SelectQuote, Inc. — Call Transcript 2025

Welcome to SelectQuote's Fourth Quarter Earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. It's now my pleasure to introduce Matt Gunter, SelectQuote Investor Relations. Mr. Gunter, you may begin the conference. Thank you and good morning, everyone. Welcome to SelectQuote's Fiscal Fourth Quarter Earnings Call. Before we begin our call, I would like to mention that on our website, we have provided a slide presentation to help guide our discussion. After today's call, a replay will also be available on our website. Joining me from the company, I have our Chief Executive Officer, Tim Danker, and Chief Financial Officer, Ryan Clement. Following Tim and Ryan's comments today, we will have a question and answer session. As referenced on slide 2, during this call, we will be discussing some non-GAAP financial measures. The most directly comparable GAAP financial measures and a reconciliation of the differences between the GAAP and non-GAAP financial measures are available in our earnings release and investor presentation on our website. Finally, a reminder that certain statements made today may be forward-looking statements. These statements are made based upon management's current expectations and beliefs concerning future events impacting the company and therefore involve a number of uncertainties and risks, including but not limited to those described in our earnings release, annual report on Form 10-K for the period ended June 30, 2025, and other filings with the SEC. Therefore, the actual results of operations or financial condition of the company could differ materially from those expressed or implied in our forward-looking statements. With that, I'd like to turn the call over to our Chief Executive Officer, Tim Danker. Tim? Thank you, Matt, and thanks to everyone on the call. Today, I will start with a review of fiscal 2025, which will be brief given the drivers of another successful year have been consistent with the recent past. I'll then provide additional color on the unique environment we saw this past quarter. I'll then spend the bulk of my time on what we're planning for the years ahead. Additionally, I'll contextualize the near-term strategic goals for SelectQuote relative to the broad market opportunity we've spoken to in the past. With that as the outline, let me begin on slide 3 with an overview of our performance highlights for fiscal 2025. We ended the year with consolidated revenue of $1.5 billion, which grew 16% compared to a year ago. As we've noted all year, the top line increase has been a function of the rapid growth of our Healthcare Services business and specifically SelectRx. Full-year Healthcare Services revenue grew by approximately 55% to nearly three quarters of a billion dollars. This is an incredible result in just a four-year history for the business. Our senior Medicare Advantage business performed very well against a challenging market backdrop for the industry. With significant plan changes by carriers this season, as well as new FCP parameters for beneficiary eligibility, American seniors relied on SelectQuote and our agents to advise and help find the best plans to fit their individual needs. We're most proud of how our model and agents performed under pressure, where we drove another year of record agent productivity, up 24%, and ultimately drove above target EBITDA margins for the third straight year. On a consolidated basis, SelectQuote drove $126 million of adjusted EBITDA, which represents an EBITDA margin of 8%. Margins were relatively in line with last year's result, despite adding $264 million in incremental revenue from our lower margin Healthcare Services business. In short, we're very proud of what the team accomplished this year and how we are set up for the future. If we turn to slide 4, let me put those accomplishments in more detail. We have presented these metrics in the past, and I want to highlight them one more time to emphasize the consistency we have achieved in our Senior Medicare business. As you remember, we reset our strategic priorities back in 2022, and since then, our focus on profitability and repeatability has been paramount. We're very pleased with the efficiency gains we've been able to yield in the Senior business. We've become more efficient in the throughput of how policyholders are assisted via our year-run agent model and our ever-expanding use of technology. We've become similarly efficient in how our services are marketed in which leads we pursue in a given season or interseason. It is also important to note that these decisions are rooted in the north star of driving profitability and cash flow. As a result, SelectQuote Senior has been able to drive near record margins in each of the last three years, despite wide variations in Medicare selling environments from one season to the next. Finally, SelectQuote continues to leverage our information and connectivity advantage within healthcare, which you can see in our revenue-to-cap ratios. We are increasingly able to help more beneficiaries, caregivers, and payers by offering a wider set of healthcare solutions. Best of all, the model is well aligned that when our stakeholders do well, SelectQuote and our shareholders do well. The revenue-to-cap ratio, which includes both our Senior and Healthcare Services revenues, is how we track the reach of our model. Over the past three years, we've expanded our revenue-to-customer acquisition cost ratio from 1.7x to 6.1x. We're excited about the year ahead for Healthcare Services and believe we are in the early innings of how we can leverage our information advantage, technology, and distribution to connect more services between those receiving care and those that provide it. We're immensely proud of the ways our differentiated model and approach to Healthcare serves such a wide breadth of Americans, but we're equally excited about the implications for our company's return and cash flow. Before I get to that, on slide 5, let's review the highlights of our year in Healthcare Services, primarily driven by SelectRx. As I noted, it was another strong year of growth with revenue of $743 million. Most importantly, we made meaningful progress on the scale and profitability of the business, despite concurrent investments and our new state-of-the-art distribution facility in Aletha, Kansas. We ended the fiscal year with adjusted EBITDA of $25 million, which is up significantly year over year, but still small from a margin perspective relative to what we believe is ultimately possible. The best representation of that operating leverage potential is the difference in growth between our revenues and membership in fiscal 2025. As noted, revenues grew nearly 55% over the last year, while our membership grew roughly 31%. As we mentioned last quarter, we believe this year has been a pivotal one in terms of scale of membership. To be clear, we believe there is significant growth capacity for new members on the platform, especially with the addition of our state-of-the-art Kansas distribution facility, which significantly increases our potential capacity. With that said, we expect to see increased margin and cash flow contribution in fiscal 2026 from SelectRx as scale from seasoned members continues to drive results. It is clear that a revenue base nearing 3/4 of $1 billion dollars is a significant asset and one that we are very focused on leveraging in 2026 and beyond. If we turn to slide six, let me quickly review our strategic vision for SelectQuote as a broader connector within the Healthcare ecosystem. Today, we have clearly driven scale in both our senior Medicare Advantage and SelectRx businesses. More importantly, we have operated these businesses with a growing track record of profitability and have done so in a range of market environments for both Medicare Advantage and prescription drugs. As we've noted in the past, we believe SelectQuote's ultimate value is as a holistic solution provider across the $5 trillion U.S. Healthcare market. While there is a significant growth in value creation opportunity for shareholders in this endeavor, we also note that our integrated model can be a solution for what has historically been a very inefficient system. The information we harness, the connectivity we create as an intermediary in the Hecosystem is tangibly valuable in a wide number of ways. Americans get better and more tailored care based on individual needs. Payer expenses are reduced because patients have better treatment adherence, which leads to better health outcomes. Ultimately, the broader Healthcare system benefits because Americans are directed to payers and caregivers that create the best and most efficient patient results. This is particularly important given the traditionally underserved communities we serve, which skew more rural, lower income, and with more chronic conditions than the general population. This alignment across patients, payers, caregivers, taxpayers, and shareholders is why we believe we are just getting started in what is ultimately a very value-enhancing opportunity in healthcare. Today, our challenge is not how to grow, as evidenced by the rapid adoption of our SelectRx platform, but instead, it's how we balance growth while simultaneously generating a growing stream of sustainable cash flows. This is a good problem to have. We believe our current revenue-to-cap ratio of 6.1x is a compelling proof point in our ability to address the much broader Healthcare market and arenas, including Healthcare Select and Select Patient Management. That brings me to slide 7, where I'd like to provide additional detail on our evergreen work to drive operational and cash efficiency. First, I'll emphasize that SelectQuote has been using technology and computing power to automate tasks and optimize decision-making since our founding 40 years ago. That has not changed, and it never will. We are highlighting it here given we see AI as critical to our goal to become a comprehensive healthcare services platform, and we believe SelectQuote has a significant head start versus the competition. In our view, the reasons automation and technology are so important are threefold. First, technology is foundational to SelectQuote, and we know that our customers and partners get a higher level of service quality and reliability because of it. Second, our technology is dynamic and has the flexibility to solve for different market environments. The evidence is in the stability of our financial results relative to the different Medicare Advantage markets we have operated through the past three years. Third, and most pertinent in today's SelectQuote, technology represents a fixed investment that could be scaled efficiently. Put another way, our technology has been part of SelectQuote since the beginning. It's not something that we are initiating with the advent of AI. In fact, AI will only amplify our tech-enabled model. The power of that leverage is evident in the efficiency metrics I shared for senior, as well as the metrics at the bottom of this page. SelectQuote has routed over 7.5 million calls through intelligent automation, and AI has powered more than 300,000 unique healthcare services interactions. Technology is critical in organizing and optimizing those customer touchpoints, and to do so at our high level of customer service is a significant feat. We are not just a volume processor. Enrollment time has improved by 25% over the past year. Our technology also makes a difference in the lives of our customers, most importantly through better healthcare service fit and process efficiency. Our technology has also reduced the time in our health needs assessment calls with customers by 30%. Most importantly, our technology is critical to our ongoing strategy to drive scaled revenues across the ecosystem, which results in compounding and sustainable cash flows. This brings me to slide 7. Historically, we've talked a lot about the growth and profitability of our Senior and Healthcare Services segments separately, but we created this view to highlight an emerging attribute of our diversified platform that we believe is underappreciated. As you know, the cash flows for our Senior business are different than our Healthcare Services business. The diversity of that mix is a valuable input for how we manage the business and ultimately drive value for shareholders. Specifically, Healthcare Services revenues and EBITDA are effectively immediate from a cash perspective, whereas our Medicare Advantage revenues accrue over the life of a policy as it renews year after year. As our Healthcare Services business has continued to scale, it provides us better optionality in how we think about capital allocation from one season to the next. We believe, and we've heard from shareholders, that a sustainable and growing base of cash flow is important. In fiscal 2026, we believe our differentiated ability to accelerate cash flow generation through business mix is the right strategy to drive shareholder value. For context, we know that Medicare Advantage currently is in real main influx for fiscal 2026. This has been well documented in the results of carrier partners and others in the industry over the past few earnings cycles. As I discussed earlier, we've demonstrated our ability to deliver attractive returns in our Senior business over the past three years through three very different Medicare selling seasons. That said, the scale of our healthcare services platform now gives us strategic optionality that we didn't have before. In the year ahead, as we continue to balance cash flow production with growth, we plan for a flatter year in Medicare Advantage submissions through our Senior distribution business. To be clear, we believe growth in MA is a choice, and we've built a nimble engine that is primed for growth at short notice. We remain highly confident in our view that 20%+ EBITDA margins are achievable through the segment driven by our technology and agent-led model. On the last point I'll make, and Ryan will elaborate on, is that while our fiscal 2026 forecast shows a dampening effect on EBITDA margins because of the higher mix of SelectRx, it is important for analysts and investors to recognize the opposite will be true with regard to cash flow generation. In fact, we expect SelectQuote to be operating cash flow generative in fiscal 2026, and much of that will be driven by our view that healthcare services EBITDA will grow and will exceed $50 million. As we've noted in our strategic redesign, our focus is to prioritize cash flow and profitability. We're excited about the overall business's embedded cash flow potential, given our commissions receivable balance of approximately $1 billion and our growing Healthcare Services business, which is approaching $1 billion in annual recurring revenue with an improving margin profile. We believe the decision to drive incremental cash flow will pay significant dividends in how we can compound and deploy that cash flow for more profitable growth and shareholder value in the future. The range of ways that that can unlock the value is broad, from future growth in MA and new Healthcare Service offerings to continuing to lower our cost of capital. I'll turn the call over to Ryan to detail our financials, but I'll conclude by saying SelectQuote has never been better positioned to harvest the gains of our strategy than we are today. Ryan? Thanks, Tim. On slide 9, I'll start with our fiscal 2025 results. As Tim noted, it was another successful year across the organization, with both revenue and EBITDA beating our original guidance set last September. SelectQuote grew revenue 15.5% to $1.53 billion. Our full year adjusted EBITDA totaled $126 million, which grew 8% compared to a year ago. For the full year, our adjusted EBITDA margin was relatively stable, which we view very positively considering the majority of our revenue growth was generated by our lower margin but increasingly profitable and cash-generative Healthcare Services segment. Let's shift to slide 10 to review our Senior segment, where full-year revenue totaled $600 million and adjusted EBITDA totaled $162 million. As we've noted earlier in the year, our agent-led model performed extremely well in a unique season. With policy features in flux and a significant number of planned cancellations by carrier, we delivered strong results during the season with an agent force that was approximately 26% smaller than in fiscal 2024. We are most proud of the operating efficiency exhibited over the year with this smaller agent workforce. Our revenues were only 8% lower, and more importantly, we drove EBITDA margins that were about 200 basis points higher, which ultimately drove similar EBITDA dollars compared to 2024. Turning to slide 11, let me detail our production and LTV metrics. For the full year, approved MA policies totaled 593,000 compared to 625,000 in fiscal 2024. The 5% decline was a strategic agent staffing choice, but we drove 24% more policies per agent compared to last year. That agent efficiency, combined with lower marketing expense per policy, were the key drivers of our margin expansion for the year. In the fourth quarter, our senior segment produced 85,000 approved Medicare Advantage policies, down 20% year-over-year due to the lower agent headcount and the changes to the FCP. LTV for full year 2025 was $884 per policy, which is 3% lower compared to 2024. As we mentioned previously, the decline was primarily a function of commission mix and timing. LTV for the fourth quarter of $837 was 1% lower compared to the fourth quarter of 2024, which was in line with our expectations. On slide 12, let's move to our Healthcare Services results. We continue to see strong demand for our SelectRx platform, where year-end members grew 31% compared to fiscal 2024. In the fourth quarter, we grew membership by an additional 2,500. As a reminder, we believe there is significant runway to broaden this important and valuable service for both our senior Medicare Advantage customers and for all Americans with a need for reliable and convenient prescription drug delivery. While the addressable market for our SelectRx is massive, our business and shareholders can also benefit through the ability to drive higher cash conversion. You can begin to see the impact of our focus on efficiency and refined member targeting in the charts on the right side of the slide. In the fourth quarter, we drove $12 million of adjusted EBITDA in Healthcare Services, which represents a margin of 5.5%, which on a year-over-year basis compares to a quarter where we effectively broke even for this segment. I'll share more on our outlook for healthcare services in a moment, but as Tim noted, it's an exciting time at SelectQuote to have an additional growth engine to not just drive revenue but increasingly contribute to our profit and cash flow. Moving to slide 13, our Life division also performed well in the year and the quarter. Revenues grew 10% for the full year to total $173 million. The fourth quarter was even stronger with growth of 14%, driven predominantly by our final expense product. As a result, the segment grew adjusted EBITDA by an impressive 32% for the year to $27 million, which represents a 15% margin or more than 250 basis points higher compared to fiscal 2024. This was particularly welcome given the attractive cash flow dynamics of this segment. On slide 14, I'll be brief regarding our ongoing priority to improve SelectQuote's cost-to-capital and leverage profile. Here we outline what we've accomplished over the past calendar year. While we do not have any specific update over the past quarter, we would simply reiterate that the improving cash efficiency of our model is an increasingly important driver to