
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Nov 3 - Midterms may heighten focus on insurance affordability
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)