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SelectQuote, Inc.

SelectQuote, Inc.SLQT決算レポート

NYSE · 金融 · 保険代理店、仲介業者及びサービス

SelectQuote is a direct-to-consumer distribution platform for selling insurance policies and healthcare services. Their insurance business earns commissions by connecting consumers with insurance carriers that provide senior health, life, automobile, and home insurance. The healthcare services business mainly consists of SelectRx, an accredited pharmacy. The company went public on May 21, 2020.

What changed in SelectQuote, Inc.'s 10-K — 2024 vs 2025

Top changes in SelectQuote, Inc.'s 2025 10-K

378 paragraphs added · 364 removed · 289 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

102 edited+33 added−28 removed80 unchanged
During our most recent fiscal years, our primary insurance carrier partners were United Healthcare (“UHC”), Humana, WellCare, and Aetna in Senior; Mutual of Omaha, TruStage, and Pacific Life in Life; and Travelers, Safeco, and Progressive in Auto & Home. These high-quality relationships have resulted in strong insurance carrier retention rates over time.
During our most recent fiscal years, our primary insurance carrier partners were United Healthcare (“UHC”), Humana, Aetna, and WellCare in Senior; Mutual of Omaha, TruStage, and Pacific Life in Life; and Safeco, Progressive, and Travelers in Auto & Home. These high-quality relationships have resulted in strong insurance carrier retention rates over time.
Healthcare Services Market We believe the healthcare services market presents a significant opportunity to grow our business by offering additional products and services through our distribution platform. We entered the prescription medication market in 2021 through our acquisition of two boutique pharmaceutical operations, now SelectRx.
Our Market Opportunity Healthcare Services Market We believe the healthcare services market presents a significant opportunity to grow our business by offering additional products and services through our distribution platform. We entered the prescription medication market in 2021 through our acquisition of two boutique pharmaceutical operations, now SelectRx.
ARC and AQE allow us to build quotes for potential customers in real time based on specific carrier underwriting requirements and risk tolerances. • SelectQuote Revenue Tracking System : Fully integrated, proprietary revenue tracking and financial reporting tool that also supports financial and customer falloff/retention prediction algorithms, allowing for real-time workflow and actions with our customer service teams. • AI and Machine Learning: We leverage AI and machine learning to refine our lead scoring, routing, and agent support systems, ensuring compliance and enhancing agent productivity and accuracy in policy recommendations across all insurance lines.
ARC and AQE allow us to build quotes for potential customers in real time based on specific carrier underwriting requirements and risk tolerances. • SelectQuote Revenue Tracking System : Fully integrated, proprietary revenue tracking and financial reporting tool that also supports financial and customer falloff/retention prediction algorithms, allowing for real-time workflow and actions with our customer service teams. • AI and Machine Learning: We leverage AI and machine learning models to refine our lead scoring, routing, and agent support systems, ensuring compliance and enhancing agent productivity and accuracy in policy recommendations across all insurance lines.
We are also required to comply with various laws and regulations governing Medicare providers, pharmacies, and providers of pharmacy care services, as well as laws governing marketing and advertising activities conducted by telephone, email, mobile devices and the internet. Insurance and other Healthcare Regulations. We are a licensed insurance producer in all 50 U.S. states and the District of Columbia.
We are also required to comply with various laws and regulations governing Medicare providers, pharmacies, and providers of pharmacy care services, as well as laws governing marketing and advertising activities conducted by telephone, email, mobile devices and the internet. Insurance and Healthcare Regulations. We are a licensed insurance producer in all 50 U.S. states and the District of Columbia.
Our healthcare services business seeks to provide consumers with a wide breadth of products supporting their needs, such as SelectRx, our Patient-Centered Pharmacy Home TM (“PCPH”) accredited pharmacy, which has already demonstrated SelectQuote’s ability to leverage our strong consumer engagement to drive immediate value using our existing operational infrastructure.
Our healthcare services business seeks to provide consumers with a wide breadth of products supporting their needs, such as SelectRx, our Patient-Centered Pharmacy Home TM accredited pharmacy, which has already demonstrated SelectQuote’s ability to leverage our strong consumer engagement to drive immediate value using our existing operational infrastructure.
Our systems allow us to gain valuable insights from the rich sources of consumer information we have gathered over nearly four decades, and we use complex data analytics and proprietary algorithms to enhance our sales and marketing strategies in an effort to maximize our return on our marketing spend and enhance our agents’ close rates.
Our systems allow us to gain valuable insights from the rich sources of consumer information we have gathered over four decades, and we use complex data analytics and proprietary algorithms to enhance our sales and marketing strategies in an effort to maximize our return on our marketing spend and enhance our agents’ close rates.
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) are also available free of charge on our investor relations website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. 17 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Unless the context otherwise requires, we use the terms “SelectQuote,” the “Company,” “we,” “us” and “our” in this report to refer to SelectQuote, Inc.
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) are also available free of charge on our investor relations website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. 18 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Unless the context otherwise requires, we use the terms “SelectQuote,” the “Company,” “we,” “us” and “our” in this report to refer to SelectQuote, Inc.
We have a high degree of visibility into the commission we earn at the time of sale, as well as the renewal commissions we would earn should a policyholder renew his or her policy. Our CCA team’s efforts enhance the policyholder experience and thereby improve policyholder retention.
We have a high degree of visibility into the commissions we earn at the time of sale, as well as the renewal commissions we would earn should a policyholder renew his or her policy. Our CCA team’s efforts enhance the policyholder experience and thereby improve policyholder retention.
As a provider of services to entities subject to HIPAA, we are directly subject to certain provisions of the regulations as a “Business Associate.” 15 Table of Contents When acting as a Business Associate under HIPAA, to the extent permitted by applicable privacy regulations and contracts with customers, we are permitted to use and disclose protected health information (“PHI”) to provide our services, and for certain other limited purposes; however, other uses and disclosures of PHI, such as in marketing communications, require written authorization from the patient or must meet an exception specified under the applicable privacy regulations.
As a provider of services to entities subject to HIPAA, we are directly subject to certain provisions of the regulations as a “Business Associate.” When acting as a Business Associate under HIPAA, to the extent permitted by applicable privacy regulations and contracts with customers, we are permitted to use and disclose protected health information 16 Table of Contents (“PHI”) to provide our services, and for certain other limited purposes; however, other uses and disclosures of PHI, such as in marketing communications, require written authorization from the patient or must meet an exception specified under the applicable privacy regulations.
Pharmacy and Pharmacy Care Services Regulation. We are subject to various state and federal laws and regulations governing pharmacies and providers of pharmacy care services, including applicable Medicare provider regulations, state and federal anti-kickback laws, and regulations governing the labeling, packaging, advertising, and adulteration of prescription medications.
Pharmacy and Pharmacy Care Services Regulation. We are also subject to various state and federal laws and regulations governing pharmacies and providers of pharmacy care services, including applicable Medicare provider regulations, state and federal anti-kickback laws, and regulations governing the labeling, packaging, advertising, and adulteration of prescription medications.
In particular, regulations promulgated pursuant to the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), as amended by the Health Information Technology for Economic and Clinical Health Act (HITECH), and the Gramm-Leach-Bliley Act (“GLBA”) establish privacy, security and breach reporting standards that, among other things, limit the use and disclosure of certain individually identifiable health information and require the implementation of administrative, physical and technological safeguards to protect such information.
In particular, regulations promulgated pursuant to the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), as amended by the Health Information Technology for Economic and Clinical Health Act (“HITECH”), and the Gramm-Leach-Bliley Act (“GLBA”) establish privacy, security and breach reporting standards that, among other things, limit the use and disclosure of certain individually identifiable health information and require the implementation of administrative, physical and technological safeguards to protect such information.
Optimize our agent force. Our agent force is a key element of our ability to distribute policies and earn commission revenue. Accordingly, investing in our agent force is a critical aspect of our growth strategy.
Our agent force is a key element of our ability to distribute policies and earn commission revenue. Accordingly, investing in our agent force is a critical aspect of our growth strategy.
Life is one of the country’s largest and most established DTC insurance distributors for term life insurance, having sold over 2.4 million policies nationwide since our founding in 1985. Our platform provides unbiased comparison shopping for life insurance products such as term life, final expense, and other ancillary products like critical illness, accidental death, and juvenile insurance.
Life is one of the country’s largest and most established DTC insurance distributors for term life insurance, having sold over 2.6 million policies nationwide since our founding in 1985. Our platform provides unbiased comparison shopping for life insurance products such as term life, final expense, and other ancillary products like critical illness, accidental death, and juvenile insurance.
If one or more events related to these or other risks or 19 Table of Contents uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Many of the important factors that will determine these results are beyond our ability to control or predict.
If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Many of the important factors that will determine these results are beyond our ability to 20 Table of Contents control or predict.
Our systems analyze and intelligently route consumer leads to agents and allow us to monitor, segment, and enhance our agents’ performance. This technological advantage also allows us to rapidly conduct a needs-based, tailored analysis for each consumer that maximizes sales, enhances customer retention, and ultimately maximizes LTV’s.
Our systems analyze and intelligently route consumer leads to agents and allow us to monitor, segment, and enhance our agents’ performance. This technological advantage also allows us to rapidly conduct a needs-based, tailored analysis for each consumer that maximizes sales, enhances customer retention, and ultimately maximizes LTVs.
Our expertise and value add stems from the coupling of our technology with our skilled agents, which provides greater transparency in pricing terms and choice and an overall better consumer experience. When customers are satisfied, their propensity to switch policies decreases, thereby improving retention rates (“persistency”), increasing LTV’s and, ultimately, optimizing our financial performance and shareholder value.
Our expertise and value add stems from the coupling of our technology with our skilled agents, which provides greater transparency in pricing and choice and an overall better consumer experience. When customers are satisfied, their propensity to switch policies decreases, thereby improving retention rates (“persistency”), increasing LTVs and, ultimately, optimizing our financial performance and shareholder value.
In the pharmaceutical market, SelectRx competes with other closed-door and online pharmacies such as Accudose Pharmacy and ExactCare Pharmacy, along with traditional brick and mortar pharmacies such as Walgreen’s and Caremark CVS that primarily sell directly to customers in person.
In the pharmaceutical market, SelectRx competes with other closed-door and online pharmacies such as Accudose Pharmacy and ExactCare Pharmacy, along with traditional brick and mortar pharmacies such as Walgreens and Caremark CVS that primarily sell directly to customers in person.
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 from government-run health insurance exchanges and with brokers, exclusively online brokers and carriers who opt to sell policies directly to consumers; • Developments in the U.S. health insurance system; • Our dependence on revenue from carriers in our Senior segment and downturns in the senior health and life 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 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; 18 Table of Contents • 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; • Consumer demand for prescription medications and our ability to meet such demand; • Safety risks associated with consumers’ use of prescription medications dispensed by our pharmacy; • 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; • 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; • Risks related to our being a public company; and • The other risk factors described under “Risk Factors.” The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this Annual Report on Form 10-K.
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, and other developments in the U.S. health insurance system; • Changes in health insurance products offered by our insurance carrier partners and the health insurance market generally; • Changes to commissions paid by insurance carriers and underwriting practices; • Competition from government-run health insurance exchanges and with brokers, exclusively online brokers, and carriers who opt to sell policies directly to consumers; • Our dependence on revenue from carriers in our Senior segment and downturns in the senior health and life 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 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; 19 Table of Contents • Cost-effective advertisement through internet search engines; • Ability to contact consumers and market products by telephone; • Consumer demand for prescription medications and our ability to meet such demand; • Safety risks associated with consumers’ use of prescription medications dispensed by our pharmacy; • 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, including the Department of Justice action alleging violations of the False Claims Act by us and other industry participants; • Our existing and future indebtedness; • 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; • Risks related to our being a public company; and • The other risk factors described under “Risk Factors.” The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this Annual Report on Form 10-K.
Auto & Home was launched in 2011 as an unbiased comparison shopping platform for insurance products such as homeowners, auto, dwelling fire, and other ancillary insurance products underwritten by approximately 25 leading, nationally recognized insurance carrier partners.
Auto & Home was launched in 2011 as an unbiased comparison shopping platform for insurance products such as homeowners, auto, dwelling fire, and other ancillary insurance products underwritten by approximately 20 leading, nationally recognized insurance carrier partners.
As a dispenser of controlled substances, SelectRx is also subject to certain licensing and registration requirements of both state and federal regulatory authorities, including the U.S. Drug Enforcement Administration (DEA) and various state controlled substance authorities.
As a dispenser of controlled substances, SelectRx is also subject to certain licensing and registration requirements of both state and federal regulatory authorities, including the U.S. Drug Enforcement Administration (“DEA”) and various state controlled substance authorities.
Furthermore, our proprietary technology and tech-enabled agent model is focused on maximizing LTV’s, meaning that our insurance carrier partners enjoy higher quality business from each transaction sourced through us.
Furthermore, our proprietary technology and tech-enabled agent model is focused on maximizing LTVs, meaning that our insurance carrier partners enjoy higher quality business from each transaction sourced through us.
We believe we are unique for our diverse product range, which provides us with greater stability as demand for certain products and customers’ needs fluctuate. Deep and broad insurance carrier partnerships. We are a key distribution partner for approximately 65 of the largest and most respected blue-chip insurance carriers.
We believe we are unique for our diverse product range, which provides us with greater stability as demand for certain products and customers’ needs fluctuate. Deep and broad insurance carrier partnerships. We are a key distribution partner for many of the largest and most respected blue-chip insurance carriers.
We believe carriers see our method of acquiring customers as scalable and efficient and, ultimately, as cost advantageous compared to their own models. Our insurance carrier partners are responsible for paying us consideration for our services through commissions and other forms of compensation, and, for these purposes, act as our customers.
We believe carriers see our method of acquiring customers as scalable and efficient and, ultimately, as cost advantageous compared to their own models. Our insurance carrier partners are responsible for paying us 8 Table of Contents consideration for our services through commissions and other forms of compensation, and, for these purposes, act as our customers.
This regulatory landscape includes a continually expanding and evolving range of laws, regulations, and standards that address financial services; information security; data collection, protection, and privacy; consumer protection; false claims; and compliance with applicable anti-money laundering, securities, and antitrust regulations, among other things.
This regulatory landscape includes a continually expanding and evolving range of laws, regulations, and standards that 15 Table of Contents address financial services; information security; data collection, protection, and privacy; consumer protection; false claims; and compliance with applicable anti-money laundering, securities, and antitrust regulations, among other things.
DTC distribution has become an increasingly important part of the overall distribution strategies of insurance carriers as they drive to lower customer acquisition costs. Internet and mobile devices enable distributors to target and reach consumers directly in a highly controlled and efficient manner.
DTC distribution has become an increasingly important part of the overall distribution strategies of insurance carriers as they drive to lower customer acquisition costs. Internet and mobile devices allow distributors the ability to target and reach consumers directly in a highly controlled and efficient manner.
In recognition of this need, MA plan providers are increasingly focused on benefits aimed at addressing social determinants of health like transportation, nutrition, and social isolation. Additionally, MA plan providers are focused on benefits that improve health outcomes including chronic care management services which are now provided by SPM.
In recognition of this need, Medicare Advantage plan providers are increasingly focused on benefits aimed at addressing social determinants of health like transportation, nutrition, and social isolation. Additionally, Medicare Advantage plan providers are focused on benefits that improve health outcomes including chronic care management services which are now provided by SPM.
Our database is the result of nearly 40 years of dedicated focus and investment, providing us with unparalleled insights that are difficult for competitors to replicate. Financial profile. As a distributor of insurance products, we benefit from favorable industry trends.
Our database is the result of more than 40 years of dedicated focus and investment, providing us with unparalleled insights that are difficult for competitors to replicate. Financial profile. As a distributor of insurance products, we benefit from favorable industry trends.
A large and relatively untapped opportunity is to deepen cross-sell of products to customers across all four of our segments, and we are currently employing technology and data designed to enable us to better track the customer life journey to allow us to identify and better execute on this opportunity.
A large and relatively untapped opportunity is to deepen cross-sell of products to customers across all of our businesses, and we are currently employing technology and data designed to enable us to better track the customer life journey to allow us to identify and better execute on this opportunity.
Our software allows our agents to have more effective interactions with customers, driving agent productivity, sales volume, and providing an attractive distribution alternative for our insurance carrier partners. While traditional insurance distributors use a time-intensive, in-person purchasing process, consumers are increasingly researching insurance policies for their needs online and, ultimately, purchasing through DTC channels.
Our software allows our agents to have more effective interactions with customers, driving agent productivity, sales volume, and providing an attractive distribution alternative for our insurance carrier partners. While traditional insurance 5 Table of Contents distributors use a time-intensive, in-person purchasing process, consumers are increasingly researching insurance policies for their needs online and, ultimately, purchasing through DTC channels.
While we are focused on providing consumers with greater 11 Table of Contents choice, we also strive to be a meaningful component of our insurance carrier partners’ distribution strategy, and are therefore selective when it comes to which carriers we accept onto our platform.
While we are focused on providing consumers with greater choice, we also strive to be a meaningful component of our insurance carrier partners’ distribution strategy, and are therefore selective when it comes to which carriers we accept onto our platform.
The number of people reaching retirement each year took a step-change in 2011 as the first wave of the post-war “Baby Boomer” generation turned 65. The proportion of the population that is age 65 or higher increased from 13% in 2010 to 17% in 2020 and is expected to reach 21% in 2030, according to the United States Census Bureau.
