10-Q 1 slqt-20240331.htm 10-Q slqt-20240331
000179478306/302024Q3FALSEP1YP1Yxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:pureslqt:provisionslqt:defendantslqt:planslqt:installmentslqt:trancheslqt:segment00017947832023-07-012024-03-3100017947832024-04-3000017947832024-03-3100017947832023-06-300001794783us-gaap:ServiceMember2024-01-012024-03-310001794783us-gaap:ServiceMember2023-01-012023-03-310001794783us-gaap:ServiceMember2023-07-012024-03-310001794783us-gaap:ServiceMember2022-07-012023-03-310001794783slqt:PharmacyMember2024-01-012024-03-310001794783slqt:PharmacyMember2023-01-012023-03-310001794783slqt:PharmacyMember2023-07-012024-03-310001794783slqt:PharmacyMember2022-07-012023-03-310001794783us-gaap:ProductAndServiceOtherMember2024-01-012024-03-310001794783us-gaap:ProductAndServiceOtherMember2023-01-012023-03-310001794783us-gaap:ProductAndServiceOtherMember2023-07-012024-03-310001794783us-gaap:ProductAndServiceOtherMember2022-07-012023-03-3100017947832024-01-012024-03-3100017947832023-01-012023-03-3100017947832022-07-012023-03-310001794783us-gaap:CommonStockMember2023-12-310001794783us-gaap:AdditionalPaidInCapitalMember2023-12-310001794783us-gaap:RetainedEarningsMember2023-12-310001794783us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-3100017947832023-12-310001794783us-gaap:RetainedEarningsMember2024-01-012024-03-310001794783us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001794783us-gaap:CommonStockMember2023-07-012024-03-310001794783us-gaap:AdditionalPaidInCapitalMember2023-07-012024-03-310001794783us-gaap:CommonStockMemberus-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001794783us-gaap:AdditionalPaidInCapitalMemberus-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001794783us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001794783us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001794783us-gaap:CommonStockMember2024-03-310001794783us-gaap:AdditionalPaidInCapitalMember2024-03-310001794783us-gaap:RetainedEarningsMember2024-03-310001794783us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001794783us-gaap:CommonStockMember2022-12-310001794783us-gaap:AdditionalPaidInCapitalMember2022-12-310001794783us-gaap:RetainedEarningsMember2022-12-310001794783us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-3100017947832022-12-310001794783us-gaap:RetainedEarningsMember2023-01-012023-03-310001794783us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001794783us-gaap:CommonStockMember2023-01-012023-03-310001794783us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001794783us-gaap:CommonStockMemberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310001794783us-gaap:AdditionalPaidInCapitalMemberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310001794783us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310001794783us-gaap:CommonStockMember2023-03-310001794783us-gaap:AdditionalPaidInCapitalMember2023-03-310001794783us-gaap:RetainedEarningsMember2023-03-310001794783us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100017947832023-03-310001794783us-gaap:CommonStockMember2023-06-300001794783us-gaap:AdditionalPaidInCapitalMember2023-06-300001794783us-gaap:RetainedEarningsMember2023-06-300001794783us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001794783us-gaap:RetainedEarningsMember2023-07-012024-03-310001794783us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012024-03-310001794783us-gaap:CommonStockMemberus-gaap:RestrictedStockUnitsRSUMember2023-07-012024-03-310001794783us-gaap:AdditionalPaidInCapitalMemberus-gaap:RestrictedStockUnitsRSUMember2023-07-012024-03-310001794783us-gaap:RestrictedStockUnitsRSUMember2023-07-012024-03-310001794783us-gaap:CommonStockMember2022-06-300001794783us-gaap:AdditionalPaidInCapitalMember2022-06-300001794783us-gaap:RetainedEarningsMember2022-06-300001794783us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000017947832022-06-300001794783us-gaap:RetainedEarningsMember2022-07-012023-03-310001794783us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012023-03-310001794783us-gaap:CommonStockMember2022-07-012023-03-310001794783us-gaap:AdditionalPaidInCapitalMember2022-07-012023-03-310001794783us-gaap:CommonStockMemberus-gaap:RestrictedStockUnitsRSUMember2022-07-012023-03-310001794783us-gaap:AdditionalPaidInCapitalMemberus-gaap:RestrictedStockUnitsRSUMember2022-07-012023-03-310001794783us-gaap:RestrictedStockUnitsRSUMember2022-07-012023-03-310001794783slqt:ExpressMedPharmaceuticalIncMember2021-04-300001794783srt:MaximumMemberslqt:ExpressMedPharmaceuticalIncMember2021-04-302021-04-300001794783slqt:ExpressMedPharmaceuticalIncMember2021-04-302021-04-300001794783slqt:ExpressMedPharmaceuticalIncMember2023-06-300001794783slqt:ExpressMedPharmaceuticalIncMember2022-07-012023-06-300001794783slqt:ExpressMedPharmaceuticalIncMemberslqt:SeniorSegmentMember2021-04-300001794783srt:MinimumMemberslqt:ExpressMedPharmaceuticalIncMember2021-04-302021-04-300001794783slqt:SimpleMedsMember2021-08-310001794783slqt:SimpleMedsMember2021-08-312021-08-310001794783slqt:SimpleMedsMemberslqt:SeniorSegmentMember2024-03-310001794783us-gaap:ComputerEquipmentMember2024-03-310001794783us-gaap:ComputerEquipmentMember2023-06-300001794783us-gaap:EquipmentMember2024-03-310001794783us-gaap:EquipmentMember2023-06-300001794783us-gaap:LeaseholdsAndLeaseholdImprovementsMember2024-03-310001794783us-gaap:LeaseholdsAndLeaseholdImprovementsMember2023-06-300001794783us-gaap:FurnitureAndFixturesMember2024-03-310001794783us-gaap:FurnitureAndFixturesMember2023-06-300001794783us-gaap:ConstructionInProgressMember2024-03-310001794783us-gaap:ConstructionInProgressMember2023-06-300001794783us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2024-03-310001794783us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2023-06-300001794783us-gaap:InProcessResearchAndDevelopmentMember2024-03-310001794783us-gaap:InProcessResearchAndDevelopmentMember2023-06-300001794783us-gaap:CustomerRelationshipsMember2024-03-310001794783us-gaap:CustomerRelationshipsMember2023-06-300001794783us-gaap:TradeNamesMember2024-03-310001794783us-gaap:TradeNamesMember2023-06-300001794783us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2024-03-310001794783us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2023-06-300001794783us-gaap:NoncompeteAgreementsMember2024-03-310001794783us-gaap:NoncompeteAgreementsMember2023-06-300001794783slqt:VenderRelationshipsMember2024-03-310001794783slqt:VenderRelationshipsMember2023-06-3000017947832022-07-012023-06-300001794783slqt:HealthcareServicesMember2024-03-310001794783slqt:MonacaPennsylvaniaMembersrt:AffiliatedEntityMember2024-03-310001794783slqt:MonacaPennsylvaniaMembersrt:AffiliatedEntityMember2023-07-012024-03-310001794783srt:MinimumMember2024-03-310001794783srt:MaximumMember2024-03-310001794783slqt:OverlandParkKansasMember2023-07-012024-03-310001794783slqt:OverlandParkKansasMembersrt:ScenarioForecastMember2024-06-012024-06-010001794783slqt:SanDiegoCaliforniaAndIndianapolisIndianaMember2022-07-012023-03-310001794783slqt:OverlandParkKansasMember2023-07-312023-07-310001794783us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMember2023-06-300001794783us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMember2024-03-310001794783us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMember2019-11-050001794783us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMember2021-02-240001794783us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMemberslqt:DelayedDrawTermLoanFacilityMember2021-02-240001794783us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2021-11-0200017947832021-11-020001794783us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMemberslqt:DelayedDrawTermLoanFacilityMember2021-11-020001794783us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2021-12-230001794783us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-08-250001794783us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-08-260001794783us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMemberslqt:DelayedDrawTermLoanFacilityMember2022-08-262022-08-260001794783slqt:ExtendedTermLoansDueFebruary152025Member2024-02-070001794783us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2024-02-070001794783us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2024-03-310001794783us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMembersrt:ScenarioForecastMember2024-06-300001794783us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMembersrt:ScenarioForecastMember2024-09-300001794783slqt:NonExtendedTermLoansDueNovember52024Member2024-02-070001794783us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMemberslqt:TermLoansMember2024-03-310001794783us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembersrt:MinimumMemberus-gaap:LineOfCreditMember2022-08-260001794783us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:LineOfCreditMember2023-07-012024-03-310001794783us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:LineOfCreditMember2022-08-262022-08-260001794783us-gaap:LineOfCreditMemberus-gaap:BaseRateMember2022-08-262022-08-260001794783us-gaap:LineOfCreditMember2022-08-262022-08-260001794783us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembersrt:MinimumMemberus-gaap:RevolvingCreditFacilityMember2022-08-260001794783us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2022-08-262022-08-260001794783us-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMember2022-08-262022-08-260001794783srt:MinimumMemberus-gaap:LineOfCreditMemberus-gaap:SecuredDebtMember2022-08-262022-08-260001794783us-gaap:LineOfCreditMemberus-gaap:SecuredDebtMembersrt:MaximumMember2022-08-262022