Earnings
Home›Earnings›Previews›SelectQuote guides revenue lower after fourth-quarter…
SelectQuote guides revenue lower after fourth-quarter net loss
The company forecasts fiscal 2027 revenue of $1.35 billion to $1.45 billion and projects Medicare Advantage approved policies will fall a further 10% to 15% after a 4% decline in fiscal 2026.
SelectQuote signaled a focus on cash generation in a recent investor update, but the latest financials also showed deteriorating bottom-line results and a weaker outlook for the year ahead, according to Yahoo Finance. In fiscal 2026, revenue rose to $1.62 billion, up 6% year over year, and operating cash flow increased by $44 million. However, the company reported a fourth-quarter net loss of $16.8 million, reversing from net income of $12.9 million a year earlier, and its fiscal 2027 guidance points to a meaningfully lower top line. Yahoo Finance reports that the Healthcare Services segment, built around the SelectRx pharmacy, generated $845 million in fiscal 2026 revenue, up 14%, while Inflation Reduction Act drug pricing changes began to pressure the segment in the back half of the year. The business exited the fourth quarter with an annualized adjusted EBITDA run rate of nearly $50 million, and management expects margins to expand as more prescriptions route through its Olathe, Kansas facility, which is already shipping about 30% more efficiently than older sites. For fiscal 2027, SelectQuote expects revenue of $1.35 billion to $1.45 billion, about 14% below fiscal 2026 at the midpoint. The company also projects Medicare Advantage approved policies will drop another 10% to 15%, after already declining 4% over the prior year, with Senior segment revenue down 4% in fiscal 2026 to $576 million, partly tied to reduced marketing spending from a major carrier partner.