Q4 2026 SelectQuote Inc Earnings Call

August 25, 2026

Operator 2: Welcome to SelectQuote's Q4 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, please press star 1 again. It is now my pleasure to introduce Matt Gunter, SelectQuote Investor Relations. Mr. Gunter, you may begin the conference.

Operator: Welcome to SelectQuote's Q4 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, please press star 1 again. It is now my pleasure to introduce Matt Gunter, SelectQuote Investor Relations. Mr. Gunter, you may begin the conference.

Speaker #1: If you would like to ask a question during this time, simply press * followed by the number 1 on your telephone keypad. If you would like to withdraw your question, please press *1 again.

Speaker #1: It is now my pleasure to introduce Matt Gunter, SelectQuote Investor Relations. Mr. Gunter, you may begin the conference.

Speaker #2: Thank you, and good morning, everyone. Welcome to SelectQuote's fiscal Q4 earnings call. Before we begin our call, I would like to mention that we have provided a slide presentation on our website to help guide our discussion.

Matt Gunter: Thank you, and good morning, everyone. Welcome to SelectQuote's fiscal Q4 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. 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. Following Tim and Ryan's comments today, we will have a question and answer session. As referenced on slide 2, during this call, we will be discussing some non-GAAP financial measures. 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. Finally, a reminder that certain statements made today may be forward-looking statements.

Speaker #2: After today's call, a replay will also be available on our website. Joining me from the company are our Chief Executive Officer, Tim Danker, and Chief Financial Officer, Ryan Clement.

Speaker #2: Following Tim and Ryan's comments today, we will have a question-and-answer session. As referenced on slide 2, during this call, we will be discussing some non-GAAP financial measures.

Speaker #2: 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 #2: 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.

Matt Gunter: 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, annual report on Form 10-K for the period ended 30 June 2026, 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. With that, I'd like to turn the call over to our Chief Executive Officer, Tim Danker. Tim?

Speaker #2: And therefore involve a number of uncertainties and risks, including, but not limited to, those described in our earnings release, annual report on Form 10-K for the period ended June 30, 2026, and subsequent filings with the SEC.

Speaker #2: 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. And with that, I'd like to turn the call over to our Chief Executive Officer, Timothy Danker.

Speaker #2: Tim?

Speaker #3: Thank you, Matt, and thanks to everyone joining us this morning. Before we begin, I'd like to start with what we believe is the most important takeaway from today's call.

Tim Danker: Thank you, Matt, and thanks to everyone joining us this morning. Before we begin, I would like to start with what we believe is the most important takeaway from today's call. SelectQuote's highest priority continues to be driving profitable cash flow, and our fiscal 2026 results demonstrate meaningful progress against that objective. As you will hear throughout our remarks, we are managing the business with a focus on cash generation and leverage reduction, which we believe is the best way to create long-term shareholder value. We believe the platform we have built is capable of generating substantially more cash flow over time, and we are beginning to see that potential translate into tangible results. Looking towards the future, we expect the Medicare Advantage industry to remain fluid as our carrier partners continue to rightsize and get closer to their own operating margin targets.

Speaker #3: SelectQuote's highest priority continues to be driving profitable cash flow, and our fiscal 2026 results demonstrate meaningful progress against that objective. As you'll hear throughout our remarks, we're managing the business with a focus on cash generation and leverage reduction.

Speaker #3: Which we believe is the best way to create long-term shareholder value. We believe the platform we've built is capable of generating substantially more cash flow over time, and we are beginning to see that potential translate into tangible results.

Speaker #3: Looking towards the future, we expect the Medicare Advantage industry to remain fluid as our carrier partners continue to rightsize and get closer to their own operating margin targets.

Speaker #3: As a result, in fiscal '27, we will be prudent with our MA growth investments, while our primary focus will be to grow and compound our cash flow.

Tim Danker: As a result, in fiscal 2027, we will be prudent with our MA growth investments while our primary focus will be to grow and compound our cash flow. Meanwhile, we reached an inflection point in fiscal 2026 with the Healthcare Services division becoming SelectQuote's largest revenue contributor, and we anticipate increasing cash flow and earnings power from that business in fiscal 2027. Beyond fiscal 2027, we firmly believe SelectQuote is well-positioned to grow both our Senior and Healthcare Services revenues, which will further accelerate cash flow generation. Now moving to our recent performance. SelectQuote delivered a strong Q4 in what has been a highly successful fiscal year for our company. As you know, 2026 was another challenging year for Medicare Advantage as carriers shifted policy benefits and had widely varying origination volumes.

Speaker #3: Meanwhile, we reached an inflection point in fiscal 2026, with the Healthcare Services division becoming SelectQuote's largest revenue contributor. And we anticipate increasing cash flow and earnings power from that business in fiscal 2027.

Speaker #3: Beyond fiscal 2027, we firmly believe SelectQuote is well-positioned to grow both our Senior and Healthcare Services revenues, which will further accelerate cash flow generation.

Speaker #3: Now moving to our recent performance. SelectQuote delivered a strong Q4 in what has been a highly successful fiscal year for our company. As you know, 2026 was another challenging year for Medicare Advantage, as carriers shifted policy benefits and had widely varying origination volumes.

Speaker #3: In healthcare services, we successfully managed a shift in reimbursement rates from a select Rx payer partner and changes in drug pricing from the Inflation Reduction Act.

