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SelectQuote (SLQT) Q3 FY25 earnings results (third quarter fiscal 2025)

10-Q filed May 12, 2025

SelectQuote (SLQT) reported revenue of $408M for the third quarter fiscal 2025 (Q3 FY25), +8% from a year earlier and -15% from the quarter before. Operating margin was 5.4%, net earnings $26.0M (6.4% of revenue).

Revenue$408M
Year over year+8%
Quarter over quarter-15%
Operating margin5.4%
Net earnings$26.0M

SelectQuote, Q3 FY25: revenue $408M (+8% year over year), operating margin 5.4%, net earnings $26.0M, operating cash flow $71.1M. The chart follows the revenue to costs, profit and cash.

Q3 FY25AmountQ/QY/Y
Revenue$408M-15%+8%
Operating profit$22.1M-69%-33%
Net earnings$26.0M-51%+204%
Operating cash flow$71.1M—+60%
Free cash flow$70.2M—+62%

What changed

Revenue was $408.2M in Q3 FY25, up 8% year over year and down 15% from the previous quarter. Service was the largest line at 55% of revenue. Pharmacy added $65.0M year over year (up 54%), 205% of the total change. Service declined 13%.

Operating profit was $22.1M, a 5.4% margin (down 3.4 points year over year). Operating profit fell $11.0M even though revenue rose $31.8M versus a year earlier, so costs grew faster than sales. Total costs grew 12% against revenue growth of 8%. The fastest-growing cost line was Cost of revenue (+53%). Net earnings were $26.0M, up 204% year over year. The effective tax rate was 24.8%. Non-operating items added $12.5M, 36% of pre-tax earnings, so the bottom line overstates operating performance.

Operating cash flow was $71.1M (up 60% year over year), 273% of net earnings. Non-cash charges added back $4.9M of depreciation and amortization and $5.0M of share-based compensation. Working capital and other items added $35.2M. Capital expenditures of $949K left free cash flow of $70.2M.

Questions

What was SelectQuote's revenue in the third quarter fiscal 2025?

SelectQuote (SLQT) reported revenue of $408M for the third quarter fiscal 2025 (Q3 FY25), +8% from a year earlier and -15% from the quarter before.

Was SelectQuote profitable in the third quarter fiscal 2025?

Operating profit was $22.1M (5.4% of revenue) and net earnings $26.0M.

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Source: SelectQuote 10-Q on SEC EDGAR.