EX-99.1 7 selectquoteincdecember3120a.htm EX-99.1 Document
Exhibit 99.1
SelectQuote, Inc. Reports Second Quarter of Fiscal Year 2025 Results

Second Quarter of Fiscal Year 2025 – Consolidated Earnings Highlights

•Revenue of $481.1 million
•Net income of $53.2 million
•Adjusted EBITDA* of $87.5 million

Fiscal Year 2025 Guidance Ranges:

•Revenue expected in a range of $1.500 billion to $1.575 billion
•Net income (loss) expected in a range of $(24) million to $11 million
•Adjusted EBITDA* expected in a range of $115 million to $140 million

Second Quarter Fiscal Year 2025 – Segment Highlights

Senior
•Revenue of $255.6 million
•Adjusted EBITDA* of $100.5 million
•Approved Medicare Advantage policies of 247,849

Healthcare Services
•Revenue of $183.4 million
•Adjusted EBITDA* of $2.2 million
•96,695 SelectRx members

Life
•Revenue of $39.9 million
•Adjusted EBITDA* of $7.4 million

OVERLAND PARK, Kan., February 10, 2025--(BUSINESS WIRE)--SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the second quarter of fiscal year 2025 of $481.1 million compared to consolidated revenue for the second quarter of fiscal year 2024 of $405.4 million. Consolidated net income for the second quarter of fiscal year 2025 was $53.2 million compared to consolidated net income for the second quarter of fiscal year 2024 of $19.4 million. Finally, consolidated Adjusted EBITDA* for the second quarter of fiscal year 2025 was $87.5 million compared to consolidated Adjusted EBITDA* for the second quarter of fiscal year 2024 of $67.4 million.

SelectQuote Chief Executive Officer, Tim Danker, remarked, “SelectQuote delivered impressive results during our fiscal second quarter despite a historically disruptive Annual Enrollment Period. Our strong policy volume and Senior Adjusted EBITDA margin of 39%, up approximately 750 basis points year-over-year, are additional proof points of our differentiated, high-touch, agent-led model. American Seniors faced an unprecedented level of plan terminations and benefit changes this season, and we take great pride in that fact that consumers sought out SelectQuote as they navigated such a challenging market backdrop. As we’ve said before, SelectQuote wins when our customers win, and this quarter is evidence of that.”

Mr. Danker continued, “SelectQuote also delivered another quarter of strong results within our Healthcare Services segment, led by SelectRx. We now have over 96,000 members, which represents growth of 54% compared to a year ago. Importantly, we expanded our global Revenue to CAC to 5.3X, which demonstrates our continued ability to generate attractive returns as a comprehensive healthcare services provider.”

“Additionally, we took another large step to improve our capital structure with today’s announcement of a $350 million strategic investment led by Bain Capital and Morgan Stanley Private Credit. The transaction provides improved liquidity and operating flexibility to grow within our Senior and Healthcare Services businesses. We are excited to have Bain Capital and Morgan Stanley Private Credit as strategic partners as we pursue the tremendous growth opportunity provided by our unique platform within the healthcare ecosystem.”



* See “Non-GAAP Financial Measures” below.

 1

Segment Results

We currently have three reportable segments: 1) Senior, 2) Healthcare Services and 3) Life. The performance measures of the segments include total revenue and Adjusted EBITDA.* Costs of commissions and other services revenue, cost of goods sold-pharmacy revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect costs of revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses are allocated to each segment based on varying metrics such as headcount. Adjusted EBITDA is our segment profit measure to evaluate the operating performance of our business. We define Adjusted EBITDA as income (loss) before income tax expense (benefit) plus: (i) interest expense, net; (ii) depreciation and amortization; (iii) share-based compensation; (iv) goodwill, long-lived asset, and intangible assets impairments; (v) transaction costs; (vi) loss on disposal of property, equipment and software, net; (vii) other non-recurring expenses and income; (viii) changes in fair value of warrant liabilities. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by revenue.

Senior

Financial Results

The following table provides the financial results for the Senior segment for the periods presented:

Three Months Ended December 31,Six Months Ended December 31,
(in thousands)20242023% Change20242023% Change
Revenue$255,578 $247,529 3 %$348,487 $337,445 3 %
Adjusted EBITDA*100,521 78,713 28 %108,247 77,376 40 %
Adjusted EBITDA Margin*39 %32 %31 %23 %

Operating Metrics

Submitted Policies

Submitted policies are counted when an individual completes an application with our licensed agent and provides authorization to the agent to submit the application to the insurance carrier partner. The applicant may have additional actions to take before the application will be reviewed by the insurance carrier.