-08-260001794783us-gaap:InterestRateSwapMember2024-03-310001794783us-gaap:InterestRateSwapMemberus-gaap:BaseRateMember2024-03-310001794783us-gaap:SecuredDebtMemberslqt:SeniorSecuredCreditFacilityMemberslqt:TermLoansMemberus-gaap:SubsequentEventMember2024-05-090001794783us-gaap:SecuredDebtMemberslqt:SeniorSecuredCreditFacilityMemberus-gaap:SubsequentEventMember2024-05-090001794783srt:ExecutiveOfficerMemberslqt:HartelVSelectQuoteIncMember2021-08-162021-08-160001794783slqt:WestPalmBeachPolicePensionFundVSelectQuoteIncMembersrt:ExecutiveOfficerMember2021-10-072021-10-070001794783slqt:CurrentAndFormerDirectorMemberslqt:WestPalmBeachPolicePensionFundVSelectQuoteIncMember2021-10-072021-10-070001794783us-gaap:CommonStockMemberslqt:EmployeeStockPurchasePlan2020Member2024-03-310001794783us-gaap:CommonStockMemberslqt:A2020PlanMember2024-03-310001794783us-gaap:CommonStockMemberslqt:A2003PlanMember2024-03-310001794783us-gaap:CommonStockMember2024-03-310001794783slqt:A2020PlanMember2023-07-012024-03-310001794783slqt:IncentiveStockOptionsMemberslqt:A2020PlanMember2024-03-310001794783slqt:IncentiveStockOptionsMember2024-01-012024-03-310001794783slqt:IncentiveStockOptionsMember2023-01-012023-03-310001794783slqt:IncentiveStockOptionsMember2023-07-012024-03-310001794783slqt:IncentiveStockOptionsMember2022-07-012023-03-310001794783us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001794783us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310001794783us-gaap:RestrictedStockUnitsRSUMember2023-07-012024-03-310001794783us-gaap:RestrictedStockUnitsRSUMember2022-07-012023-03-310001794783us-gaap:PerformanceSharesMember2024-01-012024-03-310001794783us-gaap:PerformanceSharesMember2023-01-012023-03-310001794783us-gaap:PerformanceSharesMember2023-07-012024-03-310001794783us-gaap:PerformanceSharesMember2022-07-012023-03-310001794783slqt:PriceVestedUnitsPVUsMember2024-01-012024-03-310001794783slqt:PriceVestedUnitsPVUsMember2023-01-012023-03-310001794783slqt:PriceVestedUnitsPVUsMember2023-07-012024-03-310001794783slqt:PriceVestedUnitsPVUsMember2022-07-012023-03-310001794783slqt:A2003PlanMember2023-07-012024-03-310001794783slqt:A2003PlanMember2024-03-310001794783slqt:A2003PlanMember2023-01-012023-03-310001794783slqt:A2003PlanMember2024-01-012024-03-310001794783slqt:A2003PlanMember2022-07-012023-03-310001794783srt:MinimumMemberus-gaap:RestrictedStockUnitsRSUMember2023-07-012024-03-310001794783us-gaap:RestrictedStockUnitsRSUMembersrt:MaximumMember2023-07-012024-03-310001794783us-gaap:RestrictedStockUnitsRSUMember2023-06-300001794783us-gaap:RestrictedStockUnitsRSUMember2024-03-310001794783us-gaap:PerformanceSharesMember2023-06-300001794783us-gaap:PerformanceSharesMember2024-03-310001794783us-gaap:PerformanceSharesMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-09-130001794783us-gaap:PerformanceSharesMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-09-132023-09-130001794783slqt:PriceVestedUnitsPVUsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-07-012024-03-310001794783srt:MinimumMemberslqt:PriceVestedUnitsPVUsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-07-012024-03-310001794783slqt:PriceVestedUnitsPVUsMembersrt:MaximumMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-07-012024-03-310001794783us-gaap:ShareBasedCompensationAwardTrancheTwoMemberslqt:PriceVestedUnitsPVUsMember2023-07-012024-03-310001794783srt:MinimumMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMemberslqt:PriceVestedUnitsPVUsMember2023-07-012024-03-310001794783us-gaap:ShareBasedCompensationAwardTrancheTwoMemberslqt:PriceVestedUnitsPVUsMembersrt:MaximumMember2023-07-012024-03-310001794783us-gaap:ShareBasedCompensationAwardTrancheThreeMemberslqt:PriceVestedUnitsPVUsMember2023-07-012024-03-310001794783srt:MinimumMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMemberslqt:PriceVestedUnitsPVUsMember2023-07-012024-03-310001794783us-gaap:ShareBasedCompensationAwardTrancheThreeMemberslqt:PriceVestedUnitsPVUsMembersrt:MaximumMember2023-07-012024-03-310001794783slqt:PriceVestedUnitsPVUsMemberslqt:ShareBasedCompensationAwardTrancheFourMember2023-07-012024-03-310001794783srt:MinimumMemberslqt:PriceVestedUnitsPVUsMemberslqt:ShareBasedCompensationAwardTrancheFourMember2023-07-012024-03-310001794783slqt:PriceVestedUnitsPVUsMembersrt:MaximumMemberslqt:ShareBasedCompensationAwardTrancheFourMember2023-07-012024-03-310001794783slqt:ShareBasedCompensationAwardTrancheFiveMemberslqt:PriceVestedUnitsPVUsMember2023-07-012024-03-310001794783srt:MinimumMemberslqt:ShareBasedCompensationAwardTrancheFiveMemberslqt:PriceVestedUnitsPVUsMember2023-07-012024-03-310001794783slqt:ShareBasedCompensationAwardTrancheFiveMemberslqt:PriceVestedUnitsPVUsMembersrt:MaximumMember2023-07-012024-03-310001794783slqt:ShareBasedCompensationAwardTrancheSixMemberslqt:PriceVestedUnitsPVUsMember2023-07-012024-03-310001794783srt:MinimumMemberslqt:ShareBasedCompensationAwardTrancheSixMemberslqt:PriceVestedUnitsPVUsMember2023-07-012024-03-310001794783slqt:ShareBasedCompensationAwardTrancheSixMemberslqt:PriceVestedUnitsPVUsMembersrt:MaximumMember2023-07-012024-03-310001794783slqt:PriceVestedUnitsPVUsMemberslqt:ShareBasedCompensationAwardTrancheSevenMember2023-07-012024-03-310001794783srt:MinimumMemberslqt:PriceVestedUnitsPVUsMemberslqt:ShareBasedCompensationAwardTrancheSevenMember2023-07-012024-03-310001794783slqt:PriceVestedUnitsPVUsMembersrt:MaximumMemberslqt:ShareBasedCompensationAwardTrancheSevenMember2023-07-012024-03-310001794783slqt:ShareBasedCompensationAwardTrancheEightMemberslqt:PriceVestedUnitsPVUsMember2023-07-012024-03-310001794783srt:MinimumMemberslqt:ShareBasedCompensationAwardTrancheEightMemberslqt:PriceVestedUnitsPVUsMember2023-07-012024-03-310001794783slqt:ShareBasedCompensationAwardTrancheEightMemberslqt:PriceVestedUnitsPVUsMembersrt:MaximumMember2023-07-012024-03-310001794783slqt:PriceVestedUnitsPVUsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2022-07-012023-03-310001794783srt:MinimumMemberslqt:PriceVestedUnitsPVUsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2022-07-012023-03-310001794783slqt:PriceVestedUnitsPVUsMembersrt:MaximumMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2022-07-012023-03-310001794783us-gaap:ShareBasedCompensationAwardTrancheTwoMemberslqt:PriceVestedUnitsPVUsMember2022-07-012023-03-310001794783srt:MinimumMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMemberslqt:PriceVestedUnitsPVUsMember2022-07-012023-03-310001794783us-gaap:ShareBasedCompensationAwardTrancheTwoMemberslqt:PriceVestedUnitsPVUsMembersrt:MaximumMember2022-07-012023-03-310001794783us-gaap:ShareBasedCompensationAwardTrancheThreeMemberslqt:PriceVestedUnitsPVUsMember2022-07-012023-03-310001794783srt:MinimumMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMemberslqt:PriceVestedUnitsPVUsMember2022-07-012023-03-310001794783us-gaap:ShareBasedCompensationAwardTrancheThreeMemberslqt:PriceVestedUnitsPVUsMembersrt:MaximumMember2022-07-012023-03-310001794783slqt:PriceVestedUnitsPVUsMemberslqt:ShareBasedCompensationAwardTrancheFourMember2022-07-012023-03-310001794783srt:MinimumMemberslqt:PriceVestedUnitsPVUsMemberslqt:ShareBasedCompensationAwardTrancheFourMember2022-07-012023-03-310001794783slqt:PriceVestedUnitsPVUsMembersrt:MaximumMemberslqt:ShareBasedCompensationAwardTrancheFourMember2022-07-012023-03-310001794783slqt:PriceVestedUnitsPVUsMember2024-02-012024-02-010001794783slqt:PriceVestedUnitsPVUsMember2023-08-012023-08-010001794783slqt:PriceVestedUnitsPVUsMember2022-08-012022-08-010001794783slqt:PriceVestedUnitsPVUsMember2023-06-300001794783slqt:PriceVestedUnitsPVUsMember2024-03-310001794783us-gaap:EmployeeStockMemberslqt:EmployeeStockPurchasePlan2020Member2023-07-012024-03-310001794783us-gaap:EmployeeStockMemberslqt:A2020PlanMember2022-07-012023-03-310001794783us-gaap:EmployeeStockMemberslqt:A2020PlanMember2023-01-012023-03-310001794783us-gaap:EmployeeStockMemberslqt:EmployeeStockPurchasePlan2020Member2023-01-012023-03-310001794783us-gaap:EmployeeStockMemberslqt:EmployeeStockPurchasePlan2020Member2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:MedicareAdvantageMemberslqt:SeniorMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:MedicareAdvantageMemberslqt:SeniorMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:MedicareAdvantageMemberslqt:SeniorMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:MedicareAdvantageMemberslqt:SeniorMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:MedicareSupplementalMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:MedicareSupplementalMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:MedicareSupplementalMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:MedicareSupplementalMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:PrescriptionDrugPlanMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:PrescriptionDrugPlanMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:PrescriptionDrugPlanMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:PrescriptionDrugPlanMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:DentalVisionAndHealthMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:DentalVisionAndHealthMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:DentalVisionAndHealthMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:DentalVisionAndHealthMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:OtherCommissionRevenueMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:OtherCommissionRevenueMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:OtherCommissionRevenueMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberslqt:OtherCommissionRevenueMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberus-gaap:ServiceMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberus-gaap:ServiceMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberus-gaap:ServiceMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberus-gaap:ServiceMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberus-gaap:ProductAndServiceOtherMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberus-gaap:ProductAndServiceOtherMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberus-gaap:ProductAndServiceOtherMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMemberus-gaap:ProductAndServiceOtherMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:SeniorMember2022-07-012023-03-310001794783slqt:PharmacyMemberus-gaap:OperatingSegmentsMemberslqt:HealthcareServicesMember2024-01-012024-03-310001794783slqt:PharmacyMemberus-gaap:OperatingSegmentsMemberslqt:HealthcareServicesMember2023-01-012023-03-310001794783slqt:PharmacyMemberus-gaap:OperatingSegmentsMemberslqt:HealthcareServicesMember2023-07-012024-03-310001794783slqt:PharmacyMemberus-gaap:OperatingSegmentsMemberslqt:HealthcareServicesMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMemberslqt:HealthcareServicesMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMemberslqt:HealthcareServicesMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMemberslqt:HealthcareServicesMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMemberslqt:HealthcareServicesMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:HealthcareServicesMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:HealthcareServicesMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:HealthcareServicesMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:HealthcareServicesMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:TermMemberslqt:LifeMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:TermMemberslqt:LifeMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:TermMemberslqt:LifeMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:TermMemberslqt:LifeMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:FinalExpenseMemberslqt:LifeMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:FinalExpenseMemberslqt:LifeMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:FinalExpenseMemberslqt:LifeMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:FinalExpenseMemberslqt:LifeMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ServiceMemberslqt:LifeMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ServiceMemberslqt:LifeMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ServiceMemberslqt:LifeMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ServiceMemberslqt:LifeMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMemberslqt:LifeMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMemberslqt:LifeMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMemberslqt:LifeMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMemberslqt:LifeMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:LifeMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:LifeMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:LifeMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:LifeMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ServiceMemberslqt:AutoHomeMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ServiceMemberslqt:AutoHomeMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ServiceMemberslqt:AutoHomeMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ServiceMemberslqt:AutoHomeMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMemberslqt:AutoHomeMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMemberslqt:AutoHomeMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMemberslqt:AutoHomeMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberus-gaap:ProductAndServiceOtherMemberslqt:AutoHomeMember2022-07-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:AutoHomeMember2024-01-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:AutoHomeMember2023-01-012023-03-310001794783us-gaap:OperatingSegmentsMemberslqt:AutoHomeMember2023-07-012024-03-310001794783us-gaap:OperatingSegmentsMemberslqt:AutoHomeMember2022-07-012023-03-310001794783us-gaap:ServiceMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-310001794783us-gaap:ServiceMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310001794783us-gaap:ServiceMemberus-gaap:IntersegmentEliminationMember2023-07-012024-03-310001794783us-gaap:ServiceMemberus-gaap:IntersegmentEliminationMember2022-07-012023-03-310001794783us-gaap:IntersegmentEliminationMemberus-gaap:ProductAndServiceOtherMember2024-01-012024-03-310001794783us-gaap:IntersegmentEliminationMemberus-gaap:ProductAndServiceOtherMember2023-01-012023-03-310001794783us-gaap:IntersegmentEliminationMemberus-gaap:ProductAndServiceOtherMember2023-07-012024-03-310001794783us-gaap:IntersegmentEliminationMemberus-gaap:ProductAndServiceOtherMember2022-07-012023-03-310001794783us-gaap:IntersegmentEliminationMember2024-01-012024-03-310001794783us-gaap:IntersegmentEliminationMember2023-01-012023-03-310001794783us-gaap:IntersegmentEliminationMember2023-07-012024-03-310001794783us-gaap:IntersegmentEliminationMember2022-07-012023-03-310001794783slqt:AutoHomeSegmentMemberslqt:SeniorSegmentMember2023-07-012024-03-310001794783slqt:LifeSegmentMemberslqt:AutoHomeSegmentMember2023-07-012024-03-310001794783us-gaap:RestrictedStockUnitsRSUMemberus-gaap:EmployeeStockOptionMember2024-01-012024-03-310001794783us-gaap:RestrictedStockUnitsRSUMemberus-gaap:EmployeeStockOptionMember2023-01-012023-03-310001794783us-gaap:RestrictedStockUnitsRSUMemberus-gaap:EmployeeStockOptionMember2023-07-012024-03-310001794783us-gaap:RestrictedStockUnitsRSUMemberus-gaap:EmployeeStockOptionMember2022-07-012023-03-310001794783us-gaap:EmployeeStockOptionMemberslqt:PriceVestedUnitsPVUsMember2024-01-012024-03-310001794783us-gaap:EmployeeStockOptionMemberslqt:PriceVestedUnitsPVUsMember2023-01-012023-03-310001794783us-gaap:EmployeeStockOptionMemberslqt:PriceVestedUnitsPVUsMember2023-07-012024-03-310001794783us-gaap:EmployeeStockOptionMemberslqt:PriceVestedUnitsPVUsMember2022-07-012023-03-310001794783us-gaap:PhantomShareUnitsPSUsMemberus-gaap:EmployeeStockOptionMember2024-01-012024-03-310001794783us-gaap:PhantomShareUnitsPSUsMemberus-gaap:EmployeeStockOptionMember2023-01-012023-03-310001794783us-gaap:PhantomShareUnitsPSUsMemberus-gaap:EmployeeStockOptionMember2023-07-012024-03-310001794783us-gaap:PhantomShareUnitsPSUsMemberus-gaap:EmployeeStockOptionMember2022-07-012023-03-310001794783us-gaap:EmployeeStockOptionMember2024-01-012024-03-310001794783us-gaap:EmployeeStockOptionMember2023-01-012023-03-310001794783us-gaap:EmployeeStockOptionMember2023-07-012024-03-310001794783us-gaap:EmployeeStockOptionMember2022-07-012023-03-310001794783us-gaap:CorporateNonSegmentMember2024-01-012024-03-310001794783us-gaap:CorporateNonSegmentMember2023-01-012023-03-310001794783us-gaap:CorporateNonSegmentMember2023-07-012024-03-310001794783us-gaap:CorporateNonSegmentMember2022-07-012023-03-310001794783us-gaap:RevenueFromContractWithCustomerMemberslqt:SeniorAndHealthcareServicesSegmentsMemberslqt:MajorCustomerOneMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-03-310001794783us-gaap:RevenueFromContractWithCustomerMemberslqt:SeniorAndHealthcareServicesSegmentsMemberus-gaap:CustomerConcentrationRiskMemberslqt:MajorCustomerThreeMember2024-01-012024-03-310001794783us-gaap:RevenueFromContractWithCustomerMemberslqt:MajorCustomerTwoMemberslqt:SeniorAndHealthcareServicesSegmentsMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-03-310001794783us-gaap:RevenueFromContractWithCustomerMemberslqt:SeniorAndHealthcareServicesSegmentsMemberslqt:MajorCustomerOneMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-03-310001794783us-gaap:RevenueFromContractWithCustomerMemberslqt:MajorCustomerTwoMemberslqt:SeniorAndHealthcareServicesSegmentsMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-03-310001794783us-gaap:RevenueFromContractWithCustomerMemberslqt:SeniorAndHealthcareServicesSegmentsMemberslqt:MajorCustomerFourMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-03-310001794783us-gaap:RevenueFromContractWithCustomerMemberslqt:SeniorAndHealthcareServicesSegmentsMemberslqt:MajorCustomerOneMemberus-gaap:CustomerConcentrationRiskMember2023-07-012024-03-310001794783us-gaap:RevenueFromContractWithCustomerMemberslqt:MajorCustomerTwoMemberslqt:SeniorAndHealthcareServicesSegmentsMemberus-gaap:CustomerConcentrationRiskMember2023-07-012024-03-310001794783us-gaap:RevenueFromContractWithCustomerMemberslqt:SeniorAndHealthcareServicesSegmentsMemberus-gaap:CustomerConcentrationRiskMemberslqt:MajorCustomerThreeMember2023-07-012024-03-310001794783us-gaap:RevenueFromContractWithCustomerMemberslqt:SeniorAndHealthcareServicesSegmentsMemberslqt:MajorCustomerOneMemberus-gaap:CustomerConcentrationRiskMember2022-07-012023-03-310001794783us-gaap:RevenueFromContractWithCustomerMemberslqt:MajorCustomerTwoMemberslqt:SeniorAndHealthcareServicesSegmentsMemberus-gaap:CustomerConcentrationRiskMember2022-07-012023-03-310001794783us-gaap:RevenueFromContractWithCustomerMemberslqt:SeniorAndHealthcareServicesSegmentsMemberslqt:MajorCustomerFourMemberus-gaap:CustomerConcentrationRiskMember2022-07-012023-03-31
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 March 31, 2024
OR
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)
Delaware94-3339273
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
6800 West 115th StreetSuite 251166211
Overland ParkKansas(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareSLQTNew 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 169,158,740 shares of common stock as of April 30, 2024.