The number of people reaching retirement each year took a step-change in 2011 as the first wave of the post-war “Baby Boomer” generation turned 65. The proportion of the population that is age 65 or higher increased from 13% in 2010 to 18% in 2023 and is expected to reach 21% in 2030, according to the United States Census Bureau.
Our focus on offering high-quality products has resulted in improved retention rates, increasing the value of our distribution model to insurance carrier partners. We also believe Population Health deepens our relationships with our carrier partners by increasing plan loyalty and policy persistency, thereby reducing carriers’ costs. Deepen consumer penetration and drive cross-selling opportunities.
Our focus on offering high-quality products has resulted in improved retention rates, increasing the value of our distribution model to insurance carrier partners. We also believe Healthcare Select deepens our relationships with our carrier partners by increasing plan loyalty and policy persistency, thereby reducing carriers’ costs. Deepen consumer penetration and drive cross-selling opportunities.
We represent approximately 25 leading, nationally-recognized insurance carrier partners, including carriers owned by UnitedHealthcare (“UHC”), Humana, Wellcare, and Aetna. MA and MS plans accounted for 91% of our approved Senior policies for the year ended June 30, 2024, with other ancillary type policies accounting for the remainder.
We represent approximately 25 leading, nationally-recognized insurance carrier partners, including carriers owned by UnitedHealthcare (“UHC”), Humana, Wellcare, and Aetna. MA and MS plans accounted for 90% of our approved Senior policies for the year ended June 30, 2025, with other ancillary type policies accounting for the remainder.
Through Population Health, we utilize our excellent consumer engagement capabilities to capture valuable self-reported information in real-time for our insurance carrier partners by completing Health Risk Assessments (“HRAs”). We then use that data to take a real-time, proactive, and personalized approach to offer various health-related products and services to the consumer, such as our pharmacy services from SelectRx.
Through Healthcare Select, we utilize our excellent consumer engagement capabilities to capture valuable self-reported information in real-time for our insurance carrier partners by completing health risk and lifestyle assessments. We then use that data to take a real-time, proactive, and personalized approach to offer various health-related products and services to the consumer, such as our pharmacy services from SelectRx.
Through 12 Table of Contents our recruiting processes, we are able to identify people who enjoy being a part of, and are motivated by, a performance-based, meritocratic organization. This allows us to assemble a world-class team of people who envision building their careers at SelectQuote.
Through our recruiting processes, we are able to identify people who enjoy being a part of, and are motivated by, a performance-based organization. This allows us to assemble a world-class team of people who envision building their careers at SelectQuote.
Strong company culture developed by an experienced management team. We maintain a unique sales and consumer service-oriented culture. We are a diverse group of people who are united in our mission to provide solutions that help consumers with their overall financial well-being and protect their most valued assets.
Strong company culture driven by an experienced leadership team. We maintain a unique sales and consumer service-oriented culture. We are a diverse group of people who are united in our mission to provide solutions that help consumers with their overall health and financial well-being and protect their most valued assets.
SelectRx offers essential prescription medications, OTC medications, customized medication packaging, and medication therapy management, providing long-term pharmacy care that enables patients to optimize medication adherence to drive positive health outcomes, while enabling patients managing polypharmacy and multiple chronic conditions to remain at home.
SelectRx offers essential prescription medications, over-the-counter (“OTC”) medications, customized medication packaging, and medication therapy management, providing long-term pharmacy care that enables patients to optimize medication adherence to drive positive health outcomes, while enabling patients managing polypharmacy and multiple chronic conditions to remain at home.
Our agents are also proactive in their outreach throughout the year which creates a deeper relationship with our consumers. In addition to the agents who sell insurance products, we have added customer success agents (“CSA”) to work with our consumers in Healthcare Services.
Our agents are also proactive in their outreach throughout the year creating a deeper relationship with our customers. In addition to the agents who sell insurance products, we have added customer success agents (“CSA”) to work with our consumers in our healthcare services business.
Working in tandem, our agents and technology systems are the foundation of our business. Our highly trained licensed agents are subject matter experts in the products they sell, and this, in combination with our purpose-built software and business process, differentiates the service we provide to consumers relative to other insurance distributors or “online only” offerings.
Our highly trained licensed agents are subject matter experts in the products they sell, and this, in combination with our purpose-built software and business process, differentiates the service we provide to consumers relative to other insurance distributors or “online only” offerings.
Seasonality Due to the relative size of our Senior segment and the seasonal nature of its operations, a significant amount of our revenue is generated during our second quarter. The seasonality of the Senior segment’s operations is driven mainly by AEP, which takes place each year from mid-October to early December.
Seasonality Due to the seasonal nature of our Senior segment’s operations, a significant amount of our commissions revenue is generated during our second quarter. The seasonality of the Senior segment’s operations is driven mainly by AEP, which takes place each year from mid-October to early December.
Auto & Home Market 9 Table of Contents Property & Casualty insurance is a large addressable market in which policyholders often have a government or lender-mandated need for coverage.
Auto & Home Market Property & Casualty insurance is a large addressable market in which policyholders often have a government or lender-mandated need for coverage.
We have developed what we believe is a best-in-class talent management system that allows us to recruit from across the United States and build 6 Table of Contents and retain top agents. We provide each new agent with up to 10 weeks of proprietary in-house training, which is supplemented by ongoing training throughout the year.
We have also developed a best-in-class talent management system that allows us to recruit from across the United States to build and retain top agents. We provide each new agent with up to 10 weeks of proprietary in-house training supplemented by ongoing training throughout the year.
This is fewer agents than we have historically hired for the peak season as we were able to retain more of our tenured agents during the off season. None of our employees are represented by any collective bargaining unit or are a party to a collective bargaining agreement. Regulation The sale of insurance products is a heavily regulated industry.
This is fewer agents than we have historically hired for the peak season as we were able to retain more of our tenured agents during the off season. None of our employees are represented by any collective bargaining unit or are a party to a collective bargaining agreement. Regulation Our business operates in heavily regulated industries.
GAL uses a customized "Agent Lobby" algorithm to instantly evaluate our ecosystem, providing consumers with a seamless and efficient pathway to connect with a licensed sales agent. • Automated Rate Calculator (“ARC”)/Automated Quote Engine (“AQE”) : Real-time quoting and underwriting applications integrated directly into carrier systems.
GAL uses a customized "Agent Lobby" algorithm to instantly evaluate our ecosystem, providing consumers with a seamless and efficient pathway to connect with a licensed sales agent who is best suited to meet their insurance needs. • Automated Rate Calculator (“ARC”)/Automated Quote Engine (“AQE”) : Real-time quoting and underwriting applications integrated directly into carrier systems.
There is also meaningful potential for us to leverage our strong brand awareness for intragroup cross sales and expansion into adjacent products and markets that further enhance revenue. Ability to attract and retain productive, career-based agent force.
There is also meaningful potential for us to leverage our strong brand awareness for intragroup cross sales and expansion into adjacent products and markets that further enhance revenue. Ability to attract and retain productive, career-based associate workforce across the organization.
For the year ended June 30, 2022, we sold over 810,000 policies for our Senior insurance carrier partners and produced more than $220 million in new premium for our Life and Auto & Home insurance carrier partners.
For the year ended June 30, 2025, we sold over 660,000 policies for our Senior insurance carrier partners and produced more than $200 million in new premium for our Life and Auto & Home insurance carrier partners.
Our complex regression and machine-learning models drive marketing spend and lead purchasing, scoring and routing, sales 10 Table of Contents execution and post-sale customer engagement, all to further our goal of maximizing policyholder lifetime value. As we continue to grow, we will naturally acquire more data that will continue to better inform our decision-making.
Our complex regression and machine-learning models drive marketing spend and lead purchasing, scoring and routing, sales execution and post-sale customer engagement, all to further our goal of maximizing policyholder lifetime value. As we continue to grow, we will naturally acquire more data that will continue to better inform our decision-making. Highly scalable platform with growing network effects.
We believe that our data and our technology are key competitive advantages and drivers of our business performance. We continue to upgrade and optimize our technology as new opportunities are identified by our Information Technology and Analytics teams. SelectCare is our core overarching proprietary customer relationship management (“CRM”) and parent system with phone bank, sales enablement/workflow optimization and reporting tools.
We continue to upgrade and optimize our technology as new opportunities are identified by our information technology and analytics teams. SelectCare is our core overarching proprietary customer relationship management (“CRM”) and parent system with phone bank, sales enablement/workflow optimization and reporting tools.
We represent approximately 20 leading, nationally-recognized insurance carrier partners, with many of these relationships exceeding 20 years. Term life policies accounted for 45% of new premium within Life for the year ended June 30, 2024, with final expense policies accounting for 55%.
We represent approximately 20 leading, nationally-recognized insurance carrier partners, with many of these relationships exceeding 20 years. Term life policies 6 Table of Contents accounted for 40% of new premium within Life for the year ended June 30, 2025, with final expense policies accounting for 60%.
Maximizing lifetime value involves continued investment in: • Our agent experience and customer care team, which, together, enhance our close rates, commissionable premium, and ability to earn renewal and cross-sell revenue; • Carrier relationships and, in particular, negotiation of more favorable terms; • Pre-AEP outreach to our Senior segment policyholders to better understand emerging trends in consumer decision making; • Technology, data, and analytics that help us optimize our marketing and lead acquisition spend; • Our pod offerings, which offer an opportunity to earn economics on a more favorable basis than our broader comparison shopping platform; and • Population Health, which supports increased policy persistency by helping patients understand and utilize the full spectrum of benefits available under their plans.
Maximizing lifetime value involves continued investment in: • Our agent experience and customer care team, which, together, enhance our close rates, commissionable premium, and ability to earn renewal and cross-sell revenue; • Carrier relationships and, in particular, negotiation of more favorable terms; • Pre-AEP outreach to our Senior segment policyholders to better understand emerging trends in consumer decision making; • Technology, data, and analytics that help us optimize our marketing and lead acquisition spend; and • Healthcare Select, which supports increased policy persistency by helping patients understand and utilize the full spectrum of benefits available under their plans. 13 Table of Contents Optimize our agent force.
Over this time, we have built a highly successful and recognizable household brand. We continue to enhance our visibility with advertisements on nationwide television networks and radio outlets, while also maintaining a strong online presence through our market-leading comparison websites, complemented by search engine advertising and a social media presence.
We continue to enhance our visibility with advertisements on nationwide television networks and radio outlets, while also maintaining a strong online presence through our market-leading comparison websites, complemented by search engine advertising and a social media presence.
Our Products 5 Table of Contents The core insurance products we distribute on behalf of our insurance carrier partners are needs-based and critical to the overall financial well-being of consumers and the protection of their most valued assets: their families, their health, and their property.
Additionally, through our insurance distribution business, we distribute needs-based insurance products on behalf of our insurance carrier partners. These products are critical to the overall financial well-being of consumers and the protection of their most valued assets: their families, their health, and their property.
This ensures a SelectQuote lead always gets presented with the comparison shopping platform. Data driven approach to maximization of policyholder lifetime value. We use advanced algorithms informed by over 1 billion consumer data points to enrich our consumer engagement strategy. Our algorithms help agents identify opportunities for cross-sell, such as offering complementary plans at the point of sale.
Data driven approach to maximization of policyholder lifetime value. We use advanced algorithms informed by over 1 billion consumer data points to enrich our consumer engagement strategy. Our algorithms help agents identify opportunities for cross-sell, such as offering complementary plans at the point of sale.
We are affected by laws and regulations that apply to the insurance industry, 14 Table of Contents as well as those applying to businesses operating on the internet and businesses in general.
We are affected by laws and regulations that apply to the insurance and healthcare industries, as well as those applying to businesses operating on the internet and businesses in general.
As of June 30, 2024, we employed a total of 1,335 agents and 2,957 non-agent full-time equivalent employees. During AEP, we typically hire additional full-time employees to capitalize on the peak selling season and hired approximately 700 employees for the 2023 AEP (fiscal 2024).
As of June 30, 2025, we employed a total of 1,181 agents and 3,088 non-agent full-time equivalent employees. During AEP, we typically hire additional full-time employees to capitalize on the peak selling season and hired approximately 431 external employees for the 2024 AEP (fiscal 2025).
Since then, in addition to introducing a range of other life insurance products, SelectQuote expanded into the fast-growing senior health insurance market and auto & home insurance market. Today we provide consumers with access to over 50 insurance products sourced from approximately 65 carriers.
At our inception, we specialized in the distribution of term life insurance products. Since then, in addition to introducing a range of other life insurance products, SelectQuote expanded into the fast-growing senior health insurance market and auto & home insurance market. Today we provide consumers with access to over 50 insurance products.
CSA’s enroll the consumer as a member into our free Population Health service, help them understand the benefits available under their health plans, and using data from HRAs, connect them to one of our various health-related services such as SelectRx, SPM, or one of our many Population Health partners - all customized to that individual consumer.
CSAs enroll the customer as a member into our free Healthcare Select service and help them understand the benefits available under their health plans. They leverage data from health risk and lifestyle assessments to connect the customer to our health services such as SelectRx, SPM, or one of our many Healthcare Select partners - all customized to that individual consumer.
This function allows our core agent force to allocate time towards new business generation. The CCA team leverages our systems to identify opportunities for consumers to purchase additional products and for us to implement tailored retention strategies.
A number of the CCA team members are former licensed agents already familiar with the business and the consumer journey. This function allows our core agent force to allocate time towards new business generation. The CCA team leverages our systems to identify opportunities for consumers to purchase additional products and for us to implement tailored retention strategies.
As our value proposition has grown, our insurance carrier partners have come to rely more on our distribution capabilities and have partnered with us more deeply in product design, helping fuel our growth.
As our value proposition has grown, our insurance carrier partners have come to rely more on our distribution capabilities and have partnered with us more deeply in product design, helping fuel our growth. Our Products Through our Healthcare Services business, we offer pharmaceutical products and other health-related equipment and services.
ITEM 1. BUSINESS Overview SelectQuote, Inc. (together with its subsidiaries, “SelectQuote”, the “Company”, “we”, “us”) is a leading technology-enabled, direct-to-consumer (“DTC”) distribution and engagement platform for selling insurance policies and healthcare services.
ITEM 1. BUSINESS Overview SelectQuote, Inc. (together with its subsidiaries, “SelectQuote”, the “Company”, “we”, “us”) is a leading technology-enabled, direct-to-consumer (“DTC”) distribution and engagement platform for selling insurance policies and healthcare services. In recent years, we have increasingly focused on expanding our healthcare services platform as a natural extension of our core Senior distribution insurance business.
This personalized approach enhances the customer experience, and when customers are satisfied, their propensity to switch policies decreases, which extends the renewal revenue stream paid to us by our insurance carrier partners and enhances the lifetime value of policyholder relationships. Our processes and technologies come together to drive strong economic results, allowing us to reward top agents with market-leading pay.
This extends the renewal revenue stream paid to us by insurance carrier partners and enhances the lifetime value of policyholder relationships. Through this, our processes and technology come together to drive strong economic results allowing us to reward top agents with market-leading pay.
According to the Center for Health Care Strategies, nearly 36% of adults in the U.S. have low health literacy, resulting in greater healthcare use and cost, compared to those with proficient health literacy.
According to the Center for Health Care Strategies, nearly nine out of ten adults in the United States struggle with health literacy, resulting in greater healthcare use and cost, compared to those with proficient health literacy.
Our insurance distribution business, which has operated continuously for nearly 40 years, allows consumers to transparently and conveniently shop for senior health, life, and automobile and home insurance policies from a curated panel of the nation’s leading insurance carriers.
Our strategy is focused on delivering more comprehensive and personalized healthcare solutions that meet the evolving needs of our senior customers. Our insurance distribution business, which has operated continuously for over 40 years, allows consumers to transparently and conveniently shop for senior health, life, and automobile and home insurance policies from a curated panel of the nation’s leading insurance carriers.
As of June 30, 2024, our dedicated CCA team was comprised of nearly 250 professionals who aim to improve the consumer experience during the post-sale carrier onboarding process, drive improved retention in the out years and improve cross selling opportunities. A number of the CCA team members are former licensed agents already familiar with the business and the consumer journey.
As of June 30, 2025, our dedicated CCA team was comprised of nearly 200 professionals who aim to improve the consumer experience during the post-sale carrier onboarding process, drive improved retention in the out years and 12 Table of Contents improve cross selling opportunities.
Our training is designed to ensure that every agent is well-equipped with a deep understanding of the products they sell and the customer service and sales skills necessary to best service the customer. Our goal is that every agent in whom we invest will build a long and rewarding career with us.
Our training ensures every agent is equipped with a deep understanding of the products, customer service, and sales skills necessary to best serve the customer. Our goal is for every agent in whom we invest to build a long and rewarding career with us. The most productive agents receive our highest quality leads.
We estimate the total value-based care market for Medicare Advantage patients to be over $600 billion. Further, with 33% of Medicare beneficiaries living below 200% of the federal poverty level, according to the Kaiser Family Foundation in 2022, many of our consumers need help accessing social resources that impact health outcomes.
Further, with approximately 33% of Medicare beneficiaries living below 200% of the federal poverty level, according to the Kaiser Family Foundation in 2023, many of our consumers need help accessing social resources that impact health outcomes.
Due to the typically more complex and longer-term nature of life insurance products, we expect agent expertise and consultation to continue as a prominent aspect of the sales process prior to ultimate purchase.
Life Market DTC sales of life insurance are becoming more prevalent as an increasing proportion of consumers are conducting self-directed online research prior to buying policies. Due to the typically more complex and longer-term nature of life insurance products, we expect agent expertise and consultation to continue as a prominent aspect of the sales process prior to ultimate purchase.