optimize our balance sheet. The October securitization and the February preferred equity offering significantly improved our operational flexibility and did so at a lower overall cost to capital. We believe the structure can be further improved and expect future transactions will lead to extended maturity, increased operating flexibility, and a lower cost to capital. We look forward to sharing more regarding this initiative as we believe a lower cost of funding will be a more readily apparent part of SelectQuote's value creation for shareholders. Turning to slide 15, we are excited to introduce our fiscal 2026 guidance. As we've talked about extensively, SelectQuote has built an MA engine that is primed for growth when the market allows, and we have a rapidly growing and increasingly cash-generative Healthcare Services business. Overall, we are managing both businesses to drive increasing cash flow, which will generate long-term value for our shareholders. We expect revenue in the range of $1.65 billion-$1.75 billion, which represents year-over-year growth of approximately 11% at the midpoint. This range assumes relatively flat senior policy values for the year based on our ongoing strategy to balance current period EBITDA with cash flow generation. Similarly, our agent productivity was exceptional this past season, and our 2026 forecast assumes a reversion to a more historical average productivity level as we onboard new agents. This measured year for senior will be offset by continued strong growth in Healthcare Services, where we expect revenue growth of around 20%. Moving to adjusted EBITDA, we expect to end the year in the range of $120 million-$150 million, which represents year-over-year growth of 7% at the midpoint. While we expect margins from our senior segment to come down slightly from the mid to high 20% that we've delivered over the past few years, we expect margins to remain attractive and to exceed 20%. For the first quarter specifically, we expect approximately 10% of our annual Senior production to come in the quarter, given the FCP dynamics that Tim discussed. This, coupled with additional AEP hiring, is expected to lead to a consolidated adjusted EBITDA loss of around $25 million-$30 million for the first quarter. In Healthcare Services, we expect to generate more than $50 million in adjusted EBITDA for fiscal 2026, as we continue to focus client acquisition on the patients that benefit most from the service and have the best EBITDA economics. From a margin perspective, we expect relatively flat sequential margins in the first quarter as we ramp investments in preparation for AEP enrollment and then modest sequential expansion as we move through the remainder of the year. Over the last few years, you've heard us speak to the incredible long-term value we see within the Healthcare Services space. We believe the scale level of profitability we expect in 2026 for a business that will only be five years old demonstrates that value creation opportunity and is just the start of what we think is possible in the future. We also anticipate another strong year for our Life division, where we expect double-digit revenue and EBITDA growth with a similar margin profile to fiscal 2025. Finally, we anticipate generating positive operating cash flow in 2026. This is an important step for us, and we see a path toward meaningful cash flow generation in the years ahead. On an annual basis, we expect to be operating cash flow positive for the foreseeable future as we continue to transition to a comprehensive Healthcare Services platform. With that, I'll turn the call over to the operator for Q&A. At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Ben Hendrix with RBC Capital Markets. Your line is open. Hey, thanks, guys. Congratulations on the quarter. I appreciate the commentary on the Healthcare Services growth, and it seems like you've seen impressive revenue growth versus member growth this year. I just want to talk a little bit about margins and the commentary about the scaled margin as you see more seasoned SelectRx members. Maybe you can kind of talk about the path to your target margins and how you're thinking about that. As we get to a more scaled margin, how do the fixed and variable cost dynamics work to get to kind of a target margin from a scaled member? Thanks. Hey, good morning, Ben. This is Tim. Thanks for the question. Hey, Bob, why don't you cover the color on the margin progression and the drivers, and then we'll hand it over to Ryan. Thanks, Bob. Oh, that sounds great, Tim. On the margin progression, as we get larger, Ben, and continue to refine our business, have more tenured members, but also to the point you made later, really drive the variable cost down, as we are scaled and can make more optimizations, I would expect that to continue into the future and pretty meaningfully, right? We are really, really excited about what we can do now that we're at scale from both a COGS perspective and just general buying due to the fact that we're buying so many scripts now. Also, on automation and streamlining and really taking the time to refine the operation through opening Kansas City and ultimately retrofitting the other facilities that we have. We've got a lot of good findings. We're rolling out a lot of new technology that we are incredibly excited about what that'll do. I think you've seen the power of what it already can do given the margin progression we've had. We are very confident that we can get the margins to what we've shared and have a meaningful kind of path ahead of us to continue to enhance the cash flow dynamics of that really powerful business. Ryan? Yeah, and I think, you know, obviously, as we ramp our membership, especially within the Kansas facility, we do see a path to margin enhancements. We shared on the call earlier today, we expect our first quarter to be relatively in line with what we had this most recent quarter that was 5.5%, which we were really pleased with. As the year progresses, we see modest margin expansion. There will be some investment as we prepare for the AEP season and onboarding new members. Ultimately, we do expect the business will produce north of $50 million in EBITDA in fiscal 2026. Great. Thank you very much. If I could just one follow-up, as we think about scaling up this business and getting more margin from the Healthcare Services, it seems like this could be a really powerful driver for the securitization program. I wanted to just, based on your conversations with the market and with lenders, is there any kind of catalytic level or of either EBITDA contribution or margin from this business that could really accelerate the securitization program? Thanks. Yeah, that's a great question. What I'd say is there's not a threshold, if you will. What I will say is the progression and the EBITDA generation, it's obviously becoming significant. That obviously opens up a number of different paths with respect to the capital structure. Securitization is still very much a path, but also, as we generate more and more cash flow, which we do expect this coming year will be generating meaningful unlevered operating cash flow, will be positive operating cash flow for the fiscal 2026. On an annual basis, on a go-forward basis, we would expect to see that grow sequentially in future periods. I do expect to be operating cash flow positive for the foreseeable future. Great. Thanks, guys. Your next question comes from the line of George Sutton with Craig-Hallum. Your line is open. Thank you. I just wanted to go back a quarter. Your message, I think, coming out of the last quarter was you were refining the marketing. There was a notable caution, I think, in how fast you were growing SelectRx. It sounds like you're more optimistic now. Maybe you have found some solutions. Can you just walk through sort of the dynamics that have changed quarter over quarter there? Yeah. On that, you know, this is different than growth from a membership and revenue standpoint. George, where we were talking a little bit last quarter was that, right? We are far more focused now on EBITDA growth and expansion and what I talked about, kind of getting variable costs down and getting your cost of goods sold, you know, so cost of your hard product down and enhancing our margins. I would expect, you know, the kind of membership, and we're not commenting on it too much, but to grow at a lesser pace than we've seen, just given we grew so fast in that. I'd also say that, you know, we're not going to have quite, we'll still have good, healthy revenue growth, but not quite what we've seen in years past, again, essentially going from zero to where we are today. That's a little bit of a clarification to what we were talking about last quarter. I would expect our EBITDA to continue to progress and materially grow, given the opportunity we have in refinement and just the deep partnership we have with a lot of our carriers now as far as the clinical services that we provide. Again, really last quarter talking about membership growth, we'll have really healthy revenue growth of north of 20% like we talked about. Again, not to the degree of going from zero to what we've come to. Gotcha. I wondered if you could discuss the actual AEP hiring plans that you have and how significant you are using AI as part of the mechanism to serve more customers. You mentioned the 300,000+ interactions. Yeah, George, let me start. This is Tim, and then Bob, you can comment on AI. I think just kind of macro here for the AEP season, we are expecting an elevated level of plan disruption again this year. There are some similarities to last year, given where carriers are with respect to their kind of profitability, get well plans. While we don't have full visibility to what those plan designs are going to look like just yet, we do expect further benefits pullbacks, plan terminations. Last year, that certainly aided our front-end customer acquisition dynamics, things like close rates and agent productivity. From a retention perspective, certainly, given the level of disruption last year, we were really pleased with the outcome. We've had good experience there. We're making incremental investments. We'll be prepared. Bob, you want to speak to the technology and AI point? Yeah, I mean, I think that the tech team on our end has done a really, really nice job of continuing to supplement our agents and drive more efficiency. It's what we've touted in the past that we use technology and AI to make simple interactions faster and more efficient and ultimately save our agents' time. That's the same on the healthcare services side. We will continue doing that. We are not in any, you know, we don't think anybody's close to fully replacing the 45-minute very, very high-powered conversations, right, that our agents have and/or complex interactions that our Healthcare Services business has. We've made a ton of progress in making them more efficient, which is why you've seen our productivity per agent continue to rise. We're confident we can continue to do that. As they said, we're going to continue to invest in the same way we have in the past in technology. We are very hopeful that that will continue to lead to time savings for our agents, which every minute is extremely precious to us. We've seen 25% reductions in enrollment time for our agents specifically. That's not necessarily for a customer. We've also seen for less complex conversations, as we touted, Bill's team have more than 300,000 interactions on the Healthcare Services side with just using AI standalone. Just one other question on Select Patient. Can you give us any details in terms of where you're headed there, what kind of contribution you expect in 2026 from that segment? Yeah, we're continuing to make really, really good progress on Select Patient Management and FlexSync Medical, which is our telemedicine practice as a whole. There's complexity there on carrier contracts and what we're doing, but we are building that the right way. We do think in the future it'll provide material value. In 2026, we don't think it'll scale as quickly and provide meaningful EBITDA this year. It is a huge path to our future. We're really excited about what we can do. I think we've proven our ability to scale businesses with, you know, LHA and with SelectRx. We think that that's another door that's a big opportunity for us, given the fact that our clients, a lot of them, don't have access to quality care. They're homebound, and they really need to virtually interact. We think there's a big gap in the marketplace today where that is. Okay, thanks, guys. Before going to the next question, again, if you would like to ask a question, press star one on your telephone keypad. Your next question comes from the line of Pat McCann with NOBLE Capital Markets. Your line is open. Hey, thanks for taking my questions. I just wanted to piggyback really quickly on George's question about the AI usage. I think you have the slide on that in this quarter. I know that's something that you have been using previously, trying to use technology to increase agent efficiency. I was wondering if you could talk a little bit about to what extent there have been significant recent enhancements on that front, and if you could provide any further details on maybe some examples of what new additions you've made to the agent process in terms of added technology and AI. Yeah. We have made a ton of recent advancements. That's, you know, when we say, for example, the Healthcare Services side, that's really an extension of our agents because that was work that they transfer over. Those interactions are brand new to us. Our technology team did an incredibly nice job with that. When you look also higher level, every step of the funnel we use to our enrollments and taking, you know, kind of the mundane work out of that and pushing that over to AI. Those are all big levers that we continue to enhance. What we really focus on is, you know, let's say right now we're saving five minutes per enrollment by using technology. Can we push that to six, seven, eight, and make those more complex enrollments? Every minute is extremely valuable to us. We think the same thing on the agent side, right? Can we automate certain functions, whether that's gathering data, whether that's, you know, gathering prescription drugs, those types of things? Those are all big levers for us that we are continually trying and optimizing. Some don't pan out, but mostly ours do. We've been really, really, really proud of that. I think, too, I would love Bill to talk about how we're using it on the retention side and ultimately the compliance kind of QA side because I think we're using it as a big enhancement there, too. Bill? Yeah, sure. In terms of specific examples, we've really ramped up our overall usage. We use it all the way through from our initial recruiting process, our initial scoring. Now, it's based on AI in terms of understanding how we're understanding applicants relative to their ability to produce for us. We use it a lot in our training process in terms of our QA and providing real-time coaching. Call listening, as opposed to having to be more retroactive, we can be proactive, and we can be real-time and provide instant feedback. We use it a lot in our recaptures and basically our ability to look at our block of business and analyze it quickly and decide how we're going to treat people and understanding what plans they're on to try to recapture them. We use it also in our plan scoring to help us decide, okay, are they on the right, are we making sure our plan rank is as accurate as it possibly can be? The list goes on and on, but we're using it more and more, and it's really, we think, having a compounding effect on our business. Pat, great question. Sorry for the long answer, but one final point. The proof is really in the results. If you look at all these things that Bob and Bill spoke to, you can see this evidenced in our margins. Three consecutive years of EBITDA margins in senior, in the mid to high 20%. You're seeing this also ramp through our Healthcare Services business and our comments on our confidence around creating a diversified cash-generative platform. We think we are finding through technology with highly skilled human agents, right? We're getting the best of both worlds: data-driven, high touch. We're doing it at scale, and we think the results speak for themselves. Great. I really appreciate that. I'll just ask one more regarding capital allocation. I was just wondering if you could say any more about how you're thinking about your priorities in terms of additional balance sheet improvement versus maybe a potential acquisition or things that you might do to expand your healthcare services platform. When it comes to capital allocation, what are your priorities there, and how do you think about potentially making expansions in healthcare services while being able to continue to prioritize improving the balance sheet as well? Yeah, great question, Pat. I'll start and see if Ryan has additional comments. The immediate focus for the business, hopefully, it came through in our prepared remarks, is balancing, right? Balancing growth and the underlying market opportunity with driving a strong cash-generative business. We know that by driving a strong cash flow business, that's the key to a better balance sheet, as many other benefits. You started to highlight some of those, right? Optionality that we have from capital allocation around future growth in MA to new healthcare service offerings, certainly to a better cost of capital. We're going to, in the near term, be very focused on execution of this plan that we've outlined, driving stronger cash flow. We certainly, and Bob did a good job highlighting, and the results have demonstrated what we've been able to do in SelectRx, the Green Chutes and Select Patient Management. We see additional opportunity on the horizon. That's really kind of our near-term focus. We think that we are proving that we can make a meaningful impact on healthcare that helps improve health outcomes while also being beneficial to the shareholder. Ryan, any additional comments you'd make from a capital allocation perspective? Yeah, I really think you laid it out well. The capital structure is our priority. We obviously see lots of opportunity to grow the Healthcare Services business, but we also see a lot of opportunity to improve the capital structure, which really sets the stage for those subsequent actions and growths within Healthcare Services. The capital structure is the focus at the moment. We are making great progress, and we feel great about the financial plan and the guidance we shared today. We expect to generate meaningful unlevered operating cash flow, which we think certainly sets the stage for additional transactions to improve the balance sheet. Great. Thanks. That's it for me. I will now turn the call back to Tim Danker, CEO, for closing remarks. Yeah, I want to thank you all again for taking time this morning. A very big thank you to our team here at SelectQuote for a very successful fiscal 2025. We all should be very proud of what we've accomplished thus far. I'll close the call with one piece of perspective. We've spoken over the past three years about the operational stability we've built into SelectQuote since our strategic reset in 2022. If that was an initial stage, I believe 2026 and the years ahead represent the realization of the model we've built on that foundation. It's an exciting time for the company. We appreciate your time and support as we show you what SelectQuote can be. I want to thank you again. Have a great rest of your week. Ladies and gentlemen, that concludes today's call. You can disconnect. Thank you and have a great day.

