Q1 2026 SelectQuote Inc Earnings Call

Speaker #2: Welcome to select Coach first quarter earnings conference call . All lines have been on mute to prevent any background noise . After the speakers remarks , there will be a question and answer session .

Speaker #2: If you would like to ask a question during this time , simply press star , followed by the number one on your telephone keypad .

Speaker #2: If you would like to withdraw your question , press the pound key . It is now my pleasure to introduce Matthew Gunter SelectQuote, Inc. investor Relations .

Speaker #2: Mr. Gunter , you may begin the conference .

Speaker #3: Thank you and

Speaker #3: good morning , placed everyone . Welcome to SelectQuote, Inc. fiscal first 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 .

Speaker #3: 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 .

Speaker #3: Following Tim and Ryan's comments today , we will have a question and answer session . As referenced on slide two . During this call , we will be discussing some non-GAAP financial measures .

Speaker #3: 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 .

Speaker #3: And 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 .

Speaker #3: Annual Report on Form 10-K for the period ended June 30th , 2025 and subsequent 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 .

Speaker #3: And with that , I'd like to turn the call over to our chief Executive Officer , Tim Danker . Tim .

Speaker #4: Thank you . Matt , and thanks to our investors and analysts joining us this morning . Picking up from the momentum of a strong fiscal 2025 SelectQuote, Inc. executed well over the first quarter and is well positioned for a successful fiscal 2026 .

Speaker #4: Beginning with the headline results , we generated consolidated revenue of $329 million , which represents 13% growth over the same period a year ago , driven by strong growth in healthcare services .

Speaker #4: As you saw in our press release , the year over year senior revenue compare was unique . This period , given the changes to beneficiary eligibility requirements during the special election period .

Speaker #4: Specifically , our senior revenues were 59 million , compared to 93 million a year ago . The decline was driven by lower policy production , which was expected given the new SCP parameters .

Speaker #4: We foreshadowed on last quarter's call . Additionally , as also forecasted last quarter , the segment recognized negative EBITDA of 21 million in the first quarter , driven by the combination of lower policy production as well as increased year over year investment and new agent hiring and advance of ADP .

Speaker #4: I'll speak more to our readiness for ADP in a moment , but the high level takeaway is that our senior business performed as expected .

Speaker #4: And what was a unique year over year compare for SCP and our healthcare services business , our new Kansas facility is ramping as planned , delivering efficiency gains in line with .

Speaker #4: However , first quarter healthcare services EBITDA was impacted by a change in drug reimbursement rates , with a select PBM partner . This is a headwind for our one Q and two Q healthcare Services EBITDA margin without providing detail on the contract , it's important to call out from the perspective of the PBM , the change in reimbursement rate expectations volume shipped over calendar year 2025 , not just fiscal one , Q or to Q .

Speaker #4: The change does not impact our prior period results , but instead disproportionately impacts the first half of this fiscal year . By approximately 20 million .

Speaker #4: The majority of that impact will be recognized at our fiscal second quarter as a result , we now expect second quarter adjusted EBITDA for healthcare services to be approximately breakeven .

Speaker #4: We are actively negotiating a longer term reimbursement agreement with this carrier that creates better visibility for both parties . We have communicated our need for stability in our financials .

Speaker #4: The timing of this impact following our initial 2026 outlook is a clear example of that need . We're confident we'll reach a mutually beneficial agreement as this PBM partner recognizes the compelling clinical value provided by select RX , which I'll speak to later in my remarks .

Speaker #4: Regardless of the ongoing negotiation with this , PBM rates , per our current contract , revert to more normalized levels on January 1st , 2026 , which underpins our updated fiscal 26 view .

Speaker #4: While we no longer anticipate reaching our $50 million target for fiscal 26 , our confidence in visibility in the long term economics of healthcare services are unchanged .

Speaker #4: Despite the two . Q impact . We plan to exit the fiscal year at an annualized EBITDA run rate , and the 40 to $50 million range , and continue to see select RX and healthcare services as a meaningful driver of profit and cash flow for SelectQuote, Inc. .

Speaker #4: Speaking now at the consolidated level , quarterly EBITDA of -32 million was below our guided 25 to $30 million loss range communicated on the last call due to the select RX margin dynamics .

Speaker #4: I just spoke about , senior EBITDA was within expectations for the quarter and our views on the upcoming AP season are unchanged . If we turn to slide four , I'll detail those views for AEP beginning at the top of the page .

