[Management View]
SelectQuote reported consolidated revenue of $1.53 billion for fiscal 2025, a 15.5% increase over fiscal 2024. Adjusted EBITDA was $126 million, with an 8% margin. The health care services segment saw a 55% revenue growth, reaching $743 million. The company emphasized efficiency improvements and technological advancements to reduce costs and accelerate customer acquisition.

[Outlook]
For fiscal 2026, SelectQuote projects revenue between $1.65 billion and $1.75 billion, with adjusted EBITDA guidance of $120 million to $150 million. Health care services revenue is expected to grow by 20%, with adjusted EBITDA exceeding $50 million. The company aims to generate positive operating cash flow and improve its capital structure.

[Financial Performance]
- Consolidated revenue: $1.53 billion (+15.5% YoY)
- Adjusted EBITDA: $126 million (+8% YoY)
- Health care services revenue: $743 million (+55% YoY)
- Senior segment revenue: $600 million
- Life division revenue: $173 million (+10% YoY)

[Q&A Highlights]
Question 1: Can you discuss the path to target margins for SelectRx and the fixed and variable cost dynamics?
Answer: As SelectRx scales, margins are expected to improve through refined operations and cost optimizations. The company is confident in achieving target margins and enhancing cash flow dynamics.

Question 2: How does the growth in healthcare services impact the securitization program?
Answer: There is no specific threshold, but the significant EBITDA generation opens up various capital structure options. The company expects to generate meaningful unlevered operating cash flow, becoming cash flow positive for fiscal 2026.

Question 3: What has changed in the marketing strategy for SelectRx since last quarter?
Answer: The focus has shifted from rapid membership growth to EBITDA growth and margin enhancement. The company expects healthy revenue growth but at a moderated pace compared to previous years.

Question 4: What are the AEP hiring plans and the role of AI in serving more customers?
Answer: The company expects elevated plan disruptions similar to last year, aiding customer acquisition. AI is used to enhance agent efficiency and streamline processes, with significant time savings and improved productivity.

Question 5: Can you provide details on the progress and expectations for Select Patient Management?
Answer: Select Patient Management and Select Medical are progressing well but are not expected to contribute meaningful EBITDA in fiscal 2026. They are seen as significant future growth drivers.

Question 6: What recent advancements have been made in AI and technology for agent efficiency?
Answer: Recent advancements include automating mundane tasks, improving enrollment processes, and enhancing data gathering. AI is used extensively in recruiting, training, QA, and customer interactions, leading to significant efficiency gains.

Question 7: How is capital allocation prioritized between balance sheet improvement and potential acquisitions?
Answer: The immediate focus is on driving strong cash flow to improve the balance sheet. Future growth opportunities in MA and healthcare services are considered, but the priority is on optimizing the capital structure.

[Sentiment Analysis]
Analysts were positive about the company's growth in healthcare services and its strategic focus on cash flow. Management maintained a confident tone, emphasizing efficiency improvements and technological advancements.

[Quarterly Comparison]
| Metric | Q4 2025 | Q4 2024 |
|-------------------------------|------------------|------------------|
| Consolidated Revenue | $1.53 billion | $1.32 billion |
| Adjusted EBITDA | $126 million | $116 million |
| Health Care Services Revenue | $743 million | $480 million |
| Senior Segment Revenue | $600 million | $650 million |
| Life Division Revenue | $173 million | $157 million |

[Risks and Concerns]
- Potential headwinds for EBITDA margins due to business mix.
- Uncertainty in Medicare Advantage market dynamics.
- Dependence on technological advancements for efficiency gains.

[Final Takeaway]
SelectQuote delivered strong fiscal 2025 results, driven by significant growth in its healthcare services segment. The company is focused on improving efficiency and generating positive cash flow in fiscal 2026. While near-term challenges exist, the strategic emphasis on cash flow and profitability positions SelectQuote for sustainable growth and value creation.