SelectQuote, Inc. (NYSE:SLQT) shares dropped 14.69% in pre-market trading on Tuesday after the insurance distribution and healthcare services company reported fourth-quarter fiscal 2026 earnings and revenue below Wall Street expectations and issued a cautious outlook for the new financial year.
The company recorded an adjusted loss of $0.19 per share, wider than the $0.15 per-share loss expected by analysts. Quarterly revenue fell 7% year-on-year to $321.7 million from $345.1 million, also missing the consensus forecast of $345.29 million.
Quarterly Loss Widens Despite EBITDA Improvement
SelectQuote posted a fourth-quarter net loss of $16.8 million, reversing a net profit of $12.9 million in the corresponding period a year earlier.
However, adjusted EBITDA improved considerably, rising to $11.9 million from $2.7 million in the prior-year quarter.
Chief Executive Officer Tim Danker said, “It was a highly successful 4th quarter and full-year fiscal 2026 for our business. Our Senior Medicare Advantage distribution business excelled through another turbulent year for the industry.”
The Senior segment generated $72.5 million in revenue during the quarter and recorded 72,180 approved Medicare Advantage policies.
Healthcare Services remained the largest contributor, producing revenue of $193.5 million and ending the period with 109,039 SelectRx members. The Life segment generated $47.9 million in revenue.
Fiscal 2027 Revenue Guidance Disappoints Investors
Investor attention was also focused on SelectQuote’s outlook for fiscal 2027, with the company’s revenue forecast coming in well below market expectations.
Management expects annual revenue of between $1.35 billion and $1.45 billion. The midpoint of $1.40 billion is substantially below the analyst consensus estimate of $1.65 billion.
SelectQuote is forecasting adjusted EBITDA of between $90 million and $115 million and expects operating cash flow to exceed $60 million during the year.
The weaker-than-anticipated revenue guidance added to concerns generated by the fourth-quarter miss and contributed to the sharp decline in the shares before the opening bell.
SelectQuote Posts Full-Year Revenue and Profit Growth
Despite the disappointing final quarter and cautious outlook, SelectQuote delivered growth across fiscal 2026 as a whole.
Full-year revenue increased to $1.6 billion from $1.5 billion in fiscal 2025, while net income climbed to $62.2 million from $47.6 million.
The annual improvement contrasts with the weaker fourth-quarter performance, leaving investors focused on whether SelectQuote can maintain profitability and cash generation while navigating a slower revenue environment in fiscal 2027.
SelectQuote stock price