The following table shows the number of submitted policies for the periods presented:

Three Months Ended December 31,Six Months Ended December 31,
20242023% Change20242023% Change
Medicare Advantage284,774271,7125 %387,055376,2443 %
All other (1)
26,86124,04912 %43,11738,96911 %
Total311,635295,7615 %430,172415,2134 %
(1) Represents the submitted policies for medicare supplement, dental, vision and hearing, prescription drug plan and other.

Approved Policies

Approved policies represents the number of submitted policies that were approved by our insurance carrier partners for the identified product during the indicated period. Not all approved policies will go in force.




* See “Non-GAAP Financial Measures” below.
2

The following table shows the number of approved policies for the periods presented:

Three Months Ended December 31,Six Months Ended December 31,
20242023% Change20242023% Change
Medicare Advantage247,849234,5766 %339,529332,2572 %
All other (1)
19,71419,985(1)%32,69332,1802 %
Total267,563254,5615 %372,222364,4372 %
(1) Represents the approved policies for medicare supplement, dental, vision and hearing, prescription drug plan and other.

Lifetime Value of Commissions per Approved Policy

Lifetime value of commissions per approved policy represents commissions estimated to be collected over the estimated life of an approved policy based on multiple factors, including but not limited to, contracted commission rates, carrier mix and expected policy persistency with applied constraints. The lifetime value of commissions per approved policy is equal to the sum of the commission revenue due upon the initial sale of a policy, and when applicable, an estimate of future renewal commissions.

The following table shows the lifetime value of commissions per approved policy for the periods presented:

Three Months Ended December 31,Six Months Ended December 31,
(dollars per policy):20242023% Change20242023% Change
Medicare Advantage$907 $934 (3)%$881 $883 — %
All other (1)
111112(1)%1341312 %
(1) Represents the weighted average LTV per approved policy.

Healthcare Services

Financial Results

The following table provides the financial results for the Healthcare Services segment for the periods presented:

Three Months Ended December 31,Six Months Ended December 31,
(in thousands)20242023% Change20242023% Change
Revenue$183,370 $111,710 64 %$339,108 $209,078 62 %
Adjusted EBITDA*2,212 2,981 (26)%7,089 5,304 34 %
Adjusted EBITDA Margin*1 %3 %2 %3 %
Operating Metrics

Members

The total number of SelectRx members represents the amount of active customers to which an order has been shipped and the prescriptions per day represents the total average prescriptions shipped per business day. These two metrics are the primary drivers of revenue for Healthcare Services.








* See “Non-GAAP Financial Measures” below.
3

The following table shows the total number of SelectRx members as of the periods presented:

December 31, 2024December 31, 2023
Total SelectRx Members96,69562,623

The total number of SelectRx members increased by 54% as of December 31, 2024, compared to December 31, 2023, due to our continued operating strategy to grow SelectRx.


The following table shows the average prescriptions shipped per day for the periods presented:

Three Months Ended December 31,Six Months Ended December 31,
2024202320242023
Prescriptions Per Day
26,84617,01025,92216,244

Combined Senior and Healthcare Services - Consumer Per Unit Economics

The opportunity to leverage our existing database and distribution model to improve access to healthcare services for our consumers has created a need for us to review our key metrics related to our per unit economics. As we think about the revenue and expenses for Healthcare Services, we note that they are primarily driven by the marketing acquisition costs associated with the sale of an MA or MS policy, some of which costs are allocated directly to Healthcare Services, and therefore determined that our per unit economics measure should include components from both Senior and Healthcare Services. See details of revenue and expense items included in the calculation below.

Combined Senior and Healthcare Services consumer per unit economics represents total MA and MS commissions; other product commissions; other revenues, including revenues from Healthcare Services; and operating expenses associated with Senior and Healthcare Services, each shown per number of approved MA and MS policies over a given time period. Management assesses the business on a per-unit basis to help ensure that the revenue opportunity associated with a successful policy sale is attractive relative to the marketing acquisition cost. Because not all acquired leads result in a successful policy sale, all per-policy metrics are based on approved policies, which is the measure that triggers revenue recognition.