SELECTQUOTE, INC. AND SUBSIDIARIES
FORM 10-Q
TABLE OF CONTENTS

PART I FINANCIAL INFORMATIONPAGE
Item 1.
Item 2.
Item 3.
Item 4.
PART II OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.



PART I
FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SELECTQUOTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
March 31, 2024June 30, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$37,808 $83,156 
Accounts receivable, net of allowances of $6.5 million and $2.7 million, respectively
253,083 154,565 
Commissions receivable-current69,165 111,148 
Other current assets24,115 14,355 
Total current assets384,171 363,224 
COMMISSIONS RECEIVABLE—Net763,958 729,350 
PROPERTY AND EQUIPMENT—Net22,536 27,452 
SOFTWARE—Net13,952 14,740 
OPERATING LEASE RIGHT-OF-USE ASSETS19,341 23,563 
INTANGIBLE ASSETS—Net7,926 10,200 
GOODWILL29,136 29,136 
OTHER ASSETS4,119 21,586 
TOTAL ASSETS$1,245,139 $1,219,251 
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable$61,168 $27,577 
Accrued expenses21,058 16,993 
Accrued compensation and benefits57,483 49,966 
Operating lease liabilities—current4,663 5,175 
Current portion of long-term debt37,717 33,883 
Contract liabilities3,655 1,691 
Other current liabilities4,227 1,972 
Total current liabilities189,971 137,257 
LONG-TERM DEBT, NET—less current portion648,331 664,625 
DEFERRED INCOME TAXES35,057 39,581 
OPERATING LEASE LIABILITIES22,326 27,892 
OTHER LIABILITIES2,649 2,926 
Total liabilities898,334 872,281 
COMMITMENTS AND CONTINGENCIES (Note 8)
SHAREHOLDERS’ EQUITY:
Common stock, $0.01 par value
1,692 1,669 
Additional paid-in capital577,389 567,266 
Accumulated deficit(238,752)(235,644)
Accumulated other comprehensive income6,476 13,679 
Total shareholders’ equity346,805 346,970 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$1,245,139 $1,219,251 
See accompanying notes to condensed consolidated financial statements.
2

SELECTQUOTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(In thousands)

Three Months Ended March 31,Nine Months Ended March 31,
2024202320242023
REVENUE:
Commission$230,763 $197,258 $611,744 $533,627 
Pharmacy120,282 66,948 323,865 159,641 
Other25,355 35,192 78,958 87,802 
Total revenue376,400 299,398 1,014,567 781,070 
OPERATING COSTS AND EXPENSES:
Cost of revenue84,315 79,186 254,250 235,827 
Cost of goods sold—pharmacy revenue106,172 62,302 284,360 154,753 
Marketing and advertising109,276 90,205 288,676 237,724 
Selling, general, and administrative34,971 27,544 97,049 86,662 
Technical development8,604 6,434 24,291 18,860 
Total operating costs and expenses343,338 265,671 948,626 733,826 
INCOME FROM OPERATIONS
33,062 33,727 65,941 47,244 
INTEREST EXPENSE, NET(24,330)(21,105)(70,141)(58,885)
OTHER INCOME (EXPENSE,) NET
(12)(206)(51)(118)
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT)
8,720 12,416 (4,251)(11,759)
INCOME TAX EXPENSE (BENEFIT)
169 3,152 (1,143)(1,053)
NET INCOME (LOSS)
$8,551 $9,264 $(3,108)$(10,706)
NET INCOME (LOSS) PER SHARE:
Basic$0.05 $0.06 $(0.02)$(0.06)
Diluted$0.05 $0.06 $(0.02)$(0.06)
WEIGHTED-AVERAGE COMMON STOCK OUTSTANDING USED IN PER SHARE AMOUNTS:
Basic169,070 166,543 168,291 165,951 
Diluted170,956 167,905 168,291 165,951 
OTHER COMPREHENSIVE INCOME (LOSS) NET OF TAX:
Gain (loss) on cash flow hedge$(1,771)$(2,661)$(7,203)$1,358 
OTHER COMPREHENSIVE INCOME (LOSS)(1,771)(2,661)(7,203)1,358 
COMPREHENSIVE INCOME (LOSS)
$6,780 $6,603 $(10,311)$(9,348)
See accompanying notes to the condensed consolidated financial statements.
3

SELECTQUOTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(In thousands)

Three Months Ended March 31, 2024
Common StockAdditional
Paid-In
Capital
Accumulated DeficitAccumulated Other Comprehensive IncomeTotal
Shareholders'
Equity
SharesAmount
BALANCES-December 31, 2023168,974 $1,690 $573,883 $(247,303)$8,247 $336,517 
Net income
— — — 8,551 — 8,551 
Gain on cash flow hedge, net of tax
— — — — 858 858 
Amount reclassified into earnings, net tax— — — — (2,629)(2,629)
Exercise of employee stock options, net of shares withheld for cashless exercises and to cover tax withholdings16 — 8 — — 8 
Vesting of restricted stock unit awards and performance stock unit awards net of shares withheld to cover tax withholdings
169 2 (17)— — (15)
Share-based compensation expense— — 3,515 — — 3,515 
BALANCES-March 31, 2024169,159 $1,692 $577,389 $(238,752)$6,476 $346,805 
Three Months Ended March 31, 2023
Common StockAdditional
Paid-In
Capital
Accumulated DeficitAccumulated Other Comprehensive IncomeTotal
Shareholders'
Equity
SharesAmount
BALANCES-December 31, 2022166,511 $1,665 $561,435 $(197,070)$15,735 $381,765 
Net income
— — — 9,264 — 9,264 
Loss on cash flow hedge, net of tax— — — — (484)(484)
Amount reclassified into earnings, net of tax— — — — (2,177)(2,177)
Exercise of employee stock options, net of shares withheld for cashless exercises and to cover tax withholdings23 — 42 — — 42 
Issuance of common stock pursuant to employee stock purchase plan97 1 63 — — 64 
Vesting of restricted stock unit awards net of shares withheld to cover tax withholdings26 1 (7)— — (6)
Share-based compensation expense— — 2,951 — — 2,951 
BALANCES-March 31, 2023166,657 $1,667 $564,484 $(187,806)$13,074 $391,419 
See accompanying notes to the condensed consolidated financial statements.




4

Nine Months Ended March 31, 2024
Common StockAdditional
Paid-In
Capital
Accumulated Deficit
Accumulated Other Comprehensive IncomeTotal
Shareholders'
Equity
SharesAmount
BALANCES-June 30, 2023166,867 $1,669 $567,266 $(235,644)$13,679 $346,970 
Net loss— — — (3,108)— (3,108)
Gain on cash flow hedge, net of tax— — — — 929 929 
Amount reclassified into earnings, net of tax— — — — (8,132)(8,132)
Exercise of employee stock options, net of shares withheld for cashless exercises and to cover tax withholdings16 — 8 — — 8 
Vesting of restricted stock unit awards and performance stock unit awards net of shares withheld to cover tax withholdings2,276 23 (397)— — (374)
Share-based compensation expense— — 10,512 — — 10,512 
BALANCES-March 31, 2024169,159 $1,692 $577,389 $(238,752)$6,476 $346,805 

Nine Months Ended March 31, 2023
Common StockAdditional
Paid-In
Capital
Accumulated Deficit
Accumulated Other Comprehensive Income
Total
Shareholders'
Equity
SharesAmount
BALANCES-June 30, 2022164,452 $1,644 $554,845 $(177,100)$11,716 $391,105 
Net loss
— — — (10,706)— (10,706)
Gain on cash flow hedge, net of tax— — — — 5,895 5,895 
Amount reclassified into earnings, net tax— — — — (4,537)(4,537)
Exercise of employee stock options, net of shares withheld for cashless exercises and to cover tax withholdings1,139 12 627 — — 639 
Issuance of common stock pursuant to employee stock purchase plan877 9 539 — — 548 
Vesting of restricted stock unit awards net of shares withheld to cover tax withholdings1892 (42)— — (40)
Share-based compensation expense— — 8,515 — — 8,515 
BALANCES-March 31, 2023166,657 $1,667 $564,484 $(187,806)$13,074 $391,419 
See accompanying notes to the condensed consolidated financial statements.
5

SELECTQUOTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Nine Months Ended March 31,
20242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss$(3,108)$(10,706)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:
Depreciation and amortization18,591 21,087 
Loss on disposal of property, equipment, and software13 390 
Share-based compensation expense10,512 8,525 
Deferred income taxes(2,151)(1,416)
Amortization of debt issuance costs and debt discount4,863 6,250 
Write-off of debt issuance costs293 710 
Accrued interest payable in kind14,323 8,450 
Non-cash lease expense1,945 3,115 
Changes in operating assets and liabilities:
Accounts receivable, net(98,519)(62,738)
Commissions receivable7,375 17,092 
Other assets(2,620)3,166 
Accounts payable and accrued expenses36,073 6,440 
Operating lease liabilities(3,802)(4,331)
Other liabilities11,453 (8,869)
Net cash used in operating activities(4,759)(12,835)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment(3,114)(1,056)
Proceeds from sales of property and equipment253  
Purchases of software and capitalized software development costs(6,065)(5,804)
Net cash used in investing activities(8,926)(6,860)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on Term Loans(30,412)(17,833)
Payments on other debt(112)(123)
Proceeds from common stock options exercised and employee stock purchase plan8 1,187 
Payments of tax withholdings related to net share settlement of equity awards(374)(40)
Payments of debt issuance costs(773)(10,110)
Payment of acquisition holdback (2,335)
Net cash used in financing activities
(31,663)(29,254)
NET DECREASE IN CASH AND CASH EQUIVALENTS(45,348)(48,949)
CASH AND CASH EQUIVALENTS—Beginning of period83,156 140,997 
CASH AND CASH EQUIVALENTS—End of period$37,808 $92,048 
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid, net$(50,023)$(43,309)
Income taxes paid(185)(15)
See accompanying notes to condensed consolidated financial statements.
6

SELECTQUOTE, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Description of Business—SelectQuote, Inc. (together with its subsidiaries, the “Company” or “SelectQuote”) is a leading technology-enabled, direct-to-consumer distribution platform for insurance products and healthcare services. We contract with insurance carriers to sell senior health, life, and auto and home insurance policies by telephone to individuals throughout the United States through the use of multi-channel marketing and advertising campaigns. SelectQuote’s Senior division (“Senior”) sells Medicare Advantage, Medicare Supplement, Medicare Part D, and other ancillary senior health insurance related products. SelectQuote’s Life division (“Life”) sells term life, final expense, and other ancillary products, and SelectQuote’s Auto & Home division (“Auto & Home”) primarily sells non-commercial auto and home, property and casualty insurance products. The Healthcare Services division (“Healthcare Services”) includes SelectRx and Population Health. SelectRx is a Patient-Centered Pharmacy Home™ (“PCPH”) accredited pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, and medication therapy management, providing long-term pharmacy care that enables patients to optimize medication adherence to drive positive health outcomes while enabling patients to remain at home. Population Health helps members understand the benefits available under their health plans, contracts with insurance carriers to complete health-risk assessments (“HRA”) on members, partners with value-based care (“VBC”) providers for a variety of healthcare-related services, and introduces members to the pharmacy services offered through SelectRx.

