SelectQuote Reports Q3 FY2026 Revenue of $430.9M and Reaffirms Full-Year Guidance
SelectQuote reported third-quarter fiscal 2026 revenue of $430.9 million, up from $408.2 million in the same quarter last year, as the company continued to balance its insurance distribution business with growth in healthcare services.
The company posted net income of $40.2 million, compared with $26.0 million in the third quarter of fiscal 2025. Adjusted EBITDA, a non-GAAP measure, was $44.6 million, up from $37.7 million a year earlier.
SelectQuote also reaffirmed its fiscal 2026 outlook. The company expects full-year revenue in the range of $1.61 billion to $1.71 billion and adjusted EBITDA in the range of $90 million to $100 million.
Profitability Improves Despite Market Shifts
SelectQuote Chief Executive Officer Tim Danker said the company delivered another quarter of consistent profit and cash flow despite market shifts in both Medicare Advantage and prescription drugs. He said SelectQuote’s fiscal 2026 outlook remains supported by operating execution from agents and continued use of its information and technology advantages.
Danker also highlighted the company’s revenue-to-customer acquisition cost multiple, which reached 6.7x on a rolling 12-month basis. SelectQuote described this as a high-water mark for the company and linked it to the value of its healthcare service model for policyholders and prescription drug customers.
For insurance and healthcare distribution businesses, this metric is important because it shows how much revenue the company is generating relative to its customer acquisition spending. In a market where lead costs, carrier economics, and consumer demand can shift quickly, stronger unit economics can support more durable cash flow.
Senior Segment Revenue Rises in the Quarter
SelectQuote’s Senior segment reported third-quarter revenue of $182.9 million, up 8% from $169.4 million in the prior-year quarter. Adjusted EBITDA for the segment was $58.6 million, up 28% from $45.7 million a year earlier.
The company reported 196,970 submitted Medicare Advantage policies in the quarter, down 2% from the same period last year. However, approved Medicare Advantage policies increased 4% to 175,557.
For the first nine months of fiscal 2026, Senior segment revenue was $503.4 million, down 3% from the same period in fiscal 2025, while adjusted EBITDA was $140.1 million, down 9%.
The quarterly improvement suggests SelectQuote saw stronger profitability in Senior during Q3, even as year-to-date comparisons remain pressured.
Healthcare Services Revenue Continues to Grow
The Healthcare Services segment generated third-quarter revenue of $199.4 million, up 5% from $189.6 million in the prior-year period. Adjusted EBITDA was $5.3 million, compared with $6.4 million a year earlier.
SelectQuote reported 116,616 SelectRx members as of March 31, 2026, compared with 105,523 as of March 31, 2025, an increase of 11%. Average prescriptions shipped per day also increased, reaching 33,209 in the third quarter of fiscal 2026 compared with 29,015 in the prior-year quarter.
For the first nine months of fiscal 2026, Healthcare Services revenue increased 23% to $651.4 million, compared with $528.7 million in the same period last year.
This segment is important to SelectQuote’s broader model because it extends the company beyond insurance policy distribution into pharmacy and healthcare service engagement. That gives the company more touchpoints with consumers after the initial insurance sale.
Life Segment Posts Modest Revenue Growth
SelectQuote’s Life segment reported third-quarter revenue of $47.9 million, up 4% from $45.8 million in the prior-year quarter. Adjusted EBITDA was $6.1 million, compared with $6.4 million a year earlier.
Total Life premiums were $46.4 million in the quarter, roughly flat compared with $46.6 million in the prior-year period. Term premiums increased 1% to $19.1 million, while final expense premiums declined 1% to $27.3 million.
For the first nine months of fiscal 2026, Life revenue increased 11% to $138.2 million, while adjusted EBITDA declined 13% to $17.2 million.
Receivables and Cash Flow Remain Key Themes
SelectQuote said its receivables balance now stands at nearly $1 billion and grew by nearly $50 million over the past year. That included a $14 million positive change in estimate, which the company said reflects the durability and dependability of future cash flows.
This is a central point for investors and finance leaders watching the business. SelectQuote’s model depends heavily on policy economics, future commission streams, and the ability to convert customer relationships into longer-term revenue.
Danker said improving the company’s capital structure and the continued maturation of SelectRx position SelectQuote to materially expand cash flow in the years ahead.
Why This Matters for Finance and Insurance Leaders
SelectQuote’s third-quarter results show a company trying to improve profitability while managing a changing insurance and healthcare market.
The Senior business remains a major earnings contributor, Healthcare Services continues to expand through SelectRx membership and prescription volume, and Life provides additional revenue diversity. At the same time, the company is emphasizing cash flow, unit economics, and receivables quality.
For insurance distribution and healthcare services companies, the larger message is clear: growth alone is not enough. Investors and operators are watching whether customer acquisition spending can translate into durable revenue, pharmacy engagement, and repeatable cash generation.
SelectQuote’s reaffirmed guidance suggests management remains confident in its fiscal 2026 operating plan. The next test will be whether the company can continue improving profitability while navigating shifts in Medicare Advantage, prescription drug economics, and consumer acquisition costs.
Official source: Business Wire
FAQ Section
What did SelectQuote report for Q3 fiscal 2026?
SelectQuote reported third-quarter fiscal 2026 revenue of $430.9 million, net income of $40.2 million, and adjusted EBITDA of $44.6 million.
Did SelectQuote reaffirm its full-year guidance?
Yes. SelectQuote reaffirmed fiscal 2026 guidance, expecting revenue of $1.61 billion to $1.71 billion and adjusted EBITDA of $90 million to $100 million.
How did SelectQuote’s Senior segment perform?
The Senior segment reported Q3 fiscal 2026 revenue of $182.9 million and adjusted EBITDA of $58.6 million.
How many SelectRx members did SelectQuote report?
SelectQuote reported 116,616 SelectRx members as of March 31, 2026.
What is SelectQuote’s revenue-to-CAC multiple?
SelectQuote reported a 6.7x revenue-to-customer acquisition cost multiple on a rolling 12-month basis.
What are SelectQuote’s main business segments?
SelectQuote currently reports three segments: Senior, Healthcare Services, and Life.