The MA and MS commission per MA/MS policy represents the LTV for policies sold in the period. Other commission per MA/MS policy represents the LTV for other products sold in the period, including DVH prescription drug plan, and other products, which management views as additional commission revenue on our agents’ core function of MA/MS policy sales. Pharmacy revenue per MA/MS policy represents revenue from SelectRx, and other revenue per MA/MS policy represents revenue from Population Health, production bonuses, marketing development funds, lead generation revenue, and adjustments from the Company’s reassessment of its cohorts’ transaction prices. Total operating expenses per MA/MS policy represents all of the operating expenses within Senior and Healthcare Services. The revenue to customer acquisition cost (“CAC”) multiple represents total revenue as a multiple of total marketing acquisition cost, which represents the direct costs of acquiring leads. These costs are included in marketing and advertising expense within the total operating expenses per MA/MS policy.

The following table shows combined Senior and Healthcare Services consumer per unit economics for the periods presented. Based on the seasonality of Senior and the fluctuations between quarters, we believe that the most relevant view of per unit economics is on a rolling 12-month basis. All per MA/MS policy metrics below are based on the sum of approved MA/MS policies, as both products have similar commission profiles.



4

Twelve Months Ended December 31,
(dollars per approved policy):20242023
MA and MS approved policies634,135 609,939 
MA and MS commission per MA / MS policy$909 $896 
Other commission per MA/MS policy12 11 
Pharmacy revenue per MA/MS policy938 575 
Other revenue per MA/MS policy153 140 
Total revenue per MA / MS policy2,012 1,622 
Total operating expenses per MA / MS policy(1,685)(1,365)
Adjusted EBITDA per MA/MS policy *$327 $257 
Adjusted EBITDA Margin per MA/MS policy *16 %16 %
Revenue / CAC multiple 5.3X  4.2X

Total revenue per MA/MS policy increased 24% for the twelve months ended December 31, 2024, compared to the twelve months ended December 31, 2023, primarily due to the increase in pharmacy revenue. Total operating expenses per MA/MS policy increased 23% for the twelve months ended December 31, 2024, compared to the twelve months ended December 31, 2023, driven by an increase in cost of goods sold-pharmacy revenue for Healthcare Services due to the growth of the business.

Life

Financial Results

The following table provides the financial results for the Life segment for the periods presented:

Three Months Ended December 31,Six Months Ended December 31,
(in thousands)20242023% Change20242023% Change
Revenue$39,861 $37,367 7 %$79,151 $75,170 5 %
Adjusted EBITDA*7,423 4,569 62 %13,383 9,808 36 %
Adjusted EBITDA Margin*19 %12 %17 %13 %

Operating Metrics

Life premium represents the total premium value for all policies that were approved by the relevant insurance carrier partner and for which the policy document was sent to the policyholder and payment information was received by the relevant insurance carrier partner during the indicated period. Because our commissions are earned based on a percentage of total premium, total premium volume for a given period is the key driver of revenue for our Life segment.

The following table shows term and final expense premiums for the periods presented:

Three Months Ended December 31,Six Months Ended December 31,
(in thousands)20242023% Change20242023% Change
Term Premiums$17,311 $17,398 (1)%$32,529 $35,588 (9)%
Final Expense Premiums22,139 19,388 14 %46,612 39,087 19 %
Total$39,450 $36,786 7 %$79,141 $74,675 6 %




* See “Non-GAAP Financial Measures” below.
5

Earnings Conference Call

SelectQuote, Inc. will host a conference call with the investment community on February 10, 2025, beginning at 5:00 p.m. ET. To register for this conference call, please use this link: https://registrations.events/direct/Q4I731198247. After registering, a confirmation will be sent via email, including dial-in details and unique conference call codes for entry. Registration is open through the live call, but to ensure you are connected for the full call we suggest registering at least 10 minutes before the start of the call. The event will also be webcasted live via our investor relations website https://ir.selectquote.com/investor-home/default.aspx.

Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We define Adjusted EBITDA as net income (loss) before income tax expense (benefit), plus interest expense, depreciation and amortization, changes in fair value of warrant liabilities, and certain add-backs for non-cash or non-recurring expenses, including restructuring and share-based compensation expenses. The most directly comparable GAAP measure is income (loss) before tax expense (benefit). We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. The most directly comparable GAAP measure is net income margin. We monitor and have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin because they are key measures used by our management and Board of Directors to understand and evaluate our operating performance, to establish budgets, and to develop operational goals for managing our business. In particular, we believe that excluding the impact of these expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in the calculations of these non-GAAP financial measures. Accordingly, we believe that these financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects. Reconciliations of net income (loss) before income tax expense (benefit) to Adjusted EBITDA are presented below beginning on page 11.

Forward Looking Statements

This release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.
 
There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: our reliance on a limited number of insurance carrier partners and any potential termination of those relationships or failure to develop new relationships; existing and future laws and regulations affecting the health insurance market; changes in health insurance products offered by our insurance carrier partners and the health insurance market generally; insurance carriers offering products and services directly to consumers; changes to commissions paid by insurance carriers and underwriting practices; competition with brokers, exclusively online brokers and carriers who opt to sell policies directly to consumers; competition from government-run health insurance exchanges; developments in the U.S. health insurance system; our dependence on revenue from carriers in our senior segment and downturns in the senior health as well as life, automotive and home insurance industries; our ability to develop new offerings and penetrate new vertical markets; risks from third-party products; failure to enroll individuals during the Medicare
6

annual enrollment period; our ability to attract, integrate and retain qualified personnel; our dependence on lead providers and ability to compete for leads; failure to obtain and/or convert sales leads to actual sales of insurance policies; access to data from consumers and insurance carriers; accuracy of information provided from and to consumers during the insurance shopping process; cost-effective advertisement through internet search engines; ability to contact consumers and market products by telephone; global economic conditions, including inflation; disruption to operations as a result of future acquisitions; significant estimates and assumptions in the preparation of our financial statements; impairment of goodwill; potential litigation and other legal proceedings or inquiries; our existing and future indebtedness; our ability to maintain compliance with our debt covenants; access to additional capital; failure to protect our intellectual property and our brand; fluctuations in our financial results caused by seasonality; accuracy and timeliness of commissions reports from insurance carriers; timing of insurance carriers’ approval and payment practices; factors that impact our estimate of the constrained lifetime value of commissions per policyholder; changes in accounting rules, tax legislation and other legislation; disruptions or failures of our technological infrastructure and platform; failure to maintain relationships with third-party service providers; cybersecurity breaches or other attacks involving our systems or those of our insurance carrier partners or third-party service providers; our ability to protect consumer information and other data; failure to market and sell Medicare plans effectively or in compliance with laws; and and other factors related to our pharmacy business, including manufacturing or supply chain disruptions, access to and demand for prescription drugs, and regulatory changes or other industry developments that may affect our pharmacy operations. For a further discussion of these and other risk factors that could impact our future results and performance, see the section entitled “Risk Factors” in the most recent Annual Report on Form 10-K (the “Annual Report”) and subsequent periodic reports filed by us with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

About SelectQuote:

Founded in 1985, SelectQuote (NYSE: SLQT) pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies, allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads. Today, the Company operates an ecosystem offering high touchpoints for consumers across insurance, pharmacy, and virtual care.

With an ecosystem offering engagement points for consumers across insurance, Medicare, pharmacy, and value-based care, the company now has three core business lines: SelectQuote Senior, SelectQuote Healthcare Services, and SelectQuote Life. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a Patient-Centered Pharmacy Home™ (PCPH) accredited pharmacy, SelectPatient Management, a provider of chronic care management services, and Healthcare Select which proactively connects consumers with a wide breadth of healthcare services supporting their needs.

Investor Relations:
Sloan Bohlen
877-678-4083
investorrelations@selectquote.com

Media:
Matt Gunter
913-286-4931
matt.gunter@selectquote.com

Source: SelectQuote, Inc.
7


SELECTQUOTE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)