Speaker 5: Welcome to SelectQuote's Fourth Quarter Earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. It's now my pleasure to introduce Matt Gunter, SelectQuote Investor Relations. Mr. Gunter, you may begin the conference. Welcome to SelectQuote's Fourth Quarter Earnings conference call. welcome to selectquote's fourth quarter earnings conference call All lines have been placed on mute to prevent any background noise. all lines have been placed on mute to prevent any background noise After the speaker's remarks, there will be a question and answer session. after the speaker's remarks there will be a question and answer session If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. if you would like to ask a question during this time simply press star followed by the number one on your telephone keypad If you would like to withdraw your question, press star one again. if you would like to withdraw your question press star one again Thank you. thank you It's now my pleasure to introduce Matt Gunter, SelectQuote Investor Relations. it's now my pleasure to introduce matt gunter selectquote investor relations Mr. Gunter, you may begin the conference. mr gunter you may begin the conference

Speaker 8: Thank you and good morning, everyone. Welcome to SelectQuote's Fiscal Fourth Quarter Earnings Call. Before we begin our call, I would like to mention that on our website, we have provided a slide presentation to help guide our discussion. After today's call, a replay will also be available on our website. Joining me from the company, I have our Chief Executive Officer, Tim Danker, and Chief Financial Officer, Ryan Clement. Following Tim and Ryan's comments today, we will have a question and answer session. As referenced on slide 2, during this call, we will be discussing some non-GAAP financial measures. The most directly comparable GAAP financial measures and a reconciliation of the differences between the GAAP and non-GAAP financial measures are available in our earnings release and investor presentation on our website. Finally, a reminder that certain statements made today may be forward-looking statements. Thank you and good morning, everyone. thank you and good morning everyone Welcome to SelectQuote's Fiscal Fourth Quarter Earnings Call. welcome to selectquote's fiscal fourth quarter earnings call Before we begin our call, I would like to mention that on our website, we have provided a slide presentation to help guide our discussion. before we begin our call i would like to mention that on our website we have provided a slide presentation to help guide our discussion After today's call, a replay will also be available on our website. after today's call a replay will also be available on our website Joining me from the company, I have our Chief Executive Officer, Tim Danker, and Chief Financial Officer, Ryan Clement. joining me from the company i have our chief executive officer tim danker and chief financial officer ryan clement Following Tim and Ryan's comments today, we will have a question and answer session. following tim and ryan's comments today we will have a question and answer session As referenced on slide 2 , during this call, we will be discussing some non-GAAP financial measures. as referenced on slide 2 during this call we will be discussing some non-gaap financial measures The most directly comparable GAAP financial measures and a reconciliation of the differences between the GAAP and non-GAAP financial measures are available in our earnings release and investor presentation on our website. the most directly comparable gaap financial measures and a reconciliation of the differences between the gaap and non-gaap financial measures are available in our earnings release and investor presentation on our website Finally, a reminder that certain statements made today may be forward-looking statements. finally a reminder that certain statements made today may be forward-looking statements These statements are made based upon management's current expectations and beliefs concerning future events impacting the company and therefore involve a number of uncertainties and risks, including but not limited to those described in our earnings release, annual report on Form 10-K for the period ended June 30, 2025, and other filings with the SEC. Therefore, the actual results of operations or financial condition of the company could differ materially from those expressed or implied in our forward-looking statements. With that, I'd like to turn the call over to our Chief Executive Officer, Tim Danker. Tim? These statements are made based upon management's current expectations and beliefs concerning future events impacting the company and therefore involve a number of uncertainties and risks, including but not limited to those described in our earnings release, annual report on Form 10-K for the period ended June 30, 2025, and other filings with the SEC. these statements are made based upon management's current expectations and beliefs concerning future events impacting the company and therefore involve a number of uncertainties and risks including but not limited to those described in our earnings release annual report on form 10-k for the period ended june 30 2025 and other filings with the sec Therefore, the actual results of operations or financial condition of the company could differ materially from those expressed or implied in our forward-looking statements. therefore the actual results of operations or financial condition of the company could differ materially from those expressed or implied in our forward-looking statements With that, I'd like to turn the call over to our Chief Executive Officer, Tim Danker. with that i'd like to turn the call over to our chief executive officer tim danker Tim? tim