SelectCare is a customized system that uses various algorithms to score leads, route them to agents and organize each agent’s work day, with the objective of maximizing return on investment.
SelectCare leverages sophisticated AI algorithms to score leads, route them to agents and 10 Table of Contents organize each agent’s work day, with the objective of maximizing return on investment.
Additionally, through our Healthcare Services business, we offer pharmaceutical products and other health-related services. Senior was launched in 2010 and provides unbiased comparison shopping for Medicare Advantage (“MA”) and Medicare Supplement (“MS”) insurance plans as well as prescription drug and dental, vision, and hearing (“DVH”) plans, and critical illness products.
We believe that offering these services enables healthcare to be more accessible, convenient, and personalized for our members. Senior was launched in 2010 and provides unbiased comparison shopping for Medicare Advantage (“MA”) and Medicare Supplement (“MS”) insurance plans as well as prescription drug and dental, vision, and hearing (“DVH”) plans, and critical illness products.
We have also formed partnerships with several pharmacy benefit managers including OptumRx, Caremark CVS, and Express Scripts, which help support SelectRx, as well as several providers of health-related resources that support improved health outcomes as partners for Population Health. Our Market Opportunity Senior Market Demand for senior insurance products in the U.S. is underpinned by powerful demographic trends.
We have also formed partnerships with several pharmacy benefit managers including OptumRx, Caremark CVS, and Express Scripts, which help support SelectRx, as well as several providers of health-related resources that support improved health outcomes as partners for Healthcare Select.
Since 1985, we have helped over seven million policyholders save time and money on critical insurance purchases. We have been pioneers of insurance distribution, and, through our technology-driven sales model, we believe we are well placed to support policyholders and insurance carrier partners as consumers continue shifting toward online channels to make purchasing decisions for their insurance needs.
We have been pioneers of insurance distribution, and, through our technology-driven sales model, we believe we are well positioned to support policyholders and insurance carrier partners as consumers continue shifting toward online channels to make purchasing decisions for their insurance needs. We believe that our data and our technology are key competitive advantages and drivers of our business performance.
Not only is the population of people age 65 and higher growing, according to the Pew Research Center, internet usage among this group has risen, with 88% using the internet in 2023 compared to 40% in 2009. Within the growing Medicare market, Medicare Advantage plans are gaining prominence, as these private market solutions displace the traditional, government Medicare program.
Not only is the population of people age 65 and higher growing, according to the Pew Research Center, internet usage among this group has risen, with 90% using the internet in 2024 compared to 40% in 2009.
In addition, because we are not the issuer of the insurance policy to the consumer, we bear no underwriting risks. 4 Table of Contents Founded nearly 40 years ago as what we believe was the first DTC term life insurance exchange platform in the United States, our technology-driven, differentiated model allows consumers to easily compare pricing and policy options from over 70 of the nation’s leading insurance carriers.
Founded more than 40 years ago as what we believe was the first DTC term life insurance exchange platform in the United States, our technology-driven, differentiated model allows consumers to easily compare pricing and policy options. Working in tandem, our agents and technology systems are the foundation of our business.
This coupling of our technology with our skilled agents provides the consumer with greater transparency in pricing terms and choice and an overall better consumer experience that maximizes sales, enhances customer retention and, ultimately, maximizes LTV’s.
This coupling of our technology with our skilled agents provides the consumer with greater transparency in pricing terms, unbiased guidance, and choice, resulting in an overall better experience that maximizes sales. We have also deployed conversational AI technologies that automate routine enrollment processes.
Our production facilities currently have the capacity to support approximately 105,000 members, offering ample opportunity to increase revenues as SelectRx continues to grow. The Medicare market also offers the opportunity to grow our business by connecting seniors with additional health related products and services, including value-based care providers, chronic care management and resources for addressing social needs.
The Medicare market also offers the opportunity to grow our business by connecting seniors with additional health related products and services, including value-based care providers, chronic care management and resources for addressing social needs. We estimate the total value-based care market for Medicare Advantage patients to be over $600 billion.
Through significant recent investments we have made to our technological, infrastructure and reporting capabilities, our platform is designed to provide us with ample support for future years of growth with minimal ongoing working capital requirements. We have built our systems to be highly adaptable, providing us with flexibility to seamlessly provide product extensions and enter into other product verticals.
Our structured recruiting, training and agent onboarding program provides flexibility to ramp up agent hiring activity to drive sales volumes. Through significant recent investments we have made to our technological, infrastructure and reporting capabilities, our platform is designed to provide us with ample support for future years of growth with minimal ongoing working capital requirements.
Additionally, for our Healthcare Services segment, we see a significant influx of new patient enrollments during the AEP season, which is driven by the increase in sales from our Senior segment.
For the years ended June 30, 2025, 2024, and 2023, this timeline resulted in 31%, 31%, and 32%, respectively, of our total consolidated revenue being generated during the second quarter. 17 Table of Contents Additionally, for our Healthcare Services segment, we see a significant influx of new patient enrollments during the AEP season, which is driven by the increase in sales from our Senior segment.
As we accumulate more healthcare data and insights, we continue to enhance our ability to provide value across the healthcare spectrum, from insurance selection to ongoing patient care management. Strong brand awareness. We were founded nearly 40 years ago as what we believe was the first DTC term life insurance exchange platform in the U.S.
Our expansion into healthcare services further demonstrates the scalability and adaptability of our platform. As we accumulate more healthcare data and insights, we continue to enhance our ability to provide value across the healthcare spectrum, from insurance selection to ongoing patient care management. Strong brand awareness.
The relationships with our insurance carrier partners such as UHC, Aetna, Anthem, and Humana, has grown through SelectRx and Population Health, as we gather valuable data for them by performing HRAs.
We do not generate revenues directly from the consumers to whom we sell insurance policies on behalf of our insurance carrier partners. The relationships with our insurance carrier partners such as UHC, Aetna, Humana and Anthem, have grown through SelectRx and Healthcare Select, as we gather valuable data for them by performing health risk and lifestyle assessments.
As we process more data and interactions, our AI systems continuously learn and improve, providing increasingly accurate and personalized support to our agents and customers alike. Our expansion into healthcare services further demonstrates the scalability and adaptability of our platform.
Furthermore, our integration of AI throughout our platform allows us to scale our operations efficiently while maintaining high standards of service. As we process more data and interactions, our AI systems continuously learn and improve, providing increasingly accurate and personalized support to our agents and customers alike.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Our business may be harmed if we lose our relationships with these partners or fail to develop new insurance carrier relationships. • Changes in the health insurance market or in the variety, quality and affordability of the insurance products offered by our carrier partners could harm our business, operating results, financial condition and prospects. • Systemic changes in our carrier partners’ sales strategies or underwriting practices could reduce the number of, or impact the renewal or approval rates of, insurance policies sold through our distribution platform. • Insurance carriers can offer products and services directly to consumers or through our competitors. • Our business is substantially dependent on revenue from our Senior health insurance carrier partners. • If we are unable to develop new offerings, achieve increased consumer adoption of those offerings or penetrate new vertical markets, our business could be materially and adversely affected. • Risks from third-party products could adversely affect our businesses. • If our ability to enroll individuals during AEP and OEP is impeded, our business will be harmed. • Our business is dependent on our obtaining a large quantity of quality insurance sales leads in a cost-effective manner and our ability to convert sales leads to actual sales of insurance policies. • If we are unable to maintain or grow the data provided to us by consumers and insurance carrier partners, or if such data is inaccurate, we may be unable to provide consumers with an insurance shopping experience that is relevant, efficient and effective, which could adversely affect our business. 20 Table of Contents • We depend upon internet search engines to attract a significant portion of the consumers who visit our website, and if we are unable to effectively advertise on search engines on a cost-effective basis our business, operating results, financial condition and prospects could be harmed. • We may be subject to significant liability should the consumption of any of our pharmacy products cause injury, illness or death. • Our existing and any future indebtedness could adversely affect our ability to operate our business. • Operating and growing our business will require additional capital, which may not be available to us. • Seasonality may cause fluctuations in our financial results. • Our operating results will be impacted by factors that affect our estimate of the constrained lifetime value of commissions per policyholder.
Our business may be harmed if we lose our relationships with these partners or fail to develop new insurance carrier relationships. • Changes in the health insurance market or in the variety, quality and affordability of the insurance products offered by our carrier partners could harm our business, operating results, financial condition and prospects. • Systemic changes in our carrier partners’ sales strategies or underwriting practices could reduce the number of, or impact the renewal or approval rates of, insurance policies sold through our distribution platform. • Insurance carriers can offer products and services directly to consumers or through our competitors. • Our business is substantially dependent on revenue from our Senior health insurance carrier partners. • If we are unable to develop new offerings, achieve increased consumer adoption of those offerings or penetrate new vertical markets, our business could be materially and adversely affected. • Risks from third-party products could adversely affect our businesses. • If our ability to enroll individuals during AEP and OEP is impeded, our business will be harmed. • Our business is dependent on our obtaining a large quantity of quality insurance sales leads in a cost-effective manner and our ability to convert sales leads to actual sales of insurance policies. • If we are unable to maintain or grow the data provided to us by consumers and insurance carrier partners, or if such data is inaccurate, we may be unable to provide consumers with an insurance shopping experience that is relevant, efficient and effective, which could adversely affect our business. 21 Table of Contents • We depend upon internet search engines to attract a significant portion of the consumers who visit our website, and if we are unable to effectively advertise on search engines on a cost-effective basis our business, operating results, financial condition and prospects could be harmed. • We may be subject to significant liability should the consumption of any of our pharmacy products cause injury, illness or death. • Our existing and any future indebtedness could adversely affect our ability to operate our business. • Operating and growing our business will require additional capital, which may not be available to us. • Seasonality may cause fluctuations in our financial results. • Our operating results will be impacted by factors that affect our estimate of the constrained lifetime value of commissions per policyholder.
If our ability to obtain competitive pricing and reimbursement terms is negatively impacted, or if we experience a change in composition of pharmacy prescription volume toward programs offering lower reimbursement rates, our pharmacy margins may suffer, and operating results may be materially adversely affected.
If our ability to obtain competitive pricing and reimbursement terms is negatively impacted, or if we experience a change in composition of pharmacy prescription volume toward partners or programs offering lower reimbursement rates, our pharmacy margins may suffer, and operating results may be materially adversely affected.
In addition, any future changes to the use of Average Wholesale Price or other published pricing benchmarks used to establish pharmaceutical pricing, including changes in the basis for calculating reimbursement by federal and state health programs and/or other payors, could impact the reimbursement we receive from Medicare programs and Medicaid health plans, the reimbursement we receive from payors and/or our ability to negotiate rebates with pharmaceutical manufacturers and acquisition discounts with wholesalers.
In addition, any future changes to the use of Average Wholesale Price or other published pricing benchmarks used to establish pharmaceutical pricing, including changes in the basis for calculating reimbursement by federal and state health programs and/or other payers, could impact the reimbursement we receive from Medicare programs and Medicaid health plans, the reimbursement we receive from payers and/or our ability to negotiate rebates with pharmaceutical manufacturers and acquisition discounts with wholesalers.
Should the value of goodwill or other intangible assets become impaired, there could be an adverse effect on our financial condition and results of operations. For information about the impairments we recorded during the years ended June 30, 2023 and 2022, please refer to “Notes to Consolidated Financial Statements” under Item 8 below.
Should the value of goodwill or other intangible assets become impaired, there could be an adverse effect on our financial condition and results of operations. For information about the impairments we recorded during the years ended June 30, 2025 and June 30, 2023, please refer to “Notes to Consolidated Financial Statements” under Item 8 below.
The continued efforts of Congress and federal agencies, health maintenance organizations, managed care organizations, pharmacy benefit management companies (PBMs), other State and local government entities, and other third-party payors to reduce prescription drug costs and pharmacy reimbursement rates, as well as litigation relating to how drugs are priced, may impact our profitability.
The continued efforts of Congress and federal agencies, health maintenance organizations, managed care organizations, pharmacy benefit management companies (PBMs), other State and local government entities, and other third-party payers to reduce prescription drug costs and pharmacy reimbursement rates, as well as litigation relating to how drugs are priced, may impact our profitability.
The competitive success of our pharmacy business is largely dependent on our ability to establish and maintain contractual relationships with PBMs and other payors on acceptable terms. Some of these entities may offer pricing terms that we may not be willing to accept or otherwise restrict or exclude our participation in their networks of pharmacy providers.
The competitive success of our pharmacy business is largely dependent on our ability to establish and maintain contractual relationships with PBMs and other payers on acceptable terms. Some of these entities may offer pricing terms that we may not be willing to accept or otherwise restrict or exclude our participation in their networks of pharmacy providers.
For example, in April 2023, CMS finalized rules that could increase compliance costs and otherwise impact our business results by, among other things, requiring new disclosures that could make certain forms of marketing less practicable and potentially requiring a 48-hour waiting period between initial contact with a beneficiary and enrolling that beneficiary.
For example, in April 2023, CMS finalized rules that could increase compliance costs and otherwise impact our business results by, among other things, requiring new disclosures that could make certain forms of marketing less practicable and mandating a 48-hour waiting period between initial contact with a beneficiary and enrolling that beneficiary.
General Risk Factors • Our quarterly and annual operating results or other operating metrics may fluctuate significantly and may not meet expectations of analysts, which could cause the trading price of our common stock to decline. 21 Table of Contents • We are required to make significant estimates and assumptions in the preparation of our financial statements.
General Risk Factors 22 Table of Contents • Our quarterly and annual operating results or other operating metrics may fluctuate significantly and may not meet expectations of analysts, which could cause the trading price of our common stock to decline. • We are required to make significant estimates and assumptions in the preparation of our financial statements.
If our ability to enroll individuals during AEP and OEP is impeded, our business will be harmed. In general, approximately 40% of our Medicare Advantage and Medicare Supplement policies are submitted during AEP. Our agents, systems and processes must handle an increased volume of transactions that occur during AEP and OEP.
If our ability to enroll individuals during AEP and OEP is impeded, our business will be harmed. In general, approximately 42% of our Medicare Advantage and Medicare Supplement policies are submitted during AEP. Our agents, systems and processes must handle an increased volume of transactions that occur during AEP and OEP.
The declaration and amount of any future dividends to holders of our common stock will be at the discretion of our Board of Directors in accordance with applicable law and after taking into account various factors, including our financial condition, operating results, current and anticipated cash needs, cash flows, impact on our effective tax rate, indebtedness, contractual obligations, legal requirements and other factors that our Board of 41 Table of Contents Directors deems relevant.
The declaration and amount of any future dividends to holders of our common stock will be at the discretion of our Board of Directors in accordance with applicable law and after taking into account various factors, including our financial condition, operating results, current and anticipated cash needs, cash flows, impact on our effective tax rate, indebtedness, contractual obligations, legal requirements and other factors that our Board of Directors deems relevant.
The increasing sophistication and resources of cyber criminals and other non-state threat actors and increased actions by nation-state actors make keeping up with new threats difficult and could result in a breach of security. Controls employed by our information technology department and our insurance carrier partners and third-party service providers, including cloud vendors, could prove inadequate.
The increasing sophistication and resources of cyber criminals and other non-state threat actors and increased actions by nation-state actors make keeping up with new threats difficult and could result in a breach of 36 Table of Contents security. Controls employed by our information technology department and our insurance carrier partners and third-party service providers, including cloud vendors, could prove inadequate.
In addition, our ability to attract and retain pharmacy customers is dependent on several factors, including our brand and reputation, our technology, the products and services offered by our competitors, and our customer experience and satisfaction, which is informed by, among other factors, the reliability of our services, including the accuracy and timely delivery of our prescription boxes; our customer service; and our flexibility in responding to patients’ changing needs and preferences.
In addition, our ability to attract and retain pharmacy customers is dependent on several factors, including our brand and reputation, our technology, the products and services offered by our competitors, and our customer experience and satisfaction, which is informed by, among other factors, the reliability of our services, including the 29 Table of Contents accuracy and timely delivery of our prescription boxes; our customer service; and our flexibility in responding to patients’ changing needs and preferences.
Our pharmacy business derives substantially all of its revenue from sales of prescription drugs reimbursed by third-party payors, including the Medicare Part D plans and state sponsored Medicaid and related managed care Medicaid plans.
Our pharmacy business derives substantially all of its revenue from sales of prescription drugs reimbursed by third-party payers, including the Medicare Part D plans and state sponsored Medicaid and related managed care Medicaid plans.
Our business model does not require us to hold a significant amount of cash and cash equivalents at any given time, and if our cash needs exceed our expectations or we experience rapid growth, we could experience strain in our cash flow, which could adversely 31 Table of Contents affect our operations in the event we were unable to obtain other sources of liquidity.
Our business model does not require us to hold a significant amount of cash and cash equivalents at any given time, and if our cash needs exceed our expectations or we experience rapid growth, we could experience strain in our cash flow, which could adversely affect our operations in the event we were unable to obtain other sources of liquidity.
We also may fail to maintain or be unable to obtain adequate protections for certain of our intellectual property in the U.S. or certain foreign countries, and our intellectual property rights may not receive the same degree of protection in foreign countries as they would in the U.S. because of the differences in foreign trademark, copyright, and other laws concerning proprietary rights.
We also may fail to maintain or be unable to obtain adequate protections for certain of our intellectual property in the U.S. or certain foreign countries, and our intellectual property rights may not receive the same degree of protection in foreign countries as they would in the U.S. because of the differences in foreign trademark, 34 Table of Contents copyright, and other laws concerning proprietary rights.