December 31, 2024June 30, 2024
ASSETS
CURRENT ASSETS:
Cash and, cash equivalents, and restricted cash$12,104 $42,690 
Accounts receivable, net of allowances of $12.1 million and $8.2 million, respectively115,795 150,035 
Commissions receivable-current224,787 119,871 
Other current assets19,686 20,327 
Total current assets372,372 332,923 
COMMISSIONS RECEIVABLE—Net812,037 761,446 
PROPERTY AND EQUIPMENT—Net16,257 18,973 
SOFTWARE—Net14,127 13,978 
OPERATING LEASE RIGHT-OF-USE ASSETS22,002 23,437 
INTANGIBLE ASSETS—Net8,130 10,194 
GOODWILL29,438 29,438 
OTHER ASSETS4,804 3,519 
TOTAL ASSETS$1,279,167 $1,193,908 
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable$87,165 $36,587 
Accrued expenses12,617 16,904 
Accrued compensation and benefits55,666 57,594 
Operating lease liabilities—current4,981 4,709 
Current portion of long-term debt27,577 45,854 
Contract liabilities954 8,066 
Other current liabilities5,440 4,873 
Total current liabilities194,400 174,587 
LONG-TERM DEBT, NET—less current portion684,284 637,480 
DEFERRED INCOME TAXES31,868 37,478 
OPERATING LEASE LIABILITIES23,539 25,685 
OTHER LIABILITIES19,074 1,877 
Total liabilities953,165 877,107 
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Common stock, $0.01 par value1,721 1,694 
Additional paid-in capital585,360 580,764 
Accumulated deficit(261,079)(269,769)
Accumulated other comprehensive income— 4,112 
Total shareholders’ equity326,002 316,801 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$1,279,167 $1,193,908 
8

SELECTQUOTE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(In thousands)
Three Months Ended December 31,Six Months Ended December 31,
2024202320242023
REVENUE:
Commissions and other services
$301,069 $296,643 $440,449 $434,584 
Pharmacy180,000 108,795 332,883 203,583 
Total revenue481,069 405,438 773,332 638,167 
OPERATING COSTS AND EXPENSES:
Cost of commissions and other services revenue
101,138 97,424 166,872 169,935 
Cost of goods sold—pharmacy revenue156,201 94,180 285,724 178,188 
Marketing and advertising97,725 117,078 161,489 179,400 
Selling, general, and administrative45,021 33,412 81,166 62,078 
Technical development10,044 8,050 19,119 15,687 
Total operating costs and expenses410,129 350,144 714,370 605,288 
INCOME FROM OPERATIONS70,940 55,294 58,962 32,879 
INTEREST EXPENSE, NET(23,721)(24,415)(46,752)(45,811)
OTHER EXPENSE, NET(7,663)— (7,674)(39)
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT)39,556 30,879 4,536 (12,971)
INCOME TAX EXPENSE (BENEFIT)
(13,680)11,487 (4,154)(1,312)
NET INCOME (LOSS)$53,236 $19,392 $8,690 $(11,659)
NET INCOME (LOSS) PER SHARE:
Basic$0.31 $0.12 $0.05 $(0.07)
Diluted$0.30 $0.11 $0.05 $(0.07)
WEIGHTED-AVERAGE COMMON STOCK OUTSTANDING USED IN PER SHARE AMOUNTS:
Basic171,802 168,349 171,116 167,901 
Diluted175,101 169,737 175,024 167,901 
OTHER COMPREHENSIVE LOSS NET OF TAX:
Change in cash flow hedge
(1,327)(3,422)(4,112)(5,432)
OTHER COMPREHENSIVE LOSS
(1,327)(3,422)(4,112)(5,432)
COMPREHENSIVE INCOME (LOSS)$51,909 $15,970 $4,578 $(17,091)
9

SELECTQUOTE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)

Six months ended December 31,
20242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$8,690 $(11,659)
Adjustments to reconcile net income (loss) to net cash, cash equivalents, and restricted cash used in operating activities:
Depreciation and amortization10,659 11,887 
Loss on disposal of property, equipment, and software157 9 
Share-based compensation expense8,545 6,997 
Deferred income taxes(4,154)(1,182)
Amortization of debt issuance costs and debt discount2,379 3,356 
Write-off of debt issuance costs93 — 
Change in fair value of warrant liabilities7,642 — 
Accrued interest payable in kind9,673 9,020 
Non-cash lease expense1,846 1,528 
Bad debt expense
4,203 2,743 
Changes in operating assets and liabilities:
Accounts receivable, net30,038 9,232 
Commissions receivable(155,507)(113,860)
Other assets(4,802)(2,075)
Accounts payable and accrued expenses46,211 29,206 
Operating lease liabilities(2,285)(2,689)
Other liabilities(8,692)8,248 
Net cash used in operating activities(45,304)(49,239)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment(741)(2,062)
Proceeds from sales of property and equipment— 253 
Purchases of software and capitalized software development costs(4,105)(3,883)
Net cash used in investing activities(4,846)(5,692)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving line of credit84,900 — 
Payments on revolving line of credit(26,900)— 
Payments on Term Loans(123,215)(16,942)
Proceeds on ABS Notes99,095 — 
Payments on ABS Notes(6,272)— 
Payments on other debt(114)(75)
Proceeds from common stock options exercised and employee stock purchase plan38 — 
Payments of tax withholdings related to net share settlement of equity awards(3,960)(359)
Payments of debt issuance costs(2,479)— 
Net cash provided (used in) financing activities
21,093 (17,376)
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(29,057)(72,307)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period
42,690 83,156 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period
$13,633 $10,849 