Speaker #4: Let me start with our view of the overall industry . As you recall from last year , shifts in plan benefits and structures from carriers drove an elevated amount of policyholder volatility .

Speaker #4: Looking ahead to this year's selling season, we see a similar backdrop where carriers continue to prioritize Medicare Advantage margins over aggregate policy growth.

Speaker #4: The importance of a well fit policy has never been more important to both the carrier and the policyholder . Select data enabled agent LED model is specifically built for that purpose , which we believe is a lasting competitive advantage and one that is especially acute in this environment .

Speaker #4: Coincidentally , we expect the ongoing strategic shift by carriers to drive another elevated year of policy terminations . As we noted last year , these industry trends drive an increased need for the solutions .

Speaker #4: Select what provides both for the carrier and certainly for the policyholder . Additionally , we see certain pockets of growth within health plans this season , including HMOs , SNPs , and specific underserved geographies which are model is uniquely well positioned to help if we move to the bottom of the slide .

Speaker #4: Let me give our outlook for how SelectQuote, Inc. positioned to perform this Medicare Advantage season . Looking back , the 2025 AEP season exceeded expectations .

Speaker #4: Our high touch , data driven model proved its value in a dynamic market where policyholder questions and confusions were elevated , and that environment , our agile agent led approach delivered outsized growth per agent .

Speaker #4: A near record margins in the senior segment . For the 2026 AEP and Oep seasons , we're optimistic that performance will be strong .

Speaker #4: We entered the season with excellent retention of tenured agents who were about twice as productive as new hires and had another successful preseason of hiring and training .

Speaker #4: This positions the platform well for continued growth and improved operating leverage . Moving to our focus on retention . We know carrier plan changes can drive confusion , and we have made a strategic priority to proactively work with policyholders to ensure they understand their plans .

Speaker #4: This is a differentiated approach that is highly appreciated by policyholders . In the upcoming year , we expect tangible benefits to our results from both keeping policyholders in plans that remain a good fit or helping them find a new plan that best fits their ongoing needs .

Speaker #4: In fact , we believe there's an opportunity to improve policyholder recapture rates from the 2025 season . We believe our agile sales function and focus on retention positioned to once again deliver in what is , to be sure , another dynamic and disruptive AEP season on slide five , let's add some context on selector and the way our customers and carrier partners benefit .

Speaker #4: As we've talked about since the inception of the business , there are substantial problems and inefficiencies and how prescription drugs are paid for , distributed and ultimately taken by Americans .

Speaker #4: As an efficient healthcare information hub has significant insight and ability to eliminate inefficiency and improve the experience for all participants in the prescription drug value chain .

Speaker #4: At the highest level, Select RX improves lives for Americans, introduces efficiency and cost savings into the system, and leads to better health outcomes.

Speaker #4: Here , we provide a few examples . Beginning on the left with improved Mar retention , given medication is a core piece of most treatment regimens to fit a prescription drugs within a medical coverage plan has a synergistic benefit .

Speaker #4: We have seen this evidence with select RX members . We tend to have lower rapid disenrollment rates and higher retention on the Medicare Advantage plans .

Speaker #4: They select . Next is improved medication adherence in the middle column . Our approach recognizes a fundamental reality of patient care . Medications change .

Speaker #4: Unlike the traditional 90 day bottle filled approach , prevalent elsewhere , we utilize adherence friendly 30 day packaging with a high touch service model .

Speaker #4: This monthly cycle is critical because , on average , roughly 10% of our select members experience a material change to their prescription regimen each month .

Speaker #4: Whether it's adding a new medication , discontinuing an old one , or adjusting the dosage . When a patient's therapy changes , a 90 day supply creates a dangerous gap and an unnecessary drug waste .

Speaker #4: Our 30 day approach more quickly ensures that patients are taking the correct current medications , which is vital . This reduces the risk of patients taking incorrect doses or discontinued medications , and lowers the risk of adverse drug reactions .

Speaker #4: It is well known that taking medication in accordance with the doctor's orders is critical . As we know , especially with American seniors , drug adherence is a tricky and persistent problem which can lead to worse health outcomes , particularly among the polychronic population .

