slqt-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

001-39295

(Commission File Number)

SelectQuote, Inc.

(Exact name of registrant as specified in its charter)


Delaware		94-3339273
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

6800 West 115th Street	Suite 2511	66211
Overland Park	Kansas	(Zip Code)
(Address of principal executive offices)

(913) 599-9225

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

SLQT

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No ☒

The registrant had outstanding 171,504,499 shares of common stock as of October 31, 2024.

Table of Contents

SELECTQUOTE, INC. AND SUBSIDIARIES

FORM 10-Q

TABLE OF CONTENTS


	PART I FINANCIAL INFORMATION	PAGE
Item 1.	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets as of September 30, 2024 and June 30, 2024	2
	Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended September 30, 2024 and 2023	3
	Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended September 30, 2024 and 2023	4
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended September, 2024 and 2023	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40
Item 4.	Controls and Procedures	40
	PART II OTHER INFORMATION
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3.	Defaults Upon Senior Securities	41
Item 4.	Mine Safety Disclosures	41
Item 5.	Other Information	41
Item 6.	Exhibits	42
	Signatures	43

Table of Contents

PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SELECTQUOTE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)


	September 30, 2024		June 30, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	10,444	$	42,690

Accounts receivable, net of allowances of $10.1 million and $8.2 million, respectively	99,534		150,035
Commissions receivable-current	176,760		119,871
Other current assets	20,144		20,327
Total current assets	306,882		332,923
COMMISSIONS RECEIVABLE—Net	743,024		761,446
PROPERTY AND EQUIPMENT—Net	18,191		18,973
SOFTWARE—Net	14,224		13,978
OPERATING LEASE RIGHT-OF-USE ASSETS	22,591		23,437
INTANGIBLE ASSETS—Net	9,162		10,194
GOODWILL	29,438		29,438
OTHER ASSETS	3,359		3,519
TOTAL ASSETS	$	1,146,871	$	1,193,908
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	51,108	$	36,587
Accrued expenses	15,409		16,904
Accrued compensation and benefits	44,735		57,594


Operating lease liabilities—current	4,764		4,709
Current portion of long-term debt	43,290		45,854
Contract liabilities	2,952		8,066
Other current liabilities	4,487		4,873
Total current liabilities	166,745		174,587
LONG-TERM DEBT, NET—less current portion	637,155		637,480

DEFERRED INCOME TAXES	46,018		37,478
OPERATING LEASE LIABILITIES	24,560		25,685
OTHER LIABILITIES	2,954		1,877
Total liabilities	877,432		877,107
COMMITMENTS AND CONTINGENCIES (Note 7)
SHAREHOLDERS’ EQUITY:
Common stock, $0.01 par value	1,715		1,694
Additional paid-in capital	580,712		580,764

Accumulated deficit	(314,315)		(269,769)
Accumulated other comprehensive income	1,327		4,112
Total shareholders’ equity	269,439		316,801
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,146,871	$	1,193,908

See accompanying notes to the condensed consolidated financial statements.

Table of Contents

SELECTQUOTE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)


	Three Months Ended September 30,
	2024		2023
REVENUE:
Commissions and other services	$	139,380	$	137,942
Pharmacy	152,883		94,788

Total revenue	292,263		232,730
OPERATING COSTS AND EXPENSES:
Cost of commissions and other services revenue	65,733		72,511

SEC Form 10-Q filed by SelectQuote Inc.