SelectQuote Reports Impressive Q2 Growth

By Patricia Miller

Feb 12, 2025

2 min read

SelectQuote's Q2 FY2025 performance highlights significant revenue growth, soaring net income, and strategic investments, reinforcing its market strength and potential.

#What You Need To Know

SelectQuote Inc. has reported its Q2 FY2025 financial results, showcasing impressive growth across multiple metrics. The company achieved revenue of $481.1 million, surpassing analyst expectations of $447 million and showing an increase from $405.4 million in the same quarter last year. Net income surged to $53.2 million, marking a significant 174.2% rise compared to $19.4 million in Q2 FY2024. The adjusted EBITDA also improved, reaching $87.5 million, up 29.8% from the previous year.

The company’s senior segment generated $255.6 million in revenue, with a robust adjusted EBITDA margin of 39%. Healthcare services saw a remarkable revenue increase of 64% to $183.4 million, fueled by substantial growth in SelectRx members. Life segment revenue stood at $39.9 million.

SelectQuote follows a direct-to-consumer business model, offering various insurance policies. The company is well-positioned in the Medicare Advantage market and has recently secured a $350 million strategic investment from Bain Capital and Morgan Stanley Private Credit to bolster liquidity and support ongoing growth initiatives.

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#Why This Is Important for Retail Investors

  1. Strong revenue growth and profitability improvements indicate a positive trajectory for SelectQuote, potentially leading to further stock appreciation.

  2. Increased market position in the Medicare Advantage sector showcases opportunities that could benefit long-term investors.

  3. The significant rise in healthcare services revenue highlights the company's adaptability in tapping into high-demand markets.

  4. A strategic investment from reputable firms enhances financial stability and supports future growth initiatives, which may reduce risk for investors.

#Relevant ETFs

Some investors prefer to invest in stocks via an exchange-traded fund for ease and reduced risk. Some relevant ETFs include the following:

  • Vanguard Health Care ETF

  • iShares U.S. Insurance ETF

  • Invesco S&P 500 Equal Weight Health Care ETF

  • SPDR S&P Health Care Services ETF

  • iShares U.S. Medical Devices ETF

  • ARK Genomic Revolution ETF

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.