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements include the accounts of SelectQuote, Inc. and its wholly owned subsidiaries: SelectQuote Insurance Services, SelectQuote Auto & Home Insurance Services, LLC, ChoiceMark Insurance Services, Inc., Tiburon Insurance Services, InsideResponse, LLC (“InsideResponse”), and SelectQuote Ventures, Inc. The unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in accordance with those rules and regulations and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended June 30, 2023, filed with the Securities and Exchange Commission on September 13, 2023 (the “Annual Report”), and include all adjustments necessary for the fair presentation of our financial position for the periods presented. Our results for the periods presented in our financial statements are not necessarily indicative of the results to be expected for any subsequent period, including for the year ending June 30, 2024, and therefore should not be relied upon as an indicator of future results. The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements for the year ended June 30, 2023.

Use of Estimates—The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, and liabilities and disclosure of contingent assets and liabilities. The Company regularly assesses these estimates; however, actual amounts could differ from those estimates. The most significant items involving management’s estimates include estimates of revenue recognition, accounts receivable, net, commissions receivable, the provision for income taxes, share-based compensation, and valuation of intangible assets and goodwill. The impact of changes in estimates is recorded in the period in which they become known.

Seasonality—Medicare-eligible individuals are permitted to change their Medicare Advantage and Medicare Part D prescription drug coverage for the following year during the Medicare annual enrollment period (“AEP”) in October through December and are allowed to switch plans from an existing plan during the open
7

enrollment period (“OEP”) in January through March each year. As a result, the Company’s Senior segment’s commission revenue is highest in the second quarter and to a lesser extent, the third quarter during OEP.

Significant Accounting Policies—There have been no material changes to the Company’s significant accounting policies as described in our Annual Report.

Recent Accounting Pronouncements Adopted—The Company did not adopt any new accounting pronouncements during the nine months ended March 31, 2024.

2.ACQUISITIONS

In accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”), the Company allocates the fair value of purchase consideration to the tangible assets, liabilities, and intangible assets acquired based on fair values. Any excess purchase price over those fair values is recorded as goodwill. The fair value assigned to intangible assets acquired is supported by valuations using estimates and assumptions provided by management. Based on the valuation inputs, the Company has recorded assets acquired and liabilities assumed according to the following fair value hierarchy:

Level 1Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability.
Level 3Significant unobservable inputs for the asset or liability

Express Med Pharmaceuticals—On April 30, 2021, the Company acquired 100% of the outstanding shares of Express Med Pharmaceuticals, Inc., which is included in SelectRx, a closed-door, long term care pharmacy provider, for an aggregate purchase price of up to $24.0 million, as set forth in the Stock Purchase Agreement dated April 30, 2021. The aggregate purchase price of up to $24.0 million is comprised of $17.5 million in cash paid at the closing of the transaction, an additional $2.5 million of holdback for indemnification claims, if any, and an earnout of up to $4.0 million, if any. The earnout of up to $4.0 million is comprised of two separate provisions. During the year ended June 30, 2023, the Company paid the first and second earnout provisions of $3.0 million and $1.0 million, respectively, as well as the remaining holdback, net of adjustments, of $2.4 million. At the date of acquisition, the fair value of net tangible assets acquired, excluding property and equipment, approximated their carrying value. The property and equipment was valued primarily using the cost and sales comparison approach to value. For the proprietary software acquired, the replacement cost method under the cost approach was used, estimating the cost to rebuild the software. The non-compete agreement was valued using the income approach, and the customer relationships were valued using the multiple period excess earnings method. As such, all aforementioned intangible assets were valued using Level 3 inputs. Goodwill resulting from the transaction constitutes the excess of the consideration paid over the fair values of the assets acquired and liabilities assumed and primarily represents the additional value of the synergies of combining the SelectRx business with the Company's technology and existing customer base. This acquired goodwill is allocated to the Healthcare Services reporting unit, which is also a reportable segment, and $16.3 million is deductible for tax purposes after adding back acquisition costs and settling the remaining holdback. The Company is amortizing the intangible assets acquired on a straight-line basis over their estimated remaining lives, ranging from one to five years.    

Simple Meds—On August 31, 2021, SelectRx acquired 100% of the outstanding equity interests of Simple Meds, a full-service pharmaceutical distributor, for an aggregate purchase price of $7.0 million, as set forth in the Membership Interest Purchase Agreement dated August 31, 2021. The aggregate purchase price of $7.0 million was paid in cash at the closing of the transaction. At the date of acquisition, the fair value of net tangible assets acquired approximated their carrying value. The customer relationships were valued using the multiple period excess earnings method, and as such, were valued using Level 3 inputs. Goodwill resulting from the transaction constitutes the excess of the consideration paid over the fair values of the assets acquired and liabilities assumed and primarily represents the additional value of the synergies of combining the Simple Meds business with the Company's
8

technology and existing customer base. This acquired goodwill is allocated to the Healthcare Services reporting unit, which is also a reportable segment, and $5.6 million is deductible for tax purposes after adding back acquisition costs.

3.PROPERTY AND EQUIPMENT—NET

Property and equipment—net consisted of the following:

(in thousands)
March 31, 2024June 30, 2023
Computer hardware$20,012 $20,970 
Machinery and equipment(1)
15,700 14,825 
Leasehold improvements19,033 20,422 
Furniture and fixtures4,669 4,591 
Work in progress3,310 338 
Total62,724 61,146 
Less accumulated depreciation(40,188)(33,694)
Property and equipment—net$22,536 $27,452 
(1) Includes financing lease right-of-use assets.

Work in progress as of March 31, 2024, primarily represents equipment utilized in SelectRx operations, computer equipment held for sale and leasehold improvements not yet put into service and not yet being depreciated. Work in progress as of June 30, 2023, primarily represents leasehold improvements and computer equipment not yet put into service and not yet being depreciated. Depreciation expense for the three months ended March 31, 2024 and 2023, was $3.3 million and $3.7 million, respectively, and $9.4 million and $10.9 million for the nine months ended March 31, 2024 and 2023, respectively.

4.SOFTWARE—NET

Software—net consisted of the following:

(in thousands)
March 31, 2024June 30, 2023
Software$38,601 $35,945 
Work in progress95 143 
Total38,696 36,088 
Less accumulated amortization(24,744)(21,348)
Software—net$13,952 $14,740 

Work in progress as of March 31, 2024 and June 30, 2023, represents costs incurred for software not yet put into service and not yet being amortized. For the three months ended March 31, 2024 and 2023, the Company capitalized internal-use software and website development costs of $2.2 million and $1.8 million, respectively, and recorded amortization expense of $2.6 million and $2.0 million, respectively. For the nine months ended March 31, 2024 and 2023, the Company capitalized internal-use software and website development costs of $6.1 million and $5.7 million, respectively, and recorded amortization expense of $6.9 million and $5.9 million, respectively.

5.INTANGIBLE ASSETS AND GOODWILL

Intangible assetsThe carrying amounts, accumulated amortization, and net carrying value of our definite-lived intangible assets are presented in the table below (dollars in thousands):

9

March 31, 2024June 30, 2023
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying Amount
Impairment Charges (1)
Accumulated AmortizationNet Carrying Amount
Customer relationships$17,492 $(10,356)$7,136 $17,492 $ $(8,617)$8,875 
Trade name2,680 (2,100)580 2,680  (1,697)983 
Proprietary software1,042 (875)167 1,042  (758)284 
Non-compete agreements100 (57)43 1,292 (533)(701)58 
Vendor relationships   20,400 (15,111)(5,289) 
Total intangible assets$21,314 $(13,388)$7,926 $42,906 $(15,644)$(17,062)$10,200 
(1) During the year ended June 30, 2023, the Company recorded impairment charges for its long-lived intangible assets recognized as part of the acquisition of a lead distribution company. Refer to the consolidated financial statements in our Annual Report on Form 10-K for additional details.

The Company's intangible assets include those long-lived intangible assets which were recognized at their estimated acquisition date fair values. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. There were no impairment triggers identified with respect to the Company’s long-lived assets during the three and nine months ended March 31, 2024 and 2023.

For the three months ended March 31, 2024 and 2023, amortization expense related to intangible assets totaled $0.8 million and $1.4 million, respectively, and $2.3 million and $4.2 million for the nine months ended March 31, 2024 and 2023, respectively, recorded in selling, general, and administrative expense in the condensed consolidated statements of comprehensive income (loss). The weighted-average remaining useful life of intangible assets was 2.9 and 3.6 years as of March 31, 2024 and June 30, 2023, respectively.

As of March 31, 2024, expected amortization expense in future fiscal periods were as follows (in thousands):

Trade NameProprietary SoftwareNon-Compete AgreementsCustomer relationshipsTotal
Remainder fiscal 2024$133 $39 $5 $580 $757 
2025447 128 20 2,316 2,911 
2026  18 2,313 2,331 
2027   1,927 1,927 
Total$580 $167 $43 $7,136 $7,926 

Goodwill—The Company recorded as goodwill the excess of the purchase price over the estimated fair values of identifiable assets and liabilities acquired as part of the acquisitions discussed in Note 2 to the condensed consolidated financial statements. Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business combination as of the acquisition date and becomes identified with that reporting unit in its entirety. As such, the reporting unit as a whole supports the recovery of its goodwill. As of March 31, 2024, the Company’s goodwill balance of $29.1 million was related to the acquisitions of Express Meds and Simple Meds and is all assigned to the Healthcare Services reporting unit and reportable segment.

The Company performs its annual goodwill impairment testing as of April 1, or more frequently if it believes that indicators of impairment exist. During the three and nine months ended March 31, 2024 and 2023, there were no indicators of impairment.
10


6.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, California; Centennial, Colorado; Overland Park, Kansas; Oakland, California; Indianapolis, Indiana; and Monaca, Pennsylvania. 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. The Company's operating leases have remaining lease terms from less than one year up to twelve years.

During the nine months ended March 31, 2024, the Company entered into a lease amendment for the Overland Park, Kansas 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 $0.6 million. In addition, as part of the amendment, the Company leased additional office facilities with an expected commencement date on or before June 1, 2024, which will result 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.

During the nine months ended March 31, 2023, operating leases commenced in San Diego, California and Indianapolis, Indiana, resulting in new right-of-use assets obtained in exchange for new lease liabilities of $1.6 million. In addition, the Company exercised an early termination option for a portion of its office facilities in Overland Park, Kansas effective July 31, 2023, which resulted in an early termination penalty of $0.9 million, which was recorded as part of the remeasurement of the operating lease liability and resulted in accelerated amortization of the right-of-use asset over the shortened remaining term of the lease.