Issues related to the development and use of artificial intelligence (AI) could give rise to legal and/or regulatory action, damage our reputation or otherwise materially harm of our business. We currently incorporate AI technology in our business operations. Our research and development of such technology remains ongoing, and AI algorithms and training methodologies may be flawed.
Issues related to the development and use of artificial intelligence (AI) could give rise to legal and regulatory action, damage our reputation, or otherwise materially harm of our business. 37 Table of Contents We currently incorporate AI technology in our business operations. Our research and development of such technology remains ongoing, and AI algorithms and training methodologies may be flawed.
We are also subject to a variety of laws and regulations that involve matters central to our business, including with respect to user privacy and the collection, processing, storing, sharing, disclosing, using, transfer and 39 Table of Contents protecting of personal information and other data. These laws and regulations constantly evolve and remain subject to significant change.
We are also subject to a variety of laws and regulations that involve matters central to our business, including with respect to user privacy and the collection, processing, storing, sharing, disclosing, using, transfer and protecting of personal information and other data. These laws and regulations constantly evolve and remain subject to significant change.
In particular, because our DTC platform provides consumers with a venue to shop for insurance policies from a curated panel of the nation’s leading insurance carriers, the expansion of government- 38 Table of Contents sponsored coverage through “Medicare-for-All” or the implementation of a single-payer system may adversely impact our business.
In particular, because our DTC platform provides consumers with a venue to shop for insurance policies from a curated panel of the nation’s leading insurance carriers, the expansion of government-sponsored coverage through “Medicare-for-All” or the implementation of a single-payer system may adversely impact our business.
If we are unsuccessful in our defense of these legal proceedings, we may be forced to pay damages or fines, enter into consent decrees, stop offering certain of our services, or change our business practices, any of which would harm our business, operating results, and financial condition.
If we are 41 Table of Contents unsuccessful in our defense of these legal proceedings, we may be forced to pay damages or fines, enter into consent decrees, stop offering certain of our services, or change our business practices, any of which would harm our business, operating results, and financial condition.
We could be adversely impacted by the supply of defective or expired products, including the infiltration of counterfeit products into the supply chain, errors in re-labeling of products, product tampering, product recall, and contamination or product mishandling issues. In 29 Table of Contents addition, errors in the dispensing and packaging of pharmaceuticals could lead to serious injury or death.
We could be adversely impacted by the supply of defective or expired products, including the infiltration of counterfeit products into the supply chain, errors in re-labeling of products, product tampering, product recall, and contamination or product mishandling issues. In addition, errors in the dispensing and packaging of pharmaceuticals could lead to serious injury or death.
In addition, the technological connections of our systems with the carriers’ systems that provide us up-to-date information about coverage and commissions could fail or carriers could cease providing us with access to this information, which could impede our ability to compile our operating results in a timely manner.
In addition, the technological connections of our systems with the carriers’ systems that provide us up-to-date information about coverage and commissions could fail or carriers 33 Table of Contents could cease providing us with access to this information, which could impede our ability to compile our operating results in a timely manner.
Further, we are required under the Senior Secured Credit Facility to maintain compliance with certain debt covenants, as discussed further below in Note 10 to the consolidated financial statements.
Further, we are required under the Senior Secured Credit Facility to maintain compliance with certain debt covenants, as discussed further below in Note 8 to the consolidated financial statements.
Our ability to expand our business depends on our being able to hire, train and retain sufficient numbers of employees to staff our in-house sales centers, as well as other personnel. In addition, the success of our pharmacy business is dependent on our ability to attract, hire, and retain qualified licensed pharmacists and other pharmacy personnel.
Our ability to expand our business depends on our being able to hire, train and retain sufficient numbers of employees to staff our in-house sales centers, as well as other personnel. In addition, the success of our pharmacy business is dependent on our ability to attract, hire, and 26 Table of Contents retain qualified licensed pharmacists and other pharmacy personnel.
We may be subject to significant liability should the consumption of any of the products offered through our pharmacy business cause injury, illness, or death. Products that we sell through our pharmacy business could become subject to contamination, product tampering, mislabeling or other damage requiring us to recall our products.
We may be subject to significant liability should the consumption of any of the products offered through our pharmacy business cause injury, illness, or death. 30 Table of Contents Products that we sell through our pharmacy business could become subject to contamination, product tampering, mislabeling or other damage requiring us to recall our products.
If we fail to maintain and deepen our relationships with existing pharmacy customers, or if we are unable to attract new customers to our pharmacy business, our pharmacy revenues and 28 Table of Contents margins may suffer, and our results of operations, cash flows, and financial condition could be materially and adversely affected.
If we fail to maintain and deepen our relationships with existing pharmacy customers, or if we are unable to attract new customers to our pharmacy business, our pharmacy revenues and margins may suffer, and our results of operations, cash flows, and financial condition could be materially and adversely affected.
Our Senior segment, operating results, financial condition and prospects may be materially and adversely affected if we are unable to adapt to developments in healthcare reform in the United States. Healthcare laws and regulations are rapidly evolving and may change significantly in the future, impacting the coverage and plan designs that are or will be provided by certain insurance carriers.
Our Senior segment, operating results, financial condition and prospects may be materially and adversely affected if we are unable to adapt to developments in healthcare reform in the United States. 39 Table of Contents Healthcare laws and regulations are rapidly evolving and may change significantly in the future, impacting the coverage and plan designs that are or will be provided by certain insurance carriers.
We could face potential claims in connection with purported errors by our home delivery, specialty or compounding pharmacies, including as a result of the risks inherent in the packaging and distribution of pharmaceuticals and other health care products.
We could face potential claims in connection with purported errors by our home delivery, specialty or compounding pharmacies, including as a result of the risks inherent in the packaging and distribution of 40 Table of Contents pharmaceuticals and other health care products.
The United States regulates marketing by telephone and email and the laws and regulations governing the use of emails 40 Table of Contents and telephone calls for marketing purposes continue to evolve, and changes in technology, the marketplace or consumer preferences may lead to the adoption of additional laws or regulations or changes in interpretation of existing laws or regulations.
The United States regulates marketing by telephone and email and the laws and regulations governing the use of emails and telephone calls for marketing purposes continue to evolve, and changes in technology, the marketplace or consumer preferences may lead to the adoption of additional laws or regulations or changes in interpretation of existing laws or regulations.
In April 2024, CMS adopted final rules placing limitations on the compensation of certain distributors of Medicare products and establishing certain contractual standards for dual eligible special needs plans enrollments, 37 Table of Contents among other things.
In April 2024, CMS adopted final rules placing limitations on the compensation of certain distributors of Medicare products and establishing certain contractual standards for dual eligible special needs plans enrollments, among other things.
Our healthcare services operations, including our pharmacy business, face regulatory and operational risks and uncertainties that differ from the risks of our other businesses. In addition to the pharmacy services provided through SelectRx, we also provide various healthcare services through Population Health.
Our healthcare services operations, including our pharmacy business, face regulatory and operational risks and uncertainties that differ from the risks of our other businesses. In addition to the pharmacy services provided through SelectRx, we also provide various healthcare services through Healthcare Select.
The reliability and security of our systems, and those of our insurance carrier partners, is important not only to facilitating our sale of insurance 34 Table of Contents products, but also to maintaining our reputation and ensuring the proper protection of our confidential and proprietary information.
The reliability and security of our systems, and those of our insurance carrier partners, is important not only to facilitating our sale of insurance products, but also to maintaining our reputation and ensuring the proper protection of our confidential and proprietary information.
The AI-related legal and regulatory landscape remains uncertain and may be inconsistent from jurisdiction to jurisdiction. Our obligations to comply with the evolving legal and regulatory landscape could entail significant costs or limit our ability to incorporate 36 Table of Contents certain AI capabilities into our offerings.
The AI-related legal and regulatory landscape remains uncertain and may be inconsistent from jurisdiction to jurisdiction. Our obligations to comply with the evolving legal and regulatory landscape could entail significant costs or limit our ability to incorporate certain AI capabilities into our offerings.
Operating and growing our business may require additional capital, and if capital is not available to us, our business, operating results, financial condition and prospects may suffer. Operating and growing our business is expected to require further investments in our technology and operations.
Operating and growing our business may require additional capital, and if capital is not available to us, our business, operating results, financial condition and prospects may suffer. 32 Table of Contents Operating and growing our business is expected to require further investments in our technology and operations.
For the year ended June 30, 2024, 50% of our total revenue was derived from our Senior segment. For the years ended June 30, 2023 and 2022, 59% and 69%, respectively, of our total revenue was derived from our Senior segment.
For the year ended June 30, 2025, 39% of our total revenue was derived from our Senior segment. For the years ended June 30, 2024 and 2023, 50% and 59%, respectively, of our total revenue was derived from our Senior segment.
Should we become more dependent on even fewer insurance carrier relationships (whether as a result of the termination of insurance carrier relationships, insurance carrier consolidation or otherwise), we may become more vulnerable to adverse changes in our relationships with insurance carriers, particularly in states where we distribute insurance from a relatively smaller number of insurance carrier partners or where a small number of insurance carriers dominates the market, and our business, operating results, financial condition and prospects could be harmed. 22 Table of Contents Changes in the health insurance market or in the variety, quality and affordability of the insurance products offered by our insurance carrier partners could harm our business, operating results, financial condition and prospects.
Should we become more dependent on even fewer insurance carrier relationships (whether as a result of the termination of insurance carrier relationships, insurance carrier consolidation or otherwise), we may become more vulnerable to adverse changes in our relationships with insurance carriers, particularly in states where we distribute insurance from a relatively smaller number of insurance carrier partners or 23 Table of Contents where a small number of insurance carriers dominates the market, and our business, operating results, financial condition and prospects could be harmed.
Claims that are or may in the future be asserted against us, whether with or without merit, could be time-consuming and expensive to address, could divert management’s attention and other resources, and/or could subject us to significant liability for damages and harm our reputation. Our insurance and indemnities may not cover all claims that may be asserted against us.
The DOJ Action and other claims that are or may in the future be asserted against us, whether with or without merit, could be time-consuming and expensive to address, could divert management’s attention and other resources, and/or could subject us to significant liability for damages and harm our reputation.
Any of these results would harm our business, operating results, financial condition and prospects. Our business depends on our ability to maintain and improve the technological infrastructure that supports our distribution platform, and any significant disruption in service on our platform could result in a loss of consumers, which could harm our business, brand, operating results, financial condition and prospects.
Our business depends on our ability to maintain and improve the technological infrastructure that supports our distribution platform, and any significant disruption in service on our platform could result in a loss of consumers, which could harm our business, brand, operating results, financial condition and prospects. 35 Table of Contents Our ability to service consumers depends on the reliable performance of our technological infrastructure.
Risks Related to Laws and Regulation • Laws and regulations regulating insurance activities are complex and could have a material and adverse effect on our business and may reduce our profitability or limit our growth. • Our Senior segment is subject to a complex legal and regulatory framework, and non-compliance with or changes in laws and regulations governing the marketing and sale of Medicare plans could harm our business, operating results, financial condition and prospects. • Our pharmacy and healthcare services businesses face additional regulatory and operational risks. • Changes and developments in the regulation of the healthcare industry and the health insurance system and markets could adversely affect our business.
Risks Related to Laws and Regulation • Laws and regulations regulating insurance activities are complex and could have a material and adverse effect on our business and may reduce our profitability or limit our growth. • Our Senior segment is subject to a complex legal and regulatory framework, and non-compliance with or changes in laws and regulations governing the marketing and sale of Medicare plans could harm our business, operating results, financial condition and prospects. • Our pharmacy and healthcare services businesses face additional regulatory and operational risks. • Changes and developments in the regulation of the healthcare industry and the health insurance system and markets could adversely affect our business. • Ongoing litigation matters, including the Department of Justice complaint alleging violations of the False Claims Act by us and other industry participants, could have a material adverse effect on our business, operations, and financial condition.
Our existing and any future indebtedness could adversely affect our ability to operate our business. We are subject to various obligations and covenants under the Senior Secured Credit Facility, as described further herein in Note 10 to the consolidated financial statements.
Our existing and any future indebtedness could adversely affect our ability to operate our business. We are subject to various obligations and covenants under the Senior Secured Credit Facility, the Note Purchase Agreement and related documentation, and the Senior Preferred Stock Purchase Agreements, as described further herein in Note 8 to the consolidated financial statements.
For example, carriers owned by UHC, Humana, and Aetna accounted for 30%, 17% , and 16%, respectively, of our total revenue for the year ended June 30, 2024, carriers owned by UHC and Humana accounted for 33% and 20%, respectively, of our total revenue for the year ended June 30, 2023; and carriers owned by UHC, Wellcare, and Humana acc ounted for 18%, 17%, and 12%, respectively, of our total revenue for the year ended June 30, 2022.
For example, carriers owned by UHC, Aetna, and Humana accounted for 37%, 15% , and 11%, respectively, of our total revenue for the year ended June 30, 2025, carriers owned by UHC, Humana and Aetna accounted for 30%, 17%, and 16%, respectively, of our total revenue for the year ended June 30, 2024; and carriers owned by UHC, and Humana acc ounted for 33%, and 20%, respectively, of our total revenue for the year ended June 30, 2023.
The preparation of our consolidated financial statements in conformity with GAAP requires our management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income and expense during the reporting periods.
These estimates and assumptions may not be accurate and are subject to change. 42 Table of Contents The preparation of our consolidated financial statements in conformity with GAAP requires our management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income and expense during the reporting periods.
Third parties also may take actions that diminish the value of our proprietary rights or our reputation or cause consumer confusion through the use of similar service names or domain names. 33 Table of Contents Litigation regarding any intellectual property disputes may be costly and disruptive to us.
Third parties also may take actions that diminish the value of our proprietary rights or our reputation or cause consumer confusion through the use of similar service names or domain names. Litigation regarding any intellectual property disputes may be costly and disruptive to us. Any of these results would harm our business, operating results, financial condition and prospects.
Our continued improvement of our product and service offerings is critical to our success. Accordingly, we must continually invest resources in product, technology and development in order to improve the comprehensiveness and effectiveness of our distribution platform.
Accordingly, we must continually invest resources in product, technology and development in order to improve the comprehensiveness and effectiveness of our distribution platform.
As a result, capital appreciation, if any, of our common stock will be your sole source of gain for the foreseeable future. ITEM 1B. UNRESOLVED STAFF COMMENTS None .
Accordingly, we do not expect to pay dividends in the foreseeable future. As a result, capital appreciation, if any, of our common stock will be your sole source of gain for the foreseeable future. ITEM 1B. UNRESOLVED STAFF COMMENTS None .
Our operating results fluctuate depending upon insurance carrier payment and policy approval practices and the timing of our receipt of commission reports from our insurance carrier partners. 32 Table of Contents The timing of our revenue depends upon the timing of our insurance carrier partners’ approval of the policies sold on our platform and submitted for their review, as well as the timing of our receipt of commission reports and associated payments from our insurance carrier partners.
The timing of our revenue depends upon the timing of our insurance carrier partners’ approval of the policies sold on our platform and submitted for their review, as well as the timing of our receipt of commission reports and associated payments from our insurance carrier partners.
If paid search advertising costs increase or become cost prohibitive, whether as a result of competition, algorithm changes or otherwise, our advertising expenses could materially increase or we could reduce or discontinue our paid search advertisements, either of which would harm our business, operating results, financial condition and prospects. 27 Table of Contents Our business could be harmed if we are unable to contact consumers or market the availability of our products by telephone.
If paid search advertising costs increase or become cost prohibitive, whether as a result of competition, algorithm changes or otherwise, our 28 Table of Contents advertising expenses could materially increase or we could reduce or discontinue our paid search advertisements, either of which would harm our business, operating results, financial condition and prospects.
However, in the event that our insurance carrier partners choose to make systemic changes in the manner in which their policies are distributed, including by focusing on direct distribution themselves or on distribution channels other than ours, such changes could materially and adversely affect our business, operating results, financial condition and prospects. 24 Table of Contents If we are unable to develop new offerings, achieve increased consumer adoption of those offerings or penetrate new vertical markets, our business, operating results, financial condition and prospects could be materially and adversely affected.
However, in 25 Table of Contents the event that our insurance carrier partners choose to make systemic changes in the manner in which their policies are distributed, including by focusing on direct distribution themselves or on distribution channels other than ours, such changes could materially and adversely affect our business, operating results, financial condition and prospects.
Our Senior segment is subject to a complex legal and regulatory framework, and non-compliance with or changes in laws and regulations governing the marketing and sale of Medicare plans and other health-related products and services could harm our business, operating results, financial condition and prospects.
Our Senior segment is subject to a complex legal and regulatory framework, and non-compliance with or changes in laws and regulations governing the marketing and sale of Medicare plans and other health-related products and services could harm our business, operating results, financial condition and prospects. 38 Table of Contents Our Senior segment is subject to a complex legal and regulatory framework, and the laws and regulations governing the marketing and sale of Medicare plans, particularly with respect to regulations and guidance issued by CMS related to Medicare Advantage and Medicare Part D Prescription Drug plans, change frequently.
Without qualified individuals to serve in consumer-facing roles, we may produce less commission revenue, which could have a material and adverse effect on our business, operating results, financial condition and prospects.
The productivity of our agents and enrollment and consumer service specialists is influenced by their average tenure. Without qualified individuals to serve in consumer-facing roles, we may produce less commission revenue, which could have a material and adverse effect on our business, operating results, financial condition and prospects.
However, we cannot guarantee that we have entered into such agreements with each party that has or may have had access to our proprietary information, know-how and trade secrets.