Speaker #4: We serve . Nearly 70% of whom have limited pharmacy access . Nationwide study suggests that poor medication adherence contributes to around 25% of all hospitalizations , which translates to hundreds of billions of dollars in healthcare costs in the United States each year .

Speaker #4: Around 40% of our health select members have reported either forgetting to take their medications or failing to pick up prescriptions from a pharmacy .

Speaker #4: We designed our with this specific problem in mind and have seen clear success in adherence rates . We attribute the success to the convenience and clarity that select our custom drug delivery provides patients .

Speaker #4: When we enroll patients in select RX , we see a meaningful improvement and their active medication adherence over the next two years . With our new concierge like program , we call adherence for all , we are further accelerating and enhancing medication adherence improvement with beneficiaries in the program's improving by roughly 10% within the first year .

Speaker #4: Finally , the right hand column is the most rewarding statistic improvement in health outcomes , which benefits everyone within the ecosystem by improving adherence .

Speaker #4: Select our members . See a reduction in hospital days of around 20% . This directly translates to a better quality of life for the patient , but additionally provides a meaningful cost reduction for the overtaxed healthcare system .

Speaker #4: And similarly for healthcare insurance payers , we provide this color not just because we're proud of the business , but it is important for investors to understand that these numbers matter to our insurance carrier partners .

Speaker #4: They , like us , see select our and our healthcare services platform as a core value driver for long term American healthcare improvement .

Speaker #4: With that , let me turn the call over to our CFO to detail our results . Ryan . Thanks , Tim . On slide six .

Speaker #4: the .

Speaker #5: Business executed well in the fiscal first quarter , advancing our strategic priorities across senior healthcare services and life . Even as we navigated the near-term reimbursement challenge within our consolidated revenue grew 13% to $329 million , primarily by our select and life insurance business , which helped offset the unique comparison in senior related to CP .

Speaker #5: The fundamentals of our senior business are unchanged . We wrote 32% fewer policies in this year's fiscal first quarter compared to last year .

Speaker #5: Similarly , first quarter EBITDA is not directly comparable to the prior year due to the new CEP environment and our normal upfront investments .

Speaker #5: To prepare for the upcoming AEP and Oep seasons . If we shift the slide seven , our senior financial results again show the impact from CEP .

Speaker #5: The results were in line with our expectations . And again , our function of lower policy production because of new eligibility rules and the normal course of investment we make before the AEP and Oep season .

Speaker #5: I will reiterate that this level of value was as expected , the impact can be seen primarily in our segment revenue , which declined 37% to $59 million due to the 32% fewer policies .

Speaker #5: Our senior EBITDA loss of 21 million was in line with our expectations , given the production and investment dynamics . I just spoke about .

Speaker #5: Ltvs have remained relatively stable despite increased policyholder volatility in the past year , coming in at an average of 883 for the last 12 months .

Speaker #5: We are now operating at a revenue decline , acquisition cost of 6.4 x , which continues to exhibit synergy of our marketing spend against very attractive and durable cash flow streams for SelectQuote, Inc. .

Speaker #5: If we flip the slide eight , I'll review the dynamics underlying our health care services results . Members held steady compared to last quarter , in line with expectations given the first fiscal quarter is typically a slower one for onboarding .

Speaker #5: Select Rex members . We feel well positioned to capitalize on the AUP and open enrollment seasons . That being said , we continue to focus on driving profit and cash flow over aggregate member growth .

Speaker #5: As Tim highlighted , the primary factor impacting first quarter results was the change in the reimbursement structure with one of our selector partners .

Speaker #5: As a result , fiscal 2026 will ramp more gradually than we initially anticipated . We expect the rate pressure to crest in our fiscal second quarter before we revert to a more normalized rate structure .

Speaker #5: With this PBM starting January 1st of 2026 , which is our fiscal third quarter . Despite this near-term pressure , our medium and long term outlook for expanding operating leverage and improving margins in healthcare services remains intact .

Speaker #5: To reiterate , Tim's point , this partner understands the clinical value hour selector solution brings to patients , and as such , we are in constructive discussions to solidify our longer term rate structure .

Speaker #5: We believe this new arrangement will provide enhanced visibility and predictability for our growing selector business . Healthcare services continues to be a highly attractive driver of profit and cash flow for SelectQuote, Inc. .

Speaker #5: The value we deliver to customers through selector X , combined with strong attachment rates in our senior Medicare Advantage business , remains central to our strategy .