Speaker 7: Thank you, Matt, and thanks to everyone on the call. Today, I will start with a review of fiscal 2025, which will be brief given the drivers of another successful year have been consistent with the recent past. I'll then provide additional color on the unique environment we saw this past quarter. I'll then spend the bulk of my time on what we're planning for the years ahead. Additionally, I'll contextualize the near-term strategic goals for SelectQuote relative to the broad market opportunity we've spoken to in the past. With that as the outline, let me begin on slide 3 with an overview of our performance highlights for fiscal 2025. We ended the year with consolidated revenue of $1.5 billion, which grew 16% compared to a year ago. Thank you, Matt, and thanks to everyone on the call. thank you matt and thanks to everyone on the call Today, I will start with a review of fiscal 2025, which will be brief given the drivers of another successful year have been consistent with the recent past. today i will start with a review of fiscal 2025 which will be brief given the drivers of another successful year have been consistent with the recent past I'll then provide additional color on the unique environment we saw this past quarter. i'll then provide additional color on the unique environment we saw this past quarter I'll then spend the bulk of my time on what we're planning for the years ahead. i'll then spend the bulk of my time on what we're planning for the years ahead Additionally, I'll contextualize the near-term strategic goals for SelectQuote relative to the broad market opportunity we've spoken to in the past. additionally i'll contextualize the near-term strategic goals for selectquote relative to the broad market opportunity we've spoken to in the past With that as the outline, let me begin on slide 3 with an overview of our performance highlights for fiscal 2025. with that as the outline let me begin on slide 3 with an overview of our performance highlights for fiscal 2025 We ended the year with consolidated revenue of $1.5 billion, which grew 16% compared to a year ago. we ended the year with consolidated revenue of $1.5 billion which grew 16% compared to a year ago As we've noted all year, the top line increase has been a function of the rapid growth of our Healthcare Services business and specifically SelectRx. Full-year Healthcare Services revenue grew by approximately 55% to nearly three quarters of a billion dollars. This is an incredible result in just a four-year history for the business. Our senior Medicare Advantage business performed very well against a challenging market backdrop for the industry. With significant plan changes by carriers this season, as well as new FCP parameters for beneficiary eligibility, American seniors relied on SelectQuote and our agents to advise and help find the best plans to fit their individual needs. We're most proud of how our model and agents performed under pressure, where we drove another year of record agent productivity, up 24%, and ultimately drove above target EBITDA margins for the third straight year. As we've noted all year, the top line increase has been a function of the rapid growth of our Healthcare Services business and specifically SelectRx. as we've noted all year the top line increase has been a function of the rapid growth of our healthcare services business and specifically selectrx Full-year Healthcare Services revenue grew by approximately 55% to nearly three quarters of a billion dollars. full-year healthcare services revenue grew by approximately 55% to nearly three quarters of a billion dollars This is an incredible result in just a four-year history for the business. this is an incredible result in just a four-year history for the business Our senior Medicare Advantage business performed very well against a challenging market backdrop for the industry. our senior medicare advantage business performed very well against a challenging market backdrop for the industry With significant plan changes by carriers this season, as well as new FCP parameters for beneficiary eligibility, American seniors relied on SelectQuote and our agents to advise and help find the best plans to fit their individual needs. with significant plan changes by carriers this season as well as new fcp parameters for beneficiary eligibility american seniors relied on selectquote and our agents to advise and help find the best plans to fit their individual needs We're most proud of how our model and agents performed under pressure, where we drove another year of record agent productivity, up 24%, and ultimately drove above target EBITDA margins for the third straight year. we're most proud of how our model and agents performed under pressure where we drove another year of record agent productivity up 24% and ultimately drove above target ebitda margins for the third straight year On a consolidated basis, SelectQuote drove $126 million of adjusted EBITDA, which represents an EBITDA margin of 8%. Margins were relatively in line with last year's result, despite adding $264 million in incremental revenue from our lower margin Healthcare Services business. In short, we're very proud of what the team accomplished this year and how we are set up for the future. If we turn to slide 4, let me put those accomplishments in more detail. We have presented these metrics in the past, and I want to highlight them one more time to emphasize the consistency we have achieved in our Senior Medicare business. As you remember, we reset our strategic priorities back in 2022, and since then, our focus on profitability and repeatability has been paramount. We're very pleased with the efficiency gains we've been able to yield in the Senior business. On a consolidated basis, SelectQuote drove $126 million of adjusted EBITDA, which represents an EBITDA margin of 8%. on a consolidated basis selectquote drove $126 million of adjusted ebitda which represents an ebitda margin of 8% Margins were relatively in line with last year's result, despite adding $264 million in incremental revenue from our lower margin H ealthcare Services business. margins were relatively in line with last year's result despite adding $264 million in incremental revenue from our lower margin h ealthcare services business In short, we're very proud of what the team accomplished this year and how we are set up for the future. in short we're very proud of what the team accomplished this year and how we are set up for the future If we turn to slide 4, let me put those accomplishments in more detail. if we turn to slide 4 let me put those accomplishments in more detail We have presented these metrics in the past, and I want to highlight them one more time to emphasize the consistency we have achieved in our Senior Medicare business. we have presented these metrics in the past and i want to highlight them one more time to emphasize the consistency we have achieved in our senior medicare business As you remember, we reset our strategic priorities back in 2022, and since then, our focus on profitability and repeatability has been paramount. as you remember we reset our strategic priorities back in 2022 and since then our focus on profitability and repeatability has been paramount We're very pleased with the efficiency gains we've been able to yield in the Senior business. we're very pleased with the efficiency gains we've been able to yield in the senior business We've become more efficient in the throughput of how policyholders are assisted via our year-run agent model and our ever-expanding use of technology. We've become similarly efficient in how our services are marketed in which leads we pursue in a given season or interseason. It is also important to note that these decisions are rooted in the north star of driving profitability and cash flow. As a result, SelectQuote Senior has been able to drive near record margins in each of the last three years, despite wide variations in Medicare selling environments from one season to the next. Finally, SelectQuote continues to leverage our information and connectivity advantage within healthcare, which you can see in our revenue-to-cap ratios. We are increasingly able to help more beneficiaries, caregivers, and payers by offering a wider set of healthcare solutions. We've become more efficient in the throughput of how policyholders are assisted via our year-run agent model and our ever-expanding use of technology. we've become more efficient in the throughput of how policyholders are assisted via our year-run agent model and our ever-expanding use of technology We've become similarly efficient in how our services are marketed in which leads we pursue in a given season or interseason. we've become similarly efficient in how our services are marketed in which leads we pursue in a given season or interseason It is also important to note that these decisions are rooted in the north star of driving profitability and cash flow. it is also important to note that these decisions are rooted in the north star of driving profitability and cash flow As a result, SelectQuote Senior has been able to drive near record margins in each of the last three years, despite wide variations in Medicare selling environments from one season to the next. as a result selectquote senior has been able to drive near record margins in each of the last three years despite wide variations in medicare selling environments from one season to the next Finally, SelectQuote continues to leverage our information and connectivity advantage within healthcare, which you can see in our revenue-to-cap ratios. finally selectquote continues to leverage our information and connectivity advantage within healthcare which you can see in our revenue-to-cap ratios We are increasingly able to help more beneficiaries, caregivers, and payers by offering a wider set of healthcare solutions. we are increasingly able to help more beneficiaries caregivers and payers by offering a wider set of healthcare solutions Best of all, the model is well aligned that when our stakeholders do well, SelectQuote and our shareholders do well. The revenue-to-cap ratio, which includes both our Senior and Healthcare Services revenues, is how we track the reach of our model. Over the past three years, we've expanded our revenue-to-customer acquisition cost ratio from 1.7x to 6.1x. We're excited about the year ahead for Healthcare Services and believe we are in the early innings of how we can leverage our information advantage, technology, and distribution to connect more services between those receiving care and those that provide it. We're immensely proud of the ways our differentiated model and approach to Healthcare serves such a wide breadth of Americans, but we're equally excited about the implications for our company's return and cash flow. Best of all, the model is well aligned that when our stakeholders do well, SelectQuote and our shareholders do well. best of all the model is well aligned that when our stakeholders do well selectquote and our shareholders do well The revenue-to-cap ratio, which includes both our Senior and Healthcare Services revenues, is how we track the reach of our model. the revenue-to-cap ratio which includes both our senior and healthcare services revenues is how we track the reach of our model Over the past three years, we've expanded our revenue-to-customer acquisition cost ratio from 1.7 x to 6.1 x. over the past three years we've expanded our revenue-to-customer acquisition cost ratio from 1.7 x to 6.1 x We're excited about the year ahead for Healthcare Services and believe we are in the early innings of how we can leverage our information advantage, technology, and distribution to connect more services between those receiving care and those that provide it. we're excited about the year ahead for healthcare services and believe we are in the early innings of how we can leverage our information advantage technology and distribution to connect more services between those receiving care and those that provide it We're immensely proud of the ways our differentiated model and approach to Healthcare serves such a wide breadth of Americans, but we're equally excited about the implications for our company's return and cash flow. we're immensely proud of the ways our differentiated model and approach to healthcare serves such a wide breadth of americans but we're equally excited about the implications for our company's return and cash flow Before I get to that, on slide 5, let's review the highlights of our year in Healthcare Services, primarily driven by SelectRx. As I noted, it was another strong year of growth with revenue of $743 million. Most importantly, we made meaningful progress on the scale and profitability of the business, despite concurrent investments and our new state-of-the-art distribution facility in Aletha, Kansas. We ended the fiscal year with adjusted EBITDA of $25 million, which is up significantly year over year, but still small from a margin perspective relative to what we believe is ultimately possible. The best representation of that operating leverage potential is the difference in growth between our revenues and membership in fiscal 2025. As noted, revenues grew nearly 55% over the last year, while our membership grew roughly 31%. Before I get to that, on slide 5, let's review the highlights of our year in Healthcare Services, primarily driven by SelectRx. before i get to that on slide 5 let's review the highlights of our year in healthcare services primarily driven by selectrx As I noted, it was another strong year of growth with revenue of $743 million. as i noted it was another strong year of growth with revenue of $743 million Most importantly, we made meaningful progress on the scale and profitability of the business, despite concurrent investments and our new state-of-the-art distribution facility in Aletha, Kansas. most importantly we made meaningful progress on the scale and profitability of the business despite concurrent investments and our new state-of-the-art distribution facility in aletha kansas We ended the fiscal year with adjusted EBITDA of $25 million, which is up significantly year over year, but still small from a margin perspective relative to what we believe is ultimately possible. we ended the fiscal year with adjusted ebitda of $25 million which is up significantly year over year but still small from a margin perspective relative to what we believe is ultimately possible The best representation of that operating leverage potential is the difference in growth between our revenues and membership in fiscal 2025. the best representation of that operating leverage potential is the difference in growth between our revenues and membership in fiscal 2025 As noted, revenues grew nearly 55% over the last year, while our membership grew roughly 31%. as noted revenues grew nearly 55% over the last year while our membership grew roughly 31% As we mentioned last quarter, we believe this year has been a pivotal one in terms of scale of membership. To be clear, we believe there is significant growth capacity for new members on the platform, especially with the addition of our state-of-the-art Kansas distribution facility, which significantly increases our potential capacity. With that said, we expect to see increased margin and cash flow contribution in fiscal 2026 from SelectRx as scale from seasoned members continues to drive results. It is clear that a revenue base nearing 3/4 of $1 billion dollars is a significant asset and one that we are very focused on leveraging in 2026 and beyond. If we turn to slide six, let me quickly review our strategic vision for SelectQuote as a broader connector within the Healthcare ecosystem. Today, we have clearly driven scale in both our senior Medicare Advantage and SelectRx businesses. As we mentioned last quarter, we believe this year has been a pivotal one in terms of scale of membership. as we mentioned last quarter we believe this year has been a pivotal one in terms of scale of membership To be clear, we believe there is significant growth capacity for new members on the platform, especially with the addition of our state-of-the-art Kansas distribution facility, which significantly increases our potential capacity. to be clear we believe there is significant growth capacity for new members on the platform especially with the addition of our state-of-the-art kansas distribution facility which significantly increases our potential capacity With that said, we expect to see increased margin and cash flow contribution in fiscal 2026 from SelectRx as scale from seasoned members continues to drive results. with that said we expect to see increased margin and cash flow contribution in fiscal 2026 from selectrx as scale from seasoned members continues to drive results It is clear that a revenue base nearing 3/4 of $1 billion dollars is a significant asset and one that we are very focused on leveraging in 2026 and beyond. it is clear that a revenue base nearing 3/4 of $1 billion dollars is a significant asset and one that we are very focused on leveraging in 2026 and beyond If we turn to slide six, let me quickly review our strategic vision for SelectQuote as a broader connector within the Healthcare ecosystem. if we turn to slide six let me quickly review our strategic vision for selectquote as a broader connector within the healthcare ecosystem Today, we have clearly driven scale in both our senior Medicare Advantage and SelectRx businesses. today we have clearly driven scale in both our senior medicare advantage and selectrx businesses More importantly, we have operated these businesses with a growing track record of profitability and have done so in a range of market environments for both Medicare Advantage and prescription drugs. As we've noted in the past, we believe SelectQuote's ultimate value is as a holistic solution provider across the $5 trillion U.S. Healthcare market. While there is a significant growth in value creation opportunity for shareholders in this endeavor, we also note that our integrated model can be a solution for what has historically been a very inefficient system. The information we harness, the connectivity we create as an intermediary in the Hecosystem is tangibly valuable in a wide number of ways. Americans get better and more tailored care based on individual needs. Payer expenses are reduced because patients have better treatment adherence, which leads to better health outcomes. More importantly, we have operated these businesses with a growing track record of profitability and have done so in a range of market environments for both Medicare Advantage and prescription drugs. more importantly we have operated these businesses with a growing track record of profitability and have done so in a range of market environments for both medicare advantage and prescription drugs As we've noted in the past, we believe SelectQuote's ultimate value is as a holistic solution provider across the $5 trillion U.S. as we've noted in the past we believe selectquote's ultimate value is as a holistic solution provider across the $5 trillion u.s Healthcare market. healthcare market While there is a significant growth in value creation opportunity for shareholders in this endeavor, we also note that our integrated model can be a solution for what has historically been a very inefficient system. while there is a significant growth in value creation opportunity for shareholders in this endeavor we also note that our integrated model can be a solution for what has historically been a very inefficient system The information we harness, the connectivity we create as an intermediary in the H ecosystem is tangibly valuable in a wide number of ways. the information we harness the connectivity we create as an intermediary in the h ecosystem is tangibly valuable in a wide number of ways Americans get better and more tailored care based on individual needs. americans get better and more tailored care based on individual needs Payer expenses are reduced because patients have better treatment adherence, which leads to better health outcomes. payer expenses are reduced because patients have better treatment adherence which leads to better health outcomes Ultimately, the broader Healthcare system benefits because Americans are directed to payers and caregivers that create the best and most efficient patient results. This is particularly important given the traditionally underserved communities we serve, which skew more rural, lower income, and with more chronic conditions than the general population. This alignment across patients, payers, caregivers, taxpayers, and shareholders is why we believe we are just getting started in what is ultimately a very value-enhancing opportunity in healthcare. Today, our challenge is not how to grow, as evidenced by the rapid adoption of our SelectRx platform, but instead, it's how we balance growth while simultaneously generating a growing stream of sustainable cash flows. This is a good problem to have. Ultimately, the broader Healthcare system benefits because Americans are directed to payers and caregivers that create the best and most efficient patient results. ultimately the broader healthcare system benefits because americans are directed to payers and caregivers that create the best and most efficient patient results This is particularly important given the traditionally underserved communities we serve, which skew more rural, lower income, and with more chronic conditions than the general population. this is particularly important given the traditionally underserved communities we serve which skew more rural lower income and with more chronic conditions than the general population This alignment across patients, payers, caregivers, taxpayers, and shareholders is why we believe we are just getting started in what is ultimately a very value-enhancing opportunity in healthcare. this alignment across patients payers caregivers taxpayers and shareholders is why we believe we are just getting started in what is ultimately a very value-enhancing opportunity in healthcare Today, our challenge is not how to grow, as evidenced by the rapid adoption of our SelectRx platform, but instead, it's how we balance growth while simultaneously generating a growing stream of sustainable cash flows. today our challenge is not how to grow as evidenced by the rapid adoption of our selectrx platform but instead it's how we balance growth while simultaneously generating a growing stream of sustainable cash flows This is a good problem to have. this is a good problem to have We believe our current revenue-to-cap ratio of 6.1x is a compelling proof point in our ability to address the much broader Healthcare market and arenas, including Healthcare Select and Select Patient Management. That brings me to slide 7, where I'd like to provide additional detail on our evergreen work to drive operational and cash efficiency. First, I'll emphasize that SelectQuote has been using technology and computing power to automate tasks and optimize decision-making since our founding 40 years ago. That has not changed, and it never will. We are highlighting it here given we see AI as critical to our goal to become a comprehensive healthcare services platform, and we believe SelectQuote has a significant head start versus the competition. In our view, the reasons automation and technology are so important are threefold. We believe our current revenue-to-cap ratio of 6.1x is a compelling proof point in our ability to address the much broader Healthcare market and arenas, including Healthcare Select and Select Patient Management. we believe our current revenue-to-cap ratio of 6.1x is a compelling proof point in our ability to address the much broader healthcare market and arenas including healthcare select and select patient management That brings me to slide 7, where I'd like to provide additional detail on our evergreen work to drive operational and cash efficiency. that brings me to slide 7 where i'd like to provide additional detail on our evergreen work to drive operational and cash efficiency First, I'll emphasize that SelectQuote has been using technology and computing power to automate tasks and optimize decision-making since our founding 40 years ago. first i'll emphasize that selectquote has been using technology and computing power to automate tasks and optimize decision-making since our founding 40 years ago That has not changed, and it never will. that has not changed and it never will We are highlighting it here given we see AI as critical to our goal to become a comprehensive healthcare services platform, and we believe SelectQuote has a significant head start versus the competition. we are highlighting it here given we see ai as critical to our goal to become a comprehensive healthcare services platform and we believe selectquote has a significant head start versus the competition In our view, the reasons automation and technology are so important are threefold. in our view the reasons automation and technology are so important are threefold First, technology is foundational to SelectQuote, and we know that our customers and partners get a higher level of service quality and reliability because of it. Second, our technology is dynamic and has the flexibility to solve for different market environments. The evidence is in the stability of our financial results relative to the different Medicare Advantage markets we have operated through the past three years. Third, and most pertinent in today's SelectQuote, technology represents a fixed investment that could be scaled efficiently. Put another way, our technology has been part of SelectQuote since the beginning. It's not something that we are initiating with the advent of AI. In fact, AI will only amplify our tech-enabled model. The power of that leverage is evident in the efficiency metrics I shared for senior, as well as the metrics at the bottom of this page. First, technology is foundational to SelectQuote, and we know that our customers and partners get a higher level of service quality and reliability because of it. first technology is foundational to selectquote and we know that our customers and partners get a higher level of service quality and reliability because of it Second, our technology is dynamic and has the flexibility to solve for different market environments. second our technology is dynamic and has the flexibility to solve for different market environments The evidence is in the stability of our financial results relative to the different Medicare Advantage markets we have operated through the past three years. the evidence is in the stability of our financial results relative to the different medicare advantage markets we have operated through the past three years Third, and most pertinent in today's SelectQuote, technology represents a fixed investment that could be scaled efficiently. third and most pertinent in today's selectquote technology represents a fixed investment that could be scaled efficiently Put another way, our technology has been part of SelectQuote since the beginning. put another way our technology has been part of selectquote since the beginning It's not something that we are initiating with the advent of AI. it's not something that we are initiating with the advent of ai In fact, AI will only amplify our tech-enabled model. in fact ai will only amplify our tech-enabled model The power of that leverage is evident in the efficiency metrics I shared for senior, as well as the metrics at the bottom of this page. the power of that leverage is evident in the efficiency metrics i shared for senior as well as the metrics at the bottom of this page SelectQuote has routed over 7.5 million calls through intelligent automation, and AI has powered more than 300,000 unique healthcare services interactions. Technology is critical in organizing and optimizing those customer touchpoints, and to do so at our high level of customer service is a significant feat. We are not just a volume processor. Enrollment time has improved by 25% over the past year. Our technology also makes a difference in the lives of our customers, most importantly through better healthcare service fit and process efficiency. Our technology has also reduced the time in our health needs assessment calls with customers by 30%. Most importantly, our technology is critical to our ongoing strategy to drive scaled revenues across the ecosystem, which results in compounding and sustainable cash flows. This brings me to slide 7. SelectQuote has routed over 7.5 million calls through intelligent automation, and AI has powered more than 300,000 unique healthcare services interactions. selectquote has routed over 7.5 million calls through intelligent automation and ai has powered more than 300,000 unique healthcare services interactions Technology is critical in organizing and optimizing those customer touchpoints, and to do so at our high level of customer service is a significant feat. technology is critical in organizing and optimizing those customer touchpoints and to do so at our high level of customer service is a significant feat We are not just a volume processor. we are not just a volume processor Enrollment time has improved by 25% over the past year. enrollment time has improved by 25% over the past year Our technology also makes a difference in the lives of our customers, most importantly through better healthcare service fit and process efficiency. our technology also makes a difference in the lives of our customers most importantly through better healthcare service fit and process efficiency Our technology has also reduced the time in our health needs assessment calls with customers by 30%. our technology has also reduced the time in our health needs assessment calls with customers by 30% Most importantly, our technology is critical to our ongoing strategy to drive scaled revenues across the ecosystem, which results in compounding and sustainable cash flows. most importantly our technology is critical to our ongoing strategy to drive scaled revenues across the ecosystem which results in compounding and sustainable cash flows This brings me to slide 7. this brings me to slide 7 Historically, we've talked a lot about the growth and profitability of our Senior and Healthcare Services segments separately, but we created this view to highlight an emerging attribute of our diversified platform that we believe is underappreciated. As you know, the cash flows for our Senior business are different than our Healthcare Services business. The diversity of that mix is a valuable input for how we manage the business and ultimately drive value for shareholders. Specifically, Healthcare Services revenues and EBITDA are effectively immediate from a cash perspective, whereas our Medicare Advantage revenues accrue over the life of a policy as it renews year after year. As our Healthcare Services business has continued to scale, it provides us better optionality in how we think about capital allocation from one season to the next. Historically, we've talked a lot about the growth and profitability of our Senior and Healthcare Services segments separately, but we created this view to highlight an emerging attribute of our diversified platform that we believe is underappreciated. historically we've talked a lot about the growth and profitability of our senior and healthcare services segments separately but we created this view to highlight an emerging attribute of our diversified platform that we believe is underappreciated As you know, the cash flows for our Senior business are different than our Healthcare Services business. as you know the cash flows for our senior business are different than our healthcare services business The diversity of that mix is a valuable input for how we manage the business and ultimately drive value for shareholders. the diversity of that mix is a valuable input for how we manage the business and ultimately drive value for shareholders Specifically, Healthcare S ervices revenues and EBITDA are effectively immediate from a cash perspective, whereas our Medicare Advantage revenues accrue over the life of a policy as it renews year after year. specifically healthcare s ervices revenues and ebitda are effectively immediate from a cash perspective whereas our medicare advantage revenues accrue over the life of a policy as it renews year after year As our Healthcare Services business has continued to scale, it provides us better optionality in how we think about capital allocation from one season to the next. as our healthcare services business has continued to scale it provides us better optionality in how we think about capital allocation from one season to the next We believe, and we've heard from shareholders, that a sustainable and growing base of cash flow is important. In fiscal 2026, we believe our differentiated ability to accelerate cash flow generation through business mix is the right strategy to drive shareholder value. For context, we know that Medicare Advantage currently is in real main influx for fiscal 2026. This has been well documented in the results of carrier partners and others in the industry over the past few earnings cycles. As I discussed earlier, we've demonstrated our ability to deliver attractive returns in our Senior business over the past three years through three very different Medicare selling seasons. That said, the scale of our healthcare services platform now gives us strategic optionality that we didn't have before. We believe, and we've heard from shareholders, that a sustainable and growing base of cash flow is important. we believe and we've heard from shareholders that a sustainable and growing base of cash flow is important In fiscal 2026, we believe our differentiated ability to accelerate cash flow generation through business mix is the right strategy to drive shareholder value. in fiscal 2026 we believe our differentiated ability to accelerate cash flow generation through business mix is the right strategy to drive shareholder value For context, we know that Medicare Advantage currently is in real main influx for fiscal 2026. for context we know that medicare advantage currently is in real main influx for fiscal 2026 This has been well documented in the results of carrier partners and others in the industry over the past few earnings cycles. this has been well documented in the results of carrier partners and others in the industry over the past few earnings cycles As I discussed earlier, we've demonstrated our ability to deliver attractive returns in our Senior business over the past three years through three very different Medicare selling seasons. as i discussed earlier we've demonstrated our ability to deliver attractive returns in our senior business over the past three years through three very different medicare selling seasons That said, the scale of our healthcare services platform now gives us strategic optionality that we didn't have before. that said the scale of our healthcare services platform now gives us strategic optionality that we didn't have before In the year ahead, as we continue to balance cash flow production with growth, we plan for a flatter year in Medicare Advantage submissions through our Senior distribution business. To be clear, we believe growth in MA is a choice, and we've built a nimble engine that is primed for growth at short notice. We remain highly confident in our view that 20%+ EBITDA margins are achievable through the segment driven by our technology and agent-led model. On the last point I'll make, and Ryan will elaborate on, is that while our fiscal 2026 forecast shows a dampening effect on EBITDA margins because of the higher mix of SelectRx, it is important for analysts and investors to recognize the opposite will be true with regard to cash flow generation. In the year ahead, as we continue to balance cash flow production with growth, we plan for a flatter year in Medicare Advantage submissions through our Senior distribution business. in the year ahead as we continue to balance cash flow production with growth we plan for a flatter year in medicare advantage submissions through our senior distribution business To be clear, we believe growth in MA is a choice, and we've built a nimble engine that is primed for growth at short notice. to be clear we believe growth in ma is a choice and we've built a nimble engine that is primed for growth at short notice We remain highly confident in our view that 20%+ EBITDA margins are achievable through the segment driven by our technology and agent-led model. we remain highly confident in our view that 20%+ ebitda margins are achievable through the segment driven by our technology and agent-led model On the last point I'll make, and Ryan will elaborate on, is that while our fiscal 2026 forecast shows a dampening effect on EBITDA margins because of the higher mix of SelectRx, it is important for analysts and investors to recognize the opposite will be true with regard to cash flow generation. on the last point i'll make and ryan will elaborate on is that while our fiscal 2026 forecast shows a dampening effect on ebitda margins because of the higher mix of selectrx it is important for analysts and investors to recognize the opposite will be true with regard to cash flow generation In fact, we expect SelectQuote to be operating cash flow generative in fiscal 2026, and much of that will be driven by our view that healthcare services EBITDA will grow and will exceed $50 million. As we've noted in our strategic redesign, our focus is to prioritize cash flow and profitability. We're excited about the overall business's embedded cash flow potential, given our commissions receivable balance of approximately $1 billion and our growing Healthcare Services business, which is approaching $1 billion in annual recurring revenue with an improving margin profile. We believe the decision to drive incremental cash flow will pay significant dividends in how we can compound and deploy that cash flow for more profitable growth and shareholder value in the future. In fact, we expect SelectQuote to be operating cash flow generative in fiscal 2026, and much of that will be driven by our view that healthcare services EBITDA will grow and will exceed $50 million. in fact we expect selectquote to be operating cash flow generative in fiscal 2026 and much of that will be driven by our view that healthcare services ebitda will grow and will exceed $50 million As we've noted in our strategic redesign, our focus is to prioritize cash flow and profitability. as we've noted in our strategic redesign our focus is to prioritize cash flow and profitability We're excited about the overall business's embedded cash flow potential, given our commissions receivable balance of approximately $1 billion and our growing Healthcare Services business, which is approaching $1 billion in annual recurring revenue with an improving margin profile. we're excited about the overall business's embedded cash flow potential given our commissions receivable balance of approximately $1 billion and our growing healthcare services business which is approaching $1 billion in annual recurring revenue with an improving margin profile We believe the decision to drive incremental cash flow will pay significant dividends in how we can compound and deploy that cash flow for more profitable growth and shareholder value in the future. we believe the decision to drive incremental cash flow will pay significant dividends in how we can compound and deploy that cash flow for more profitable growth and shareholder value in the future The range of ways that that can unlock the value is broad, from future growth in MA and new Healthcare Service offerings to continuing to lower our cost of capital. I'll turn the call over to Ryan to detail our financials, but I'll conclude by saying SelectQuote has never been better positioned to harvest the gains of our strategy than we are today. Ryan? The range of ways that that can unlock the value is broad, from future growth in MA and new Healthcare Service offerings to continuing to lower our cost of capital. the range of ways that that can unlock the value is broad from future growth in ma and new healthcare service offerings to continuing to lower our cost of capital I'll turn the call over to Ryan to detail our financials, but I'll conclude by saying SelectQuote has never been better positioned to harvest the gains of our strategy than we are today. i'll turn the call over to ryan to detail our financials but i'll conclude by saying selectquote has never been better positioned to harvest the gains of our strategy than we are today Ryan? ryan