Additionally, we enter into confidentiality and invention assignment agreements with our employees and enter into confidentiality agreements with third parties, including suppliers and other partners. However, we cannot guarantee that we have entered into such agreements with each party that has or may have had access to our proprietary information, know-how and trade secrets.
Telephone calls from our sales centers may be blocked by or subject to consumer warnings from telephone carriers. Furthermore, our telephone messages to existing or potential customers may not be reliably received due to those consumers’ call-screening practices.
Our business could be harmed if we are unable to contact consumers or market the availability of our products by telephone. Telephone calls from our sales centers may be blocked by or subject to consumer warnings from telephone carriers. Furthermore, our telephone messages to existing or potential customers may not be reliably received due to those consumers’ call-screening practices.
We could report revenue below the expectations of our investors or securities analysts in any particular period if a material report or payment from an insurance carrier partner were delayed for any reason.
We could report revenue below the expectations of our investors or securities analysts in any particular period if a material report or payment from an insurance carrier partner were delayed for any reason. Furthermore, we could incur substantial credit losses if one or more of the insurance carrier partners that we depend upon for payment of commissions were to fail.
Our Board of Directors intends to retain future earnings to finance the operation and expansion of our business. In addition, our Senior Secured Credit Facility contains restrictions on our ability to pay dividends to the holders of our common stock. Accordingly, we do not expect to pay dividends in the foreseeable future.
Our Board of Directors intends to retain future earnings to finance the operation and expansion of our business. In addition, both our Senior Secured Credit Facility and the Senior Non-Convertible Preferred Stock Purchase Agreements contain restrictions on our ability to pay dividends to the holders of our common stock.
Failure to do so could materially and adversely affect our business, operating results, financial condition and prospects. Our ability to match consumers to insurance products that suit their needs is dependent upon their provision of accurate information during the insurance shopping process. Our business depends on consumers’ provision of accurate information during the insurance shopping process.
Our ability to match consumers to insurance products that suit their needs is dependent upon their provision of accurate information during the insurance shopping process. Our business depends on consumers’ provision of accurate information during the insurance shopping process.
Further, we may incur additional goodwill or other 30 Table of Contents impairment charges in the future associated with other acquisitions, and we cannot accurately predict the amount and timing of any impairments of these or other assets.
If actual results differ from the assumptions and estimates used in our goodwill and intangible asset calculations, we could incur future impairment or amortization charges. Further, we may incur additional goodwill or other impairment charges in the future associated with other acquisitions, and we cannot accurately predict the amount and timing of any impairments of these or other assets.
Factors may include, among others: a significant decline in our expected future cash flows; a sustained, significant decline in our stock price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; the testing for recoverability of a significant asset group within a reporting unit; and slower growth rates.
Factors may include, among others: a significant decline in our expected future cash flows; a sustained, significant decline in our stock price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; the testing for recoverability of a significant asset group within a reporting unit; and slower growth rates. 31 Table of Contents During the year ended June 30, 2025, we recorded a $4.2 million noncash impairment charge related to our acquisition in 2020 of InsideResponse, an online lead generation business.
Some of these competitors include: • companies that operate insurance search websites or websites that provide quote information or the opportunity to purchase insurance products online; • individual insurance carriers, including through the operation of their own websites, physical storefront operations and broker arrangements; • traditional insurance agents or brokers; and • field marketing organizations.
Some of these competitors include: • companies that operate insurance search websites or websites that provide quote information or the opportunity to purchase insurance products online; • individual insurance carriers, including through the operation of their own websites, physical storefront operations and broker arrangements; • traditional insurance agents or brokers; and • field marketing organizations. 24 Table of Contents New competitors may enter the market for the distribution of insurance products with competing insurance distribution platforms, which could have an adverse effect on our business, operating results, financial condition and prospects.
In addition, the quality, accuracy and timeliness of this information may suffer, which may lead to a negative insurance shopping experience for consumers using our platform and could materially and adversely affect our business, operating results, financial condition and prospects.
In addition, the quality, accuracy and timeliness of this information may suffer, which may lead to a negative insurance shopping experience for consumers using our platform and could materially and adversely affect our business, operating results, financial condition and prospects. 27 Table of Contents We have made substantial investments into our technology systems that support our business with the goal of enabling us to provide efficient, needs-based services to consumers using data analytics.
A breach of our security that results in unauthorized access to our data could expose us to a disruption or challenges relating to our daily operations, as well as to data loss, litigation, damages, fines and penalties, significant increases in compliance costs and reputational damage, any of which could have a material and adverse effect on our business, operating results, financial condition and prospects. 35 Table of Contents To the extent we or our systems rely on our insurance carrier partners or third-party service providers, through either a connection to, or an integration with, those third-parties’ systems, the risk of cybersecurity attacks and loss, corruption, or unauthorized publication of our information or the confidential information of consumers and employees may increase.
A breach of our security that results in unauthorized access to our data could expose us to a disruption or challenges relating to our daily operations, as well as to data loss, litigation, damages, fines and penalties, significant increases in compliance costs and reputational damage, any of which could have a material and adverse effect on our business, operating results, financial condition and prospects.
Our success in recruiting highly skilled and qualified personnel can depend on factors outside of our control, including the strength of the general economy and local employment markets and the availability of alternative forms of employment.
Our success in recruiting highly skilled and qualified personnel can depend on factors outside of our control, including the strength of the general economy and local employment markets and the availability of alternative forms of employment. During periods when we are unable to recruit high-performing agents and enrollment and consumer service specialists, we tend to experience higher turnover rates.
Furthermore, we could incur substantial credit losses if one or more of the insurance carrier partners that we depend upon for payment of commissions were to fail Our operating results will be impacted by factors that impact our estimate of the lifetime value of commissions per policyholder. We recognize revenue based on the expected value approach.
Our operating results will be impacted by factors that impact our estimate of the lifetime value of commissions per policyholder. We recognize revenue based on the expected value approach.
The demand for our agency services is impacted by the variety, quality and price of the insurance products we distribute.
Changes in the health insurance market or in the variety, quality and affordability of the insurance products offered by our insurance carrier partners could harm our business, operating results, financial condition and prospects. The demand for our agency services is impacted by the variety, quality and price of the insurance products we distribute.
Any of these results would harm our business, operating results, financial condition and prospects. Additionally, we enter into confidentiality and invention assignment agreements with our employees and enter into confidentiality agreements with third parties, including suppliers and other partners.
Any of these results would harm our business, operating results, financial condition and prospects.
We have made substantial investments into our technology systems that support our business with the goal of enabling us to provide efficient, needs-based services to consumers using data analytics. There can be no 26 Table of Contents assurance that we will be able to continually collect and retain sufficient data, or improve our data technologies to satisfy our operating needs.
There can be no assurance that we will be able to continually collect and retain sufficient data, or improve our data technologies to satisfy our operating needs. Failure to do so could materially and adversely affect our business, operating results, financial condition and prospects.
Removed
New competitors may enter the market for the distribution of insurance products with competing insurance distribution platforms, which could have an adverse effect on our business, operating results, financial condition and 23 Table of Contents prospects.
Added
If we are unable to develop new offerings, achieve increased consumer adoption of those offerings or penetrate new vertical markets, our business, operating results, financial condition and prospects could be materially and adversely affected. Our continued improvement of our product and service offerings is critical to our success.
Removed
During periods when we are 25 Table of Contents unable to recruit high-performing agents and enrollment and consumer service specialists, we tend to experience higher turnover rates. The productivity of our agents and enrollment and consumer service specialists is influenced by their average tenure.
Added
Our operating results fluctuate depending upon the timing of insurance carrier payments, data and policy approval practices from our insurance carrier partners.
Removed
During the year ended June 30, 2024, no intangible or goodwill impairment charges were recorded. If actual results differ from the assumptions and estimates used in our goodwill and intangible asset calculations, we could incur future impairment or amortization charges.
Added
To the extent we or our systems rely on our insurance carrier partners or third-party service providers, through either a connection to, or an integration with, those third-parties’ systems, the risk of cybersecurity attacks and loss, corruption, or unauthorized publication of our information or the confidential information of consumers and employees may increase.
Removed
Our ability to service consumers depends on the reliable performance of our technological infrastructure.
Added
For example, on May 1, 2025, the United States Attorney’s Office for the District of Massachusetts filed a complaint partially intervening in a qui tam action against the Company and certain of its competitors and carrier partners alleging violations of the False Claims Act (the “DOJ Action”).
Removed
Our Senior segment is subject to a complex legal and regulatory framework, and the laws and regulations governing the marketing and sale of Medicare plans, particularly with respect to regulations and guidance issued by CMS related to Medicare Advantage and Medicare Part D Prescription Drug plans, change frequently.
Added
Our insurance and indemnities may not cover all claims that may be asserted against us.
Removed
For example, we are involved in the matters discussed below under Item 8, Notes to Consolidated Financial Statements, and in August 2022 we received a subpoena from the United States Attorney’s Office for the District of Massachusetts, seeking, among other things, information regarding our arrangements with our insurance carrier partners.
Added
Even if favorably resolved, the DOJ Action and any similar pending or future matters involving the Company or other industry participants may lead to changes in the senior health insurance industry that could materially and adversely affect our business, operating results, and financial condition, including the limitation or elimination of the use of marketing development funds and similar payment structures.
Removed
These estimates and assumptions may not be accurate and are subject to change.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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A formal approach to enterprise risk management encompassing finance, operational risk management, and Information Technology (“IT”) to manage the business and technology-related challenges and required regulatory compliance obligations i. Board approved Information Security policies that are reviewed bi-annually ii.
A formal approach to enterprise risk management encompassing finance, operational risk management, and Information Technology (“IT”) to manage the business and technology-related challenges and required regulatory compliance obligations i. Board approved Information Security policies that are reviewed annually ii.
Recover and restore any capabilities or services that were impaired due to a cybersecurity incident To reduce the risks from cybersecurity threats associated with our use of third-party service providers, we have a supplier relationship policy and process which outlines information security requirements for mitigating the risks associated with supplier’s access to our organization’s assets.
Recover and restore any capabilities or services that were impaired due to a cybersecurity incident 43 Table of Contents To reduce the risks from cybersecurity threats associated with our use of third-party service providers, we have a supplier relationship policy and process which outlines information security requirements for mitigating the risks associated with supplier’s access to our organization’s assets.
Governance Day to day management of our cybersecurity program is the responsibility of the Director, Information Technology Security. The Director manages an internal team of security professionals, as well as a third-party managed security operations center which provides 24/7 security monitoring. Our Director of IT Security reports to 42 Table of Contents the Chief Information Officer.
Governance Day to day management of our cybersecurity program is the responsibility of the Director, Information Technology Security. The Director manages an internal team of security professionals, as well as a third-party managed security operations center which provides 24/7 security monitoring. Our Director of IT Security reports to the Chief Information Officer.

Item 2. Properties

Properties — owned and leased real estate

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As the majority of our office lease footprint now represents a hybrid in-person and remote work model, we have terminated or sub-leased our excess space, where commercially reasonable and to the extent unnecessary for future expansion. 43 Table of Contents Location Approximate Square Footage Leased Approximate Square Footage Subleased Approximate Square Footage Occupied Primary Use Overland Park, Kansas 232,068 95,874 136,194 Corporate headquarters, marketing and advertising, technical development, general and administrative, operations for all segments.
As the majority of our office lease footprint now represents a hybrid in-person and remote work model, we have terminated or sub-leased our excess space, where commercially reasonable and to the extent unnecessary for future expansion. 44 Table of Contents Location Approximate Square Footage Leased Approximate Square Footage Subleased Approximate Square Footage Occupied Primary Use Overland Park, Kansas 232,068 95,874 136,194 Corporate headquarters, marketing and advertising, technical development, general and administrative, operations for all segments.
ITEM 2. PROPERTIES The following table sets forth the location, approximate square footage and primary use of each of the principal properties we occupied as of September 13, 2024. All of the properties listed below are leased, and we believe our properties are in good operating condition and are suitable for their primary use.
ITEM 2. PROPERTIES The following table sets forth the location, approximate square footage and primary use of each of the principal properties we occupied as of August 21, 2025. All of the properties listed below are leased, and we believe our properties are in good operating condition and are suitable for their primary use.
Centennial, Colorado 45,373 45,373 — Monaca, Pennsylvania 22,000 — 22,000 Healthcare Services segment (SelectRx) operations Indianapolis, Indiana 32,630 — 32,630 Healthcare Services segment (SelectRx) operations Oakland, California 8,623 — 8,623 Life segment operations San Diego, California 5,874 — 5,874 Life segment operations
Centennial, Colorado 45,373 32,309 13,064 Subleased Monaca, Pennsylvania 22,000 — 22,000 Healthcare Services segment (SelectRx) operations Indianapolis, Indiana 32,630 — 32,630 Healthcare Services segment (SelectRx) operations Oakland, California 8,623 — 8,623 Life segment operations San Diego, California 5,874 — 5,874 Life segment operations Olathe, Kansas 54,000 — 27,000 Healthcare Services segment (SelectRx) operations

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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For additional details, see Part II, Item 8, Note 11, Commitments and Contingencies – “Legal Contingencies and Obligations,” in the notes to consolidated financial statements in Item 8 of this Annual Report on Form 10-K, which is incorporated herein by reference.
For additional details, see Part II, Item 8, Note 12, Commitments and Contingencies – “Legal Contingencies and Obligations,” in the notes to consolidated financial statements in Item 8 of this Annual Report on Form 10-K, which is incorporated herein by reference.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Stock Performance Graph The graph below compares the cumulative total return to stockholders on our common stock to the cumulative total return on the NYSE Composite Index and the Center for Research in Security Prices US Small Cap Index (the “CRSP US Small Cap Index”) for the period beginning on May 21, 2020 (the date our common stock commenced trading on the NYSE) through June 30, 2024.
Stock Performance Graph The graph below compares the cumulative total return to stockholders on our common stock to the cumulative total return on the NYSE Composite Index and the Center for Research in Security Prices US Small Cap Index (the “CRSP US Small Cap Index”) for the period beginning on May 21, 2020 (the date our common stock commenced trading on the NYSE) through June 30, 2025.
The stock price performance shown in the following graph is not intended to forecast or be indicative of possible future stock price performance. 45 Table of Contents 5/21/2020 06/20 06/21 06/22 6/23 6/24 SelectQuote, Inc. $ 100.00 $ 93.81 $ 71.33 $ 9.19 $ 7.22 $ 10.22 NYSE Composite Index $ 100.00 $ 104.78 $ 145.84 $ 127.63 $ 139.86 $ 158.80 CRSP US Small Cap Index $ 100.00 $ 106.55 $ 164.78 $ 128.92 $ 145.64 $ 159.85 46 Table of Contents
The stock price performance shown in the following graph is not intended to forecast or be indicative of possible future stock price performance. 46 Table of Contents 5/21/2020 06/20 06/21 06/22 6/23 6/24 6/25 SelectQuote, Inc. $ 100.00 $ 93.81 $ 71.33 $ 9.19 $ 7.22 $ 10.22 $ 8.81 NYSE Composite Index $ 100.00 $ 104.78 $ 145.84 $ 127.63 $ 139.86 $ 158.80 $ 179.97 CRSP US Small Cap Index $ 100.00 $ 106.55 $ 164.78 $ 128.92 $ 145.64 $ 159.85 $ 173.52
As of August 31, 2024, there were approximately 100 common stockholders of record.
As of July 31, 2025, there were approximately 100 common stockholders of record.
In addition, our Senior Secured Credit Facility contains covenants that restrict our ability to pay cash dividends, subject to certain exceptions. Issuer Purchases of Equity Securities We did not repurchase any of our common stock during the year ended June 30, 2024.
In addition, both our Senior Secured Credit Facility and the Senior Non-Convertible Preferred Stock Purchase Agreements contain covenants or other provisions that restrict our ability to pay cash dividends, subject to certain conditions. Issuer Purchases of Equity Securities We did not repurchase any of our common stock during the year ended June 30, 2025.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

107 edited+50 added−39 removed79 unchanged
Life is one of the country’s largest and most established DTC insurance distributors for term life insurance, having sold over 2.2 million policies nationwide since our founding in 1985. Our platform provides unbiased comparison shopping for life insurance products such as term life, final expense, and other ancillary products like critical illness, accidental death, and juvenile insurance.
Life is one of the country’s largest and most established DTC insurance distributors for term life insurance, having sold over 2.6 million policies nationwide since our founding in 1985. Our platform provides unbiased comparison shopping for life insurance products such as term life, final expense, and other ancillary products like critical illness, accidental death, and juvenile insurance.
Our healthcare services business seeks to provide consumers with a wide breadth of products supporting their needs, such as SelectRx, our Patient-Centered Pharmacy Home TM (“PCPH”) accredited pharmacy, which has already demonstrated SelectQuote’s ability to leverage our strong consumer engagement to drive immediate value using our existing operational infrastructure.
Our healthcare services business seeks to provide consumers with a wide breadth of products supporting their needs, such as SelectRx, our Patient-Centered Pharmacy Home TM accredited pharmacy, which has already demonstrated SelectQuote’s ability to leverage our strong consumer engagement to drive immediate value using our existing operational infrastructure.
These, along with other services revenue from Healthcare Services (excluding SelectRx revenue discussed below) and our lead generation business, InsideResponse (of which the majority is eliminated as intersegment revenue), are presented in our consolidated statements of comprehensive loss as commissions and other services revenue.
These, along with other services revenue from Healthcare Services (excluding SelectRx revenue discussed below) and our lead generation business, InsideResponse (of which the majority is eliminated as intersegment revenue), are presented in our consolidated statements of comprehensive income (loss) as commissions and other services revenue.