Lease CostsThe components of lease costs were as follows for the periods presented:

Three Months Ended March 31,Nine Months Ended March 31,
(in thousands)2024202320242023
Finance lease costs(1)
$41 $43 $125 $129 
Operating lease costs(2)
1,271 1,953 4,371 5,998 
Short-term lease costs61 74 183 137 
Variable lease costs(3)
203 (6)498 404 
Sublease income(574)(671)(1,721)(1,756)
Total net lease costs$1,002 $1,393 $3,456 $4,912 
(1) Primarily consists of amortization of finance lease right-of-use assets and an immaterial amount of interest on finance lease liabilities recorded in operating costs and expenses and interest expense, net in the condensed consolidated statements of comprehensive income (loss).
(2) Recorded in operating costs and expenses in the condensed 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 condensed consolidated statements of comprehensive income (loss).

Maturities of Lease Liabilities—As of March 31, 2024, remaining maturities of lease liabilities for each of the next five fiscal years and thereafter are as follows:

11

(in thousands)Operating leasesFinance leasesTotal
Remainder fiscal 2024$1,915 $42 $1,957 
20257,257 140 7,397 
20266,708 38 6,746 
20275,389 32 5,421 
20284,832  4,832 
Thereafter11,025  11,025 
     Total undiscounted lease payments37,126 252 37,378 
Less: interest10,137 19 10,156 
     Present value of lease liabilities$26,989 $233 $27,222 

The Company executed noncancelable subleases for portions of its office facilities in Overland Park, Kansas and Centennial, Colorado, which commenced during the fiscal years ended June 30, 2023 and 2022, and 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 condensed consolidated statements of comprehensive income (loss). The Company may consider entering into additional sublease arrangements in the future.

Sublease Income—As of March 31, 2024, the future minimum fixed sublease receipts under non-cancelable operating lease agreements are as follows:

(in thousands)Total
Remainder fiscal 2024$632 
20252,548 
20262,587 
20272,180 
20281,931 
Thereafter2,092 
Total sublease income$11,970 

7.DEBT

Debt consisted of the following:

(in thousands)March 31, 2024June 30, 2023
Term Loans (effective interest rate 14.8%)
$691,420 $707,509 
Unamortized debt issuance costs and debt discount(5,372)(9,001)
Total debt686,048 698,508 
Less current portion of long-term debt:(37,717)(33,883)
Long-term debt$648,331 $664,625 

Senior Secured Credit Facility— On November 5, 2019, the Company entered into a $425.0 million credit agreement with UMB Bank N.A. (“UMB”) as a lender and revolving agent and Morgan Stanley Capital Administrators, Inc. as a lender and the administrative agent for a syndicate of lenders party to the agreement (replaced by Wilmington Trust as administrative agent effective February 24, 2022). On February 24, 2021, November 2, 2021, December 23, 2021, August 26, 2022, May 5, 2023, September 11, 2023, November 1, 2023, and February 7, 2024, the Company entered into amendments to the credit agreement (individually, the “First
12

Amendment”, “Second Amendment”, “Third Amendment”, “Fourth Amendment”, “Fifth Amendment”, “Sixth Amendment”, “Seventh Amendment”, and “Eighth Amendment”, together with the original credit agreement and any subsequent amendments, the “Senior Secured Credit Facility”) with certain of its existing lenders and new lenders. The First Amendment provided for an additional $231.0 million in term loans (together with the initial $425.0 million, the “Term Loans”) and added a $145.0 million senior secured delayed draw term loan facility (the "DDTL Facility"). The Second Amendment provided for additional commitments of $25.0 million, in addition to the initial $75.0 million, for the secured revolving loan facility (the “Revolving Credit Facility”) and an additional $200.0 million under the DDTL Facility. The Third Amendment provided for additional commitments of $35.0 million under the Revolving Credit Facility. The Fourth Amendment (1) amended the Company’s existing financial covenant to better align with its business plan and added an additional minimum liquidity covenant, (2) terminated certain DDTL commitments and reduced the Revolving Credit Facility from $135.0 million to $100.0 million, (3) introduced a minimum asset coverage ratio for any borrowing on the Revolving Credit Facility that would result in a total revolving exposure of more than $50.0 million, and (4) provided certain lenders with the right to appoint a representative to observe meetings of the Company’s board of directors and certain of its committees. In addition, the Fourth Amendment provided for the Company to pay a revolving credit termination fee of $0.5 million for the ratable account of each revolving lender upon the termination of all revolving loan commitments. Note that pursuant to the Fourth Amendment, upon termination of the outstanding DDTL commitments, when referring to Term Loans, it will now include the outstanding balance of the previously defined Term Loans and also the outstanding balance of the DDTL, and “DDTL” will no longer be referenced. The Fifth Amendment decreased the minimum asset coverage ratio required to be maintained by the Company as of March 31, 2024, and the Sixth Amendment decreased the minimum asset coverage ratio required to be maintained by the Company as of June 30, 2024. The Seventh Amendment amended the Senior Secured Credit Facility to decrease the minimum asset coverage ratio and minimum liquidity covenant required to be maintained by the Company as of September 30, 2024, and December 31, 2023, respectively. The Eighth Amendment (1) established a new $692.0 million class of extended term loans and extended the maturity date applicable thereto to February 15, 2025, (2) reduced the aggregate revolving credit commitment amounts to an aggregate amount of $73.6 million, further reducing to $73.0 million, $72.4 million, and $71.7 million as of March 31, 2024, June 30, 2024, and September 30, 2024, respectively; and terminated an aggregate amount of $25.8 million of the non-extended revolving credit commitments, (3) created a class of non-extended term loans of $9.4 million having a maturity date of November 5, 2024, for certain Term Loan lenders that elected not to extend the maturity date applicable to those loans, (4) established a minimum asset coverage ratio covenant as of December 31, 2024, and (5) revised the minimum liquidity covenants based on the reduced revolving credit commitments. Pursuant to the amendment, the Company paid fees of $0.7 million to its lenders. After giving effect to the amendments, in aggregate, the Senior Secured Credit Facility provides for (1) an aggregate principal amount of up to $73.0 million under the Revolving Credit Facility, of which all was available to borrow as of March 31, 2024 and (2) Term Loans outstanding in an aggregate principal amount of $691.4 million as of March 31, 2024.

The Term Loans bear interest on the outstanding principal amount thereof at a rate per annum equal to either (a) SOFR (subject to a floor of 0.75%) plus 6.00% in cash plus 2.00% payable in kind or (b) a base rate plus 5.00% in cash plus 2.00% payable in kind, at the Company’s option. As of October 1, 2023, the cash and paid in kind interest rate with respect to the Term Loans increased 0.50% and 1.00%, respectively. The Revolving Credit Facility accrues interest on amounts drawn at a rate per annum equal to either (a) SOFR (subject to a floor of 1.0%) plus 5.0% or (b) a base rate plus 4.0%, at the Company’s option.

The Term Loans are mandatorily repayable in equal quarterly installments in an aggregate annual amount equal to 2.5% of the outstanding principal amount of the Term Loans as of the Fourth Amendment effective date, which increased to 4.75% on July 1, 2023, with the remaining balance payable on the maturity date. As of March 31, 2024, the Company has made principal payments of $235.9 million on the Term Loans.

The Senior Secured Credit Facility contains customary affirmative and negative covenants and events of default and financial covenants requiring the Company and certain of its subsidiaries to maintain a minimum asset coverage ratio and minimum liquidity requirements. As of March 31, 2024, the Company was in compliance with all of the required covenants. The obligations of the Company are guaranteed by the Company’s subsidiaries and secured by a security interest in all assets of the Company, subject to certain exceptions.
13


The Company has incurred a total of $40.9 million in debt issuance costs and debt discounts related to the Senior Secured Credit Facility, of which $33.8 million was capitalized. The costs associated with the Revolving Credit Facility are being amortized on a straight-line basis over the remaining life of the Senior Secured Credit Facility and the costs associated with the Term Loans are being amortized using the effective interest method over the same term. Total amortization of debt issuance costs was $1.5 million and $2.3 million for the three months ended March 31, 2024 and 2023, respectively, and $4.9 million and $6.3 million for the nine months ended March 31, 2024 and 2023, respectively, which was included in interest expense, net in the Company’s condensed consolidated statements of comprehensive income (loss).

The Company uses derivative financial instruments to hedge against its exposure to fluctuations in interest rates associated with the Term Loans. On September 30, 2022, as a result of the Fourth Amendment, the Company terminated its existing interest rate swap indexed to 1-month LIBOR and executed a new interest rate swap indexed to 1-month SOFR. In accordance with ASC 848, Reference Rate Reform, the Company did not de-designate the interest rate swap when it was amended from LIBOR to SOFR as the Company is permitted to maintain the designation as part of the transitional relief. As of March 31, 2024, the Company’s interest rate swap is a receive-variable, pay-fixed interest rate swap on the notional amount of $325.0 million of the Company’s total outstanding Term Loans balance with a fixed rate of 6.00% plus 0.931% (the “Amended Interest Rate Swap”), which terminates on November 5, 2024. As of March 31, 2024, the Amended Interest Rate Swap had a fair value of $8.3 million and was recorded in other current assets in the condensed consolidated balance sheet. The Company classifies its Amended Interest Rate Swap as a Level 2 on the fair value hierarchy as the majority of the inputs used to value it primarily includes other than quoted prices that are observable and it uses standard calculations and models that use readily observable market data as their basis. The Company estimates that through the maturity date of November 5, 2024, $8.1 million will be reclassified into interest expense.

On May 8, 2024, the Company and certain of its existing lenders, Wilmington Trust, National Association, as Administrative and Collateral Agent, and certain other parties to the Senior Secured Credit Facility named therein, including the guarantors party thereto, entered into the Ninth Amendment to the Senior Secured Credit Facility (the “Ninth Amendment”). Pursuant to the Ninth Amendment, the maturity date was extended to May 15, 2025, on the $683.8 million class of extended term loans, a minimum asset coverage ratio covenant as of March 31, 2025, was added, and minimum liquidity covenants as of February 28, 2025, March 31, 2025, and April 30, 2025, were added. Pursuant to the amendment, the Company paid fees of $0.7 million to its lenders.

