MeritValue

SelectQuote, Inc.

SLQTdata completeness 100%8 fiscal years on file
The thesis, from the filings

SelectQuote, Inc. earns about 2% on invested capital, but has diluted owners by 10% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$930M1$764M2$1B3$1.32B3$1.53B3
Net income$124.9M4−$297.5M5−$58.5M6−$34.1M6$47.6M6
Operating cash flow−$115.4M7−$338.3M8−$19.4M9$15.2M9−$11.7M9
Capital expenditure$14.9M10$24.8M11$1.45M12$3.38M12$2.19M12
Free cash flow (derived)−$130.3M7−$363.1M8−$20.8M9$11.9M9−$13.9M9
Total debt$922.8M13$1.41B14$1.4B15$1.37B16$770.2M16
Cash & equivalents$286.5M17$141M18$83.2M19$42.7M20$32.4M20
Diluted shares165.5M164.0M166.1M168.5M181.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$19.3
your share of equity
Profit it earned you last year
$2.62
Free cash flow it threw off
−$0.76
Debt you’d be carrying
$42.34

10 shares is a claim on $19.3 of net worth that earned you $2.62 and generated −$0.76 of cash last year, against $42.34 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
2% avg · 5y
FY21 11%FY22 -16%FY23 1%FY24 3%FY25 12%

It earned an average 2% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+10% shares · 5y

Share count is up 10% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 17% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$0.66
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-06-30 · accession 0001794783-23-000099 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-06-30 · accession 0001794783-24-000061 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-06-30 · accession 0001794783-25-000081 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-06-30 · accession 0001794783-23-000099 (NetIncomeLoss)
  5. 10-K · period ending 2022-06-30 · accession 0001794783-24-000061 (NetIncomeLoss)
  6. 10-K · period ending 2023-06-30 · accession 0001794783-25-000081 (NetIncomeLoss)
  7. 10-K · period ending 2021-06-30 · accession 0001794783-23-000099 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-06-30 · accession 0001794783-24-000061 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-06-30 · accession 0001794783-25-000081 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-06-30 · accession 0001794783-23-000099 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-06-30 · accession 0001794783-24-000061 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-06-30 · accession 0001794783-25-000081 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-06-30 · accession 0001794783-22-000067 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-06-30 · accession 0001794783-23-000099 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-06-30 · accession 0001794783-24-000061 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-06-30 · accession 0001794783-25-000081 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-06-30 · accession 0001794783-22-000067 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-06-30 · accession 0001794783-23-000099 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-06-30 · accession 0001794783-24-000061 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-06-30 · accession 0001794783-25-000081 (CashAndCashEquivalentsAtCarryingValue)