10

SELECTQUOTE, INC. AND SUBSIDIARIES
Adjusted EBITDA to Income (Loss) before income tax expense (benefit) Reconciliation
(Unaudited)

Three Months Ended December 31, 2024
(in thousands)SeniorHealthcare ServicesLife
Total
Adjusted Segment EBITDA
$100,521 $2,212 $7,423 $110,156 
All other Adjusted EBITDA
2,303 
Corporate & elimination of intersegment profits(24,940)
Adjusted EBITDA
$87,519 
Share-based compensation expense(4,699)
Transaction costs(6,719)
Depreciation and amortization(5,060)
Loss on disposal of property, equipment, and software, net(122)
Change in fair value of warrant liabilities(7,642)
Interest expense, net(23,721)
Income before income tax expense (benefit)$39,556 

Three Months Ended December 31, 2023
(in thousands)SeniorHealthcare ServicesLife
Total
Adjusted Segment EBITDA$78,713 $2,981 $4,569 $86,263 
All other Adjusted EBITDA4,725 
Corporate & elimination of intersegment profits(23,574)
Adjusted EBITDA
$67,414 
Share-based compensation expense(3,822)
Transaction costs(2,400)
Depreciation and amortization(5,898)
Loss on disposal of property, equipment, and software, net— 
Interest expense, net(24,415)
Income before income tax expense (benefit)$30,879 


















11

SELECTQUOTE, INC. AND SUBSIDIARIES
Adjusted EBITDA to Income (Loss) before income tax expense (benefit) Reconciliation
(Unaudited)

Six Months Ended December 31, 2024
(in thousands)SeniorHealthcare ServicesLife
Total
Adjusted Segment EBITDA
$108,247 $7,089 $13,383 $128,719 
All other Adjusted EBITDA6,099 
Corporate & elimination of intersegment profits(48,983)
Adjusted EBITDA
$85,835 
Share-based compensation expense(8,545)
Transaction costs(7,544)
Depreciation and amortization(10,659)
Loss on disposal of property, equipment, and software, net(157)
Change in fair value of warrant liabilities(7,642)
Interest expense, net(46,752)
Income before income tax expense (benefit)$4,536 


Six Months Ended December 31, 2023
(in thousands)SeniorHealthcare ServicesLife
Total
Adjusted Segment EBITDA$77,376 $5,304 $9,808 $92,488 
All other Adjusted EBITDA8,045 
Corporate & elimination of intersegment profits(44,495)
Adjusted EBITDA
$56,038 
Share-based compensation expense(6,997)
Transaction costs(4,305)
Depreciation and amortization(11,887)
Loss on disposal of property, equipment, and software, net(9)
Interest expense, net(45,811)
Loss before income tax expense (benefit)
$(12,971)
12

SELECTQUOTE, INC. AND SUBSIDIARIES
Net Income (Loss) to Adjusted EBITDA Reconciliation
(Unaudited)



Guidance Net income (loss) to Adjusted EBITDA reconciliation, year ending June 30, 2025:

(in thousands)Range
Net income (loss)
$(24,000)$11,000 
Income tax expense (benefit)
(7,000)2,000 
Interest expense, net85,000 75,000 
Depreciation and amortization24,000 20,000 
Share-based compensation expense19,000 16,000 
Change in FV of warrant liability
8,000 8,000 
Transaction costs10,000 8,000 
Adjusted EBITDA$115,000 $140,000 



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