Tim Danker: In Healthcare Services, we successfully managed a shift in reimbursement rate from a SelectRx payer partner and changes in drug pricing from the Inflation Reduction Act. Through it all, we modestly grew revenue, maintained strong margins, and significantly increased operating cash flow. Looking ahead, our highest priority is to realize value for our shareholders, which, as I mentioned, is best achieved through cash flow. To be blunt, we see a wide disconnect in the value of our shares relative to the real cash flow generation of our platform. I will end today's prepared remarks with more detail on that point, but I will reiterate that we see fiscal 2027 as a real inflection point for compounding cash flow growth and the value of our equity. Turning to slide 3, I want to frame fiscal 2026 around the key areas where SelectQuote made the most meaningful progress.

Speaker #3: Through it all, we modestly grew revenue, maintained strong margins, and significantly increased operating cash flow. Looking ahead, our highest priority is to realize value for our shareholders through cash flow.

Speaker #3: To be blunt, we see a wide disconnect in the value of our shares relative to the real cash flow generation of our platform. I'll end today’s prepared remarks with more detail on that point, but I'll reiterate that we see fiscal 2027 as a real inflection point for compounding cash flow growth and the value of our equity.

Speaker #3: Turning to slide 3, I want to frame fiscal 2026 around the key areas where SelectQuote made the most meaningful progress. First, in healthcare services, SelectRx continued to prove the earnings power of its scaled membership base, producing approximately $25 million of adjusted EBITDA for the year, while exiting at nearly a $50 million annual run rate in Q4.

Tim Danker: First, in Healthcare Services, SelectRx continued to prove the earnings power of its scaled membership base, producing approximately $25 million of adjusted EBITDA for the year while exiting at nearly $50 million annual run rate in the Q4. This is an important milestone for a business we built essentially from scratch over the past several years, and we believe there is still meaningful room to grow profitably as we continue to drive operating leverage across the platform. Second, our Senior business remained highly profitable despite another dynamic Medicare Advantage environment. The business generated adjusted EBITDA margins of 26%, which we believe reflects the durability of our model, the strength of our carrier relationships, and the efficiency of our agent-led, technology-enabled distribution platform. Third, most importantly, we delivered more than $40 million of year-over-year improvement in operating cash flow.

Speaker #3: This is an important milestone for a business we built essentially from scratch over the past several years, and we believe there is still meaningful room to grow profitably as we continue to drive operating leverage across the platform.

Speaker #3: Second, our Senior business remained highly profitable despite another dynamic Medicare Advantage environment. The business generated adjusted EBITDA margins of 26%, which we believe reflects the durability of our model, the strength of our carrier relationships, and the efficiency of our agent-led, technology-enabled distribution platform.

Speaker #3: And third, most importantly, we delivered more than $40 million of year-over-year improvement in operating cash flow. As I mentioned before, that cash flow progress is central to the story we're telling investors today.

Tim Danker: As I mentioned before, that cash flow progress is central to the story we are telling investors today. We have been very clear that our priority is not simply growth for growth's sake, but profitable growth that compounds into stronger cash generation, lower leverage, and ultimately greater equity value for shareholders. To emphasize the point, it is important to remember that there is significant cash flow scale, both in our billion-dollar-plus commissions receivable balance, which we grew in fiscal 2026, and our scaling Healthcare Services platform. As we increase operating efficiency and reduce costs, the equity accretion of compounding cash flow will become increasingly powerful. When we look back on fiscal 2026, we see a year where the model worked well and our teams executed yet again.

Speaker #3: We have been very clear that our priority is not simply growth for growth's sake, but profitable growth that compounds into stronger cash generation, lower leverage, and ultimately greater equity value for shareholders.

Speaker #3: To emphasize the point, it is important to remember that there is significant cash flow scale both in our billion-dollar-plus commissions receivable balance, which we grew in fiscal 2026, and our scaling healthcare services platform.

Speaker #3: As we increase operating efficiency and reduce costs, the equity accretion of compounding cash flow will become increasingly powerful. So, when we look back on fiscal '26, we see a year where the model worked well and our teams executed yet again.

Speaker #3: We navigated industry complexity, delivered value for customers and partners, and took a meaningful step forward in translating the underlying earnings power of SelectQuote into visible cash flow.

Tim Danker: We navigated industry complexity, delivered value for customers and partners, and took a meaningful step forward in translating the underlying earnings power of SelectQuote into visible cash flow. Now let me turn to slide 4 on how SelectQuote is driving value and cash flow through our ongoing effort to maximize operating efficiency. As part of our fiscal 2027 planning process, we identified more than $30 million of annualized run rate expense improvement across the business. Importantly, these benefits are the result of a combination of actions, including AI and technology-enabled efficiencies, process improvements, organizational rightsizing, and prudent cost management. Today, I would like to double-click on a few of the technology-enabled efficiencies we are capturing. As you know, SelectQuote was founded with a clear view that technology and information are critical for operating efficiency and the value we deliver to our customers.

Speaker #3: Now, let me turn to slide 4 and discuss how SelectQuote is driving value and cash flow through our ongoing effort to maximize operating efficiency. As part of our fiscal 2027 planning process, we identified more than $30 million of annualized run-rate expense improvement across the business.

Speaker #3: Importantly, these benefits are the result of a combination of actions, including AI and technology-enabled efficiencies, process improvements, organizational rightsizing, and prudent cost management. Today, I’d like to double-click on a few of the technology-enabled efficiencies we’re capturing.

Speaker #3: As you know, SelectQuote was founded with a clear view that technology and information are critical for operating efficiency and the value we deliver to our customers.