There were no goodwill impairment charges recorded for the years end June 30, 2024 and June 30, 2023, as the fair value of the reporting unit significantly exceeded the carrying value.
There were no goodwill impairment charges recorded for the years end June 30, 2025, June 30, 2024, and June 30, 2023, as the fair value of the reporting unit significantly exceeded the carrying value.
Operating Costs and Expenses Cost of Commissions and Other Services Revenue Cost of commissions and other services revenue represents the direct costs associated with fulfilling our obligations to our customers in Senior, Life, Auto & Home, and Healthcare Services (excluding SelectRx discussed below); primarily compensation, benefits, and licensing for sales agents, customer success agents, fulfillment specialists, and others directly engaged in serving customers.
Operating Costs and Expenses Cost of Commissions and Other Services Revenue Cost of commissions and other services revenue represents the direct costs associated with fulfilling our obligations to our customers in Senior, Life, and Healthcare Services (excluding SelectRx discussed below); primarily compensation, benefits, and licensing for sales agents, customer success agents, fulfillment specialists, and others directly engaged in serving customers.
Our systems analyze and intelligently route consumer leads to agents and allow us to monitor, segment, and enhance our agents’ performance. This technological advantage also allows us to rapidly conduct a needs-based, tailored analysis for each consumer that maximizes sales, enhances customer retention, and ultimately maximizes LTV’s.
Our systems analyze and intelligently route consumer leads to agents and allow us to monitor, segment, and enhance our agents’ performance. This technological advantage also allows us to rapidly conduct a needs-based, tailored analysis for each consumer that maximizes sales, enhances customer retention, and ultimately maximizes LTVs.
These assumptions include estimating the volatility of the Company's common stock price over the expected term, the risk-free interest rate that reflects the interest rate at grant date on zero-coupon United States governmental bonds that have a remaining life similar to the expected term risk-free interest rate, the cost of equity, and the dividend yield assumption which is based on the Company's dividend payment history and management's expectations of future dividend payments.
These assumptions include estimating the volatility of the Company's common stock price over the expected term, the risk-free interest rate that reflects the interest rate at grant date on zero-coupon United States 69 Table of Contents governmental bonds that have a remaining life similar to the expected term risk-free interest rate, the cost of equity, and the dividend yield assumption which is based on the Company's dividend payment history and management's expectations of future dividend payments.
Our expertise and value add stems from the coupling of our technology with our skilled agents, which provides greater transparency in pricing terms and choice and an overall better consumer experience. When customers are satisfied, their propensity to switch policies decreases, thereby improving retention rates (“persistency”), increasing LTV’s and, ultimately, optimizing our financial performance and shareholder value.
Our expertise and value add stems from the coupling of our technology with our skilled agents, which provides greater transparency in pricing and choice and an overall better consumer experience. When customers are satisfied, their propensity to switch policies decreases, thereby improving retention rates (“persistency”), increasing LTVs and, ultimately, optimizing our financial performance and shareholder value.
Other services revenues from our Healthcare Services segment (excluding SelectRx revenue discussed below) is recognized when the performance obligation has been met, which is at different times for our various services (e.g. the HRA has been performed, a transfer has been made to a health-related partner, or SPM has provided care management services to a member), the transaction price is known based on volume and contractual prices, and we have no further performance obligations.
Other services revenues from our Healthcare Services segment (excluding SelectRx revenue discussed below) is recognized when the performance obligation has been met, which is at different times for our various services (e.g. the health risk and lifestyle assessments has been performed, a transfer has been made to a health-related partner, or SPM has provided care management services to a member), the transaction price is known based on volume and contractual prices, and we have no further performance obligations.
Collection of commissions receivable depends upon the timing of our receipt of commission payments and associated commission statements from our insurance carrier partners. If we were to experience a delay in receiving 63 Table of Contents a commission payment from an insurance carrier partner within a quarter, our operating cash flows for that quarter could be adversely impacted.
Collection of commissions receivable depends upon the timing of our receipt of commission payments and associated commission statements from our insurance carrier partners. If we were to experience a delay in receiving a commission payment from an insurance carrier partner within a quarter, our operating cash flows for that quarter could be adversely impacted.
Our segment disclosure includes intersegment revenues, which consist of affiliate marketing fees for services provided by our Senior segment to our Healthcare Services, Life and Auto & Home segments as well as services provided by Life and Auto & Home to other segments.
Our segment disclosure includes intersegment revenues, which consist of affiliate marketing fees for services provided by our Senior segment to our Healthcare Services and Life segments as well as services provided by Life to other segments.
Pharmacy revenue on the consolidated statements of comprehensive loss includes revenue from the sale of prescription and OTC medication products from SelectRx. Revenue is recognized at different milestones for Senior, Life, and Auto & Home and is based on the contractual enforceable rights, our historical experience, and established customer business practices.
Pharmacy revenue on the consolidated statements of comprehensive income (loss) includes revenue from the sale of prescription and OTC medication products from SelectRx. Revenue is recognized at different milestones for Senior and Life and is based on the contractual enforceable rights, our historical experience, and established customer business practices.
For Healthcare Services, our primary source of revenue is 49 Table of Contents pharmacy revenue from SelectRx, so the total number of SelectRx members and the prescriptions shipped per day are the most appropriate measures used to evaluate the performance of Healthcare Services as these metrics drive top-line revenue.
For Healthcare Services, our primary source of revenue is pharmacy revenue from SelectRx, so the total number of SelectRx members and the prescriptions shipped per day are the most appropriate measures used to evaluate the performance of Healthcare Services as these metrics drive top-line revenue.
The Company estimates the fair value of reporting units under ASC 350 by using an income approach, a market approach, or a combination thereof, which involves the use of significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy of ASC 820, Fair Value Measurement (“ASC 820”), and require us to make various judgmental assumptions around future revenues and operating costs, growth rates, and discount rates which consider our budgets, business plans, and economic projections.
The Company estimates the fair value of reporting units under ASC 350, Intangibles - Goodwill and Other by using an income approach, a market approach, or a combination thereof, which involves the use of significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy of ASC 820, Fair Value Measurement , and require us to make various judgmental assumptions around future revenues and operating costs, growth rates, and discount rates which consider our budgets, business plans, and economic projections.
In 2024, we launched SelectPatient Management (“SPM”), via a $4.0 million acquisition of an existing chronic care management platform, which offers providers, payers, and Accountable Care Organizations scalable, technology-enhanced services for patients living with chronic conditions.
In 2024, we launched SPM, via a $4.0 million acquisition of an existing chronic care management platform, which offers providers, payers, and Accountable Care Organizations scalable, technology-enhanced services for patients living with chronic conditions.
We represent approximately 25 leading, nationally-recognized insurance carrier partners, including UHC, Humana, Aetna, and Wellcare. MA and MS plans accounted for 91%, 89%, and 82% of our approved Senior policies for the years ended June 30, 2024, 2023, and 2022, respectively, with other ancillary type policies accounting for the remainder.
We represent approximately 25 leading, nationally-recognized insurance carrier partners, including UHC, Humana, Aetna, and Wellcare. MA and MS plans accounted for 90%, 91%, and 89% of our approved Senior policies for the years ended June 30, 2025, 2024, and 2023, respectively, with other ancillary type policies accounting for the remainder.
Our operating segments are determined based on how our chief executive officer, who also serves as our chief operating decision maker (“CODM”) manages our business, regularly accesses information, and evaluates performance for operating decision-making purposes, including allocation of resources.
Our operating segments are determined based on how our chief executive officer, who also serves as our CODM, manages our business, regularly accesses information, and evaluates performance for operating decision-making purposes, including allocation of resources.
Lead generation revenue is recognized when the generated lead is accepted by our 54 Table of Contents customers, which is the point of sale, and we have no performance obligation after the delivery. Revenues generated from SelectRx are recognized upon shipment.
Lead generation revenue is recognized when the generated lead is accepted by our customers, which is the point of sale, and we have no performance obligation after the delivery. Revenues generated from SelectRx are recognized upon shipment.
Persistency is the estimate of policies expected to renew each year and renewal year provision is the estimate of policies expected to lapse during each renewal period. The estimated duration of expected renewals used in the calculation of LTV is ten 66 Table of Contents years, prior to the application of persistency estimates.
Persistency is the estimate of policies expected to renew each year and renewal year provision is the estimate of policies expected to lapse during each renewal period. The estimated duration of expected renewals used in the calculation of LTV is ten years, prior to the application of persistency estimates.
Through Population Health, we utilize our excellent consumer engagement capabilities to capture valuable self-reported information in real-time for our insurance carrier partners by completing Health Risk Assessments (“HRAs”). We then use that data to take a real-time, proactive, and personalized approach to offer various health-related products and services to the consumer, such as our pharmacy services from SelectRx.
Through Healthcare Select, we utilize our excellent consumer engagement capabilities to capture valuable self-reported information in real-time for our insurance carrier partners by completing health risk and lifestyle assessments. We then use that data to take a real-time, proactive, and personalized approach to offer various health-related products and services to the consumer, such as our pharmacy services from SelectRx.
The expected term for stock options granted is determined using the simplified method, which deems the expected 67 Table of Contents term to be the midpoint between the vesting date and the contractual life of the stock-based awards.
The expected term for stock options granted is determined using the simplified method, which deems the expected term to be the midpoint between the vesting date and the contractual life of the stock-based awards.
The Company is continuously reviewing and monitoring the assumptions and inputs into the Company’s calculation of renewal commission revenue, including reviewing changes in the data used to estimate LTV’s as well as monitoring the cash received for each cohort as compared to the original estimates at the time the policy was sold.
The Company is continuously reviewing and monitoring the assumptions and inputs into the Company’s calculation of renewal commission 68 Table of Contents revenue, including reviewing changes in the data used to estimate LTVs as well as monitoring the cash received for each cohort as compared to the original estimates at the time the policy was sold.
The accounting estimates we believe to reflect our more significant estimates, judgments and assumptions that are most critical to understanding and evaluating our reported financial results are: revenue recognition for commissions revenue, commissions receivable, accounting for income taxes, share-based compensation, and the impairment of intangible assets and goodwill.
The accounting estimates we believe to reflect our more significant estimates, judgments and assumptions that are most critical to understanding and evaluating our reported financial results are: revenue recognition for commissions revenue, commissions receivable, accounting for income taxes, share-based compensation, the impairment of intangible assets and goodwill, and the fair value of the liability classified warrants.
Impairment of Long-Lived Assets and Goodwill The Company has the option to perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit has declined below its carrying value. This assessment considers various financial, macroeconomic, industry and segment specific qualitative factors.
The Company has the option to perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit has declined below its carrying value. This assessment considers various financial, macroeconomic, industry and segment specific qualitative factors.
For the year ended June 30, 2023, we recognized an income tax benefit of $10.6 million, representing an effective tax rate of 15.3%.
For the year ended June 30, 2023, we 58 Table of Contents recognized an income tax benefit of $10.6 million, representing an effective tax rate of 15.3%.
SelectRx offers essential prescription medications, OTC medications, customized medication packaging, and medication therapy management, providing long-term pharmacy care that enables patients to optimize medication adherence to drive positive health outcomes, while enabling patients managing polypharmacy and multiple chronic conditions to remain at home.
SelectRx offers essential prescription medications, over-the-counter (“OTC”) medications, customized medication packaging, and medication therapy management, providing long-term pharmacy care that enables patients to optimize medication adherence to drive positive health outcomes, while enabling patients managing polypharmacy and multiple chronic conditions to remain at home.
The decrease in Adjusted EBITDA was due to a $15.0 million increase in operating costs and expenses primarily due to a $6.6 million increase in compensation costs and a $7.8 million increase in marketing and advertising costs. The decrease in operating costs and expenses was offset by a $12.1 million increase in revenue as discussed above.
The decrease in Adjusted EBITDA was due to a $12.1 million increase in revenue as discussed above, offset by a $8.6 million increase in marketing expenses. The increase in marketing expenses was primarily due to a $7.8 million increase in marketing and advertising costs.
The following table presents our technical development expenses for the years ended June 30 and the percentage changes from the prior year: 57 Table of Contents Percent Change (dollars in thousands) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Technical development $ 33,524 $ 26,015 $ 24,729 29% 5% 2024 compared to 2023— Technical development expenses increased $7.5 million, or 29%, in 2024 compared to 2023, primarily due to a $7.3 million increase in compensation costs due to an increase in headcount for technology personnel. 2023 compared to 2022— Technical development expenses increased $1.3 million, or 5%, in 2023 compared to 2022, primarily due to a $2.3 million increase in compensation costs related to our technology personnel.
The following table presents our technical development expenses for the years ended June 30 and the percentage changes from the prior year: Percent Change (dollars in thousands) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Technical development $ 38,681 $ 33,524 $ 26,015 15% 29% 57 Table of Contents 2025 compared to 2024— Technical development expenses increased $5.2 million, or 15%, in 2025 compared to 2024 , primarily due to a $5.1 million increase in compensation costs due to an increase in headcount for technology personnel. 2024 compared to 2023— Technical development expenses increased $7.5 million, or 29%, in 2024 compared to 2023, primarily due to a $7.3 million increase in compensation costs due to an increase in headcount for technology personnel.
Factors Affecting Our Results of Operations Our primary source of revenue is commissions revenue from selling policies in the senior health, life, and auto and home markets on behalf of our insurance carrier partners, the majority of which compensate us through first year and renewal commissions.
Factors Affecting Our Results of Operations Our primary sources of revenue are commissions from selling policies in the senior health, life, and auto and home markets on behalf of our insurance carrier partners, the majority of which compensate us through first year and renewal commissions, and revenue from our pharmacy operations.
The Company assesses the actual renewal data and historical data to identify trends and updates assumptions when a sufficient amount of evidence would suggest that the expectation underlying the assumption has changed and a change in estimate of the transaction price is warranted.
The Company assesses the actual renewal data and historical data to identify trends and updates assumptions regarding expected future cash flows when a sufficient amount of evidence would suggest that the expectation underlying the assumption has changed and a change in estimate of the transaction price is warranted.
According to the United States Census Bureau, the over 65 age category grew from 13% of the total population in 2010 to 17% of the total population in 2020, and is expected to reach 21% in 2030.
According to the United States Census Bureau, the over 65 age category grew from 13% of the total population in 2010 to 18% of the total population in 2023, and is expected to reach 21% in 2030.
These intersegment transactions are recorded by each segment at amounts that we believe approximate fair value as if the transactions were between third parties and, therefore, impact segment performance. However, the revenue and corresponding expense are eliminated in 59 Table of Contents consolidation. The elimination of such intersegment transactions is included within the “Elims” column in the tables below.
These intersegment transactions are recorded by each segment at amounts that we believe approximate fair value as if the transactions were between third parties and, therefore, impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation. The elimination of such intersegment transactions is included within the “Eliminations of intersegment revenues” in the tables below.
Prescriptions Per Day The following table shows the average prescriptions shipped per day for the years ended June 30: 2024 2023 2022 Prescriptions Per Day 18,935 10,657 3,287 Life 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.
Prescriptions Per Day The following table shows the average prescriptions shipped per day for the years ended June 30: 52 Table of Contents 2025 2024 2023 Prescriptions Per Day 27,867 18,935 10,657 Life 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.
The estimated grant date fair value of our PVU’s are estimated using a Monte Carlo simulation valuation model that uses assumptions determined as of the date of the grant.
The estimated grant date fair value of our price vested units are estimated using a Monte Carlo simulation valuation model that uses assumptions determined as of the date of the grant.
Investing Activities Our investing activities primarily consist of purchases of property, equipment, and software and capitalized salaries related to the development of internal-use software. 64 Table of Contents Year Ended June 30, 2024 —Net cash used in investing activities of $14.8 million was due to $8.3 million in purchases of software and capitalized internal-use software development costs and $3.4 million of purchases of property and equipment, primarily equipment utilized in SelectRx operations to support its expansion, leasehold improvements, and computer equipment.
Year Ended June 30, 2024 —Net cash used in investing activities of $14.8 million was due to $8.3 million in purchases of software and capitalized internal-use software development costs and $3.4 million of purchases of property and equipment, primarily equipment utilized in SelectRx operations to support its expansion, leasehold improvements, and computer equipment.
Term life policies accounted for 45%, 47%, and 36% of new premium within the Life segment for the years ended June 30, 2024, 2023, and 2022, respectively, with final expense policies accounting for 55%, 53%, and 64% for the years ended June 30, 2024, 2023, and 2022, respectively.
Term life policies accounted for 40%, 45%, and 47% of new premium within the Life segment for the years ended June 30, 2025, 2024, and 2023, respectively, with final expense policies accounting for 60%, 55%, and 53% for the years ended June 30, 2025, 2024, and 2023, respectively.
We define Adjusted EBITDA as net loss plus: (i) interest expense, net; (ii) expense (benefit) for income taxes; (iii) depreciation and amortization; (iv) share-based compensation; (v) goodwill, long-lived asset, and intangible assets impairments; (vi) transaction costs; (vii) loss on disposal of property, equipment, and software, net; and (viii) other non-recurring expenses and income.
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; and (viii) changes in fair value of warrant liabilities.
The increase was partially offset by $1.9 million of interest received on our money market account during the period.
The increase was partially offset by $2.6 million of interest received on our money market account during the period.
Therefore, factors impacting the number of submitted policies also impact the number of approved policies. 2024 compared to 2023— Total approved policies for all products increased by 6% for the year ended June 30, 2024, compared to the year ended June 30, 2023.