Speaker 3: Thanks, Tim. On slide 9, I'll start with our fiscal 2025 results. As Tim noted, it was another successful year across the organization, with both revenue and EBITDA beating our original guidance set last September. SelectQuote grew revenue 15.5% to $1.53 billion. Our full year adjusted EBITDA totaled $126 million, which grew 8% compared to a year ago. For the full year, our adjusted EBITDA margin was relatively stable, which we view very positively considering the majority of our revenue growth was generated by our lower margin but increasingly profitable and cash-generative Healthcare Services segment. Let's shift to slide 10 to review our Senior segment, where full-year revenue totaled $600 million and adjusted EBITDA totaled $162 million. As we've noted earlier in the year, our agent-led model performed extremely well in a unique season. Thanks, Tim. thanks tim On slide 9, I'll start with our fiscal 2025 results. on slide 9 i'll start with our fiscal 2025 results As Tim noted, it was another successful year across the organization, with both revenue and EBITDA beating our original guidance set last September. as tim noted it was another successful year across the organization with both revenue and ebitda beating our original guidance set last september SelectQuote grew revenue 15.5% to $1.53 billion. selectquote grew revenue 15.5% to $1.53 billion Our full year adjusted EBITDA totaled $126 million, which grew 8% compared to a year ago. our full year adjusted ebitda totaled $126 million which grew 8% compared to a year ago For the full year, our adjusted EBITDA margin was relatively stable, which we view very positively considering the majority of our revenue growth was generated by our lower margin but increasingly profitable and cash-generative Healthcare Services segment. for the full year our adjusted ebitda margin was relatively stable which we view very positively considering the majority of our revenue growth was generated by our lower margin but increasingly profitable and cash-generative healthcare services segment Let's shift to slide 10 to review our Senior segment, where full-year revenue totaled $600 million and adjusted EBITDA totaled $162 million. let's shift to slide 10 to review our senior segment where full-year revenue totaled $600 million and adjusted ebitda totaled $162 million As we've noted earlier in the year, our agent-led model performed extremely well in a unique season. as we've noted earlier in the year our agent-led model performed extremely well in a unique season With policy features in flux and a significant number of planned cancellations by carrier, we delivered strong results during the season with an agent force that was approximately 26% smaller than in fiscal 2024. We are most proud of the operating efficiency exhibited over the year with this smaller agent workforce. Our revenues were only 8% lower, and more importantly, we drove EBITDA margins that were about 200 basis points higher, which ultimately drove similar EBITDA dollars compared to 2024. Turning to slide 11, let me detail our production and LTV metrics. For the full year, approved MA policies totaled 593,000 compared to 625,000 in fiscal 2024. The 5% decline was a strategic agent staffing choice, but we drove 24% more policies per agent compared to last year. That agent efficiency, combined with lower marketing expense per policy, were the key drivers of our margin expansion for the year. With policy features in flux and a significant number of planned cancellations by carrier, we delivered strong results during the season with an agent force that was approximately 26% smaller than in fiscal 2024. with policy features in flux and a significant number of planned cancellations by carrier we delivered strong results during the season with an agent force that was approximately 26% smaller than in fiscal 2024 We are most proud of the operating efficiency exhibited over the year with this smaller agent workforce. we are most proud of the operating efficiency exhibited over the year with this smaller agent workforce Our revenues were only 8% lower, and more importantly, we drove EBITDA margins that were about 200 basis points higher, which ultimately drove similar EBITDA dollars compared to 2024. our revenues were only 8% lower and more importantly we drove ebitda margins that were about 200 basis points higher which ultimately drove similar ebitda dollars compared to 2024 Turning to slide 11, let me detail our production and LTV metrics. turning to slide 11 let me detail our production and ltv metrics For the full year, approved MA policies totaled 593,000 compared to 625,000 in fiscal 2024. for the full year approved ma policies totaled 593,000 compared to 625,000 in fiscal 2024 The 5% decline was a strategic agent staffing choice, but we drove 24% more policies per agent compared to last year. the 5% decline was a strategic agent staffing choice but we drove 24% more policies per agent compared to last year That agent efficiency, combined with lower marketing expense per policy, were the key drivers of our margin expansion for the year. that agent efficiency combined with lower marketing expense per policy were the key drivers of our margin expansion for the year In the fourth quarter, our senior segment produced 85,000 approved Medicare Advantage policies, down 20% year-over-year due to the lower agent headcount and the changes to the FCP. LTV for full year 2025 was $884 per policy, which is 3% lower compared to 2024. As we mentioned previously, the decline was primarily a function of commission mix and timing. LTV for the fourth quarter of $837 was 1% lower compared to the fourth quarter of 2024, which was in line with our expectations. On slide 12, let's move to our Healthcare Services results. We continue to see strong demand for our SelectRx platform, where year-end members grew 31% compared to fiscal 2024. In the fourth quarter, we grew membership by an additional 2,500. In the fourth quarter, our senior segment produced 85,000 approved Medicare Advantage policies, down 20% year- over- year due to the lower agent headcount and the changes to the FCP. in the fourth quarter our senior segment produced 85,000 approved medicare advantage policies down 20% year- over- year due to the lower agent headcount and the changes to the fcp LTV for full year 2025 was $884 per policy, which is 3% lower compared to 2024. ltv for full year 2025 was $884 per policy which is 3% lower compared to 2024 As we mentioned previously, the decline was primarily a function of commission mix and timing. as we mentioned previously the decline was primarily a function of commission mix and timing LTV for the fourth quarter of $837 was 1% lower compared to the fourth quarter of 2024, which was in line with our expectations. ltv for the fourth quarter of $837 was 1% lower compared to the fourth quarter of 2024 which was in line with our expectations On slide 12, let's move to our Healthcare Services results. on slide 12 let's move to our healthcare services results We continue to see strong demand for our SelectRx platform, where year-end members grew 31% compared to fiscal 2024. we continue to see strong demand for our selectrx platform where year-end members grew 31% compared to fiscal 2024 In the fourth quarter, we grew membership by an additional 2,500. in the fourth quarter we grew membership by an additional 2,500 As a reminder, we believe there is significant runway to broaden this important and valuable service for both our senior Medicare Advantage customers and for all Americans with a need for reliable and convenient prescription drug delivery. While the addressable market for our SelectRx is massive, our business and shareholders can also benefit through the ability to drive higher cash conversion. You can begin to see the impact of our focus on efficiency and refined member targeting in the charts on the right side of the slide. In the fourth quarter, we drove $12 million of adjusted EBITDA in Healthcare Services, which represents a margin of 5.5%, which on a year-over-year basis compares to a quarter where we effectively broke even for this segment. As a reminder, we believe there is significant runway to broaden this important and valuable service for both our senior Medicare Advantage customers and for all Americans with a need for reliable and convenient prescription drug delivery. as a reminder we believe there is significant runway to broaden this important and valuable service for both our senior medicare advantage customers and for all americans with a need for reliable and convenient prescription drug delivery While the addressable market for our SelectRx is massive, our business and shareholders can also benefit through the ability to drive higher cash conversion. while the addressable market for our selectrx is massive our business and shareholders can also benefit through the ability to drive higher cash conversion You can begin to see the impact of our focus on efficiency and refined member targeting in the charts on the right side of the slide. you can begin to see the impact of our focus on efficiency and refined member targeting in the charts on the right side of the slide In the fourth quarter, we drove $12 million of adjusted EBITDA in Healthcare Services, which represents a margin of 5.5%, which on a year-over-year basis compares to a quarter where we effectively broke even for this segment. in the fourth quarter we drove $12 million of adjusted ebitda in healthcare services which represents a margin of 5.5% which on a year-over-year basis compares to a quarter where we effectively broke even for this segment I'll share more on our outlook for healthcare services in a moment, but as Tim noted, it's an exciting time at SelectQuote to have an additional growth engine to not just drive revenue but increasingly contribute to our profit and cash flow. Moving to slide 13, our Life division also performed well in the year and the quarter. Revenues grew 10% for the full year to total $173 million. The fourth quarter was even stronger with growth of 14%, driven predominantly by our final expense product. As a result, the segment grew adjusted EBITDA by an impressive 32% for the year to $27 million, which represents a 15% margin or more than 250 basis points higher compared to fiscal 2024. This was particularly welcome given the attractive cash flow dynamics of this segment. On slide 14, I'll be brief regarding our ongoing priority to improve SelectQuote's cost-to-capital and leverage profile. I'll share more on our outlook for healthcare services in a moment, but as Tim noted, it's an exciting time at SelectQuote to have an additional growth engine to not just drive revenue but increasingly contribute to our profit and cash flow. i'll share more on our outlook for healthcare services in a moment but as tim noted it's an exciting time at selectquote to have an additional growth engine to not just drive revenue but increasingly contribute to our profit and cash flow Moving to slide 13, our Life division also performed well in the year and the quarter. moving to slide 13 our life division also performed well in the year and the quarter Revenues grew 10% for the full year to total $173 million. revenues grew 10% for the full year to total $173 million The fourth quarter was even stronger with growth of 14%, driven predominantly by our final expense product. the fourth quarter was even stronger with growth of 14% driven predominantly by our final expense product As a result, the segment grew adjusted EBITDA by an impressive 32% for the year to $27 million, which represents a 15% margin or more than 250 basis points higher compared to fiscal 2024. as a result the segment grew adjusted ebitda by an impressive 32% for the year to $27 million which represents a 15% margin or more than 250 basis points higher compared to fiscal 2024 This was particularly welcome given the attractive cash flow dynamics of this segment. this was particularly welcome given the attractive cash flow dynamics of this segment On slide 14, I'll be brief regarding our ongoing priority to improve SelectQuote's cost-to-capital and leverage profile. on slide 14 i'll be brief regarding our ongoing priority to improve selectquote's cost-to-capital and leverage profile Here we outline what we've accomplished over the past calendar year. While we do not have any specific update over the past quarter, we would simply reiterate that the improving cash efficiency of our model is an increasingly important driver to optimize our balance sheet. The October securitization and the February preferred equity offering significantly improved our operational flexibility and did so at a lower overall cost to capital. We believe the structure can be further improved and expect future transactions will lead to extended maturity, increased operating flexibility, and a lower cost to capital. We look forward to sharing more regarding this initiative as we believe a lower cost of funding will be a more readily apparent part of SelectQuote's value creation for shareholders. Turning to slide 15, we are excited to introduce our fiscal 2026 guidance. Here we outline what we've accomplished over the past calendar year. here we outline what we've accomplished over the past calendar year While we do not have any specific update over the past quarter, we would simply reiterate that the improving cash efficiency of our model is an increasingly important driver to optimize our balance sheet. while we do not have any specific update over the past quarter we would simply reiterate that the improving cash efficiency of our model is an increasingly important driver to optimize our balance sheet The October securitization and the February preferred equity offering significantly improved our operational flexibility and did so at a lower overall cost to capital. the october securitization and the february preferred equity offering significantly improved our operational flexibility and did so at a lower overall cost to capital We believe the structure can be further improved and expect future transactions will lead to extended maturity, increased operating flexibility, and a lower cost to capital. we believe the structure can be further improved and expect future transactions will lead to extended maturity increased operating flexibility and a lower cost to capital We look forward to sharing more regarding this initiative as we believe a lower cost of funding will be a more readily apparent part of SelectQuote's value creation for shareholders. we look forward to sharing more regarding this initiative as we believe a lower cost of funding will be a more readily apparent part of selectquote's value creation for shareholders Turning to slide 15, we are excited to introduce our fiscal 2026 guidance. turning to slide 15 we are excited to introduce our fiscal 2026 guidance As we've talked about extensively, SelectQuote has built an MA engine that is primed for growth when the market allows, and we have a rapidly growing and increasingly cash-generative Healthcare Services business. Overall, we are managing both businesses to drive increasing cash flow, which will generate long-term value for our shareholders. We expect revenue in the range of $1.65 billion-$1.75 billion, which represents year-over-year growth of approximately 11% at the midpoint. This range assumes relatively flat senior policy values for the year based on our ongoing strategy to balance current period EBITDA with cash flow generation. Similarly, our agent productivity was exceptional this past season, and our 2026 forecast assumes a reversion to a more historical average productivity level as we onboard new agents. This measured year for senior will be offset by continued strong growth in Healthcare Services, where we expect revenue growth of around 20%. As we've talked about extensively, SelectQuote has built an MA engine that is primed for growth when the market allows, and we have a rapidly growing and increasingly cash-generative Healthcare Services business. as we've talked about extensively selectquote has built an ma engine that is primed for growth when the market allows and we have a rapidly growing and increasingly cash-generative healthcare services business Overall, we are managing both businesses to drive increasing cash flow, which will generate long-term value for our shareholders. overall we are managing both businesses to drive increasing cash flow which will generate long-term value for our shareholders We expect revenue in the range of $1.65 billion - $1.75 billion, which represents year-over-year growth of approximately 11% at the midpoint. we expect revenue in the range of $1.65 billion - $1.75 billion which represents year-over-year growth of approximately 11% at the midpoint This range assumes relatively flat senior policy values for the year based on our ongoing strategy to balance current period EBITDA with cash flow generation. this range assumes relatively flat senior policy values for the year based on our ongoing strategy to balance current period ebitda with cash flow generation Similarly, our agent productivity was exceptional this past season, and our 2026 forecast assumes a reversion to a more historical average productivity level as we onboard new agents. similarly our agent productivity was exceptional this past season and our 2026 forecast assumes a reversion to a more historical average productivity level as we onboard new agents This measured year for senior will be offset by continued strong growth in Healthcare Services, where we expect revenue growth of around 20%. this measured year for senior will be offset by continued strong growth in healthcare services where we expect revenue growth of around 20% Moving to adjusted EBITDA, we expect to end the year in the range of $120 million-$150 million, which represents year-over-year growth of 7% at the midpoint. While we expect margins from our senior segment to come down slightly from the mid to high 20% that we've delivered over the past few years, we expect margins to remain attractive and to exceed 20%. For the first quarter specifically, we expect approximately 10% of our annual Senior production to come in the quarter, given the FCP dynamics that Tim discussed. This, coupled with additional AEP hiring, is expected to lead to a consolidated adjusted EBITDA loss of around $25 million-$30 million for the first quarter. Moving to adjusted EBITDA, we expect to end the year in the range of $120 million - $150 million, which represents year-over-year growth of 7% at the midpoint. moving to adjusted ebitda we expect to end the year in the range of $120 million - $150 million which represents year-over-year growth of 7% at the midpoint While we expect margins from our senior segment to come down slightly from the mid to high 20% that we've delivered over the past few years, we expect margins to remain attractive and to exceed 20%. while we expect margins from our senior segment to come down slightly from the mid to high 20% that we've delivered over the past few years we expect margins to remain attractive and to exceed 20% For the first quarter specifically, we expect approximately 10% of our annual Senior production to come in the quarter, given the FCP dynamics that Tim discussed. for the first quarter specifically we expect approximately 10% of our annual senior production to come in the quarter given the fcp dynamics that tim discussed This, coupled with additional AEP hiring, is expected to lead to a consolidated adjusted EBITDA loss of around $25 million- $30 million for the first quarter. this coupled with additional aep hiring is expected to lead to a consolidated adjusted ebitda loss of around $25 million- $30 million for the first quarter In Healthcare Services, we expect to generate more than $50 million in adjusted EBITDA for fiscal 2026, as we continue to focus client acquisition on the patients that benefit most from the service and have the best EBITDA economics. From a margin perspective, we expect relatively flat sequential margins in the first quarter as we ramp investments in preparation for AEP enrollment and then modest sequential expansion as we move through the remainder of the year. Over the last few years, you've heard us speak to the incredible long-term value we see within the Healthcare Services space. We believe the scale level of profitability we expect in 2026 for a business that will only be five years old demonstrates that value creation opportunity and is just the start of what we think is possible in the future. In Healthcare Services, we expect to generate more than $50 million in adjusted EBITDA for fiscal 2026, as we continue to focus client acquisition on the patients that benefit most from the service and have the best EBITDA economics. in healthcare services we expect to generate more than $50 million in adjusted ebitda for fiscal 2026 as we continue to focus client acquisition on the patients that benefit most from the service and have the best ebitda economics From a margin perspective, we expect relatively flat sequential margins in the first quarter as we ramp investments in preparation for AEP enrollment and then modest sequential expansion as we move through the remainder of the year. from a margin perspective we expect relatively flat sequential margins in the first quarter as we ramp investments in preparation for aep enrollment and then modest sequential expansion as we move through the remainder of the year Over the last few years, you've heard us speak to the incredible long-term value we see within the Healthcare Services space. over the last few years you've heard us speak to the incredible long-term value we see within the healthcare services space We believe the scale level of profitability we expect in 2026 for a business that will only be five years old demonstrates that value creation opportunity and is just the start of what we think is possible in the future. we believe the scale level of profitability we expect in 2026 for a business that will only be five years old demonstrates that value creation opportunity and is just the start of what we think is possible in the future We also anticipate another strong year for our Life division, where we expect double-digit revenue and EBITDA growth with a similar margin profile to fiscal 2025. Finally, we anticipate generating positive operating cash flow in 2026. This is an important step for us, and we see a path toward meaningful cash flow generation in the years ahead. On an annual basis, we expect to be operating cash flow positive for the foreseeable future as we continue to transition to a comprehensive Healthcare Services platform. With that, I'll turn the call over to the operator for Q&A. We also anticipate another strong year for our Life division, where we expect double-digit revenue and EBITDA growth with a similar margin profile to fiscal 2025. we also anticipate another strong year for our life division where we expect double-digit revenue and ebitda growth with a similar margin profile to fiscal 2025 Finally, we anticipate generating positive operating cash flow in 2026. finally we anticipate generating positive operating cash flow in 2026 This is an important step for us, and we see a path toward meaningful cash flow generation in the years ahead. this is an important step for us and we see a path toward meaningful cash flow generation in the years ahead On an annual basis, we expect to be operating cash flow positive for the foreseeable future as we continue to transition to a comprehensive Healthcare Services platform. on an annual basis we expect to be operating cash flow positive for the foreseeable future as we continue to transition to a comprehensive healthcare services platform With that, I'll turn the call over to the operator for Q&A. with that i'll turn the call over to the operator for q&a