Speaker #3: Our investments in technology and data increasingly help us improve both efficiency and customer outcomes. Across the business, we are deploying AI-enabled enrollment support tools that help us flex capacity with demand.

Tim Danker: Our investments in technology and data increasingly help us improve both efficiency and customer outcomes. Across the business, we are deploying AI-enabled enrollment support tools that help us flex capacity with demand. This ensures we preserve valuable agent talk time and allow our highly trained live agents to do their most valuable work. We have also streamlined agent workflows through sales assist technology, and we will expand the use of AI-powered quality assurance tools to review and coach our agents. We are also automating revenue generation processes and leveraging internally developed technology to increase efficiency within both our senior and pharmacy businesses. These initiatives reduce manual work, improve scalability, and help generate meaningful cost savings while optimizing the high level of service our customers expect. Additionally, as discussed on our Q3 call, during fiscal 2026, we built, deployed, tested, and are now leveraging our new custom-built pharmacy management system.

Speaker #3: This ensures we preserve valuable agent talk time and allow our highly trained live agents to do their most valuable work. We've also streamlined agent workflows through sales-assist technology and will expand the use of AI-powered quality assurance tools to review and coach our agents.

Speaker #3: We're also automating revenue generation processes and leveraging internally developed technology to increase efficiency within both our Senior and Pharmacy businesses. These initiatives reduce manual work, improve scalability, and help generate meaningful cost savings, while optimizing the high level of service our customers expect.

Speaker #3: Additionally, as discussed on our Q3 call during fiscal 2026, we built, deployed, tested, and are now leveraging our new custom-built pharmacy management system. This system not only enables streamlined day-to-day pharmacy operations, but also provides the technical infrastructure we need to continue to process more scripts through our new state-of-the-art Olathe, Kansas, facility.

Tim Danker: This system not only enables streamlined day-to-day pharmacy operations, but also provides the technical infrastructure we need to continue to process more scripts through our new state-of-the-art Olathe, Kansas facility. In this facility, we are already recognizing around 30% efficiency gains on shipments relative to our two legacy locations. This is yet another way we are leading the market, given that US healthcare system demands increasing efficiency, and you can see that with the improvement in our Kansas facility. The challenge for most operators in our industry has been trying to balance speed and efficiency with services that fit the individual customer and drive value. There are some that do one or the other, but in our view, only SelectQuote succeeds at both. These initiatives build on a long history of incremental operational improvements across the company.

Speaker #3: In this facility, we are already recognizing around 30% efficiency gains on shipments relative to our two legacy locations. This is yet another way we are meeting the market, given that U.S.

Speaker #3: Healthcare system demands are increasing efficiency, and you can see that with the improvement in our Kansas facility. The challenge for most operators in our industry has been trying to balance speed and efficiency with services that fit the individual customer and drive value.

Speaker #3: There are some that do one or the other, but in our view, only SelectQuote succeeds at both. These initiatives build on a long history of incremental operational improvements across the company.

Speaker #3: While the over $30 million of savings reflects actions already taken or underway, we believe our technology platform positions us to capture incremental savings over the next several years, as automation, data analytics, and workflow optimization become increasingly embedded across our operations.

Tim Danker: While the over $30 million of savings reflects actions already taken or underway, we believe our technology platform positions us to capture incremental savings over the next several years as automation, data analytics, and workflow optimization become increasingly embedded across our operations. We are seeing that technology is allowing us to further unlock the value of our core assets. The success you see in both our Senior and Healthcare Services businesses begins and ends with real conversations between real people. We have a long track record of these conversations and earning the trust of America's seniors who give us unmatched insights into their needs. We firmly believe our scale, and increasingly our technology, are exceptionally valuable assets that will continue to broaden our competitive advantage and allow us to meet the needs of America's seniors as they navigate the complex healthcare environment.

Speaker #3: We are seeing that technology is allowing us to further unlock the value of our core asset. The success you see in both our Senior and Healthcare Services businesses begins and ends with real conversations between real people.

Speaker #3: We have a long track record of these conversations and earning the trust of America's seniors, which gives us unmatched insights into their needs. We firmly believe our scale and, increasingly, our technology are exceptionally valuable assets that will continue to broaden our competitive advantage and allow us to meet the needs of America's seniors as they navigate the complex healthcare environment.

Speaker #3: These factors are not only allowing us to serve them better but also powerfully contribute ongoing leverage to our cash flows. With that, let me turn the call over to our CFO, Ryan Clement, to review our financials.

Tim Danker: These factors are not only allowing us to serve them better, but also powerfully contribute ongoing leverage to our cash flows. With that, let me turn the call to our CFO, Ryan Clement, to review our financials. Ryan?

Speaker #3: Ryan?

Speaker #2: Thanks, Tim. I will begin on slide 5 with our consolidated financial results for the fourth quarter and fiscal year 2026. As Tim mentioned, our results reflect strong execution across the business and continued progress against our goal of driving profitable cash flow.

Ryan Clement: Thanks, Tim. I will begin on slide 5 with our consolidated financial results for Q4 and fiscal year 2026. As Tim mentioned, our results reflect strong execution across the business and continued progress against our goal of driving profitable cash flow. For the full year, revenue totaled $1.62 billion up 6% year-over-year and within our guidance range. Adjusted EBITDA was $109 million, finishing well ahead of our guidance range of $90 to $100 million. Most importantly, the business made substantial progress on operating cash flow, which we will touch on later. For Q4, revenue was $322 million compared to $345 million in the prior year. Adjusted EBITDA increased to $12 million compared to $3 million last year.

