MeritValue

SelectQuote, Inc.

SLQTdata completeness 100%9 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'; no data for concept 'realEstateImpairment'

The thesis, from the filings

SelectQuote, Inc. earns about 2% on invested capital, but has diluted owners by 15% 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 2022FY 2023FY 2024FY 2025FY 2026
Revenue$764M1$1B2$1.32B3$1.53B3$1.62B3
Net income−$297.5M4−$58.5M5−$34.1M6$47.6M6$62.2M6
Operating cash flow−$338.3M7−$19.4M8$15.2M9−$11.7M9$31.9M9
Capital expenditure$24.8M10$1.45M11$3.38M12$2.19M12$4.28M12
Free cash flow (derived)−$363.1M7−$20.8M8$11.9M9−$13.9M9$27.6M9
Total debt$1.41B13$1.4B14$1.37B15$770.2M16$740.3M16
Cash & equivalents$141M17$83.2M18$42.7M19$32.4M20$16M20
Diluted shares164.0M166.1M168.5M181.9M188.2M

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
$18.7
your share of equity
Profit it earned you last year
$3.3
Free cash flow it threw off
$1.47
Debt you’d be carrying
$39.34

10 shares is a claim on $18.7 of net worth that earned you $3.3 and generated $1.47 of cash last year, against $39.34 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
2% avg · 5y
FY22 -16%FY23 1%FY24 3%FY25 12%FY26 9%

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
+15% shares · 5y

Share count is up 15% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 48% — 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 v0.5.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$11.9M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$11.9M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-06-30 · accession 0001794783-24-000061 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-06-30 · accession 0001794783-25-000081 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-06-30 · accession 0001794783-26-000057 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-06-30 · accession 0001794783-24-000061 (NetIncomeLoss)
  5. 10-K · period ending 2023-06-30 · accession 0001794783-25-000081 (NetIncomeLoss)
  6. 10-K · period ending 2024-06-30 · accession 0001794783-26-000057 (NetIncomeLoss)
  7. 10-K · period ending 2022-06-30 · accession 0001794783-24-000061 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-06-30 · accession 0001794783-25-000081 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-06-30 · accession 0001794783-26-000057 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0001794783-24-000061 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-06-30 · accession 0001794783-25-000081 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-06-30 · accession 0001794783-26-000057 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-06-30 · accession 0001794783-23-000099 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-06-30 · accession 0001794783-24-000061 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-06-30 · accession 0001794783-25-000081 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2025-06-30 · accession 0001794783-26-000057 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2022-06-30 · accession 0001794783-23-000099 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-06-30 · accession 0001794783-24-000061 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-06-30 · accession 0001794783-25-000081 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-06-30 · accession 0001794783-26-000057 (CashAndCashEquivalentsAtCarryingValue)