# Selectquote (SLQT.US)

Canonical: https://gigainvestors.com/s/SLQT

Analysis as of: 2026-10-16T07:31:57.457Z. Financial observations: FY2018–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $0.34 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 1

- Years with a net loss: 3

- Operating margin variation: 3.01×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.18×

- FY2019: 0.29×

- FY2020: 0.25×

- FY2021: 0.21×

- FY2022: -0.45×

- FY2023: 0.01×

- FY2024: 0.05×

- FY2025: 0.04×

- FY2026: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 11.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 7.2%

- ROIC, second-lowest year: 0.9%

- Typical minus recent gross margin: 11.8 pp

- Typical gross margin (annual median): 47.4%

- Recent gross margin (lower of latest and 3-year median): 35.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.5%

- ROIC including acquisitions, ten-year median: 7.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 18.1%

- FY2019: 26.2%

- FY2020: 22.6%

- FY2021: 18.6%

- FY2022: -28.3%

- FY2023: 0.9%

- FY2024: 5.3%

- FY2025: 7.2%

- FY2026: 6.0%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$227M

- Net income, five-year total: -$280M

- Return on incremental invested capital: 20.5%

- Working capital / revenue, annual change: -2.2 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: -$307M

- FY2023: -$40M

- FY2024: -$21M

- FY2025: $66M

- FY2026: $75M

### management: fail

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 22.6% vs 6.0%

- Per-share earnings: 0.55 to 0.26 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 2.6%

- Diluted shares, 5-year annual growth: 2.6%

- Per-share value growth: -11.6%

- Per-share value change: -$0.29

- Per-share value, starting three-year median: $0.55

- Per-share value, ending three-year median: $0.26

- Buybacks concentrated in cheaper years (correlation): 0.80

- Average buyback yield: 0.1%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: 22.6%

- ROIC, last three-year median: 6.0%

Chart: Earnings per share; fiscal year observations.

- FY2018: $0.36

- FY2019: $0.55

- FY2020: $0.82

- FY2021: $0.75

- FY2022: -$1.81

- FY2023: -$0.35

- FY2024: -$0.20

- FY2025: $0.26

- FY2026: $0.33

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 2.0%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 46.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.51×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2018: 13.4%

- FY2019: 17.8%

- FY2020: 12.5%

- FY2021: 16.9%

- FY2022: 3.2%

- FY2023: -3.2%

- FY2024: -4.1%

- FY2025: 4.7%

- FY2026: 2.0%

## Holders

- [Gavin Abrams](https://gigainvestors.com/ABI): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 97% since Oct 2021 · "SelectQuote Shares Slide After Q4 Revenue Miss and Weak Fiscal 2027 Outlook" (finance.yahoo.com, Aug 2026) · sales +6%

Story as of 2026-10-16T09:59:35.649Z; price observation 2026-10-15.

- 2025-08-21: SelectQuote beats top-line and bottom-line estimates; initiates FY26 outlook ([seekingalpha.com](https://seekingalpha.com/news/4487860-selectquote-beats-top-line-and-bottom-line-estimates-initiates-fy26-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-08-25: SelectQuote Shares Slide After Q4 Revenue Miss and Weak Fiscal 2027 Outlook ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/selectquote-shares-slide-q4-revenue-135418587.html))

### Sales · FY2025–2026

sales +6%; source https://www.sec.gov/Archives/edgar/data/1794783/000179478326000057/slqt-20260630.htm; observed 2026-08-25.

- FY2018: $234M 

- FY2019: $337M 

- FY2020: $529M 

- FY2021: $930M 

- FY2022: $764M 

- FY2023: $1.0B 

- FY2024: $1.3B 

- FY2025: $1.5B 

- FY2026: $1.6B 

### Gross margin · FY2026

gross margin 35.6%; source https://www.sec.gov/Archives/edgar/data/1794783/000179478326000057/slqt-20260630.htm; observed 2026-08-25.

- FY2018: 64.3% 

- FY2019: 69.1% 

- FY2020: 68.4% 

- FY2021: 70.9% 

- FY2022: 40.4% 

- FY2023: 47.4% 

- FY2024: 45.2% 

- FY2025: 38.7% 

- FY2026: 35.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in insurance brokers; annual sales are USD 1.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1794783/000179478326000057/slqt-20260630.htm#000179478326000057 (filed 2026-08-25); FY2026: revenue 1618499000; grossProfit 575598000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); SLQT.US: SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution and engagement platform that sells insurance policies and healthcare services in the United States. The company operates through three segments: Senior, Healthcare Services, and Life. It offers medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance-related products, as well as engages in lead generation business; term life, final expense, and other ancillary products; non-commercial auto and home, property, and casualty insurance products. The company also provides SelectRx, a patient-centered pharmacy; Healthcare Select, which uses data from personal health risk and lifestyle assessment; SelectPatient Management (SPM), a platform that helps patients navigate their chronic conditions and manage them using a treatment plan; and individual automobile and homeowners' insurance. SelectQuote, Inc. was founded in 1985 and is headquartered in Overland Park, Kansas.