Speaker #2: For the full year, revenue totaled $1.62 billion, up 6% year-over-year and within our guidance range. Adjusted EBITDA was $109 million, finishing well ahead of our guidance range of $90 to $100 million.

Speaker #2: Most importantly, the business made substantial progress on operating cash flow, which we will touch on later. For the fourth quarter, revenue was $322 million, compared to $345 million in the prior year.

Speaker #2: Adjusted EBITDA increased to $12 million, compared to $3 million last year. That fourth quarter improvement reflects the operating discipline we have emphasized throughout the year, including actions to improve efficiency, manage costs, and focus resources behind the areas of the business with the clearest path to durable cash generation.

Ryan Clement: That Q4 improvement reflects the operating discipline we have emphasized throughout the year, including actions to improve efficiency, manage costs, and focus resources behind the areas of the business with the clearest path to durable cash generation. The key message is that SelectQuote exited fiscal 2026 with a more efficient operating model and a clear path to expanding cash flow again in fiscal 2027. We remain focused on profitable growth, not simply top-line growth, and we are managing the business with that framework in mind. Before I detail our segments, let me first call out SelectQuote's improvement in operating cash flow on slide 6. As Tim noted, we realized a $44 million year-over-year improvement, which was driven by progress within each of our divisions. In Senior, we delivered strong operating results despite a challenging market backdrop.

Speaker #2: The key message is that SelectQuote exited fiscal 2026 with a more efficient operating model and a clear path to expanding cash flow again in fiscal 2027.

Speaker #2: We remain focused on profitable growth, not simply top-line growth, and we are managing the business with that framework in mind. Before I detail our segments, let me first call out SelectQuote's improvement in operating cash flow on slide 6.

Speaker #2: As Tim noted, we realized the $44 million year-over-year improvement, which was driven by progress within each of our divisions. In Senior, we delivered strong operating results despite a challenging market backdrop.

Speaker #2: Similarly, in fiscal 2026, we generated more operating cash flow for SelectRx members than we ever have, driven by both operating scale from our Olathe, Kansas distribution facility, but also from a maturing member base.

Ryan Clement: Similarly, in fiscal 2026, we generated more operating cash flow per SelectRx member than we ever have, driven by both operating scale from our Olathe, Kansas distribution facility, but also from a maturing member base. Lastly, our life insurance business, while smaller, continues to deliver strong cash flows. Turning to slide 7, our Senior business remained highly profitable despite another dynamic Medicare Advantage environment. Senior revenue declined 4% compared to last year, totaling $576 million. In addition to another volatile season for Medicare Advantage, part of the reduction in revenue was tied to a change in a key carrier partner's strategic marketing investment. Despite this headwind, we were still able to drive very strong margins. In fact, the Senior segment generated a 26% adjusted EBITDA margin for the full year.

Speaker #2: Lastly, our life insurance business, while smaller, continues to deliver strong cash flows. Turning to Slide 7, our Senior business remained highly profitable despite another dynamic Medicare Advantage environment.

Speaker #2: Senior revenue declined 4% compared to last year, totaling $576 million. In addition to another volatile season for Medicare Advantage, part of the reduction in revenue was tied to a change in a key carrier partner's strategic marketing investment.

Speaker #2: Despite this headwind, we were still able to drive very strong margins. In fact, the Senior segment generated a 26% adjusted EBITDA margin for the full year.

Speaker #2: As Tim noted, we have now recorded four consecutive years with senior margins in the mid-20% range, which demonstrates the durability of the business and the strength of our agent-led, technology-enabled distribution platform.

Ryan Clement: As Tim noted, we have now recorded four consecutive years with Senior margins in the mid 20% range, which demonstrates the durability of the business and the strength of our agent-led, technology-enabled distribution platform. The Medicare Advantage market continues to evolve, and we expect carrier strategies and benefit designs to remain important variables. As we've said in the past, growth in our Senior business is a choice, and the engine we've built is ready when the markets support a return to responsible growth. While we've started to see green shoots of a turnaround within the MA market, our expectation is that this upcoming AEP will remain dynamic. Moving to slide 8, the Healthcare Services segment continues to generate scaled revenue and is making meaningful progress on profitability.

Speaker #2: The Medicare Advantage market continues to evolve, and we expect carrier strategies and benefit designs to remain important variables. As we've said in the past, growth in our senior business is a choice, and the engine we've built is ready when the markets support a return to responsible growth.

Speaker #2: While we've started to see green shoots of a turnaround within the MA market, our expectation is that this upcoming AEP will remain dynamic. Moving to slide 8, the Healthcare Services segment continues to generate scale revenue and is making meaningful progress on profitability.

Speaker #2: As previously forecasted, membership moderated in the fourth quarter to 109,000 as we continue to focus on members that receive the largest benefit from our services while producing the best unit economics.

Ryan Clement: As previously forecasted, membership moderated in the Q4 to 109,000 as we continue to focus on members that receive the largest benefit from our services while producing the best unit economics. Looking ahead, we expect members to moderate again in the Q1 leading up to the AEP selling season, but to finish 2027 around 2026 levels. To be clear, demand remains very strong, but we continue to focus on driving further improvements in segment profitability. Additionally, it is important to remember that Healthcare Services membership growth is synergistic with Medicare Advantage policyholder onboarding. As Tim noted, improvements in that market should serve as a tailwind for SelectRx's membership growth in future seasons. While members remain flat year over year in fiscal 2026, total revenue in Healthcare Services totaled $845 million, up 14% compared to full year 2025.