Therefore, factors impacting the number of submitted policies also impact the number of approved policies. 2025 compared to 2024 — Total approved policies for all products decreased by 4% for the year ended June 30, 2025 , compared to the year ended June 30, 2024, which correlates to the decrease in submitted policies. 2024 compared to 2023— Total approved policies for all products increased by 6% for the year ended June 30, 2024, compared to the year ended June 30, 2023.
Adjusted EBITDA by Segment 2024 compared to 2023 — – Adjusted EBITDA from our Senior segment was $166.7 million for the year ended June 30, 2024, a $11.7 million, or 8%, increase compared to Adjusted EBITDA of $155.1 million for the year ended June 30, 2023.
The increase in marketing expenses was due to a $3.1 million increase in lead costs. 2024 compared to 2023 — – Adjusted EBITDA from our Senior segment was $166.7 million for the year ended June 30, 2024, a $11.7 million, or 8%, increase compared to Adjusted EBITDA of $155.1 million for the year ended June 30, 2023.
Income Taxes The following table presents our provision for income taxes for the years ended June 30 and the percentage changes from the prior year: Percent Change (dollars in thousands) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Income tax expense (benefit) $ 5,059 $ (10,600) $ (92,302) (148)% (89)% Effective tax rate (17.4)% 15.3% 23.7% 2024 compared to 2023— Income tax expense (benefit) increased $15.7 million, or 148%, in 2024 compared to 2023.
Income Taxes The following table presents our provision for income taxes for the years ended June 30 and the percentage changes from the prior year: Percent Change (dollars in thousands) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Income tax expense (benefit) $ 931 $ 5,059 $ (10,600) (82)% (148)% Effective tax rate 1.9% (17.4)% 15.3% 2025 compared to 2024— Income tax expense (benefit) decreased $4.1 million, or 82%, in 2025 compared to 2024.
In Life and Auto & Home, we are typically paid a commission that is a percent of the premium that we generate for our insurance carrier partners. Therefore, we have determined that premium-based metrics are the most relevant measures to evaluate the performance of these segments.
In Life, we are typically paid a commission that is a percent of the premium that we generate for our insurance carrier partners. Therefore, we have determined that premium-based metrics are the most relevant 50 Table of Contents measures to evaluate the performance of the segment.
The cash decrease resulting from changes in net operating assets and liabilities primarily consisted of an increase of $40.8 million in commissions receivable, due to a 6% increase in approved policies for the year, a decrease of $4.9 million of operating lease liabilities and an increase of $2.0 million in other assets, all partially offset by an increase of $7.3 million in accounts payable and accrued expenses, related to an increase in revenue, an increase of $15.6 million in other liabilities, primarily related to an $6.4 million increase in our contract liability, and a $7.4 million increase in accrued compensation and benefits, related to our increased headcount, and a decrease of $5.2 million in accounts receivable, net, related to cash collections to date.
The cash decrease resulting from changes in net operating assets and liabilities primarily consisted of an increase of $40.8 million in commissions receivable, due to a 6% increase in approved policies for the year, a decrease of $4.9 million of operating lease liabilities and an increase of $2.0 million in other assets, all partially offset by an increase of $7.3 million in accounts payable and accrued expenses, related to an increase in revenue, an increase of $15.6 million in other liabilities, primarily related to an $6.4 million increase in our contract liability, and a $7.4 million increase in accrued compensation and benefits, related to our increased headcount, and a decrease of $5.2 million in accounts receivable, net, related to cash collections to date. 66 Table of Contents Year Ended June 30, 2023 —Net cash used in operating activities was $19.4 million, consisting of net loss of $58.5 million, adjustments for non-cash items of $71.7 million, and cash used in operating assets and liabilities of $32.5 million.
Healthcare Services, launched in 2021, offers various health-related products and services through SelectRx, Population Health, and most recently, SelectPatient Management.
Healthcare Services, launched in 2021, offers various health-related products and services through SelectRx, Healthcare Select, and most recently, SPM.
Revenue from Healthcare Services was $478.5 million for the year ended June 30, 2024, a $226.4 million, or 90%, increase compared to revenue of $252.1 million for the year ended June 30, 2023, primarily due to a $225.3 million increase in SelectRx pharmacy revenue.
The increase was due to a $71.7 million, or 14%, increase in commissions revenue, offset by a $5.9 million decrease in other services revenue. 63 Table of Contents Revenue from Healthcare Services was $478.5 million for the year ended June 30, 2024, a $226.4 million, or 90%, increase compared to revenue of $252.1 million for the year ended June 30, 2023, primarily due to a $225.3 million increase in SelectRx pharmacy revenue.
The following table shows term and final expense premiums for the years ended June 30: (in thousands): 2024 2023 2022 Term Premiums $ 70,450 $ 68,941 $ 62,364 Final Expense Premiums 86,600 77,725 109,218 Total $ 157,050 $ 146,666 $ 171,582 2024 compared to 2023 — Total term premiums increased 2% for the year ended June 30, 2024, compared to the year ended June 30, 2023 , due to a 5% increase in the average premium per policy sold, offset by a 3% decrease in the number of policies sold.
The following table shows term and final expense premiums for the years ended June 30: (in thousands): 2025 2024 2023 Term Premiums $ 71,448 $ 70,450 $ 68,941 Final Expense Premiums 105,099 86,600 77,725 Total $ 176,547 $ 157,050 $ 146,666 2025 compared to 2024 — Total term premiums increased 1% for the year ended June 30, 2025, compared to the year ended June 30, 2024, due to a 4% increase in the average premium per policy sold, offset by a 3% decrease in the number of policies sold.
SelectRx Members The following table shows the total number of SelectRx members as of June 30: 2024 2023 2022 Total SelectRx Members 82,385 49,044 25,503 The total number of SelectRx members increased by 68% as of June 30, 2024, compared to June 30, 2023, due to our operating strategy to grow SelectRx.
SelectRx Members The following table shows the total number of SelectRx members as of June 30: 2025 2024 2023 Total SelectRx Members 108,018 82,385 49,044 The total number of SelectRx members increased by 31% as of June 30, 2025, compared to June 30, 2024, and 68% as of June 30, 2024, compared to June 30, 2023, due to our strategy to grow SelectRx membership.
Additionally, the following table presents a summary of our cash flows for the years ended June 30: (in thousands) 2024 2023 2022 Net cash provided by (used in) operating activities $ 15,236 $ (19,377) $ (338,314) Net cash used in investing activities (14,846) (9,125) (42,576) Net cash (used in) provided by financing activities (40,856) (29,339) 235,433 Operating Activities Net cash used in operating activities primarily consists of net income, adjusted for certain non-cash items including depreciation; amortization of intangible assets and internally developed software; deferred income taxes; share-based compensation expense; impairment charges; and the effect of changes in working capital and other activities.
Additionally, the following table presents a summary of our cash flows for the years ended June 30: 65 Table of Contents (in thousands) 2025 2024 2023 Net cash provided by (used in) operating activities $ (11,666) $ 15,236 $ (19,377) Net cash used in investing activities (11,314) (14,846) (9,125) Net cash provided by (used in) financing activities 17,356 (40,856) (29,339) Operating Activities Net cash used in operating activities primarily consists of net income, adjusted for certain non-cash items including depreciation; amortization of intangible assets and internally developed software; deferred income taxes; share-based compensation expense; amortization of debt issuance costs and discount; accrued interest; non-cash lease expenses; change in fair value of warrant liabilities; and the effect of changes in working capital and other activities.
The differences from our federal statutory tax rate to the effective tax rate were primarily related to state income taxes, RSU vestings, 58 Table of Contents executive officer compensation, and the recording of a valuation allowance for state tax attributes that the Company does not expect to utilize prior to expiration. 2023 compared to 2022— Income tax benefit decreased $81.7 million, or 89%, in 2023 compared to 2022.
The differences from our federal statutory tax rate to the effective tax rate were primarily related to state income taxes and the recording of a valuation allowance for federal and state tax attributes that the Company does not expect to utilize prior to expiration. 2024 compared to 2023— Income tax expense (benefit) increased $15.7 million, or 148%, in 2024 compared to 2023.
The following table presents our cost of goods sold-pharmacy revenue for the periods presented and the percentage change from the prior year: Percent Change (dollars in thousands) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Cost of goods sold—pharmacy revenue $ 405,004 $ 225,963 $ 64,172 79% 252% 2024 compared to 2023– Cost of goods sold-pharmacy revenue increased $179.0 million, or 79%, in 2024 compared to 2023, primarily due to a $158.9 million increase in medication costs as the number of SelectRx members increased 68% over the prior year as well as a $11.0 million increase in compensation costs due to an increase in employees directly associated with fulfilling pharmacy orders. 2023 compared to 2022– Cost of goods sold-pharmacy revenue increased $161.8 million, or 252%, in 2023 compared to 2022, due to a $134.8 million increase in medication costs due to an increase in volumes as well as an increase in average medication costs, a $6.6 million increase in shipping and fulfillment costs, and a $15.3 million increase in compensation costs as the number of SelectRx members increased 92% over the prior year.
The following table presents our cost of goods sold-pharmacy revenue for the years ended June 30 and the percentage change from the prior year: Percent Change (dollars in thousands) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Cost of goods sold—pharmacy revenue $ 630,340 $ 405,004 $ 225,963 56% 79% 2025 compared to 2024— Cost of goods sold-pharmacy revenue increased $225.3 million , or 56% , i n 2025 compared to 2024 , primarily due to an $200.9 million increase in medication costs as the number of SelectRx members increased 31% over the prior year as well as a $15.4 million increase in compensation costs due to an increase in the number of employees directly associated with fulfilling pharmacy orders. 2024 compared to 2023– Cost of goods sold-pharmacy revenue increased $179.0 million, or 79%, in 2024 compared to 2023, primarily due to a $158.9 million increase in medication costs as the number of SelectRx members increased 68% over the prior year as well as a $11.0 million increase in compensation costs due to an increase in employees directly associated with fulfilling pharmacy orders.
Industry Trends We estimate that the total addressable market for the insurance products we distribute is greater than $180 billion. Further, while these markets are already substantial, they are also growing, in part due to a number of highly attractive demographic trends. Our Senior and Healthcare Services segments serve consumers predominantly in the over 65 age category.
Further, while these markets are already substantial, they are also growing, in part due to a number of highly attractive demographic trends. Our Senior and Healthcare Services segments serve consumers predominantly in the over 65 age category.
Contractual Obligations Our principal commitments consist of obligations under our outstanding operating leases for office facilities; our Senior Secured Credit Facility which includes the Term Loans and Revolving Credit Facility (as defined in Note 10 to the consolidated financial statements); and our Amended Interest Rate Swap (as defined in Note 9 to the consolidated financial statements) .
Contractual Obligations 67 Table of Contents Our principal commitments consist of obligations under our outstanding operating leases for office facilities; our Senior Secured Credit Facility, which includes the Term Loans and Revolving Credit Facility (as defined i n Note 8 to the consolidated financial statements); and our senior secured Class A and Class B Notes (as defined in Note 8 to the consolidated financial statements).
The following table presents our marketing and advertising expenses for the years ended June 30 and the percentage changes from the prior year: 56 Table of Contents Percent Change (dollars in thousands) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Marketing and advertising $ 358,858 $ 301,245 $ 484,084 19% (38)% 2024 compared to 2023— Marketing and advertising expenses increased $57.6 million, or 19%, in 2024 compared to 2023 , primarily due to a $50.7 million increase in lead costs and a $5.8 million increase in compensation costs for marketing personnel.
The following table presents our marketing and advertising expenses for the years ended June 30 and the percentage changes from the prior year: Percent Change (dollars in thousands) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Marketing and advertising $ 319,505 $ 358,858 $ 301,245 (11)% 19% 56 Table of Contents 2025 compared to 2024— Marketing and advertising expenses decreased $39.4 million , or 11% , in 2025 compared to 2024 , due to a $31.5 million decrease in lead costs and a $5.1 million decrease in compensation costs.
Our insurance distribution business, which has operated continuously for nearly 40 years, allows consumers to transparently and conveniently shop for senior health, life, and automobile and home insurance policies from a curated panel of the nation’s leading insurance carriers.
Our strategy is focused on delivering more comprehensive and personalized healthcare solutions that meet the evolving needs of our senior customers. Our insurance distribution business, which has operated continuously for over 40 years, allows consumers to transparently and conveniently shop for senior health, life, and automobile and home insurance policies from a curated panel of the nation’s leading insurance carriers.
The following table shows premiums for the years ended June 30: (in thousands): 2024 2023 2022 Premiums $ 56,637 $ 50,917 $ 50,114 2024 compared to 2023— Total premiums increased 11% for the year ended June 30, 2024, compared to the year ended June 30, 2023, due to a 16% increase in the average premium per policy sold, offset by a 4% decrease in the number of policies sold. 2023 compared to 2022— Total premiums increased 2% for the year ended June 30, 2023, compared to the year ended June 30, 2022, due to a 5% increase in the average premium per policy sold, offset by a 3% decrease in the number of policies sold. 53 Table of Contents Key Components of our Results of Operations The following table sets forth our operating results and related percentage of total revenues for the years ended June 30: (in thousands) 2024 2023 2022 Revenue Commissions and other services $ 856,923 65 % $ 763,301 76 % $ 704,585 92 % Pharmacy 464,853 35 % 239,547 24 % 59,460 8 % Total revenue 1,321,776 100 % 1,002,848 100 % 764,045 100 % Operating costs and expenses Cost of commissions and other service revenue 318,798 24 % 301,524 30 % 391,528 51 % Cost of goods sold—pharmacy revenue 405,004 31 % 225,963 23 % 64,172 8 % Marketing and advertising 358,858 27 % 301,245 29 % 484,084 64 % Selling, general, and administrative 141,042 11 % 136,518 14 % 100,945 13 % Technical development 33,524 3 % 26,015 3 % 24,729 3 % Goodwill impairment — — % — — % 44,596 6 % Total operating costs and expenses 1,257,226 96 % 991,265 99 % 1,110,054 145 % Income (loss) from operations 64,550 5 % 11,583 1 % (346,009) (45) % Interest expense, net (93,551) (7) % (80,606) (8) % (43,595) (5) % Other expense, net (65) — % (121) — % (202) — % Loss before income tax expense (benefit) (29,066) (2) % (69,144) (7) % (389,806) (50) % Income tax expense (benefit) 5,059 — % (10,600) (1) % (92,302) (12) % Net loss $ (34,125) (2) % $ (58,544) (6) % $ (297,504) (38) % Revenue We earn revenue in the form of commission payments from our insurance carrier customers, for the initial year the insurance policy is in effect (“first year”) and, where applicable, for each subsequent year the policy renews (“renewal year”), in addition to production bonuses and marketing development funds received from some insurance carriers.
Final expense premiums increased 11% for the year ended June 30, 2024, compared to the year ended June 30, 2023, due to a 3% increase in the average premium per policy sold and a 9% increase in the number of policies sold. 53 Table of Contents Key Components of our Results of Operations The following table sets forth our operating results and related percentage of total revenues for the periods presented: (in thousands) 2025 2024 2023 Revenue Commissions and other services $ 797,841 52 % $ 856,923 65 % $ 763,301 76 % Pharmacy 728,753 48 % 464,853 35 % 239,547 24 % Total revenue 1,526,594 100 % 1,321,776 100 % 1,002,848 100 % Operating costs and expenses Cost of commissions and other services revenue 305,127 20 % 318,798 24 % 301,524 30 % Cost of goods sold—pharmacy revenue 630,340 41 % 405,004 31 % 225,963 23 % Marketing and advertising 319,505 21 % 358,858 27 % 301,245 29 % Selling, general, and administrative 164,442 11 % 141,042 11 % 136,518 14 % Technical development 38,681 3 % 33,524 3 % 26,015 3 % Total operating costs and expenses 1,458,095 96 % 1,257,226 96 % 991,265 99 % Income from operations 68,499 4 % 64,550 5 % 11,583 1 % Interest expense, net (79,385) (4) % (93,551) (7) % (80,606) (8) % Change in fair value of warrant liabilities 59,525 4 % — — % — — % Other expense, net (128) — % (65) — % (121) — % Income (loss) before income tax expense (benefit) 48,511 4 % (29,066) (2) % (69,144) (7) % Income tax expense (benefit) 931 — % 5,059 — % (10,600) (1) % Net income (loss) $ 47,580 4 % $ (34,125) (2) % $ (58,544) (6) % Revenue We earn revenue in the form of commission payments from our insurance carrier customers, for the initial year the insurance policy is in effect (“first year”) and, where applicable, for each subsequent year the policy renews (“renewal year”), in addition to production bonuses and marketing development funds received from some insurance carriers.
Final expense premiums increased 11% for the year ended June 30, 2024, compared to the year ended June 30, 2023, due to a 3% increase in the average premium per policy sold and a 9% increase in the number of policies sold. 52 Table of Contents 2023 compared to 2022— Total term premiums increased 11% for the year ended June 30, 2023, compared to the year ended June 30, 2022, due to an 8% increase in the average premium per policy sold and a 3% increase in the number of policies sold.
Final expense premiums increased 21% for the year ended June 30, 2025, compared to the year ended June 30, 2024, due to a 2% increase in the average premium per policy sold and a 19% increase in the number of policies sold. 2024 compared to 2023 — Total term premiums increased 2% for the year ended June 30, 2024, compared to the year ended June 30, 2023 , due to a 5% increase in the average premium per policy sold, offset by a 3% decrease in the number of policies sold.
