SelectQuote (SLQT) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue reached $1,321.8M, up 32% year-over-year, exceeding guidance midpoint, with strong performance in Senior Medicare Advantage and Healthcare Services, especially SelectRx, driving high margins and cash efficiency.

• Adjusted EBITDA for FY2024 was $117.0M, a 57% increase from $74.3M in FY2023, with a full-year margin of 9%.

• Outperformed internal expectations for the tenth consecutive quarter, with a strategic focus on unit profitability and cash flow.

• Healthcare Services achieved positive Adjusted EBITDA for the fifth consecutive quarter and grew SelectRx membership by 68% to over 82,000.

• Operating and free cash flow were positive for FY2024.

Financial highlights

• Q4 FY24 consolidated revenue was $307.2M, up 39% year-over-year; FY24 consolidated revenue was $1.3B, up 32% year-over-year.

• FY24 Adjusted EBITDA was $117.0M, up 57% year-over-year; Q4 Adjusted EBITDA was $14.4M, compared to $(5.8)M in Q4 FY23.

• Senior segment delivered 25% EBITDA margin, above the 20%+ target; Healthcare Services achieved $8M in EBITDA, reversing a $23M loss in 2023.

• Healthcare Services revenue grew nearly 90% to $479M, with membership up 68% to 82,000.

• Life segment revenue grew 8% to $158M; Auto and Home contributed $36M in revenue.

Outlook and guidance

• FY2025 revenue expected at $1.4–$1.5B (10% growth at midpoint); Adjusted EBITDA guidance is $90–$120M, a 10% decline at midpoint due to Auto and Home runoff and Senior volume pullback.

• Net loss projected between $42M–$6M for 2025.

• Senior MA policy count expected to decline 10–15% due to capital constraints and commission structure changes, but unit economics and 20%+ margin targets remain intact.

• Healthcare Services membership expected to grow 20–25%, driving 35–45% revenue growth; EBITDA margins in low- to mid-single digits, improving through the year.

• Healthcare Services expected to offset some Senior volume headwinds with continued growth and profitability.