Speaker #2: Looking ahead, we expect members to moderate again in the first quarter, leading up to the AEP selling season, but to finish 2027 around 2026 levels.

Speaker #2: To be clear, demand remains very strong, but we continue to focus on driving further improvements in segment profitability. Additionally, it is important to remember that Healthcare Services membership growth is synergistic with Medicare Advantage policyholder onboarding.

Speaker #2: As Tim noted, improvements in that market should serve as a tailwind for SelectRx membership growth in future seasons. While members remain flat year-over-year in fiscal 2026, total revenue in Healthcare Services totaled $845 million, up 14% compared to the full year 2025.

Speaker #2: This growth was achieved despite the impact from the Inflation Reduction Act, which went into effect on January 1, 2026, and hit the third quarter and fourth quarter of this year.

Ryan Clement: This growth was achieved despite the impact from the Inflation Reduction Act, which went into effect on 1 January 2026, and hit Q3 and Q4 of this year. I'll touch on the implications for 2027 during my guidance commentary. Moving to the bottom of the slide, the Healthcare Services business is scaling into a more profitable operating model, driven increasingly by further utilization of our Kansas distribution facility and our prescription management systems. For the full year, the business delivered $25 million of adjusted EBITDA, effectively all of which converts to cash. You'll recall that our Q1 and Q2 results were affected by the reimbursement renegotiation with one of our PBM partners, which we have called out here in the chart.

Speaker #2: I'll touch on the implications for 2027 during my guidance commentary. Moving to the bottom of the slide, the healthcare services business is scaling into a more profitable operating model, driven increasingly by further utilization of our Kansas distribution facility and our prescription management systems.

Speaker #2: For the full year, the business delivered $25 million of adjusted EBITDA, effectively all of which converts to cash. You will recall that our first-quarter and second-quarter results were affected by the reimbursement renegotiation with one of our PBM partners, which we have called out here in the chart.

Speaker #2: Also, as a reminder, while the Inflation Reduction Act drives the material reduction in revenue, it does not materially impact EBITDA given the geography of reimbursements that SelectRx has on the P&L.

Ryan Clement: Also, as a reminder, while the Inflation Reduction Act drives a material reduction in revenue, it does not materially impact EBITDA, given the geography of reimbursements that Select Directs on the P&L. The most important takeaway for this slide is that Healthcare Services exited fiscal 2026 at an annual EBITDA run rate of nearly $50 million. Although we expect EBITDA to moderate in the first quarter as we make investments in preparation for the AEP and OEP enrollment season, we feel this EBITDA performance reflects continued execution across the member base and the early contribution from efficiency initiatives across the pharmacy platform. We are particularly focused on continued efficiency gains in our Kansas Select Direct facility. As we increase utilization and continue to advance our pharmacy management system, we believe Healthcare Services can contribute even more meaningfully to the profitability and cash flow over time.

Speaker #2: The most important takeaway for this slide is that Healthcare Services exited fiscal 2026 at an annual EBITDA run rate of nearly $50 million. Although we expect EBITDA to moderate in the first quarter as we make investments in preparation for the AEP and OEP enrollment seasons, we feel this EBITDA performance reflects continued execution across the member base, and the early contribution from efficiency initiatives across the pharmacy platform.

Speaker #2: We are particularly focused on continued efficiency gains in our Kansas SelectRx facility. As we increase utilization and continue to advance our pharmacy management system, we believe healthcare services can contribute even more meaningfully to profitability and cash flow over time.

Speaker #2: Turning to Life on slide 9, the business delivered $186 million of revenue, up 8% year-over-year. The business generated adjusted EBITDA of $27 million for the year, which, we remind everyone, is highly cash efficient.

Ryan Clement: Turning to Life on slide 9, the business delivered $186 million of revenue, up 8% year over year. The business generated adjusted EBITDA of $27 million for the year, which we remind everyone is highly cash efficient. We are pleased with these results but remain measured in our outlook. While our final expense business continues to perform nicely, the term life insurance market remains competitive and customer acquisition costs are worth monitoring. As a result, we continue to focus on disciplined execution and profitable growth rather than assuming the strong trends we have seen recently will continue uninterrupted. Lastly, let me conclude with our financial outlook for fiscal 2027. Starting with revenue, we are guiding to consolidated revenue of $1.35 to $1.45 billion in 2027, 14% below 2026 levels at the midpoint. This reduction is driven by factors in both Senior and Healthcare Services.

Speaker #2: We are pleased with these results, but remain measured in our outlook. While our final expense business continues to perform nicely, the term life insurance market remains competitive, and customer acquisition costs are worth monitoring.

Speaker #2: As a result, we continue to focus on disciplined execution and profitable growth, rather than assuming the strong trends we've seen recently will continue uninterrupted.

Speaker #2: Lastly, let me conclude with our financial outlook for fiscal 2027. Starting with revenue, we are guiding to consolidated revenue of $1.35 to $1.45 billion in 2027.

Speaker #2: 14% below 2026 levels at the midpoint. This reduction is driven by factors in both Senior and Healthcare Services. In Senior, as we noted, we expect 2027 to be a transition year for Medicare Advantage carriers.

Ryan Clement: In Senior, as we noted, we expect 2027 to be a transition year for Medicare Advantage carriers. As a result, we are being prudent with our investment with a greater focus on Senior profitability and cash flow over growth. We expect this will result in MA-approved policies declining 10% to 15% year over year. In Healthcare Services, we expect revenue to be down 10% to 15%, primarily due to the Inflation Reduction Act. The IRA will create year over year revenue headwinds throughout fiscal 2027, including particularly noisy comparisons in the first half of the year. To reiterate Tim's comment about the platform, SelectQuote is well-positioned to grow both businesses in the future, but will purposely remain disciplined in 2027 to drive profit and cash flow. Turning to adjusted EBITDA, we are guiding to a range of $90 to $115 million for 2027.

