{
  "id": 4868118,
  "title": "SelectQuote’s (SLQT) Cash Flow Pitch Comes With A Shrinking Top Line",
  "url": "https://urgent.news/2026/09/01/selectquotes-slqt-cash-flow-pitch-comes-with-a-shrinking-top-line",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-01T13:27:46.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/selectquote-slqt-cash-flow-pitch-132746828.html"
  },
  "original_language": "en",
  "account": "SelectQuote (NASDAQ:SLQT) recently unveiled a cash flow-focused outlook, emphasizing revenue growth over profit. For fiscal 2026, the company reported revenue of $1.62 billion, a 6% increase year-over-year, and operating cash flow of $44 million, a notable rise. However, the same report revealed a $16.8 million net loss for the quarter, a reversal from the $12.9 million net income in the previous year. Management expects operating cash flow to reach $60 million or more in fiscal 2027, but guidance shows a significant decline in revenue, projecting $1.35 billion to $1.45 billion, a 14% decrease from the previous year. The company's healthcare services segment, which includes SelectRx pharmacy, generated $845 million in revenue, up 14% despite inflation reduction act drug pricing changes. The segment's annualized adjusted EBITDA run rate is nearly $50 million, almost double the $25 million produced in the full year. Management anticipates further margin expansion as more prescriptions go through their Olathe facility, which has seen a 30% efficiency improvement. Additionally, SelectQuote has identified $30 million in annualized savings from AI-enabled enrollment tools and workflow automation. However, the company's fiscal 2027 guide projects a decline in Medicare Advantage approved policies, dropping 10% to 15%. Senior segment revenue dropped 4% in fiscal 2026, partly due to a major carrier partner reducing its marketing spending. The Inflation Reduction Act will continue to pressure Healthcare Services revenue through fiscal 2027. SelectQuote carries $800 million in debt and preferred equity, resulting in $45 million in annual cash interest. Despite the challenges, hedge fund ownership has increased, and short interest remains low. The stock trades at a forward price-to-earnings ratio of 66.67, reflecting expectations of future earnings growth.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}