Speaker 5: At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Ben Hendrix with RBC Capital Markets. Your line is open. At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. at this time i would like to remind everyone in order to ask a question press star then the number one on your telephone keypad We will pause for just a moment to compile the Q&A roster. we will pause for just a moment to compile the q&a roster Your first question comes from the line of Ben Hendrix with RBC Capital Markets. your first question comes from the line of ben hendrix with rbc capital markets Your line is open. your line is open

Speaker 1: Hey, thanks, guys. Congratulations on the quarter. I appreciate the commentary on the Healthcare Services growth, and it seems like you've seen impressive revenue growth versus member growth this year. I just want to talk a little bit about margins and the commentary about the scaled margin as you see more seasoned SelectRx members. Maybe you can kind of talk about the path to your target margins and how you're thinking about that. As we get to a more scaled margin, how do the fixed and variable cost dynamics work to get to kind of a target margin from a scaled member? Thanks. Hey, thanks, guys. hey thanks guys Congratulations on the quarter. congratulations on the quarter I appreciate the commentary on the Healthcare Services growth, and it seems like you've seen impressive revenue growth versus member growth this year. i appreciate the commentary on the healthcare services growth and it seems like you've seen impressive revenue growth versus member growth this year I just want to talk a little bit about margins and the commentary about the scaled margin as you see more seasoned SelectRx members. i just want to talk a little bit about margins and the commentary about the scaled margin as you see more seasoned selectrx members Maybe you can kind of talk about the path to your target margins and how you're thinking about that. maybe you can kind of talk about the path to your target margins and how you're thinking about that As we get to a more scaled margin, how do the fixed and variable cost dynamics work to get to kind of a target margin from a scaled member? as we get to a more scaled margin how do the fixed and variable cost dynamics work to get to kind of a target margin from a scaled member Thanks. thanks

Speaker 7: Hey, good morning, Ben. This is Tim. Thanks for the question. Hey, Bob, why don't you cover the color on the margin progression and the drivers, and then we'll hand it over to Ryan. Thanks, Bob. Hey, good morning, Ben. hey good morning ben This is Tim. this is tim Thanks for the question. thanks for the question Hey, Bob, why don't you cover the color on the margin progression and the drivers, and then we'll hand it over to Ryan. hey bob why don't you cover the color on the margin progression and the drivers and then we'll hand it over to ryan Thanks, Bob. thanks bob

Speaker 9: Oh, that sounds great, Tim. On the margin progression, as we get larger, Ben, and continue to refine our business, have more tenured members, but also to the point you made later, really drive the variable cost down, as we are scaled and can make more optimizations, I would expect that to continue into the future and pretty meaningfully, right? We are really, really excited about what we can do now that we're at scale from both a COGS perspective and just general buying due to the fact that we're buying so many scripts now. Also, on automation and streamlining and really taking the time to refine the operation through opening Kansas City and ultimately retrofitting the other facilities that we have. We've got a lot of good findings. We're rolling out a lot of new technology that we are incredibly excited about what that'll do. Oh, that sounds great, Tim. oh that sounds great tim On the margin progression, as we get larger, Ben, and continue to refine our business, have more tenured members, but also to the point you made later, really drive the variable cost down, as we are scaled and can make more optimizations, I would expect that to continue into the future and pretty meaningfully, right? on the margin progression as we get larger ben and continue to refine our business have more tenured members but also to the point you made later really drive the variable cost down as we are scaled and can make more optimizations i would expect that to continue into the future and pretty meaningfully right We are really, really excited about what we can do now that we're at scale from both a COGS perspective and just general buying due to the fact that we're buying so many scripts now. we are really really excited about what we can do now that we're at scale from both a cogs perspective and just general buying due to the fact that we're buying so many scripts now Also, on automation and streamlining and really taking the time to refine the operation through opening Kansas City and ultimately retrofitting the other facilities that we have. also on automation and streamlining and really taking the time to refine the operation through opening kansas city and ultimately retrofitting the other facilities that we have We've got a lot of good findings. we've got a lot of good findings We're rolling out a lot of new technology that we are incredibly excited about what that'll do. we're rolling out a lot of new technology that we are incredibly excited about what that'll do I think you've seen the power of what it already can do given the margin progression we've had. We are very confident that we can get the margins to what we've shared and have a meaningful kind of path ahead of us to continue to enhance the cash flow dynamics of that really powerful business. Ryan? I think you've seen the power of what it already can do given the margin progression we've had. i think you've seen the power of what it already can do given the margin progression we've had We are very confident that we can get the margins to what we've shared and have a meaningful kind of path ahead of us to continue to enhance the cash flow dynamics of that really powerful business. we are very confident that we can get the margins to what we've shared and have a meaningful kind of path ahead of us to continue to enhance the cash flow dynamics of that really powerful business Ryan? ryan

Speaker 3: Yeah, and I think, you know, obviously, as we ramp our membership, especially within the Kansas facility, we do see a path to margin enhancements. We shared on the call earlier today, we expect our first quarter to be relatively in line with what we had this most recent quarter that was 5.5%, which we were really pleased with. As the year progresses, we see modest margin expansion. There will be some investment as we prepare for the AEP season and onboarding new members. Ultimately, we do expect the business will produce north of $50 million in EBITDA in fiscal 2026. Yeah, and I think, you know, obviously, as we ramp our membership, especially within the Kansas facility, we do see a path to margin enhancements. yeah and i think you know obviously as we ramp our membership especially within the kansas facility we do see a path to margin enhancements We shared on the call earlier today, we expect our first quarter to be relatively in line with what we had this most recent quarter that was 5.5%, which we were really pleased with. we shared on the call earlier today we expect our first quarter to be relatively in line with what we had this most recent quarter that was 5.5% which we were really pleased with As the year progresses, we see modest margin expansion. as the year progresses we see modest margin expansion There will be some investment as we prepare for the AEP season and onboarding new members. there will be some investment as we prepare for the aep season and onboarding new members Ultimately, we do expect the business will produce north of $50 million in EBITDA in fiscal 2026. ultimately we do expect the business will produce north of $50 million in ebitda in fiscal 2026