Speaker #5: This approach supports increasing cash flows , which benefits shareholders through improved cost of capital and more self-funded growth . Let's shift to slide nine to detail our life insurance business .

Speaker #5: The quarter was a strong one for growth as revenues expanded nearly 20% , driven by balanced growth in term life . And final expense policies .

Speaker #5: The lack of pull through to our EBITDA is shown at the right was also driven indirectly by the changes to this year's SVP .

Speaker #5: As part of our preparations for the season , we shifted agents to our life business . Given our expectation for less volume during SVP period , the results for our life business was a near term increase in expenses related to production in the quarter , we expect this trend to reverse as the season progresses and agents are reallocated and new agents specifically become more tenured in life as a whole .

Speaker #5: The life business continues to provide another steady stream of profit and efficient cash flow , similar to our healthcare services business . In closing , we are pleased with the results from each of our divisions and SelectQuote, Inc. overall position for the year ahead .

Speaker #5: The senior business is well prepared for AEP , supported by strong agent retention and a successful preseason healthcare services continues on its strong growth trajectory and our life division is driving consistent , reliable cash flow at this time .

Speaker #5: We are not changing our fiscal 2020 financial outlook of 1.65 to 1.75 billion in revenue and 120 to 150 million in adjusted EBITDA , while the healthcare services adjustment is a headwind , we plan to update our outlook following our fiscal second quarter , as we will have additional detail on the AEP period for a senior business .

Speaker #5: That said , we remain confident today that we will be operating cash flow positive during fiscal year 2026 . With that , I'll turn the call over to the operator for Q&A .

Speaker #2: Thank you . We will now begin our question and answer session . Your first question comes from Ben Hendrix of RBC Capital Markets .

Speaker #2: Your line is now open .

Speaker #6: Hi , it's Michael Murray on for Ben on select . You seem to believe the reimbursement headwinds can be contained in 2025 . What gives you gives you comfort that rates will improve next year .

Speaker #6: And is there a potential that you see a similar reimbursement headwind at the end of next year?

Speaker #4: Mike good morning . Thank you for the question . I appreciate your attendance , Eric . Just to provide a little bit more context on on what we mentioned in our prepared remarks , we did have one PBM that made some adjustments to the drug reimbursement rates .

Speaker #4: Despite this change , the PBM remains profitable with a very strong relationship with them . We're in the midst of updating our agreement , as we shared with the market today .

Speaker #4: They see what we see an immense amount of clinical value that our SR solution provides patients . And as such , we're . In constructive discussions with them to solidify a longer term agreement and rate structure .

Speaker #4: So we are absorbing , you know , a short term impact in Q1 , Q2 , but the long term economics remain very attractive .

Speaker #4: They don't change our perspective on growth or margin profile . We , you know , as we work towards this new agreement , we will provide enhanced visibility and predictability into the growing business .

Speaker #6: Okay . I appreciate that . Just shifting gears a little bit , I appreciate the commentary that selector has improving Ma member retention .

Speaker #6: Could this have . A potential positive impact on LTV and how much data would you need to see before building that into LTV calculation ?

Speaker #6: Thanks .

Speaker #4: Yeah . I mean , we .

Speaker #7: Do . Yeah . So we do see a improvement in the overall persistency when someone is a member of select or and has a Medicare advantage plan .

Speaker #7: So we do see that we don't actually build that into the lifetime values themselves . So we're not booking that increase . But it's absolutely something we're observing .

Speaker #8: Yeah . And really quick to follow that up . Just as a reminder , it's not a huge attachment rate right . It's a very specific cohort of customers .

Speaker #8: So not a massive overall impact but a positive .

Speaker #6: All right . That's helpful . Thank you .

Speaker #2: Shen comes from Pat McCann from Noble Capital Markets . Your line is now open .

Speaker #9: Hey , thanks for taking my questions . First I was I was wondering with regards to what you mentioned about helping policyholders understand their plans better to to focus more on retention .

Speaker #9: Could you talk a little bit more about what that looks like in practice ?

Speaker #4: Yeah , I'd be happy to to Pat . Good morning . I'd be happy to start . And maybe I'll ask Bill Grant , our chief operating officer , to expand on it .

Speaker #4: But obviously , you know , last season was a very disruptive AEP Oep season . We are really proud of our team's efforts and the service we provided beneficiaries .

