SelectQuote, Inc.SLQT
SelectQuote, Inc. Leases Disclosure
LEASES
The majority of the Company’s leases are operating leases related to office space for which the Company recognizes lease expense on a straight-line basis over the respective lease term. The Company leases office facilities in the United States in San Diego, CA; Centennial, CO; Overland Park, KS; Olathe, KS; Oakland, CA; Indianapolis, IN; and Monaca, PA. The Company's operating leases have remaining lease terms of less than one year up to twelve years. SelectRx leases the Monaca facility from an Executive Vice President of SelectRx. The Company expects to incur $3.6 million in total rental payments over the initial ten-year term plus an additional five-year extension option that it is reasonably certain to exercise.
During the year ended June 30, 2025, the Company entered into six finance leases for equipment with commencement dates August 1, 2024, September 19, 2024 and April 1, 2025, resulting in new right-of-use assets obtained in exchange for new lease liabilities of $1.7 million. In addition, the Company entered into one operating lease for the new Olathe, Kansas pharmacy fulfillment facility with a commencement date of March 1, 2025, resulting in new right-of-use assets obtained in exchange for new lease liabilities of $4.7 million.
During the year ended June 30, 2024, the Company entered into a lease amendment for the Overland Park, KS office which extended the lease term for a portion of its office facilities, resulting in additional right-of-use assets obtained in exchange for new lease liabilities of $0.7 million. In addition, as part of the amendment, the Company leased additional office facilities with a commencement date of June 1, 2024, which resulted in additional right-of-use assets in exchange for new lease liabilities of $4.5 million, and executed the early termination option for a portion of its office facilities effective on the commencement date of the additional office space, resulting in remeasurement of the operating lease liability and accelerated amortization of the right-of-use asset over the shortened remaining term of the lease.
Right-of-Use Asset and Lease Liability—The right-of-use assets and lease liabilities were as follows as of June 30:
| (in thousands) | Balance Sheet Classification | 2025 | 2024 | ||||||||||||||
| Assets | |||||||||||||||||
| Operating leases | Operating lease right-of-use assets | $ | 24,635 | $ | 23,437 | ||||||||||||
| Finance leases | 1,552 | 191 | |||||||||||||||
| Total lease right-of-use assets | $ | 26,187 | $ | 23,628 | |||||||||||||
| Liabilities | |||||||||||||||||
| Current | |||||||||||||||||
| Operating leases | Operating lease liabilities–current | $ | 4,820 | $ | 4,709 | ||||||||||||
| Finance leases | 400 | 130 | |||||||||||||||
| Non-current | |||||||||||||||||
| Operating leases | Operating lease liabilities | 25,982 | 25,685 | ||||||||||||||
| Finance leases | 1,200 | 66 | |||||||||||||||
| Total lease liabilities | $ | 32,402 | $ | 30,590 | |||||||||||||
Lease Costs—The components of lease costs were as follows for the periods presented:
| Year Ended June 30, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
Finance lease costs(1) | $ | 577 | $ | 168 | |||||||
Operating lease costs(2) | 7,383 | 5,649 | |||||||||
| Short-term lease costs | 251 | 243 | |||||||||
Variable lease costs(3) | 609 | 613 | |||||||||
| Sublease income | (2,225) | (2,294) | |||||||||
| Total net lease costs | $ | 6,595 | $ | 4,379 | |||||||
(1) Primarily consists of amortization of finance lease right-of-use assets and an immaterial amount of interest on finance lease liabilities recorded in selling, general, and administrative expense and interest expense, net in the consolidated statements of comprehensive income (loss).
(2) Recorded in selling, general, and administrative expense in the consolidated statements of comprehensive income (loss).
(3) Variable lease costs are not included in the measurement of the lease liability or right-of-use asset as they are not based on an index or rate and primarily represents common area maintenance charges and real estate taxes recorded in operating costs and expenses in the consolidated statements of comprehensive income (loss).
Supplemental Information—Supplemental information related to leases was as follows as of and for the periods presented:
| Year Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (in thousands) | Operating leases | Finance leases | Total | Operating leases | Finance leases | Total | |||||||||||||||||||||||||||||
| Cash paid for amounts included in measurement of liabilities: | |||||||||||||||||||||||||||||||||||
| Operating cash flows from leases | $ | 8,145 | $ | 176 | $ | 8,321 | $ | 8,197 | $ | 18 | $ | 8,215 | |||||||||||||||||||||||
| Financing cash flows from leases | — | 327 | 327 | — | 149 | 149 | |||||||||||||||||||||||||||||
| Right-of-use assets obtained in exchange for new lease liabilities | $ | 5,093 | $ | 1,731 | $ | 6,824 | $ | 1,307 | $ | 120 | $ | 1,427 | |||||||||||||||||||||||
| Year Ended June 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Operating leases | Finance leases | Operating leases | Finance leases | ||||||||||||||||||||
| Weighted-average remaining lease term (in years) | 6.41 | 3.65 | 5.92 | 1.84 | |||||||||||||||||||
| Weighted-average discount rate | 12.61 | % | 14.22 | % | 11.80 | % | 9.96 | % | |||||||||||||||
Maturities of Lease Liabilities—As of June 30, 2025, remaining maturities of lease liabilities for each of the next five fiscal years and thereafter are as follows:
| (in thousands) | Operating leases | Finance leases | Total | |||||||||||||||||
| 2026 | $ | 8,056 | $ | 596 | $ | 8,652 | ||||||||||||||
| 2027 | 7,267 | 546 | 7,813 | |||||||||||||||||
| 2028 | 6,906 | 514 | 7,420 | |||||||||||||||||
| 2029 | 7,006 | 362 | 7,368 | |||||||||||||||||
| 2030 | 4,615 | 30 | 4,645 | |||||||||||||||||
| Thereafter | 12,985 | — | 12,985 | |||||||||||||||||
| Total undiscounted lease payments | 46,835 | 2,048 | 48,883 | |||||||||||||||||
| Less: interest | 16,033 | 448 | 16,481 | |||||||||||||||||
| Present value of lease liabilities | $ | 30,802 | $ | 1,600 | $ | 32,402 | ||||||||||||||
Sublease income—The Company subleases portions of its office facilities in Overland Park, KS and Centennial, CO, which run through July 31, 2029, and November 30, 2026, respectively. Sublease income is recorded on a straight-line basis as a reduction of lease expense in the consolidated statements of comprehensive income (loss). The Company may consider entering into additional sublease arrangements in the future.
As of June 30, 2025, the future minimum fixed sublease receipts under non-cancelable operating lease agreements are as follows:
| (in thousands) | Total | |||||||
| 2026 | $ | 2,405 | ||||||
| 2027 | 2,102 | |||||||
| 2028 | 1,931 | |||||||
| 2029 | 1,931 | |||||||
| 2030 | 161 | |||||||
| Thereafter | — | |||||||
| Total sublease income | $ | 8,530 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 21, 2025 | Showing above |
| 2024 | Sep 13, 2024 | |
| 2023 | Sep 13, 2023 | |
| 2022 | Aug 29, 2022 | |
| 2021 | Aug 26, 2021 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.