SelectQuote (SLQT +0.33%) reported fourth-quarter and full-year 2025 earnings on August 21, 2025, and adjusted EBITDA of $126 million with an 8% margin. Management emphasized rapid growth in healthcare services, operational efficiency gains in its Medicare segment, and a strategic focus on balancing growth with sustainable, cash-generative operations heading into the next fiscal year.
Healthcare services revenue grows 55%, outpacing membership growth
Healthcare services (primarily SelectRx) achieved revenue of $743 million, growing 55% year-over-year, while membership increased approximately 31%, highlighting strong operating leverage. SelectRx’s new state-of-the-art Kansas facility has expanded capacity for further growth, and healthcare services delivered $25 million in adjusted EBITDA, up materially year-over-year but still representing a modest segment margin.
"As noted, revenues grew nearly 55% over the last year, while our membership grew roughly 31%. As we mentioned last quarter, we believe this year has been a pivotal one in terms of scale of membership. To be clear, we believe there is significant growth capacity for new members on the platform. Especially with the addition of our state-of-the-art Kansas distribution facility which significantly increases our potential capacity. With that said, expect to see increased margin and cash flow contribution in fiscal 2026 from SelectRX as scale from seasoned members continues to drive results. It is clear that a revenue base nearing three-quarters of a billion dollars is a significant asset and one that we are very focused on leveraging in 2026 and beyond."
-- Tim Danker, Chief Executive Officer
Accelerating margin expansion and rising adjusted EBITDA in healthcare services suggest SelectQuote's technology-enabled platform is gaining scale advantages, providing a foundation for enhanced cash flow generation and future shareholder returns.
Operational efficiency drives record agent productivity in senior segment
Despite a 26% year-over-year reduction in agent headcount in the senior (primarily Medicare) business, approved Medicare Advantage policies declined only 5% to 593,000, agent productivity in the senior segment rose 24% year-over-year. EBITDA margins in the senior segment expanded by 200 basis points, with $162 million in adjusted EBITDA revenue in the senior segment was 8% lower year-over-year.
"With policy features in flux and a significant number of planned cancellations by carrier, we delivered strong results during the season with an agent force that was approximately 26% smaller than in fiscal 2024. We are most proud of the operating efficiency exhibited over the year with this smaller agent workforce. Our revenues were only 8% lower and more importantly, we drove EBITDA margins that were about 200 basis points higher which ultimately drove similar EBITDA dollars compared to 2024."
-- Ryan Clement, Chief Financial Officer
The senior segment’s improved operational efficiency, despite external market challenges, validates management’s strategic reset and highlights the resilience and scalability of the agent-technology hybrid model, mitigating risks from industry-wide policy volatility.
Technology and AI adoption enhances efficiency, reduces enrollment time
The company emphasized that automation and artificial intelligence (AI) have been central since inception, now powering over 300,000 unique healthcare services interactions and routing more than 7.5 million calls. Enrollment time for agents improved by 25% year-over-year, health needs assessment call time was reduced by 30% year-over-year.
"But we are not just a volume processor. Enrollment time has improved by 25% over the past year. Our technology also makes a difference in the lives of our customers. Most importantly, through better health care service fit, and process efficiency. Our technology has also reduced the time in our health needs assessment calls with customers by 30%. Most importantly, our technology is critical to our ongoing strategy to drive scaled revenues across the ecosystem which results in compounding and sustainable cash flows."
-- Tim Danker, Chief Executive Officer
Sustained investment and real-world AI integration not only drive near-term efficiency but establish a durable competitive advantage that supports SelectQuote’s ability to rapidly scale service offerings across its healthcare platform.
Looking Ahead
Management guided for consolidated revenue of $1.65 billion to $1.75 billion in FY2026 (up approximately 11% year-over-year at the midpoint) and adjusted EBITDA of $120 million to $150 million (up 7% year-over-year at the midpoint), with more than $50 million in adjusted EBITDA from healthcare services and positive operating cash flow. Senior segment productivity is assumed to revert to historical averages, while healthcare services is forecast to achieve approximately 20% revenue growth. There is no expectation of meaningful Select Patient management or telemedicine EBITDA contribution, but management reiterated its centrality to long-term strategy.