8.COMMITMENTS AND CONTINGENCIES

Lease Obligations—Refer to Note 6 to the condensed consolidated financial statements for commitments related to our operating leases.

Legal Contingencies and Obligations—From time to time, the Company is subject to legal proceedings and governmental inquiries in the ordinary course of business. Such matters may include insurance regulatory claims; commercial, tax, employment, or intellectual property disputes; matters relating to competition and sales practices; claims for damages arising out of the use of the Company’s services. The Company may also become subject to lawsuits related to past or future acquisitions, divestitures, or other transactions, including matters related to representations and warranties, indemnities, and assumed or retained liabilities. The Company is not currently aware of any legal proceedings or claims that it believes will have, individually or in the aggregate, a material adverse effect on its business, financial condition, operating results, or cash flows; however, in the event of unexpected developments, it is possible that the ultimate resolution of certain ongoing matters, if unfavorable, could be materially adverse to our business, prospects, financial condition, liquidity, results of operation, cash flows, or capital levels.

Securities Class Actions and Stockholder Derivative Suit

On August 16, 2021, a putative securities class action lawsuit captioned Hartel v. SelectQuote, Inc., et al., Case No. 1:21-cv-06903 (“the Hartel Action”) was filed against the Company and two of its executive officers in
14

the U.S. District Court for the Southern District of New York. The complaint asserts securities fraud claims on behalf of a putative class of plaintiffs who purchased or otherwise acquired shares of the Company’s common stock between February 8, 2021 and May 11, 2021 (the "Hartel Relevant Period"). Specifically, the complaint alleges the defendants violated Sections 10(b) and 20(a) and Rule 10b-5 of the Exchange Act by making materially false and misleading statements and failing to disclose material adverse facts about the Company’s business, operations, and prospects, allegedly causing the Company’s common stock to trade at artificially inflated prices during the Hartel Relevant Period. The plaintiffs seek unspecified damages and reimbursement of attorneys’ fees and certain other costs.

On October 7, 2021, a putative securities class action lawsuit captioned West Palm Beach Police Pension Fund v. SelectQuote, Inc., et al., Case No. 1:21-cv-08279 (“the WPBPPF Action”), was filed in the U.S. District Court for the Southern District of New York against the Company, two of its executive officers, and six current or former members of the Company’s Board of Directors, along with the underwriters of the Company’s initial public offering of common stock (the "Offering"). The complaint asserts claims for securities law violations on behalf of a putative class of plaintiffs who purchased shares of the Company’s common stock (i) in or traceable to the Offering or (ii) between May 20, 2020 and August 25, 2021 (the "WPB Relevant Period"). Specifically, the complaint alleges the defendants violated Sections 10(b) and 20(a) and Rule 10b-5 of the Exchange Act by making materially false and misleading statements and failing to disclose material adverse facts about the Company’s financial well-being and prospects, allegedly causing the Company’s common stock to trade at artificially inflated prices during the WPB Relevant Period. The complaint also alleges the defendants violated Sections 11, 12(a)(2), and 15 of the Securities Act by making misstatements and omissions of material facts in connection with the Offering, allegedly causing a decline in the value of the Company’s common stock. The plaintiffs seek unspecified damages, rescission, and reimbursement of attorneys’ fees and certain other costs.

On October 15, 2021, a motion to consolidate the Hartel Action and the WPBPPF Action was filed. On September 2, 2022, the court entered an order consolidating the Hartel and WPBPPF Actions under the caption In re SelectQuote, Inc. Securities Litigation, Case No. 1:21-cv-06903 (the “Securities Class Action”) and appointing the West Palm Beach Police Pension Fund and City of Fort Lauderdale Police & Fire Retirement System as lead plaintiffs. On November 19, 2022, plaintiffs filed an amended complaint asserting similar allegations to those alleged in the Hartel and WPBPPF Actions in addition to new allegations regarding certain defendants’ purported violation of Section 20A of the Exchange Act. The amended complaint also added Brookside Equity Partners LLC, one of the Company’s principal stockholders, as a defendant. On January 27, 2023, the Company filed a motion to dismiss the amended complaint on behalf of itself and certain of its current and former officers and directors. Plaintiffs filed an opposition to the motion to dismiss on April 5, 2023, and the Company filed its reply to plaintiffs’ opposition on May 10, 2023. On March 28, 2024, the court granted the Company’s motion to dismiss, with leave to amend. Plaintiffs’ deadline for filing a second amended complaint is May 31, 2024.

On March 25, 2022, a stockholder derivative action captioned Jadlow v. Danker, et al., Case No. 1:22-cv-00391 (“the Jadlow Action”) was filed in the U.S. District Court for the District of Delaware by an alleged stockholder of the Company, purportedly on the Company’s behalf. The lawsuit was brought against certain of the Company’s current and former directors and officers, and against the Company, as nominal defendant. The complaint alleges that certain of the defendants violated Section 14(a) of the Exchange Act by making materially false and misleading statements and failing to disclose material adverse facts about the Company’s business, operations, and prospects. The complaint also asserts claims against all defendants for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets based on the same general underlying conduct and seeks contribution under Sections 10(b) and 21D of the Exchange Act and Section 11(f) of the Securities Act from the individual defendants named in the Securities Class Actions. The complaint seeks unspecified damages for the Company, restitution, reformation and improvement of its corporate governance and internal procedures regarding compliance with laws, and reimbursement of costs and attorneys’ fees. On July 25, 2022, the Jadlow action was transferred to the U.S. District Court for the Southern District of New York, where it was assigned Case No. 1:22-cv-06290 and referred to Judge Alvin K. Hellerstein as possibly related to the Hartel Action. On August 4, 2022, Judge Hellerstein accepted the Jadlow action as related to the Hartel Action and, on August 10, 2022, granted the parties’ joint stipulation to stay the Jadlow action pending the resolution of the motion to dismiss the Securities Class Action.
15


The Company currently believes that these matters will not have a material adverse effect on its operations, financial condition or liquidity; however, depending on how the matters progress, they could be costly to defend and could divert the attention of management and other resources from operations. The Company has not concluded that a loss related to these matters is probable and, therefore, has not accrued a liability related to these matters

9.SHAREHOLDERS' EQUITY

Common StockAs of March 31, 2024, the Company has reserved the following authorized, but unissued, shares of common stock:

Employee Stock Purchase Plan159 
Stock awards outstanding under 2020 Plan18,457,999 
Stock awards available for grant under 2020 Plan2,849,703 
Options outstanding under 2003 Plan523,356 
Total21,831,217 

Share-Based Compensation Plans

The Company has awards outstanding from two share-based compensation plans: the 2003 Stock Incentive Plan (the “2003 Stock Plan”) and the 2020 Omnibus Incentive Plan (the “2020 Stock Plan” and, collectively with the 2003 Stock Plan, the “Stock Plans”). However, no further awards will be made under the 2003 Stock Plan. The Company's Board of Directors adopted, and shareholders approved, the 2020 Stock Plan in connection with the Company’s IPO, which provides for the grant of incentive stock options (“ISO's”), nonstatutory stock options (“NSO's”), stock appreciation rights, restricted stock awards, restricted stock unit awards (“RSU's”), performance-based restricted stock units (“PSU's”), price-vested restricted stock units (“PVU’s”), and other forms of equity compensation (collectively, “stock awards”). All stock awards (other than ISOs, which may be granted only to current employees of the Company) may be granted to employees, non-employee directors, and consultants of the Company and its subsidiaries and affiliates.

The number of shares of common stock available for issuance as of March 31, 2024, pursuant to future awards under the Company's 2020 Stock Plan is 2,849,703. The number of shares of the Company's common stock reserved under the 2020 Stock Plan is subject to an annual increase on the first day of each fiscal year, beginning on July 1, 2021, equal to 3% of the total outstanding shares of common stock as of the last day of the immediately preceding fiscal year. The maximum number of shares of common stock that may be issued upon the exercise of ISO's will be 4,000,000. The shares of common stock covered by any award that is forfeited, terminated, expired, or lapsed without being exercised or settled for cash will again become available for issuance under the 2020 Stock Plan. With respect to any award, if the exercise price and/or tax withholding obligations are satisfied by delivering shares to the Company (by actual delivery or attestation), or if the exercise price and/or tax withholding obligations are satisfied by withholding shares otherwise issuable pursuant to the award, the share reserve shall nonetheless be reduced by the gross number of shares subject to the award.

The Company accounts for its share-based compensation awards in accordance with ASC 718, Compensation—Stock Compensation (“ASC 718”) which requires all share-based compensation to be recognized in the income statement based on fair value and applies to all awards granted, modified, canceled, or repurchased after the effective date.

Total share-based compensation for stock awards included in selling, general, and administrative expense in the condensed consolidated statements of comprehensive income (loss) was as follows for the periods presented:

16

Three Months Ended March 31,Nine Months Ended March 31,
(in thousands)2024202320242023
Share-based compensation related to:
Equity classified stock options$673 $799 $2,109 $2,495 
Equity classified RSU's1,992 1,563 5,850 4,490 
Equity classified PSU's 77 33 29 
Equity classified PVU's850 486 2,520 1,384 
Total $3,515 $2,925 $10,512 $8,398 

Stock OptionsThe stock options outstanding under the 2003 Stock Plan vest as to one-third after the vesting commencement date and as to 1/24 of the remaining shares subject to the stock option monthly thereafter, subject to the award recipient’s continued employment through the applicable vesting date. Upon a termination of employment for any reason other than for “Cause” (as defined in the 2003 Stock Plan), any unvested and outstanding stock options would generally be forfeited for no consideration, and any vested and outstanding stock options would remain exercisable for 90 days following the date of termination (and, in the case of a termination of employment due to death or disability, for 12 months following the date of termination). Stock options expire 10 years from the date of grant. The terms for ISO's and NSO's awarded in the 2020 Stock Plan are the same as in the 2003 Stock Plan with the exception that the options generally shall vest and become exercisable in four equal installments on each of the first four anniversaries of the grant date, subject to the award recipient’s continued employment through the applicable vesting date. Stock options are granted with an exercise price that is no less than 100% of the fair market value of the underlying shares on the date of the grant.