### Why customers stay

Margins ranged from 35.6% to 45.2% during 2024–26; it earns 7.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-25); FY2024: grossProfit / revenue = 45.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-25); FY2025: grossProfit / revenue = 38.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1794783/000179478326000057/slqt-20260630.htm (filed 2026-08-25); FY2026: grossProfit / revenue = 35.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-25); 9-year return on capital observations [[2018,0.1808043528184737],[2019,0.2617431492322752],[2020,0.22584412084315222],[2021,0.18572875739409742],[2022,-0.2829574777751554],[2023,0.009467954780139847],[2024,0.05319701605575648],[2025,0.07227284150590838],[2026,0.06049025175747328]]; median 0.07227284150590838. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 6 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-25); FY2018: growth capex 0; upkeep 6020000; cash acquisitions 0; owner earnings 32347000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-25); FY2019: growth capex 3934000; upkeep 4702000; cash acquisitions 0; owner earnings 72579000. Growth capex plus acquisitions / owner earnings = 0.05420300637925571.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-25); FY2020: growth capex 7559000; upkeep 7993000; cash acquisitions 35821000; owner earnings 79484000. Growth capex plus acquisitions / owner earnings = 0.5457702179054904.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-25); FY2021: growth capex 6846000; upkeep 16142000; cash acquisitions 41028000; owner earnings 124859000. Growth capex plus acquisitions / owner earnings = 0.3834245028392026.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-25); FY2025: growth capex 0; upkeep 2191000; cash acquisitions 0; owner earnings 65849000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1794783/000179478326000057/slqt-20260630.htm (filed 2026-08-25); FY2026: growth capex 0; upkeep 4276000; cash acquisitions 0; owner earnings 75402000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-25); Dividend observations: [[2018,1882000],[2019,1958000],[2020,275000000],[2021,14157000],[2022,148000],[2023,1147000],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 9.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); SLQT.US SharesStats.PercentInsiders = 9.681 percentage points; cache date 2026-10-05.

### What the price says

The price is less than 0.1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-25); Closing price 0.3396 USD; reporting-to-trading FX 1; FY2026 annual sales per share 8.601076663088419; price multiple 0.03948342902899538. FY2026 cash earnings/share 0.4007036041110887. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2020-05: $27.52 per share

- 2020-06: $25.33 per share

- 2020-07: $17.89 per share

- 2020-08: $18.25 per share

- 2020-09: $20.25 per share

- 2020-10: $17.22 per share

- 2020-11: $21.45 per share

- 2020-12: $20.75 per share

- 2021-01: $21.12 per share

- 2021-02: $30.50 per share

- 2021-03: $29.51 per share

- 2021-04: $31.13 per share

- 2021-05: $20.32 per share

- 2021-06: $19.26 per share

- 2021-07: $17.80 per share

- 2021-08: $9.55 per share

- 2021-09: $12.93 per share

- 2021-10: $13.29 per share

- 2021-11: $9.00 per share

- 2021-12: $9.06 per share

- 2022-01: $7.39 per share

- 2022-02: $3.11 per share

- 2022-03: $2.79 per share

- 2022-04: $2.06 per share

- 2022-05: $2.92 per share

- 2022-06: $2.48 per share

- 2022-07: $1.84 per share

- 2022-08: $1.11 per share

- 2022-09: $0.73 per share

- 2022-10: $0.67 per share

- 2022-11: $0.60 per share

- 2022-12: $0.67 per share

- 2023-01: $0.86 per share

- 2023-02: $2.34 per share

- 2023-03: $2.17 per share

- 2023-04: $1.06 per share

- 2023-05: $1.60 per share

- 2023-06: $1.95 per share

- 2023-07: $1.89 per share

- 2023-08: $1.22 per share

- 2023-09: $1.17 per share

- 2023-10: $1.32 per share

- 2023-11: $1.26 per share

- 2023-12: $1.37 per share

- 2024-01: $1.11 per share

- 2024-02: $1.94 per share

- 2024-03: $2.00 per share

- 2024-04: $1.51 per share

- 2024-05: $3.12 per share

- 2024-06: $2.76 per share

- 2024-07: $4.09 per share

- 2024-08: $4.08 per share

- 2024-09: $2.17 per share

- 2024-10: $2.00 per share

- 2024-11: $2.99 per share

- 2024-12: $3.72 per share

- 2025-01: $4.31 per share

- 2025-02: $4.56 per share

- 2025-03: $3.34 per share

- 2025-04: $3.17 per share

- 2025-05: $2.17 per share

- 2025-06: $2.38 per share

- 2025-07: $1.76 per share

- 2025-08: $2.26 per share

- 2025-09: $1.96 per share

- 2025-10: $2.08 per share

- 2025-11: $1.45 per share

- 2025-12: $1.41 per share

- 2026-01: $1.42 per share

- 2026-02: $0.86 per share

- 2026-03: $0.63 per share

- 2026-04: $0.92 per share

- 2026-05: $1.00 per share

- 2026-06: $0.84 per share

- 2026-07: $0.75 per share

- 2026-08: $0.56 per share

- 2026-09: $0.41 per share

- 2026-10: $0.34 per share

## Annual estimated value (USD per share)

- FY2022: low $7.05 per share, central $8.02 per share, high $9.31 per share

- FY2023: low $8.86 per share, central $10.08 per share, high $11.71 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1794783/000179478326000057/slqt-20260630.htm); period 2026-06-30, filed 2026-08-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.