Speaker #4: I mean , just for perspective , this year , nationwide , about 2 million Ma beneficiaries are going to be impacted by plan terms or plan exits in another , you know , several million that are having pullbacks in benefits .

Speaker #4: So helping beneficiaries , protecting our back book of business is a priority . We've taken several actions , several learnings from last year .

Speaker #4: And and feel like we've got a jump start on it . But Bill , maybe you can provide some additional detail on our approach .

Speaker #8: Yeah ,

Speaker #10: Happy to . So I think that our approach evolves every year we learn a lot in terms of how we use AI . Our center , all the different , all the data we have in terms of how we approach our book .

Speaker #10: And then we marry that right with how the plans are changing , right ? Because it's an ever evolving environment . But we believe that we have a really good strategy to continue to offer our value proposition to to consumers as we move along , and that we're , you know , targeting or talking to the right folks , that , you that need our help .

Speaker #10: And , you know , you can really see that play out in kind of our year over year number in terms of the number of folks that were recapturing , you know , what it looks like in terms of how that strategy plays out .

Speaker #10: But we're really using every tool in our arsenal . But I think the the biggest thing that we have going for us by far is our long data history , along with marrying that with our different AI strategies that allow us to be as cost effective as we can on who we treat , when we treat them .

Speaker #10: All of those things .

Speaker #9: Excellent . Thank you . My next question was regarding the the recent research you published on the social determinants of health . And I was wondering if you know how that is informing your strategy in terms of potential new offerings in the healthcare services segment , how you are leveraging that data going forward ?

Speaker #8: Yeah , I'll actually started and then I'm going to have . Together on on what we do to solve those problems . I'd say at a at first and foremost , we just want to understand our customer base better and better .

Speaker #8: That's really informed . The products that we've picked from the healthcare side of the house . That's how we found select was , was folks need for a better solution than they were currently on to save them time .

Speaker #8: You and money . And then ultimately help them adhere better . I think though , there's also products within the actual sdoh space that we're looking at that would help folks afford their daily needs better .

Speaker #8: And to really look at the actual membership side of the house . So do you want to speak to the membership side and ultimately kind of what we're trying to do to solve sdoh issues on top of just traditional healthcare issues , because we kind of break those things apart .

Speaker #10: Yeah , sure . So , you know , as you know , you know , we have over 2.5 million healthcare select members , health care select membership involves a a fairly robust health risk assessment where we determine through that health risk assessment , social determinants of health and what services may be applicable and help with our overall charter with that group .

Speaker #10: Right . Which is improving their overall health lives . You know , all those things . So we have a variety of products within that .

Speaker #10: Now . It's ever expanding again . We use a combination of kind of AI next best action . Are , you know , consumer data , tech tools , right .

Speaker #10: To be able to talk to those customers . We've now helped over 50,000 taken our services through find help or Sdoh . You know , we have a number of products there and we're expanding quickly .

Speaker #10: But we feel really good about our value proposition of our membership . And that just helps our overall engagement with with healthcare . Select .

Speaker #9: Thanks , gentlemen . I appreciate it . I'll hop back in the queue .

Speaker #2: Question comes from George Sudden from Greg Cullum capital Group . Your line is now open .

Speaker #11: Hey guys . Good morning . This is Logan on for George . Thanks for taking the question . I wanted to start with just kind of a high level one on AEP .

Speaker #11: You touched on it a little bit . Kind of talking about the similarities to last year , but I was hoping you could characterize a little bit more kind of anything you're seeing in the market different relative to last year .

Speaker #4: Hey , good morning Logan . I'll start and ask Bob Grant or president to to elaborate as well . Early in the season .

Speaker #4: But we are we're pleased with performance thus far as we've shared before . It is certainly a dynamic AEP season given some of the profit actions taken by the carriers to get their margins in line , we're seeing that play out .

Speaker #4: We are seeing a very high level of consumer engagement as a beneficiaries are out evaluating options . We would share that , you know , we think both our new agents as well as our tenured agents are performing very well within expectations .

Speaker #4: And as Bill shared , you know , we've been spending a lot of time also working on our back book of customers to ensure that they understand all of their options , but thus far , you know , the AEP environment is what we expected .

Speaker #4: It's still very early , but we feel very , very prepared in the early days . You know , a lot more innings to play out .

