OVERLAND PARK, Kansas, August 25, 2026, 16:00 EDT — SelectQuote (SLQT) shares slumped 30% after the company projected lower-than-anticipated revenues for 2027, deepening its struggle to close the gap with the $1 minimum required for continued listing.
- Shares of SelectQuote ended Tuesday down 30.4% at $0.5402.
- At the midpoint, fiscal 2027 revenue guidance came in 19.5% under the consensus estimate.
- The stock would require an 85.1% increase to meet the NYSE’s $1 minimum.
Shares of SelectQuote, Inc. NYSE:SLQT dropped 30.4% to $0.5402 on Tuesday after the company reported quarterly revenue below forecasts and executives projected a more limited operation for fiscal 2027. Trading volume hit 9.46 million shares, nearly nine times higher than its 20-day average.
The decline wiped around $41 million from the company’s quoted equity value. More significantly, it deepened an ongoing listing issue: the closing price stood 46.0% under the New York Stock Exchange’s $1 threshold.
SelectQuote was notified by the NYSE of a deficiency in March. Shares require an 85.1% increase from Tuesday’s close to reach $1. Companies listed on the exchange are offered a cure period, in accordance with exchange requirements and an approved compliance plan.
Revenue in the fourth quarter declined 7% to $321.7 million, coming in $31.7 million, or 9.0%, under the consensus estimate of $353.4 million. The company posted a net loss of $16.8 million, compared with a net profit of $12.9 million in the same period last year.
| Measure | Reported / guided | Comparison |
|---|---|---|
| Q4 revenue | $321.7 million | 7% lower than the prior year; 9.0% under consensus |
| Q4 adjusted EBITDA | $11.9 million | $2.7 million reported in the previous year |
| FY2027 revenue | $1.35 billion-$1.45 billion | Midpoint stands 12.5% under FY2026 |
| FY2027 adjusted EBITDA | $90 million-$115 million | Midpoint is 6.0% less than in FY2026 |
| FY2027 free cash flow | About $50 million | Management’s new objective |
The revised outlook prompted a reset in valuation. SelectQuote’s revenue midpoint of $1.40 billion stands 19.5% under the $1.74 billion consensus estimate and 12.5% lower than revenue for fiscal 2026. The forecast indicates a year-over-year decline between about 9% and 16%.
Management is prioritizing cash generation over boosting sales growth. Chief Executive Tim Danker stated, “we expect full-year 2027 operating cash flow to approximately double to over $60 million.” The company is also forecasting free cash flow of roughly $50 million and annual technology-enabled savings exceeding $30 million. Company statement
The performance varied across business segments. Revenue from the senior segment decreased by 12%, and approved Medicare Advantage policies were down 15%. Membership at SelectRx grew by 1% with a 3.5% rise in daily prescriptions, but Healthcare Services revenue registered a 10% decline.
Margins increased even as sales declined. Adjusted EBITDA for the fourth quarter climbed to $11.9 million from $2.7 million. Adjusted EBITDA for the Life segment was up 41%, although revenue remained almost unchanged.
Operating cash flow for fiscal 2026 rose by $43.6 million to reach $31.9 million. However, balance sheet challenges persist. SelectQuote disclosed approximately $370.2 million in current and long-term debt, along with preferred stock with a $423.2 million liquidation preference.
| Analyst / measure | Rating | Target | Date |
|---|---|---|---|
| Craig-Hallum | Buy | $3.00 | February 6, 2026 |
| RBC Capital | Hold | $5.00 | November 20, 2025 |
| Jefferies | Hold | $2.00 | November 10, 2025 |
| Four-analyst consensus | Buy | $3.06 average | August 25, 2026 snapshot |
The mean price target of $3.06 suggests a potential gain of 466.5% from Tuesday’s closing price. This unusually large gap highlights outdated targets, limited analyst coverage, and a market price factoring in risks related to execution and financing.
Risks: The cash-flow strategy may aid in a recovery if savings are realized swiftly. However, weaker Medicare demand, loss of pharmacy customers, or slower-than-expected efficiency gains would strain liquidity. Shares remaining under $1 would prolong the NYSE compliance concern.
Investors will now look to see if SelectRx prescription growth translates into the anticipated cash flow. The $1 mark serves as a clear benchmark before the operating strategy is completely validated.
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