SelectQuote, Inc. reported higher revenue and net income for the third quarter of fiscal year 2026, as the insurance distributor navigated what its chief executive described as shifting conditions in the Medicare Advantage and prescription drug markets.
The company posted consolidated revenue of $430.9 million for the three months ended March 31, up from $408.2 million in the same period a year earlier, according to a recent earnings release. Consolidated net income rose to $40.2 million from $26.0 million in the prior-year quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $44.6 million, compared with $37.7 million a year ago.
CEO Tim Danker said the results reflected operational steadiness despite broader industry pressures.
“SelectQuote delivered consistent profit and cash flow for another quarter, despite market shifts for both Medicare Advantage and prescription drugs,” Danker stated. “We reaffirm our financial outlook for fiscal 2026, driven by operating execution by our agents and continued leverage of our information and technology advantages. Revenue to customer acquisition cost of 6.7x represented a high-water mark for the company and, more importantly, signals the value our differentiated healthcare service model provides to policyholders and prescription drug customers.”
Danker also pointed to the company’s capital structure and its SelectRx pharmacy business as drivers of future growth.
“Our goal to drive reliable and consistent profit and cash flow growth remains priority number one,” he said. “We believe the improvement to our capital structure to date, combined with the continued maturation of our SelectRx business, positions SelectQuote to materially expand cash flow in the years ahead.”
By segment, the Senior division, which sells Medicare Advantage and Medicare Supplement plans, generated $182.9 million in revenue, an 8% increase year over year, with adjusted EBITDA of $58.6 million. Approved Medicare Advantage policies reached 175,557, up 4.5% from a year ago.
The healthcare services segment, which includes the SelectRx pharmacy, posted revenue of $199.4 million, a 5% gain, though adjusted EBITDA dipped to $5.3 million from $6.4 million. SelectRx membership grew 11% year over year to 116,616 members as of March 31.
The life segment contributed $47.9 million in revenue, up 4%, with adjusted EBITDA of $6.1 million.
For fiscal year 2026, the company maintained its guidance of $1.61 billion to $1.71 billion in revenue and $90 million to $100 million in adjusted EBITDA.