Speaker #4: Bob , do you want to talk about some of the things you're seeing kind of more broadly in the market ?

Speaker #8: Yeah , I think we're just seeing another year of kind of pullback from certain carriers to Tim's point and push forward from others , which does , you know , cause some switching .

Speaker #8: I think the difference this year , though , is that every carrier pulled back to a certain degree , as you guys have kind of heard them talk about , to really focus on profitability , which does create a lot of of calls and education , which we feel really , really good about , kind helping people understand how to use their plan .

Speaker #8: A lot of healthcare services , benefits and things that we're doing . So I'd say it's just a little bit of a unique environment relative to other years .

Speaker #8: But probably more similar to last year than any year we had seen prior . And we do like some of the simplification of benefits .

Speaker #8: I think HMOs typically are really good plan for a customer , easy to understand , easier to cost , contain , and then ultimately sometimes while ancillary benefits can be good , they can be a little bit confusing .

Speaker #8: So pulling back on those to simplifies offerings . And I think really helps the payers . So we feel really , really good about where AEP is going .

Speaker #8: And where the plans are , especially from a multi-year view . I do think payers are really , really focused on making sure that's profitable into the long run .

Speaker #11: Got it . That's helpful . And then maybe switching over to selector . Obviously you guys have shown the ability to grow that business more recently talked about kind of focusing on the profitability .

Speaker #11: Can you just talk about how you plan to manage the growth or manage the funnel kind of through the busier quarters here we .

Speaker #11: Probably have more opportunities to grow , but it sounds like you're kind of looking for the right members . If you could just talk about that , that'd be helpful .

Speaker #4: Maybe you can talk about the our member growth , and I'll highlight one other item . Go ahead . Bob .

Speaker #8: Yeah , sure . So as far as member growth , we've been very I think we've been very measured on that as we talked about before .

Speaker #8: We're very focused on profitability and members that that need us , the service the most mixed with PBMs and payers that that appreciate the service the most .

Speaker #8: I know that sounds funny , but just like in value based care or any other thing , we have a closer partnership with some payers than we do others .

Speaker #8: And we are very focused on how we expand the clinical aspect of that business . We announced earlier our adherence for all program .

Speaker #8: We have quite a few participants who are very curious about that program because it speeds up. Tim alluded to how fast we improve adherence.

Speaker #8: That speeds it up by , you know , multiple months and is a very powerful program from a stars perspective and other things .

Speaker #8: So we are very focused on that . I do think the market is still massive for us . Right ? It is a very big need , and I think the more and more we have quality conversations with payers and PBMs , the better and better kind of results we get .

Speaker #8: Even with the short term headwind that we've seen . You know , ultimately , as Tim alluded to , that's still a great relationship .

Speaker #8: And we've had a lot of really good discussions about how we can get to a really stable yet powerful contract that's that really focuses on the clinical aspect of that .

Speaker #8: Go ahead , Tim .

Speaker #4: Yeah , I think it's a great points , Bob . I would say again , none of this changes our underlying conviction and the massive opportunity ahead of us .

Speaker #4: We think this is a very powerful model , certainly for the patients who shared a lot around the clinical value . It's important to that patient .

Speaker #4: It's important to the payer . You know , obviously , you know , we're working through a very short term reimbursement issue . We have our arms around it .

Speaker #4: We don't anticipate anything of this magnitude happening again . You know , we're we're we're confident in our ability to , you know , continue to work with all of our PBM partners , given the massive value that we see here .

Speaker #4: And we're , you know , we're we're confident in our ability . We feel like we have very strong line of sight into the business .

Speaker #4: And a strong level of conviction around the go forward of this business .

Speaker #11: Got it . Well , thanks for taking the questions and I'll hop back in the queue .

Speaker #2: Concludes our Q&A session . I will now turn the conference back over to Tim Danker , CEO , for closing remarks .

Speaker #4: Thank you . We want to thank everybody for joining us today . We're really proud of the start to fiscal 26 . The strong execution , despite navigating a dynamic environment this past quarter , the entire organization is very well positioned for another successful AEP and Oep season .

Speaker #4: And we plan to leverage our competitive advantages as a healthcare ecosystem across the entirety of our business . It's early days , but we're very encouraged by AP results thus far , and we look forward to sharing more about the season and our strategy on our next earnings call .

Speaker #4: We want to thank you again . Have a great day .