Speaker 1: Great. Thank you very much. If I could just one follow-up, as we think about scaling up this business and getting more margin from the Healthcare Services, it seems like this could be a really powerful driver for the securitization program. I wanted to just, based on your conversations with the market and with lenders, is there any kind of catalytic level or of either EBITDA contribution or margin from this business that could really accelerate the securitization program? Thanks. Great. great Thank you very much. thank you very much If I could just one follow-up, as we think about scaling up this business and getting more margin from the Healthcare Services, it seems like this could be a really powerful driver for the securitization program. if i could just one follow-up as we think about scaling up this business and getting more margin from the healthcare services it seems like this could be a really powerful driver for the securitization program I wanted to just, based on your conversations with the market and with lenders, is there any kind of catalytic level or of either EBITDA contribution or margin from this business that could really accelerate the securitization program? i wanted to just based on your conversations with the market and with lenders is there any kind of catalytic level or of either ebitda contribution or margin from this business that could really accelerate the securitization program Thanks. thanks

Speaker 3: Yeah, that's a great question. What I'd say is there's not a threshold, if you will. What I will say is the progression and the EBITDA generation, it's obviously becoming significant. That obviously opens up a number of different paths with respect to the capital structure. Securitization is still very much a path, but also, as we generate more and more cash flow, which we do expect this coming year will be generating meaningful unlevered operating cash flow, will be positive operating cash flow for the fiscal 2026. On an annual basis, on a go-forward basis, we would expect to see that grow sequentially in future periods. I do expect to be operating cash flow positive for the foreseeable future. Yeah, that's a great question. yeah that's a great question What I'd say is there's not a threshold, if you will. what i'd say is there's not a threshold if you will What I will say is the progression and the EBITDA generation, it's obviously becoming significant. what i will say is the progression and the ebitda generation it's obviously becoming significant That obviously opens up a number of different paths with respect to the capital structure. that obviously opens up a number of different paths with respect to the capital structure Securitization is still very much a path, but also, as we generate more and more cash flow, which we do expect this coming year will be generating meaningful unlevered operating cash flow, will be positive operating cash flow for the fiscal 2026. securitization is still very much a path but also as we generate more and more cash flow which we do expect this coming year will be generating meaningful unlevered operating cash flow will be positive operating cash flow for the fiscal 2026 On an annual basis, on a go-forward basis, we would expect to see that grow sequentially in future periods. on an annual basis on a go-forward basis we would expect to see that grow sequentially in future periods I do expect to be operating cash flow positive for the foreseeable future. i do expect to be operating cash flow positive for the foreseeable future

Speaker 1: Great. Thanks, guys. Great. great Thanks, guys. thanks guys

Speaker 5: Your next question comes from the line of George Sutton with Craig-Hallum. Your line is open. Your next question comes from the line of George Sutton with Craig-Hallum . your next question comes from the line of george sutton with craig-hallum Your line is open. your line is open

Speaker 2: Thank you. I just wanted to go back a quarter. Your message, I think, coming out of the last quarter was you were refining the marketing. There was a notable caution, I think, in how fast you were growing SelectRx. It sounds like you're more optimistic now. Maybe you have found some solutions. Can you just walk through sort of the dynamics that have changed quarter over quarter there? Thank you. thank you I just wanted to go back a quarter. i just wanted to go back a quarter Your message, I think, coming out of the last quarter was you were refining the marketing. your message i think coming out of the last quarter was you were refining the marketing There was a notable caution, I think, in how fast you were growing SelectRx. there was a notable caution i think in how fast you were growing selectrx It sounds like you're more optimistic now. it sounds like you're more optimistic now Maybe you have found some solutions. maybe you have found some solutions Can you just walk through sort of the dynamics that have changed quarter over quarter there? can you just walk through sort of the dynamics that have changed quarter over quarter there

Speaker 9: Yeah. On that, you know, this is different than growth from a membership and revenue standpoint. George, where we were talking a little bit last quarter was that, right? We are far more focused now on EBITDA growth and expansion and what I talked about, kind of getting variable costs down and getting your cost of goods sold, you know, so cost of your hard product down and enhancing our margins. I would expect, you know, the kind of membership, and we're not commenting on it too much, but to grow at a lesser pace than we've seen, just given we grew so fast in that. I'd also say that, you know, we're not going to have quite, we'll still have good, healthy revenue growth, but not quite what we've seen in years past, again, essentially going from zero to where we are today. Yeah. yeah On that, you know, this is different than growth from a membership and revenue standpoint. on that you know this is different than growth from a membership and revenue standpoint George, where we were talking a little bit last quarter was that, right? george where we were talking a little bit last quarter was that right We are far more focused now on EBITDA growth and expansion and what I talked about, kind of getting variable costs down and getting your cost of goods sold, you know, so cost of your hard product down and enhancing our margins. we are far more focused now on ebitda growth and expansion and what i talked about kind of getting variable costs down and getting your cost of goods sold you know so cost of your hard product down and enhancing our margins I would expect, you know, the kind of membership, and we're not commenting on it too much, but to grow at a lesser pace than we've seen, just given we grew so fast in that. i would expect you know the kind of membership and we're not commenting on it too much but to grow at a lesser pace than we've seen just given we grew so fast in that I'd also say that, you know, we're not going to have quite, we'll still have good, healthy revenue growth, but not quite what we've seen in years past, again, essentially going from zero to where we are today. i'd also say that you know we're not going to have quite we'll still have good healthy revenue growth but not quite what we've seen in years past again essentially going from zero to where we are today That's a little bit of a clarification to what we were talking about last quarter. I would expect our EBITDA to continue to progress and materially grow, given the opportunity we have in refinement and just the deep partnership we have with a lot of our carriers now as far as the clinical services that we provide. Again, really last quarter talking about membership growth, we'll have really healthy revenue growth of north of 20% like we talked about. Again, not to the degree of going from zero to what we've come to. That's a little bit of a clarification to what we were talking about last quarter. that's a little bit of a clarification to what we were talking about last quarter I would expect our EBITDA to continue to progress and materially grow, given the opportunity we have in refinement and just the deep partnership we have with a lot of our carriers now as far as the clinical services that we provide. i would expect our ebitda to continue to progress and materially grow given the opportunity we have in refinement and just the deep partnership we have with a lot of our carriers now as far as the clinical services that we provide Again, really last quarter talking about membership growth, we'll have really healthy revenue growth of north of 20% like we talked about. again really last quarter talking about membership growth we'll have really healthy revenue growth of north of 20% like we talked about Again, not to the degree of going from zero to what we've come to. again not to the degree of going from zero to what we've come to

Speaker 2: Gotcha. I wondered if you could discuss the actual AEP hiring plans that you have and how significant you are using AI as part of the mechanism to serve more customers. You mentioned the 300,000+ interactions. Gotcha. gotcha I wondered if you could discuss the actual AEP hiring plans that you have and how significant you are using AI as part of the mechanism to serve more customers. i wondered if you could discuss the actual aep hiring plans that you have and how significant you are using ai as part of the mechanism to serve more customers You mentioned the 300,000+ interactions. you mentioned the 300,000+ interactions

Speaker 7: Yeah, George, let me start. This is Tim, and then Bob, you can comment on AI. I think just kind of macro here for the AEP season, we are expecting an elevated level of plan disruption again this year. There are some similarities to last year, given where carriers are with respect to their kind of profitability, get well plans. While we don't have full visibility to what those plan designs are going to look like just yet, we do expect further benefits pullbacks, plan terminations. Last year, that certainly aided our front-end customer acquisition dynamics, things like close rates and agent productivity. From a retention perspective, certainly, given the level of disruption last year, we were really pleased with the outcome. We've had good experience there. We're making incremental investments. We'll be prepared. Bob, you want to speak to the technology and AI point? Yeah, George, let me start. yeah george let me start This is Tim, and then Bob, you can comment on AI. this is tim and then bob you can comment on ai I think just kind of macro here for the AEP season, we are expecting an elevated level of plan disruption again this year. i think just kind of macro here for the aep season we are expecting an elevated level of plan disruption again this year There are some similarities to last year, given where carriers are with respect to their kind of profitability, get well plans. there are some similarities to last year given where carriers are with respect to their kind of profitability get well plans While we don't have full visibility to what those plan designs are going to look like just yet, we do expect further benefits pullbacks, plan terminations. while we don't have full visibility to what those plan designs are going to look like just yet we do expect further benefits pullbacks plan terminations Last year, that certainly aided our front-end customer acquisition dynamics, things like close rates and agent productivity. last year that certainly aided our front-end customer acquisition dynamics things like close rates and agent productivity From a retention perspective, certainly, given the level of disruption last year, we were really pleased with the outcome. from a retention perspective certainly given the level of disruption last year we were really pleased with the outcome We've had good experience there. we've had good experience there We're making incremental investments. we're making incremental investments We'll be prepared. we'll be prepared Bob, you want to speak to the technology and AI point? bob you want to speak to the technology and ai point

Speaker 9: Yeah, I mean, I think that the tech team on our end has done a really, really nice job of continuing to supplement our agents and drive more efficiency. It's what we've touted in the past that we use technology and AI to make simple interactions faster and more efficient and ultimately save our agents' time. That's the same on the healthcare services side. We will continue doing that. We are not in any, you know, we don't think anybody's close to fully replacing the 45-minute very, very high-powered conversations, right, that our agents have and/or complex interactions that our Healthcare Services business has. We've made a ton of progress in making them more efficient, which is why you've seen our productivity per agent continue to rise. We're confident we can continue to do that. Yeah, I mean, I think that the tech team on our end has done a really, really nice job of continuing to supplement our agents and drive more efficiency. yeah i mean i think that the tech team on our end has done a really really nice job of continuing to supplement our agents and drive more efficiency It's what we've touted in the past that we use technology and AI to make simple interactions faster and more efficient and ultimately save our agents' time. it's what we've touted in the past that we use technology and ai to make simple interactions faster and more efficient and ultimately save our agents' time That's the same on the healthcare services side. that's the same on the healthcare services side We will continue doing that. we will continue doing that We are not in any, you know, we don't think anybody's close to fully replacing the 45-minute very, very high-powered conversations, right, that our agents have and/or complex interactions that our Healthcare Services business has. we are not in any you know we don't think anybody's close to fully replacing the 45-minute very very high-powered conversations right that our agents have and/or complex interactions that our healthcare services business has We've made a ton of progress in making them more efficient, which is why you've seen our productivity per agent continue to rise. we've made a ton of progress in making them more efficient which is why you've seen our productivity per agent continue to rise We're confident we can continue to do that. we're confident we can continue to do that As they said, we're going to continue to invest in the same way we have in the past in technology. We are very hopeful that that will continue to lead to time savings for our agents, which every minute is extremely precious to us. We've seen 25% reductions in enrollment time for our agents specifically. That's not necessarily for a customer. We've also seen for less complex conversations, as we touted, Bill's team have more than 300,000 interactions on the Healthcare Services side with just using AI standalone. As they said, we're going to continue to invest in the same way we have in the past in technology. as they said we're going to continue to invest in the same way we have in the past in technology We are very hopeful that that will continue to lead to time savings for our agents, which every minute is extremely precious to us. we are very hopeful that that will continue to lead to time savings for our agents which every minute is extremely precious to us We've seen 25% reductions in enrollment time for our agents specifically. we've seen 25% reductions in enrollment time for our agents specifically That's not necessarily for a customer. that's not necessarily for a customer We've also seen for less complex conversations, as we touted, Bill's team have more than 300,000 interactions on the Healthcare S ervices side with just using AI standalone. we've also seen for less complex conversations as we touted bill's team have more than 300,000 interactions on the healthcare s ervices side with just using ai standalone

Speaker 2: Just one other question on Select Patient. Can you give us any details in terms of where you're headed there, what kind of contribution you expect in 2026 from that segment? Just one other question on Select Patient . just one other question on select patient Can you give us any details in terms of where you're headed there, what kind of contribution you expect in 2026 from that segment? can you give us any details in terms of where you're headed there what kind of contribution you expect in 2026 from that segment

Speaker 9: Yeah, we're continuing to make really, really good progress on Select Patient Management and FlexSync Medical, which is our telemedicine practice as a whole. There's complexity there on carrier contracts and what we're doing, but we are building that the right way. We do think in the future it'll provide material value. In 2026, we don't think it'll scale as quickly and provide meaningful EBITDA this year. It is a huge path to our future. We're really excited about what we can do. I think we've proven our ability to scale businesses with, you know, LHA and with SelectRx. We think that that's another door that's a big opportunity for us, given the fact that our clients, a lot of them, don't have access to quality care. They're homebound, and they really need to virtually interact. We think there's a big gap in the marketplace today where that is. Yeah, we're continuing to make really, really good progress on Select Patient Management and FlexSync Medical, which is our telemedicine practice as a whole. yeah we're continuing to make really really good progress on select patient management and flexsync medical which is our telemedicine practice as a whole There's complexity there on carrier contracts and what we're doing, but we are building that the right way. there's complexity there on carrier contracts and what we're doing but we are building that the right way We do think in the future it'll provide material value. we do think in the future it'll provide material value In 2026, we don't think it'll scale as quickly and provide meaningful EBITDA this year. in 2026 we don't think it'll scale as quickly and provide meaningful ebitda this year It is a huge path to our future. it is a huge path to our future We're really excited about what we can do. we're really excited about what we can do I think we've proven our ability to scale businesses with, you know, LHA and with SelectRx. i think we've proven our ability to scale businesses with you know lha and with selectrx We think that that's another door that's a big opportunity for us, given the fact that our clients, a lot of them, don't have access to quality care. we think that that's another door that's a big opportunity for us given the fact that our clients a lot of them don't have access to quality care They're homebound, and they really need to virtually interact. they're homebound and they really need to virtually interact We think there's a big gap in the marketplace today where that is. we think there's a big gap in the marketplace today where that is

Speaker 2: Okay, thanks, guys. Okay, thanks, guys. okay thanks guys

Speaker 5: Before going to the next question, again, if you would like to ask a question, press star one on your telephone keypad. Your next question comes from the line of Pat McCann with NOBLE Capital Markets. Your line is open. Before going to the next question, again, if you would like to ask a question, press star one on your telephone keypad. before going to the next question again if you would like to ask a question press star one on your telephone keypad Your next question comes from the line of Pat McCann with NOBLE Capital Markets. your next question comes from the line of pat mccann with noble capital markets Your line is open. your line is open