SelectQuote has a long history of successful DTC product distribution and consumer engagement, and we bring this same capability to healthcare services. We saw a large opportunity to leverage our existing customer base and distribution model to improve education and access to healthcare services for our senior consumers and to create value for our shareholders and insurance carrier partners.
We saw a large opportunity to leverage our existing customer base and distribution model to improve education and access to healthcare services for our senior consumers and to create 48 Table of Contents value for our shareholders and insurance carrier partners.
(together with its subsidiaries, “SelectQuote”, the “Company”, “we”, “us”) is a leading technology-enabled, direct-to-consumer (“DTC”) distribution and engagement platform for selling insurance policies and healthcare services.
(together with its subsidiaries, “SelectQuote”, the “Company”, “we”, “us”) is a leading technology-enabled, direct-to-consumer (“DTC”) distribution and engagement platform for selling insurance policies and healthcare services. In recent years, we have increasingly focused on expanding our healthcare services platform as a natural extension of our core Senior distribution insurance business.
Whether through acquisitions or new partnerships, we continue to look for more opportunities to leverage our strengths to expand our healthcare services business. 47 Table of Contents We evaluate our business using the following four segments: Senior was launched in 2010 and provides unbiased comparison shopping for Medicare Advantage (“MA”) and Medicare Supplement (“MS”) insurance plans as well as prescription drug and dental, vision, and hearing (“DVH”) plans, and critical illness products.
We evaluate our business using the following three reportable segments: Senior was launched in 2010 and provides unbiased comparison shopping for Medicare Advantage (“MA”) and Medicare Supplement (“MS”) insurance plans as well as prescription drug and dental, vision, and hearing (“DVH”) plans, and critical illness products.
The following table presents our selling, general, and administrative expenses for the years ended June 30 and the percentage changes from the prior year: Percent Change (dollars in thousands) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Selling, general, and administrative $ 141,042 $ 136,518 $ 100,945 3% 35% 2024 compared to 2023— Selling, general, and administrative expenses increased $4.5 million, or 3%, in 2024 compared to 2023, primarily due to an $11.2 million increase in compensation costs related to the growth of SelectRx, a $6.2 million increase for both financing transaction costs and SelectRx bad debt expense, offset by a $2.0 million decrease in depreciation and amortization and a $17.3 million decrease in long-lived asset impairment expense. 2023 compared to 2022— Selling, general, and administrative expenses increased $35.6 million, or 35%, in 2023 compared to 2022, primarily due to an $18.9 million increase in compensation costs, mostly related to the expansion of SelectRx.
The following table presents our selling, general, and administrative expenses for the years ended June 30 and the percentage changes from the prior year: Percent Change (dollars in thousands) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Selling, general, and administrative $ 164,442 $ 141,042 $ 136,518 17% 3% 2025 compared to 2024— Selling, general, and administrative expenses increased $23.4 million, or 17%, in 2025 compared to 2024 , primarily due to $18.2 million increase in compensation costs, a $4.2 million increase in impairment of long-lived assets, and a $3.0 million increase in corporate development costs.
Of this, Medicare Advantage plans are representing an increasing share of the Medicare market. According to the Kaiser Family Foundation, in 2023, Medicare Advantage surpassed 50% market penetration, with nearly 31 million Medicare Advantage enrollees.
Of this, Medicare Advantage plans are representing an increasing share of the Medicare market. According to the Kaiser Family Foundation, in 2024, Medicare Advantage enrollment held 54% market penetration, with nearly 33 million Medicare Advantage enrollees. Between 2023 and 2024, total Medicare Advantage enrollment grew by about 7%.
Senior’s increase was primarily due to a $71.7 million increase in commissions revenue driven by a 6% increase in approved policies and a 6% increase in LTV’s. Life’s increase was driven by a $3.9 million increase in term revenue and a $7.7 million increase in final expense revenue.
Life’s increase was driven by a $3.9 million increase in term revenue and a $7.7 million increase in final expense revenue.
Year Ended June 30, 2022 —Cash used in operating activities was $338.3 million, consisting of net loss of $297.5 million, adjustments for non-cash items of $2.2 million, and cash used in operating assets and liabilities of $38.6 million.
Year Ended June 30, 2025 —Net cash used in operating activities was $11.7 million, consisting of net income of $47.6 million, adjustments for non-cash items of $13.1 million, and cash used in operating assets and liabilities of $72.3 million.
The increase was due to a $65.7 million increase in revenue offset by a $54.1 million increase in operating costs and expenses, primarily due to a $43.1 million increase in marketing and advertising costs and a $12.2 million increase in compensation costs.
The increase was due to a $65.7 million increase in revenue, offset by a $48.3 million increase in marketing expenses. The increase in marketing expenses was primarily due to a $42.1 million increase in lead costs.
Interest Expense, Net The following table presents our interest expense, net for the years ended June 30 and the percentage changes from the prior year: Percent Change (dollars in thousands) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Interest expense, net $ 93,551 $ 80,606 $ 43,595 16% 85% 2024 compared to 2023— Interest expense increased $12.9 million, or 16%, in 2024 compared to 2023, as a result of higher interest rates during the period.
Interest Expense, Net The following table presents our interest expense, net for the years ended June 30 and the percentage changes from the prior year: Percent Change (dollars in thousands) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Interest expense, net $ 79,385 $ 93,551 $ 80,606 (15)% 16% 2025 compared to 2024— Interest expense decreased $14.2 million, or 15%, in 2025 compared to 2024, as a result of the Company’s lower cost of capital after completing the securitization transaction and utilizing the proceeds from the Senior Non-Convertible Preferred Stock transaction to repay $260.0 million of the Company’s outstanding Term Loan balance. 2024 compared to 2023— Interest expense increased $12.9 million, or 16%, in 2024 compared to 2023, as a result of higher interest rates during the period.
For the year ended June 30, 2023, we recognized an income tax benefit of $10.6 million, representing an effective tax rate of 15.3%.
For the year ended June 30, 2024, we recognized an income tax expense of $5.1 million, representing an effective tax rate of 17.4%.
The following table presents our revenue for the periods presented and the percentage changes from the prior year: Percent Change (dollars in thousands) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Commissions and other services $ 856,923 $ 763,301 $ 704,585 12% 8% Pharmacy 464,853 239,547 59,460 94% 303% Total revenue $ 1,321,776 $ 1,002,848 $ 764,045 32% 31% 2024 compared to 2023— Commissions and other services revenue increased $93.6 million, or 12%, primarily due to increases in Senior, Life, and Auto & Home of $65.7 million, $12.1 million, and $14.4 million, respectively.
The following table presents our revenue for the years ended June 30 and the percentage changes from the prior year: Percent Change (dollars in thousands) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Commissions and other services $ 797,841 $ 856,923 $ 763,301 (7)% 12% Pharmacy 728,753 464,853 239,547 57% 94% Total revenue $ 1,526,594 $ 1,321,776 $ 1,002,848 16% 32% 2025 compared to 2024 — Pharmacy revenue increased $263.9 million, or 57%, primarily due to the 31% increase in members due to the expansion of the SelectRx business.
At the time of shipment, we have performed all of our performance obligations and control of the product has been transferred to the customer. There are no future revenue streams or variable consideration associated as the transaction price is fixed at time of shipment, and any subsequent new order is its own performance obligation.
There are no future 54 Table of Contents revenue streams, or material variable consideration with respect to the implicit price concession for co-pays, as the transaction price is fixed at time of shipment, and any subsequent new order is its own performance obligation.
Adjusted EBITDA from our Auto & Home segment was $14.1 million for the year ended June 30, 2024, a $14.0 million increase compared to Adjusted EBITDA of $0.1 million for the year ended June 30, 2023.
Adjusted EBITDA by Segment 2025 compared to 2024— Adjusted EBITDA from Senior was $161.7 million for the year ended June 30, 2025, a $5.1 million decrease compared to Adjusted EBITDA of $166.7 million for the year ended June 30, 2024.
This was driven by increases in overall close rates (11%), the number of average productive agents (7%) , and productivity per agent (9%). 2023 compared to 2022— Total submitted policies for all products decreased 25% for the year ended June 30, 2023, compared to the year ended June 30, 2022, in line with our updated operating strategy to reduce the Senior distribution business and focus resources on Healthcare Services.
This was driven by a 26% decrease in the number of average productive agents, offset by a 11% increase in overall close rates and 24% increase in productivity per agent. 2024 compared to 2023 — Total submitted policies for all products increased 7% for the year ended June 30, 2024, compared to the year ended June 30, 2023.
Lifetime Value of Commissions per Approved Policy The LTV 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.
Fluctuations in approved policies are normally in direct correlation to submitted policies; however, primarily due to carrier mix, we experienced a slight decrease in the submitted-to-approved conversion rates for the year ended June 30, 2024, compared to the year ended June 30, 2023. 51 Table of Contents Lifetime Value of Commissions per Approved Policy The lifetime value of commissions (the “LTV”) 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.
Adjusted EBITDA from our Life segment was $23.1 million for the year ended June 30, 2023, a $23.2 million, or 17986%, increase compared to Adjusted EBITDA of $(0.1) million for the year ended June 30, 2022.
Adjusted EBITDA from Life was $26.7 million for the year ended June 30, 2025, a $6.5 million increase compared to Adjusted EBITDA of $20.2 million for the year ended June 30, 2024.
The cash decrease resulting from changes in net operating assets and liabilities primarily consisted of increases of $25.7 million in accounts receivable, net related to the increase in approved policies, increases of $10.9 million in other assets primarily related to increases in prepaid balances and SelectRx inventory, and decreases of $5.1 million in operating lease liabilities, partially offset by a decrease of $7.3 million in commissions receivable.
The cash decrease resulting from changes in net operating assets and liabilities primarily consisted of an increase of $5.6 million in accounts receivable, an increase of $69.5 million in commissions receivable, a decrease of $5.5 million in other liabilities, primarily related to a $7.4 million decrease in our contract liability, a decrease of $4.7 million in operating lease liabilities and an increase of $6.3 million in other assets, primarily related to hedge activities, offset by an increase of $19.2 million in accounts payable and accrued expenses.
The following table presents our cost of commissions and other services revenue for the years ended June 30 and the percentage changes from the prior year: Percent Change (dollars in thousands) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Cost of commissions and other services revenue $ 318,798 $ 301,524 $ 391,528 6% (23)% 55 Table of Contents 2024 compared to 2023— Cost of commissions and other service revenue increased $17.3 million, or 6%, in 2024 compared to 2023, primarily due to an $18.2 million increase in compensation costs related to a $4.8 million increase in costs for our sales and customer care agents in Senior, a $4.4 million increase for Healthcare Services related to the growth of SelectRx, and a $6.4 million increase for Life related to compensation structure changes for our final expense sales agents. 2023 compared to 2022— Cost of commissions and other service revenue decreased $90.0 million, or 23%, in 2023 compared to 2022, primarily due to a $66.8 million decrease in compensation costs, a $13.0 million decrease in licensing costs, and a $10.5 million decrease in allocations for facilities, telecommunications, and software maintenance costs, all of which was due to the reduction in our agent headcount during the year ended June 30, 2023.
The $7.1 million decrease in 55 Table of Contents compensation costs is primarily made up of a $10.3 million decrease in costs for our sales and customer care agents in Senior, offset by a $5.3 million increase in costs for sales and customer care agents in Life. 2024 compared to 2023— Cost of commissions and other service revenue increased $17.3 million, or 6%, in 2024 compared to 2023, primarily due to an $18.2 million increase in compensation costs related to a $4.8 million increase in costs for our sales and customer care agents in Senior, a $4.4 million increase for Healthcare Services related to the growth of SelectRx, and a $6.4 million increase for Life related to compensation structure changes for our final expense sales agents.
Power, 90% of customers say they are open to purchasing their auto insurance online. We believe our proprietary technology platform, vast datasets and use of machine learning in all aspects of our business put us in an excellent position to take advantage of these consumer trends.
As the composition of the U.S. population gradually shifts to the mobile-first generation, consumers are becoming more tech-savvy and comfortable shopping online. We believe our proprietary technology platform, vast datasets and use of machine learning in all aspects of our business put us in an excellent position to take advantage of these consumer trends.
Life’s revenue decline was primarily driven by an $11.8 million decrease in final expense revenue, partially offset by a $4.6 million increase in term revenue. Pharmacy revenue increased $180.1 million due to the increase in members from the growth of the SelectRx business.
The decrease in Senior revenue, was driven by a 4% decrease in approved policies. The increase in Life revenue was primarily driven by a $14.0 million increase in final expense revenue. 2024 compared to 2023— Pharmacy revenue increased $225.3 million, or 94%, due to the increase in members from the growth of the SelectRx business.
The increase in Adjusted EBITDA was due to a $31.3 million decrease in operating costs and expenses primarily due to a $26.8 million reduction in marketing and advertising costs and a $3.7 million reduction in compensation costs. The decrease in operating costs and expenses was offset by a $8.1 million decrease in revenue as discussed above.
The increase was due to a $15.0 million increase in revenue as discussed above, partially offset by a $5.0 million increase in cost of commissions and other services revenue and a $3.8 million increase in marketing expenses. The increase in cost of commissions and other services revenue was due to a $4.8 million increase in compensation costs.
Recent Accounting Pronouncements For a discussion of new accounting pronouncements recently adopted and not yet adopted, see the notes to our consolidated financial statements.
We believe that we will be able to fund these obligations through our existing cash, cash equivalents and restricted cash, and cash generated from operations. Recent Accounting Pronouncements For a discussion of new accounting pronouncements recently adopted and not yet adopted, see Note 1 of the consolidated financial statements.
The following table shows the number of submitted policies for the years ended June 30: 2024 2023 2022 Medicare Advantage 720,027 652,630 808,116 Medicare Supplement 2,790 3,444 7,208 Dental, Vision and Hearing 61,713 74,181 145,716 Prescription Drug Plan 3,100 2,433 6,842 Other 5,303 7,501 14,776 Total 792,933 740,189 982,658 2024 compared to 2023— Total submitted policies for all products increased 7% for the year ended June 30, 2024, compared to the year ended June 30, 2023.
The following table shows the number of submitted policies for the years ended June 30: 2025 2024 2023 Medicare Advantage 674,851 720,027 652,630 All other (1) 87,413 72,906 87,559 Total 762,264 792,933 740,189 (1) Represents the submitted policies for medicare supplement, dental, vision and hearing, prescription drug plan and other. 2025 compared to 2024 — Total submitted policies for all products decreased 4% for the year ended June 30, 2025 , compared to the year ended June 30, 2024.
Additionally, we are required under the Senior Secured Credit Facility to maintain compliance with certain debt covenants, as discussed further in Note 10 to the consolidated financial statements. Based on our financial projections, we believe we will remain in compliance with the debt covenants through the 12 months following the date of issuance of our consolidated financial statements.
Liquidity and Capital Resources 64 Table of Contents Our liquidity needs primarily include working capital and debt service requirements. Additionally, we are required under the Senior Secured Credit Facility and Indenture to maintain compliance with certain debt covenants, as discussed further in Note 8 to the consolidated financial statements.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+0 added−1 removed3 unchanged
Interest Rate Risk As of June 30, 2024, we had cash of $42.4 million deposited in non-interest bearing accounts, all at major banks with limited to no interest rate risk, and cash of $0.3 million deposited in a money market account with one of those banks.
As of June 30, 2024, we had cash of $42.4 million deposited in non-interest bearing accounts, all at major banks with limited to no interest rate risk, and cash of $0.3 million deposited in a money market account with one of those banks. Interest-earning instruments carry a degree of interest rate risk.
We do not require collateral or other security for our receivables, but believe the potential for collection issues with any of our customers was minimal as of June 30, 2024, 2023, and 2022, based on the lack of collection issues in the past and the high financial standards we require 68 Table of Contents of our customers.
We do not require collateral or other security for our receivables, but believe the potential for collection issues with any of our customers was minimal as of June 30, 2025, 2024, and 2023, based on the lack of collection issues in the past and the high financial standards we require of our customers.
As of June 30, 2024, two insurance carrier customers accounted for 32% and 23% of total accounts and commissions receivable. As of June 30, 2023, two insurance carrier customers accounted for 31% and 22% of total accounts and commissions receivable.
As of June 30, 2025, two insurance carrier customers accounted for 34% and 21% of total accounts and commissions receivable. As of June 30, 2024, two insurance carrier customers accounted for 32% and 23% of total accounts and commissions receivable. As of June 30, 2023, two insurance carrier customers accounted for 31% and 22% of total accounts and commissions receivable.
Seasonality See “Risk Factors—Risks Related to Our Business and Industry—Our existing and any future indebtedness could adversely affect our ability to operate our business” and “Risk Factors—Risks Related to Our Business and Industry—Developments with respect to LIBOR may affect our borrowings under our credit facilities” for additional information. 69 Table of Contents
Seasonality See “Risk Factors—Risks Related to Our Business and Industry—Our existing and any future indebtedness could adversely affect our ability to operate our business” for additional information. 71 Table of Contents
As of June 30, 2023, we had cash of $51.2 million deposited in non-interest bearing accounts, all at major banks with limited to no interest rate risk, and cash of $31.9 million deposited in a money market account with one of those banks. Interest-earning instruments carry a degree of interest rate risk.
Interest Rate Risk As of June 30, 2025, we had cash, cash equivalents and restricted cash of $36.7 million deposited in non-interest bearing accounts, all at major banks with limited to no interest rate risk, and cash of $0.3 million deposited in a money market account with one of those banks.
Removed
As of June 30, 2022, three insurance carrier customers accounted for 29%, 20%, and 14% of total accounts and commissions receivable.

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