SelectQuote, Inc.SLQT
SelectQuote, Inc. Segments Disclosure
SEGMENT INFORMATION
As of July 1, 2024, the Company realigned its reportable segments for fiscal year 2025. The Auto & Home business does not meet the quantitative thresholds to be required to continue to be separately disclosed as a reportable segment in accordance with ASC 280, Segment Reporting (“ASC 280”). As a result, the Auto & Home business will be included in an “All Other” category. Prior period information has been recast to conform to the current presentation.
The Company’s operating segments and reportable segments have been determined in accordance with ASC 280. We currently have three reportable segments: i) Senior, ii) Healthcare Services, and iii) Life. Senior primarily sells senior Medicare-related health insurance products. Healthcare Services includes SelectRx, Healthcare Select, and SPM. Healthcare Services provides products and services to our Medicare policyholders, which are focused on improving patient health outcomes. Life primarily sells term life and final expense products. The All Other category is reflective of the revenue generated from selling individual automobile and homeowners’ insurance. Additionally, the Company accounts for non-operating activity, share-based compensation expense, depreciation and amortization, goodwill, long-lived asset and intangible asset impairments, certain intersegment eliminations, and the costs of providing corporate and other administrative services in our administrative division, Corporate & Eliminations.
Our operating segments are determined based on how our chief executive officer, who also serves as our CODM, manages our business, regularly accesses information, and evaluates performance for operating decision-making purposes, including allocation of resources. Adjusted EBITDA is our segment profit measure and a key measure used by our CODM and Board of Directors to understand and evaluate the operating performance of our business and on which internal budgets and forecasts are based and approved.
Our segment disclosure includes intersegment revenues, which consist of affiliate marketing fees for services provided by our Senior segment to our Healthcare Services and Life segments as well as services provided by Life to other segments. These intersegment transactions are recorded by each segment at amounts that we believe approximate fair value as if the transactions were between third parties and, therefore, impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation. The elimination of such intersegment transactions is included within the “Eliminations of intersegment revenues” in the tables below. Apart
from these intersegment transactions, the accounting policies of the reportable segments are the same as the Company’s described Note 1 to the consolidated financial statements.
The following tables present information about the reportable segments for the periods presented.
We do not report total assets by segment as our CODM does not use this information to evaluate operating segment performance. Accordingly, we do not regularly provide such information by segment to our CODM.
Year Ended June 30, 2025:
| (in thousands) | Senior | Healthcare Services | Life | Total | |||||||||||||||||||
| External revenue | $ | 593,335 | $ | 742,338 | $ | 172,895 | $ | 1,508,568 | |||||||||||||||
Intersegment revenue | 7,058 | 367 | 83 | 7,508 | |||||||||||||||||||
Total revenue from reportable segments | $ | 600,393 | $ | 742,705 | $ | 172,978 | $ | 1,516,076 | |||||||||||||||
All other revenue (1) | 18,026 | ||||||||||||||||||||||
Eliminations of intersegment revenues | (7,508) | ||||||||||||||||||||||
Total consolidated revenue | $ | 1,526,594 | |||||||||||||||||||||
(1) Represents revenue from SQAH, a non-reportable segment.
| (in thousands) | Senior | Healthcare Services | Life | Total | |||||||||||||||||||
Total revenue from reportable segments | $ | 600,393 | $ | 742,705 | $ | 172,978 | $ | 1,516,076 | |||||||||||||||
Less: | |||||||||||||||||||||||
Cost of commissions and other services revenue | (201,933) | (25,163) | (65,047) | ||||||||||||||||||||
Cost of goods sold - pharmacy revenue | — | (625,389) | — | ||||||||||||||||||||
Marketing expense (1) | (234,335) | (8,038) | (80,269) | ||||||||||||||||||||
Technical development (2) | — | (2,187) | — | ||||||||||||||||||||
Selling, general, and administrative (3) | (2,454) | (56,541) | (993) | ||||||||||||||||||||
| Adjusted Segment EBITDA | $ | 161,671 | $ | 25,387 | $ | 26,669 | $ | 213,727 | |||||||||||||||
Reconciliation of total segment Adjusted EBITDA | |||||||||||||||||||||||
All other Adjusted EBITDA (4) | 10,597 | ||||||||||||||||||||||
Corporate (5) | (98,070) | ||||||||||||||||||||||
| Share-based compensation expense | (18,357) | ||||||||||||||||||||||
Transaction costs (6) | (14,617) | ||||||||||||||||||||||
| Depreciation and amortization | (20,460) | ||||||||||||||||||||||
| Loss on disposal of property, equipment, and software, net | (240) | ||||||||||||||||||||||
Impairment of long-lived assets | (4,209) | ||||||||||||||||||||||
| Change in fair value of warrants | 59,525 | ||||||||||||||||||||||
| Interest expense, net | (79,385) | ||||||||||||||||||||||
| Income before income tax expense (benefit) | $ | 48,511 | |||||||||||||||||||||
(1) Primarily consists of direct advertising and lead generation costs across various marketing channels.
