SelectQuote reports Q1 2025 financial results

SelectQuote Insurance Services shared its Q1 2025 financial results on Nov 4, led by CEO Tim Danker. Key highlights:

• SelectQuote employs “highly trained” agents supported by advanced data and technology, focusing on finding the best Medicare Advantage policies or prescription medication services tailored to each customer’s unique needs. “We employ highly trained agents and support them with significant data and technology to help achieve one goal, find the best Medicare Advantage policy or prescription medication service for each customer’s unique set of needs.” – CEO Tim Danker.
• The company achieved a year-over-year revenue growth of 26%, reaching $292 million, while minimizing adjusted EBITDA losses in its largest investment quarter leading into the Annual Enrollment Period (AEP). EBITDA improved by nearly $10 million, driven by the scaling of Healthcare Services and efficient marketing, achieving a revenue-to-CAC ratio of 4.6x.
• It saw one of its highest retention rates among tenured agents, allowing for more focus on policy education and customer service over basic training. Recruitment and training expenses remained modest, boosting profitability.
• SelectRx membership surpassed 86,000, a 64% year-over-year increase.
• The expansion of AI tools this season allowed for more effective call screening, prioritization, and streamlined processes. “We have a lot of AI-based and people-based call monitoring that really allows us to more effectively coach and get everybody on the same page to have a little bit tighter mix of agents. This is the record number of Level 1 agents we’ve ever had. We know exactly kind of who to pull off the phone and why and how to coach them and how to do those things, which has allowed us to be significantly more efficient.” – Robert Clay Grant, President of SelectQuote.
• Its life Insurance business achieved $39 million in revenue, a modest increase year-over-year, with adjusted EBITDA up by nearly 14%, maintaining stable margins.