Speaker #2: As a result, we are being prudent with our investment, with a greater focus on senior profitability and cash flow over growth. We expect this will result in MA-approved policies declining 10% to 15% year-over-year.

Speaker #2: In Healthcare Services, we expect revenue to be down 10% to 15%, primarily due to the Inflation Reduction Act. The IRA will create year-over-year revenue headwinds throughout fiscal 2027, including particularly noisy comparisons in the first half of the year.

Speaker #2: To reiterate Tim's comment about the platform, SelectQuote is well positioned to grow both businesses in the future, but will purposely remain disciplined in 2027 to drive profit and cash flow.

Speaker #2: Turning to adjusted EBITDA, we are guiding to a range of $90 to $115 million for 2027. While down year-over-year on a dollar basis, the midpoint reflects consolidated margin expansion of about 60 basis points.

Ryan Clement: While down year over year on a dollar basis, the midpoint reflects consolidated margin expansion of about 60 basis points. We expect Senior margins will be strong, coming down from 2026 levels, but remain above our 20% target. This will be more than offset by our expectations that Healthcare Services margins will approximately double in 2027. We expect the efficiency gains to be driven by continuing to scale our pharmacy management system in Kansas as an increasingly higher percentage of our scripts are routed through this facility in 2027. Finally, we are introducing an operating cash flow guide for the upcoming year. Despite the top-line pullback we discussed, we expect SelectQuote to approximately double operating cash flow in fiscal 2027 to $60 million plus.

Speaker #2: We expect senior margins will be strong, coming down from 2026 levels but remaining above our 20% target. This will be more than offset by our expectations that healthcare services margins will approximately double in 2027.

Speaker #2: We expect the efficiency gains to be driven by continuing to scale our pharmacy management system in Kansas, as an increasingly higher percentage of our scripts are routed through this facility in 2027.

Speaker #2: Finally, we are introducing an operating cash flow guide for the upcoming year. Despite the top-line pullback we discussed, we expect SelectQuote to approximately double operating cash flow in fiscal 2027 to $60 million-plus.

Speaker #2: We also believe the business will generate free cash flow of around $50 million, which is aligned with our strategic priority to demonstrate meaningful and compounding value for shareholders.

Ryan Clement: We also believe the business will generate free cash flow of around $50 million, which is aligned with our strategic priority to demonstrate meaningful and compounding value for shareholders. With that, let me turn the call over to Tim to drill down on that strategy before we take your questions. Tim?

Speaker #2: With that, let me turn the call over to Tim to drill down on that strategy before we take your questions. Tim?

Speaker #3: Thanks, Ryan. We wanted to close with additional context on our most important strategic priority: cash flow. As I mentioned in my opening, we're pleased with the durability of returns we've built into our business.

Tim Danker: Thanks, Ryan. We wanted to close with additional context on our most important strategic priority, cash flow. As I mentioned in my opening, we are pleased with the durability of returns we have built into our business. This is evidenced by our performance over the past four years. In senior, we have high conviction that our model can execute in a range of Medicare Advantage environments. In Healthcare Services, we are excited about the inflection occurring and expect our scale to drive significant profit contribution in 2027 and beyond. While we are pleased with the business performance, I will reiterate that we are not satisfied with our valuation and want to be clear about our plan to drive shareholder returns. We know our credit partners see the value of our platform and our current $1 billion-plus commissions receivable balance. That said, we know equity investors want to see expanding cash flow creation and lower leverage.

Speaker #3: This is evidenced by our performance over the past four years. In Senior, we have high conviction that our model can execute in a range of Medicare Advantage environments.

Speaker #3: In Healthcare Services, we're excited about the inflection occurring and expect our scale to drive significant profit contribution in 2027 and beyond. While we're pleased with the business performance, I'll reiterate that we're not satisfied with our valuation and want to be clear about our plan to drive shareholder returns.

Speaker #3: We know our credit partners see the value of our platform and our current $1 billion-plus commissions receivable balance. That said, we know equity investors want to see expanding cash flow creation and lower leverage.

Speaker #3: As we show here, we believe fiscal 2027 will see a $44 million improvement made in fiscal 2026. As Ryan mentioned, we expect operating cash flow in 2027 to approximately double compared to fiscal 2026, and for the business to generate free cash flow of around $50 million in the year ahead.

Tim Danker: As we show here, we believe fiscal 2027 will be another strong year following the $44 million improvement made in fiscal 2026. As Ryan mentioned, we expect operating cash flow in 2027 to approximately double compared to fiscal 2026 and for the business to generate free cash flow of around $50 million in the year ahead. What isn't shown here is how a growing base of operating and free cash flow can compound. As you know, we continue to work to optimize our balance sheet and believe we are well-positioned to reduce our funding costs more meaningfully in the future. Today, our debt and preferred equity total around $800 million at a cost of approximately 12%. We pay annual cash interest of approximately $45 million in addition to our preferred equity dividend.

Speaker #3: What isn't shown here is how a growing base of operating and free cash flow can compound. As you know, we continue to work to optimize our balance sheet and believe we are well-positioned to reduce our funding costs more meaningfully in the future.