(2) Primarily comprised of payroll and related benefits for dedicated Healthcare Services IT personnel.
(3) For Senior and Life, these costs are primarily comprised of allocations from corporate related to payroll and related benefits for administrative support functions and facilities. Within Healthcare Services, it primarily consists of payroll and related benefit costs for licensed pharmacists and pharmacy technicians performing one-time customer onboarding work for enrollments that don’t actually become members.
(4) Represents adjusted EBITDA from SQAH, a non-reportable segment.
(5) Corporate is not an operating segment and consists primarily of unallocated corporate overhead costs, such as payroll and related benefits ($65.1 million), professional services ($17.2 million), and facilities ($5.7 million).
(6) These expenses primarily consist of non-restructuring severance expenses ($0.8 million) and financing transaction costs ($13.8 million).
Year Ended June 30, 2024
| (in thousands) | Senior | Healthcare Services | Life | Total | |||||||||||||||||||
| External revenue | $ | 649,232 | $ | 478,491 | $ | 157,826 | $ | 1,285,549 | |||||||||||||||
Intersegment revenue | 6,617 | 17 | 104 | 6,738 | |||||||||||||||||||
Total revenue from reportable segments | $ | 655,849 | $ | 478,508 | $ | 157,930 | $ | 1,292,287 | |||||||||||||||
All other revenue (1) | 36,228 | ||||||||||||||||||||||
Eliminations of intersegment revenues | (6,739) | ||||||||||||||||||||||
Total consolidated revenue | $ | 1,321,776 | |||||||||||||||||||||
(1) Represents revenue from SQAH, a non-reportable segment.
| (in thousands) | Senior | Healthcare Services | Life | Total | |||||||||||||||||||
Total revenue from reportable segments | $ | 655,849 | $ | 478,508 | $ | 157,930 | $ | 1,292,287 | |||||||||||||||
Less: | |||||||||||||||||||||||
Cost of commissions and other services revenue | (216,348) | (17,438) | (60,017) | ||||||||||||||||||||
Cost of goods sold - pharmacy revenue | — | (400,821) | — | ||||||||||||||||||||
Marketing expense (1) | (269,867) | (6,260) | (76,513) | ||||||||||||||||||||
Technical development (2) | — | (915) | — | ||||||||||||||||||||
Selling, general, and administrative (3) | (2,890) | (45,253) | (1,236) | ||||||||||||||||||||
| Adjusted Segment EBITDA | $ | 166,744 | $ | 7,821 | $ | 20,164 | $ | 194,729 | |||||||||||||||
Reconciliation of total segment Adjusted EBITDA | |||||||||||||||||||||||
All other Adjusted EBITDA (4) | 14,127 | ||||||||||||||||||||||
Corporate (5) | (91,863) | ||||||||||||||||||||||
| Share-based compensation expense | (13,816) | ||||||||||||||||||||||
Transaction costs (6) | (13,158) | ||||||||||||||||||||||
| Depreciation and amortization | (24,998) | ||||||||||||||||||||||
| Loss on disposal of property, equipment, and software, net | (536) | ||||||||||||||||||||||
Interest expense, net | (93,551) | ||||||||||||||||||||||
| Loss before income tax expense (benefit) | $ | (29,066) | |||||||||||||||||||||
(1) Primarily consists of direct advertising and lead generation costs across various marketing channels.
(2) Primarily comprised of payroll and related benefits for dedicated Healthcare Services IT personnel.
(3) For Senior and Life, these costs are primarily comprised of allocations from corporate related to payroll and related benefits for administrative support functions and facilities. Within Healthcare Services, it primarily consists of payroll and related benefit costs for licensed pharmacists and pharmacy technicians performing one-time customer onboarding work for enrollments that don’t actually become members.