Speaker 6: Hey, thanks for taking my questions. I just wanted to piggyback really quickly on George's question about the AI usage. I think you have the slide on that in this quarter. I know that's something that you have been using previously, trying to use technology to increase agent efficiency. I was wondering if you could talk a little bit about to what extent there have been significant recent enhancements on that front, and if you could provide any further details on maybe some examples of what new additions you've made to the agent process in terms of added technology and AI. Hey, thanks for taking my questions. hey thanks for taking my questions I just wanted to piggyback really quickly on George's question about the AI usage. i just wanted to piggyback really quickly on george's question about the ai usage I think you have the slide on that in this quarter. i think you have the slide on that in this quarter I know that's something that you have been using previously, trying to use technology to increase agent efficiency. i know that's something that you have been using previously trying to use technology to increase agent efficiency I was wondering if you could talk a little bit about to what extent there have been significant recent enhancements on that front, and if you could provide any further details on maybe some examples of what new additions you've made to the agent process in terms of added technology and AI. i was wondering if you could talk a little bit about to what extent there have been significant recent enhancements on that front and if you could provide any further details on maybe some examples of what new additions you've made to the agent process in terms of added technology and ai

Speaker 9: Yeah. We have made a ton of recent advancements. That's, you know, when we say, for example, the Healthcare Services side, that's really an extension of our agents because that was work that they transfer over. Those interactions are brand new to us. Our technology team did an incredibly nice job with that. When you look also higher level, every step of the funnel we use to our enrollments and taking, you know, kind of the mundane work out of that and pushing that over to AI. Those are all big levers that we continue to enhance. What we really focus on is, you know, let's say right now we're saving five minutes per enrollment by using technology. Can we push that to six, seven, eight, and make those more complex enrollments? Every minute is extremely valuable to us. We think the same thing on the agent side, right? Yeah. yeah We have made a ton of recent advancements. we have made a ton of recent advancements That's, you know, when we say, for example, the Healthcare Services side, that's really an extension of our agents because that was work that they transfer over. that's you know when we say for example the healthcare services side that's really an extension of our agents because that was work that they transfer over Those interactions are brand new to us. those interactions are brand new to us Our technology team did an incredibly nice job with that. our technology team did an incredibly nice job with that When you look also higher level, every step of the funnel we use to our enrollments and taking, you know, kind of the mundane work out of that and pushing that over to AI. when you look also higher level every step of the funnel we use to our enrollments and taking you know kind of the mundane work out of that and pushing that over to ai Those are all big levers that we continue to enhance. those are all big levers that we continue to enhance What we really focus on is, you know, let's say right now we're saving five minutes per enrollment by using technology. what we really focus on is you know let's say right now we're saving five minutes per enrollment by using technology Can we push that to six, seven, eight, and make those more complex enrollments? can we push that to six seven eight and make those more complex enrollments Every minute is extremely valuable to us. every minute is extremely valuable to us We think the same thing on the agent side, right? we think the same thing on the agent side right Can we automate certain functions, whether that's gathering data, whether that's, you know, gathering prescription drugs, those types of things? Those are all big levers for us that we are continually trying and optimizing. Some don't pan out, but mostly ours do. We've been really, really, really proud of that. I think, too, I would love Bill to talk about how we're using it on the retention side and ultimately the compliance kind of QA side because I think we're using it as a big enhancement there, too. Bill? Can we automate certain functions, whether that's gathering data, whether that's, you know, gathering prescription drugs, those types of things? can we automate certain functions whether that's gathering data whether that's you know gathering prescription drugs those types of things Those are all big levers for us that we are continually trying and optimizing. those are all big levers for us that we are continually trying and optimizing Some don't pan out, but mostly ours do. some don't pan out but mostly ours do We've been really, really, really proud of that. we've been really really really proud of that I think, too, I would love Bill to talk about how we're using it on the retention side and ultimately the compliance kind of QA side because I think we're using it as a big enhancement there, too. i think too i would love bill to talk about how we're using it on the retention side and ultimately the compliance kind of qa side because i think we're using it as a big enhancement there too Bill? bill

Speaker 4: Yeah, sure. In terms of specific examples, we've really ramped up our overall usage. We use it all the way through from our initial recruiting process, our initial scoring. Now, it's based on AI in terms of understanding how we're understanding applicants relative to their ability to produce for us. We use it a lot in our training process in terms of our QA and providing real-time coaching. Call listening, as opposed to having to be more retroactive, we can be proactive, and we can be real-time and provide instant feedback. We use it a lot in our recaptures and basically our ability to look at our block of business and analyze it quickly and decide how we're going to treat people and understanding what plans they're on to try to recapture them. Yeah, sure. yeah sure In terms of specific examples, we've really ramped up our overall usage. in terms of specific examples we've really ramped up our overall usage We use it all the way through from our initial recruiting process, our initial scoring. we use it all the way through from our initial recruiting process our initial scoring Now, it's based on AI in terms of understanding how we're understanding applicants relative to their ability to produce for us. now it's based on ai in terms of understanding how we're understanding applicants relative to their ability to produce for us We use it a lot in our training process in terms of our QA and providing real-time coaching. we use it a lot in our training process in terms of our qa and providing real-time coaching Call listening, as opposed to having to be more retroactive, we can be proactive, and we can be real-time and provide instant feedback. call listening as opposed to having to be more retroactive we can be proactive and we can be real-time and provide instant feedback We use it a lot in our recaptures and basically our ability to look at our block of business and analyze it quickly and decide how we're going to treat people and understanding what plans they're on to try to recapture them. we use it a lot in our recaptures and basically our ability to look at our block of business and analyze it quickly and decide how we're going to treat people and understanding what plans they're on to try to recapture them We use it also in our plan scoring to help us decide, okay, are they on the right, are we making sure our plan rank is as accurate as it possibly can be? The list goes on and on, but we're using it more and more, and it's really, we think, having a compounding effect on our business. We use it also in our plan scoring to help us decide, okay, are they on the right, are we making sure our plan rank is as accurate as it possibly can be? we use it also in our plan scoring to help us decide okay are they on the right are we making sure our plan rank is as accurate as it possibly can be The list goes on and on, but we're using it more and more, and it's really, we think, having a compounding effect on our business. the list goes on and on but we're using it more and more and it's really we think having a compounding effect on our business

Speaker 7: Pat, great question. Sorry for the long answer, but one final point. The proof is really in the results. If you look at all these things that Bob and Bill spoke to, you can see this evidenced in our margins. Three consecutive years of EBITDA margins in senior, in the mid to high 20%. You're seeing this also ramp through our Healthcare Services business and our comments on our confidence around creating a diversified cash-generative platform. We think we are finding through technology with highly skilled human agents, right? We're getting the best of both worlds: data-driven, high touch. We're doing it at scale, and we think the results speak for themselves. Pat, great question. pat great question Sorry for the long answer, but one final point. sorry for the long answer but one final point The proof is really in the results. the proof is really in the results If you look at all these things that Bob and Bill spoke to, you can see this evidenced in our margins. if you look at all these things that bob and bill spoke to you can see this evidenced in our margins Three consecutive years of EBITDA margins in senior, in the mid to high 20%. three consecutive years of ebitda margins in senior in the mid to high 20% You're seeing this also ramp through our Healthcare Services business and our comments on our confidence around creating a diversified cash-generative platform. you're seeing this also ramp through our healthcare services business and our comments on our confidence around creating a diversified cash-generative platform We think we are finding through technology with highly skilled human agents, right? we think we are finding through technology with highly skilled human agents right We're getting the best of both worlds: data-driven, high touch. we're getting the best of both worlds data-driven high touch We're doing it at scale, and we think the results speak for themselves. we're doing it at scale and we think the results speak for themselves

Speaker 6: Great. I really appreciate that. I'll just ask one more regarding capital allocation. I was just wondering if you could say any more about how you're thinking about your priorities in terms of additional balance sheet improvement versus maybe a potential acquisition or things that you might do to expand your healthcare services platform. When it comes to capital allocation, what are your priorities there, and how do you think about potentially making expansions in healthcare services while being able to continue to prioritize improving the balance sheet as well? Great. great I really appreciate that. i really appreciate that I'll just ask one more regarding capital allocation. i'll just ask one more regarding capital allocation I was just wondering if you could say any more about how you're thinking about your priorities in terms of additional balance sheet improvement versus maybe a potential acquisition or things that you might do to expand your healthcare services platform. i was just wondering if you could say any more about how you're thinking about your priorities in terms of additional balance sheet improvement versus maybe a potential acquisition or things that you might do to expand your healthcare services platform When it comes to capital allocation, what are your priorities there, and how do you think about potentially making expansions in healthcare services while being able to continue to prioritize improving the balance sheet as well? when it comes to capital allocation what are your priorities there and how do you think about potentially making expansions in healthcare services while being able to continue to prioritize improving the balance sheet as well

Speaker 7: Yeah, great question, Pat. I'll start and see if Ryan has additional comments. The immediate focus for the business, hopefully, it came through in our prepared remarks, is balancing, right? Balancing growth and the underlying market opportunity with driving a strong cash-generative business. We know that by driving a strong cash flow business, that's the key to a better balance sheet, as many other benefits. You started to highlight some of those, right? Optionality that we have from capital allocation around future growth in MA to new healthcare service offerings, certainly to a better cost of capital. We're going to, in the near term, be very focused on execution of this plan that we've outlined, driving stronger cash flow. We certainly, and Bob did a good job highlighting, and the results have demonstrated what we've been able to do in SelectRx, the Green Chutes and Select Patient Management. Yeah, great question, Pat. yeah great question pat I'll start and see if Ryan has additional comments. i'll start and see if ryan has additional comments The immediate focus for the business, hopefully, it came through in our prepared remarks, is balancing, right? the immediate focus for the business hopefully it came through in our prepared remarks is balancing right Balancing growth and the underlying market opportunity with driving a strong cash-generative business. balancing growth and the underlying market opportunity with driving a strong cash-generative business We know that by driving a strong cash flow business, that's the key to a better balance sheet, as many other benefits. we know that by driving a strong cash flow business that's the key to a better balance sheet as many other benefits You started to highlight some of those, right? you started to highlight some of those right Optionality that we have from capital allocation around future growth in MA to new healthcare service offerings, certainly to a better cost of capital. optionality that we have from capital allocation around future growth in ma to new healthcare service offerings certainly to a better cost of capital We're going to, in the near term, be very focused on execution of this plan that we've outlined, driving stronger cash flow. we're going to in the near term be very focused on execution of this plan that we've outlined driving stronger cash flow We certainly, and Bob did a good job highlighting, and the results have demonstrated what we've been able to do in SelectRx, the Green Chutes and Select Patient Management. we certainly and bob did a good job highlighting and the results have demonstrated what we've been able to do in selectrx the green chutes and select patient management We see additional opportunity on the horizon. That's really kind of our near-term focus. We think that we are proving that we can make a meaningful impact on healthcare that helps improve health outcomes while also being beneficial to the shareholder. Ryan, any additional comments you'd make from a capital allocation perspective? We see additional opportunity on the horizon. we see additional opportunity on the horizon That's really kind of our near-term focus. that's really kind of our near-term focus We think that we are proving that we can make a meaningful impact on healthcare that helps improve health outcomes while also being beneficial to the shareholder. we think that we are proving that we can make a meaningful impact on healthcare that helps improve health outcomes while also being beneficial to the shareholder Ryan, any additional comments you'd make from a capital allocation perspective? ryan any additional comments you'd make from a capital allocation perspective

Speaker 3: Yeah, I really think you laid it out well. The capital structure is our priority. We obviously see lots of opportunity to grow the Healthcare Services business, but we also see a lot of opportunity to improve the capital structure, which really sets the stage for those subsequent actions and growths within Healthcare Services. The capital structure is the focus at the moment. We are making great progress, and we feel great about the financial plan and the guidance we shared today. We expect to generate meaningful unlevered operating cash flow, which we think certainly sets the stage for additional transactions to improve the balance sheet. Yeah, I really think you laid it out well. yeah i really think you laid it out well The capital structure is our priority. the capital structure is our priority We obviously see lots of opportunity to grow the Healthcare Services business, but we also see a lot of opportunity to improve the capital structure, which really sets the stage for those subsequent actions and growths within Healthcare Services. we obviously see lots of opportunity to grow the healthcare services business but we also see a lot of opportunity to improve the capital structure which really sets the stage for those subsequent actions and growths within healthcare services The capital structure is the focus at the moment. the capital structure is the focus at the moment We are making great progress, and we feel great about the financial plan and the guidance we shared today. we are making great progress and we feel great about the financial plan and the guidance we shared today We expect to generate meaningful unlevered operating cash flow, which we think certainly sets the stage for additional transactions to improve the balance sheet. we expect to generate meaningful unlevered operating cash flow which we think certainly sets the stage for additional transactions to improve the balance sheet

Speaker 6: Great. Thanks. That's it for me. Great. great Thanks. thanks That's it for me. that's it for me

Speaker 5: I will now turn the call back to Tim Danker, CEO, for closing remarks. I will now turn the call back to Tim Danker, CEO, for closing remarks. i will now turn the call back to tim danker ceo for closing remarks

Speaker 7: Yeah, I want to thank you all again for taking time this morning. A very big thank you to our team here at SelectQuote for a very successful fiscal 2025. We all should be very proud of what we've accomplished thus far. I'll close the call with one piece of perspective. We've spoken over the past three years about the operational stability we've built into SelectQuote since our strategic reset in 2022. If that was an initial stage, I believe 2026 and the years ahead represent the realization of the model we've built on that foundation. It's an exciting time for the company. We appreciate your time and support as we show you what SelectQuote can be. I want to thank you again. Have a great rest of your week. Yeah, I want to thank you all again for taking time this morning. yeah i want to thank you all again for taking time this morning A very big thank you to our team here at SelectQuote for a very successful fiscal 2025. a very big thank you to our team here at selectquote for a very successful fiscal 2025 We all should be very proud of what we've accomplished thus far. we all should be very proud of what we've accomplished thus far I'll close the call with one piece of perspective. i'll close the call with one piece of perspective We've spoken over the past three years about the operational stability we've built into SelectQuote since our strategic reset in 2022. we've spoken over the past three years about the operational stability we've built into selectquote since our strategic reset in 2022 If that was an initial stage, I believe 2026 and the years ahead represent the realization of the model we've built on that foundation. if that was an initial stage i believe 2026 and the years ahead represent the realization of the model we've built on that foundation It's an exciting time for the company. it's an exciting time for the company We appreciate your time and support as we show you what SelectQuote can be. we appreciate your time and support as we show you what selectquote can be I want to thank you again. i want to thank you again Have a great rest of your week. have a great rest of your week

Speaker 5: Ladies and gentlemen, that concludes today's call. You can disconnect. Thank you and have a great day. Ladies and gentlemen, that concludes today's call. ladies and gentlemen that concludes today's call You can disconnect. you can disconnect Thank you and have a great day. thank you and have a great day