The fair value of each option (for purposes of calculation of share-based compensation expense) is estimated using the Black-Scholes-Merton option pricing model that uses assumptions determined as of the date of the grant. Use of this option pricing model requires the input of subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected term”), the estimated volatility of the Company's common stock price over the expected term (“volatility”), the number of options that will ultimately not complete their vesting requirements (“assumed forfeitures”), the risk-free interest rate that reflects the interest rate at grant date on zero-coupon United States governmental bonds that have a remaining life similar to the expected term (“risk-free interest rate”), and the dividend yield assumption which is based on the Company's dividend payment history and management's expectations of future dividend payments (“dividend yield”). Changes in the subjective assumptions can materially affect the estimate of the fair value of share-based compensation and, consequently, the related amount recognized in the condensed consolidated statements of comprehensive loss.

During the nine months ended March 31, 2024 and 2023, there were no stock options granted. The following table summarizes stock option activity under the Stock Plans for the nine months ended March 31, 2024:

Number of OptionsWeighted- Average Exercise PriceWeighted- Average Remaining Contractual Term (in Years)Aggregate Intrinsic Value (in Thousands)
Outstanding—June 30, 2023
3,847,339 $11.56 
Options granted
  
Options exercised
(16,000)0.53 
Options forfeited/expired/cancelled
(64,358)7.38 
Outstanding—March 31, 2024
3,766,981 $11.68 6.70$178 
Vested and exercisable—March 31, 2024
2,505,019 $11.77 6.35$178 
17


As of March 31, 2024, there was $2.7 million in unrecognized compensation cost related to unvested stock options granted, which is expected to be recognized over a weighted-average period of 1.34 years.

The Company received less than $0.1 million of cash in connection with stock options exercised in each of the three months ended March 31, 2024 and 2023, and less than $0.1 million and $0.6 million in connection with stock options exercised during the nine months ended March 31, 2024 and 2023, respectively.

Restricted Stock—The Company grants RSU's to eligible employees, non-employee directors, and contractors. These awards generally vest over a period of one to four years. Fair value of the RSU's is determined based on the market price of the Company’s common stock at the grant date and share-based compensation expense is recognized over the requisite service period.

The following table summarizes restricted stock unit activity under the 2020 Stock Plan for the nine months ended March 31, 2024:

Number of Restricted Stock UnitsWeighted-Average Grant Date Fair Value
Unvested as of June 30, 2023
4,911,613 $2.57 
Granted6,578,688 1.49 
Vested(2,468,847)2.08 
Forfeited(217,727)2.12 
Unvested as of March 31, 2024
8,803,727 $1.91 

As of March 31, 2024, there was $11.9 million of unrecognized compensation cost related to unvested restricted stock units granted, which is expected to be recognized over a weighted-average period of 1.87 years.

Performance StockThe following table summarizes performance stock unit activity under the 2020 Stock Plan for the nine months ended March 31, 2024:

Number of Performance Stock UnitsWeighted-Average Grant Date Fair Value
Unvested as of June 30, 2023
13,365 $17.96 
Granted  
Vested(14,477)17.95 
Forfeited  
Performance adjustment(1)
1,112  
Unvested as of March 31, 2024
 $ 
(1) Represents adjustments to previously granted PSU’s to reflect changes in estimates of future financial performance against targets.

If certain performance metrics are met, PSU’s vest at the end of a three-year performance period. The fiscal year 2021 tranche vested on September 13, 2023, at 13% of the target and 14,477 shares were issued. The number of shares that could be earned for the fiscal year 2022 tranche is estimated to be at 0% of the target as of March 31, 2024. As such, as of March 31, 2024, there was no unrecognized compensation cost related to unvested performance stock units granted.

Price-Vested Units—The Company grants PVU's to eligible employees for which vesting is subject to the fulfillment of both a service period and the achievement of stock price hurdles during the relevant performance
18

period. The awards are divided into four separate tranches, each with a different price hurdle which is measured as the average trading price over 60 calendar days on a rolling daily basis, over a performance period of five years. An employee is eligible to vest in one-third of the awards in each tranche after each year of service, but subject to the achievement of the stock-price hurdle attached to each tranche. As a result, share-based compensation will be recognized on a straight-line basis across twelve tranches over each tranche’s requisite service period, which is the greater of the derived service period and the explicit service period.

The following table summarizes the number of shares, stock price hurdles, service periods, and performance periods for each tranche, for the PVU’s awarded during the nine months ended March 31, 2024:

Number of Shares per TrancheGrant Date Fair Value (per Share)Stock Price Hurdle (per Share)Performance PeriodRequisite Service Period
Tranche 1559,202 $1.85 $2.50 
August 1, 2023 - August 1, 2028
1 year - 3 years
Tranche 2559,175 $1.69 $5.00 
August 1, 2023 - August 1, 2028
1.41 years - 3 years
Tranche 3559,213 $1.55 $7.50 
August 1, 2023 - August 1, 2028
1.96 years - 3 years
Tranche 4559,185 $1.45 $10.00 
August 1, 2023 - August 1, 2028
2.27 years - 3 years
Tranche 5
8,439 $0.98 $2.50 
February 1, 2024 - February 1, 2029
1.29 years - 3 years
Tranche 6
8,437 $0.84 $5.00 
February 1, 2024 - February 1, 2029
2.20 years - 3 years
Tranche 7
8,441 $0.75 $7.50 
February 1, 2024 - February 1, 2029
2.64 years - 3 years
Tranche 8
8,438 $0.67 $10.00 
February 1, 2024 - February 1, 2029
2.90 years - 3 years

The following table summarizes the number of shares, stock price hurdles, service periods, and performance periods for each tranche, for the PVU’s awarded during the nine months ended March 31, 2023:

Number of Shares per TrancheGrant Date Fair Value (per Share)Stock Price Hurdle (per Share)Performance PeriodRequisite Service Period
Tranche 11,055,674 $1.52 $4.00 August 1, 2022 - August 1, 2027
1.39 years - 3 years
Tranche 21,055,648 $1.25 $7.50 August 1, 2022 - August 1, 2027
2.33 years - 3 years
Tranche 31,055,674 $1.11 $10.00 August 1, 2022 - August 1, 2027
2.66 years - 3 years
Tranche 41,055,648 $1.01 $12.50 August 1, 2022 - August 1, 2027
2.90 years - 3 years

The fair value of each PVU (for purposes of calculation of share-based compensation expense) is estimated using a Monte Carlo simulation valuation model that uses assumptions determined as of the date of the grant. Use of this model requires the input of subjective assumptions and changes in the subjective assumptions can materially affect the estimate of the fair value of share-based compensation recognized in the consolidated statements of comprehensive loss. These assumptions include estimating the volatility of the Company's common stock price over the expected term, the risk-free interest rate that reflects the interest rate at grant date on zero-coupon United States governmental bonds that have a remaining life similar to the expected term risk-free interest rate, the cost of equity,
19

and the dividend yield assumption which is based on the Company's dividend payment history and management's expectations of future dividend payments.

The Company used the following weighted-average assumptions for the PVU’s granted as of the date below:

Shares Granted February 1, 2024
Shares Granted August 1, 2023
Shares Granted August 1, 2022
Share price as of grant date $1.11$1.38$1.80
Volatility90.8%94.3%79.3%
Risk-free interest rate3.7%4.1%2.6%
Cost of Equity11.6%9.2%10.6%
Dividend yield%%%

The following table summarizes price-vested stock unit activity under the 2020 Stock Plan for the nine months ended March 31, 2024:

Number of Price-Vested UnitsWeighted-Average Grant Date Fair Value
Unvested as of June 30, 2023
4,044,180 $1.22 
Granted2,270,530 1.62
Vested  
Forfeited(70,802)1.36
Unvested as of March 31, 2024
6,243,908 $1.37 

As of March 31, 2024, there was $4.1 million of unrecognized compensation cost related to unvested PVU’s granted, which is expected to be recognized over a weighted-average period of 1.45 years.

ESPPThe purpose of the Company’s employee stock purchase plan (“ESPP”) is to provide the Company's eligible employees with an opportunity to purchase shares on the exercise date at a price equal to 85% of the fair market value of the Company’s common stock as of either the exercise date or the first day of the relevant offering period, whichever is lesser. The ESPP was suspended effective April 1, 2023, and as of March 31, 2024, there are 159 shares reserved for future issuance under the plan. During the nine months ended March 31, 2023, the Company issued 876,933 shares to its employees and recorded share-based compensation expense related to the ESPP of less than $0.1 million for the three months ended March 31, 2023 and $0.1 million for the nine months ended March 31, 2023. The Company received cash of less than $0.1 million in connection with ESPP purchases during the three months ended March 31, 2023, and $0.6 million in connection with ESPP purchases during the nine months ended March 31, 2023.
20

10.REVENUES FROM CONTRACTS WITH CUSTOMERS

Disaggregation of Revenue from Contracts with CustomersThe disaggregation of revenue by segment and product is depicted for the periods presented below, and is consistent with how the Company evaluates its financial performance:

Three Months Ended March 31,Nine Months Ended March 31,
(in thousands)2024202320242023
Senior:
Commission revenue:
Medicare advantage$184,740 $156,014 $477,081 $412,850 
Medicare supplement1,027 417 2,965 1,588 
Prescription drug plan324 203 697 481 
Dental, vision, and health845 1,185 2,599 3,203 
Other commission revenue588 726 1,361 2,162 
Total commission revenue187,524 158,545 484,703 420,284 
Total other revenue16,735 26,655 57,002 66,257 
Total Senior revenue204,259 185,200 541,705 486,541 
Healthcare Services:
Total pharmacy revenue120,282 66,948 323,865 159,641 
Total other revenue3,925 3,777 9,419 9,629 
Total Healthcare Services revenue124,207 70,725