Speaker #3: Today, our debt and preferred equity total around $800 million, at a cost of approximately 12%. We pay annual cash interest of approximately $45 million, in addition to our preferred equity dividend.

Speaker #3: For illustration, every 100 basis point decrease in that overall funding cost would equate to nearly $8 million of savings that accretes to equity holders.

Tim Danker: For illustration, every 100 basis point decrease in that overall funding cost would equate to nearly $8 million of savings that accretes to equity holders. Similarly, we expect to reduce aggregate leverage in the future, both through debt repayment and expanding EBITDA. The bottom line is we see significant value in SelectQuote and believe there is a real and observable roadmap to grow our equity and generate attractive returns for shareholders. The North Star of our strategy is to grow our equity base through expanding cash flow. We will achieve this through operating efficiency, responsible growth, lower leverage, and reduced funding costs. Best of all, is the more cash flow we create, the more cash efficient SelectQuote becomes. 2026 was a great year of inflection for our strategy, and we believe fiscal 2027 presents an even greater opportunity to demonstrate our value to shareholders.

Speaker #3: Similarly, we expect to reduce aggregate leverage in the future, both through debt repayment and by expanding EBITDA. The bottom line is, we see significant value in SelectQuote and believe there is a real and observable roadmap to grow our equity and generate attractive returns for shareholders.

Speaker #3: The North Star of our strategy is to grow our equity base through expanding cash flow. We will achieve this through operating efficiency, responsible growth, lower leverage, and reduced funding costs.

Speaker #3: Best of all, the more cash flow we create, the more cash efficient SelectQuote becomes. 2026 is a great year of inflection for our strategy, and we believe fiscal '27 presents an even greater opportunity to demonstrate our value to shareholders.

Speaker #3: With that, let me turn the call back to the operator for your questions.

Tim Danker: With that, let me turn the call back to the operator for your questions.

Speaker #1: We will now begin the question-and-answer session. If you would like to ask a question, please press star one to raise your hand.

Operator 2: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, please press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Ben Hendrix from RBC Capital Markets. Your line is open. Please go ahead.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, please press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Ben Hendrix from RBC Capital Markets. Your line is open. Please go ahead.

Speaker #1: To withdraw your question, please press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #1: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Ben Hendricks from RBC Capital Markets.

Speaker #1: Your line is open. Please go ahead.

Speaker #4: Great, thank you very much. Just a couple of questions on the Health Services segment. Can you talk about any opportunities you may have to grow membership outside of congruency with the senior business?

Ben Hendrix: Great. Thank you very much. Just a couple questions on the Healthcare Services segment. Can you talk about any kind of opportunities you might have to grow membership outside of kind of congruency with the Senior business? Are there opportunities? I know you guys are very focused on cross-selling those two segments, but is there an opportunity to look outside of the Senior and AEP trends, kind of given the softer dynamics in MA over the next year?

Speaker #4: Are there opportunities? I know you guys are very focused on cross-selling those two segments, but could we, is there an opportunity to look outside of the senior and AEP trends kind of given the softer dynamics in MA at this over the next year?

Speaker #5: Yeah. Ben, good morning. This is Tim. Thank you for joining. I'll make a few comments and ask Bob Grant to talk to some of your specifics.

Tim Danker: Yeah, Ben, good morning. This is Tim. Thank you for joining. I will make a few comments and ask Robert Grant to talk to some of your specifics. But again, really pleased with the inflection point in Q4 for our Healthcare Services business. You can see how this business is certainly picking up steam. As you indicated, there is a very synergistic relationship between our Senior platform and our Healthcare Services division, and given the small, kind of prudent pullback that we are making in the Senior division, given the market dynamics, that will have some pull-through impact to healthcare. Our current focus is really around driving operational efficiencies and some additional technology that we think will help us prove out the doubling of margins in healthcare that we mentioned.

Speaker #5: But again, really pleased with the inflection point in the fourth quarter for our Healthcare Services business. You can see how this business has certainly been picking up steam, as you indicated.

Speaker #5: There is a very synergistic relationship between our Senior platform and our Healthcare Services division. And given the small, kind of prudent pullback that we're making in the Senior division, given the market dynamics, that will have some pull-through impact to Healthcare.

Speaker #5: Our current focus is really around driving operational efficiencies and implementing some additional technology that we think will help us prove out the doubling of margins in healthcare that we mentioned.

Speaker #5: And to your point, we're still a small piece of the market and have opportunities outside just the pure-play relationship with seniors. Bob, if you want to comment on what we're doing there, I'd appreciate it.

Tim Danker: And to your point, we are still a small piece of the market and have opportunities outside just the pure-play relationship with seniors. Bob, if you want to comment on what we are doing there, I would appreciate it.

Speaker #4: Yeah, absolutely. So, Ben, to your point, right now, we have historically been—and are still—very focused on cross-selling with the mild pullback in Medicare.

Robert Grant: Yeah, absolutely. Ben, to your point, right now we have historically been and are still very focused on cross-selling with the mild pullback in Medicare. That is why not as much growth that we would expect on the top line or membership there. However, we are very focused on efficiency, replacing a lot of our technology, using AI to help assist and make things much faster and smoother and drop cost per shipment out the door so we can increase margins, especially on new membership and get there a lot quicker. You see that really reflected in the guide and what we saw in Q4, where we have nearly a $50 million run rate.