(4) Represents adjusted EBITDA from SQAH, a non-reportable segment.
(5) Corporate is not an operating segment and consists primarily of unallocated corporate overhead costs, such as payroll and related benefits ($61.7 million), professional services ($17.8 million), and facilities ($4.2 million).
(6) These expenses primarily consist of financing transaction costs.
Year Ended June 30, 2023
| (in thousands) | Senior | Healthcare Services | Life | Total | |||||||||||||||||||
| External revenue | $ | 583,271 | $ | 252,075 | $ | 145,640 | $ | 980,986 | |||||||||||||||
Intersegment revenue | 6,860 | — | 192 | 7,052 | |||||||||||||||||||
Total revenue from reportable segments | $ | 590,131 | $ | 252,075 | $ | 145,832 | $ | 988,038 | |||||||||||||||
All other revenue (1) | 21,862 | ||||||||||||||||||||||
Eliminations of intersegment revenues | (7,052) | ||||||||||||||||||||||
Total consolidated revenue | $ | 1,002,848 | |||||||||||||||||||||
(1) Represents revenue from SQAH, a non-reportable segment.
| (in thousands) | Senior | Healthcare Services | Life | Total | |||||||||||||||||||
Total revenue from reportable segments | $ | 590,131 | $ | 252,075 | $ | 145,832 | $ | 988,038 | |||||||||||||||
Less: | |||||||||||||||||||||||
Cost of commissions and other services revenue | (210,229) | (13,363) | (53,666) | ||||||||||||||||||||
Cost of goods sold - pharmacy revenue | — | (222,347) | — | ||||||||||||||||||||
Marketing expense (1) | (221,579) | (5,035) | (67,895) | ||||||||||||||||||||
Technical development (2) | — | (274) | — | ||||||||||||||||||||
Selling, general, and administrative (3) | (3,246) | (33,825) | (1,198) | ||||||||||||||||||||
| Adjusted Segment EBITDA | $ | 155,077 | $ | (22,769) | $ | 23,073 | $ | 155,381 | |||||||||||||||
Reconciliation of total segment Adjusted EBITDA | |||||||||||||||||||||||
All other Adjusted EBITDA (4) | 81 | ||||||||||||||||||||||
Corporate (5) | (81,159) | ||||||||||||||||||||||
| Share-based compensation expense | (11,310) | ||||||||||||||||||||||
Transaction costs (6) | (5,569) | ||||||||||||||||||||||
| Depreciation and amortization | (27,881) | ||||||||||||||||||||||
| Loss on disposal of property, equipment, and software, net | (749) | ||||||||||||||||||||||
Impairment of long-lived assets | (17,332) | ||||||||||||||||||||||
Interest expense, net | (80,606) | ||||||||||||||||||||||
| Loss before income tax expense (benefit) | $ | (69,144) | |||||||||||||||||||||
(1) Primarily consists of direct advertising and lead generation costs across various marketing channels.
(2) Primarily comprised of payroll and related benefits for dedicated Healthcare Services IT personnel.
(3) For Senior and Life, these costs are primarily comprised of allocations from corporate related to payroll and related benefits for administrative support functions and facilities. Within Healthcare Services, it primarily consists of payroll and related benefit costs for licensed pharmacists and pharmacy technicians performing one-time customer onboarding work for enrollments that don’t actually become members.
(4) Represents adjusted EBITDA from SQAH, a non-reportable segment.
(5) Corporate is not an operating segment and consists primarily of unallocated corporate overhead costs, such as payroll and related benefits ($51.4 million), professional services ($19.4 million), and facilities ($5.4 million).
(6) These expenses primarily consist of financing transaction costs.
Revenues from each of the reportable segments are earned from transactions in the United States and follow the same accounting policies used for the Company’s consolidated financial statements. All of the Company’s long-lived assets are located in the United States. For the year ended June 30, 2025, three insurance carrier customers accounted for 37% (UHC), 15% (Aetna), and 11% (Humana) of total revenue. For the year ended June 30, 2024, three insurance carrier customers accounted for 30% (UHC), 17% (Humana), and 16% (Aetna) of total revenue. For the year ended June 30, 2023, two insurance carrier customers accounted for 33% (UHC) and
20% (Humana) of total revenue. For all periods presented, the revenue was provided by both the Senior and Healthcare Services segments.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 | |
| 2020 | Sep 10, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.