Bob Grant: Yeah, absolutely. Ben, to your point, right now we have historically been and are still very focused on cross-selling with the mild pullback in Medicare. That is why not as much growth that we would expect on the top line or membership there. However, we are very focused on efficiency, replacing a lot of our technology, using AI to help assist and make things much faster and smoother and drop cost per shipment out the door so we can increase margins, especially on new membership and get there a lot quicker. You see that really reflected in the guide and what we saw in Q4, where we have nearly a $50 million run rate.

Speaker #4: That's why there's not as much growth as we would expect on the top line, or in membership there. However, we are very, very focused on efficiency—replacing a lot of our technology, using AI to help assist and make things much faster and smoother, and dropping cost per shipment out the door so we can increase margins, especially on new membership and kind of get there a lot quicker.

Speaker #4: You see that really reflected in the guide and what we saw in the fourth quarter, where we have nearly a $50 million run rate.

Speaker #4: I would say, with that, this year we'll really, really hone in on that and use this kind of mild pullback in Medicare as an opportunity to really focus on the cash flow and efficiency of that business.

Robert Grant: I would say with that, this year we will really hone in on that, use this kind of mild pullback in Medicare as an opportunity to really focus on the cash flow and efficiency of that business. Then, yes, as we get even more efficient, it allows us to afford some CAC on the Rx side of the house and really allows us to start testing and learning on third parties and things like that, because there is a massive market opportunity beyond just what we do as a cross-sell within Medicare. But it does come at a little bit of a cost, right? So as we increase that margin, it allows us, again, to really lean into that.

Bob Grant: I would say with that, this year we will really hone in on that, use this kind of mild pullback in Medicare as an opportunity to really focus on the cash flow and efficiency of that business. Then, yes, as we get even more efficient, it allows us to afford some CAC on the Rx side of the house and really allows us to start testing and learning on third parties and things like that, because there is a massive market opportunity beyond just what we do as a cross-sell within Medicare. But it does come at a little bit of a cost, right? So as we increase that margin, it allows us, again, to really lean into that.

Speaker #4: And then, yes, as we get even more efficient, it allows us to afford some CAC on the RX side of the house and really allows us to start testing and learning on third parties and things like that, because there is a massive market opportunity beyond just what we do as a cross-sell within Medicare.

Speaker #4: But it does come at a little bit of a cost, right? So, as we increase that margin, it allows us again to really lean into that and find those sources, and test and vet.

Robert Grant: Find those sources and test and vet. So we are a little bit focused on both, but I would say this year, it is hyper-focused on increasing that margin and cash flow efficiency.

Bob Grant: Find those sources and test and vet. So we are a little bit focused on both, but I would say this year, it is hyper-focused on increasing that margin and cash flow efficiency.

Speaker #4: So we're a little bit focused on both, but I would say this year, it's hyper-focused on increasing that margin and cash flow efficiency. Appreciate that.

Ben Hendrix: Appreciate that. Just one more on kind of the integration of operations through the Kansas City facility. Can you remind us where that stands in terms of penetration in your total volume, where that could go, then ultimately what you would expect target margins for the segment to be once that's fully integrated?

Speaker #4: And just a little one more on kind of the integration of operations through the Kansas City facility. Can you remind us where that stands in terms of penetration and your total volume?

Speaker #4: Where could that go? And then ultimately, what would you expect target margins for the segment to be once that's fully integrated?

Speaker #3: Yeah. I'll let Ryan actually speak to the margins at the end. As far as integration, it's still a relatively small percentage of our overall volume because we're very focused on our new technologies and different things within that facility.

Robert Grant: Yeah. I will let Ryan actually speak to the margins at the end. As far as integration, it is still a relatively small percentage of our overall volume because we are very focused on kind of our new technologies and different things within that facility. As of this AEP, we would expect a huge percentage of our enrollments and overall members to move to Kansas City, which, as Tim said, is far more efficient and has higher margins than our other sites. We will then take those learnings and retrofit our other sites to make them more efficient and them better. So all those dollars too, as we decrease that cost per shipment out the door, increase those margins. It all falls to the bottom line, right? So it is a really exciting thing as we have seen the reality play out of Kansas City.

Bob Grant: Yeah. I will let Ryan actually speak to the margins at the end. As far as integration, it is still a relatively small percentage of our overall volume because we are very focused on kind of our new technologies and different things within that facility. As of this AEP, we would expect a huge percentage of our enrollments and overall members to move to Kansas City, which, as Tim said, is far more efficient and has higher margins than our other sites. We will then take those learnings and retrofit our other sites to make them more efficient and them better. So all those dollars too, as we decrease that cost per shipment out the door, increase those margins. It all falls to the bottom line, right? So it is a really exciting thing as we have seen the reality play out of Kansas City.

Speaker #3: And then, as of this AEP, we would expect a huge percentage of our enrollments and overall members to move to Kansas City, which, as Tim said, is far more efficient and has higher margins than our other sites.

Speaker #3: We'll then take those learnings and retrofit our other sites to make them more efficient and better. So all those dollars too, as we decrease that cost per shipment out the door, increase those margins.

Speaker #3: It all falls to the bottom line, right? So it's a really exciting thing, as we've seen the reality play out in Kansas City—as Tim says, about 30% more efficient than our other sites.

Robert Grant: As Tim said, it is about 30% more efficient than our other sites. So we know that there is a path there. Now it is just being very tactical on how we go and get that. We are very close. Again, this AEP, you will see a massive growth within the Kansas City facility. Ryan?

Bob Grant: As Tim said, it is about 30% more efficient than our other sites. So we know that there is a path there. Now it is just being very tactical on how we go and get that. We are very close. Again, this AEP, you will see a massive growth within the Kansas City facility. Ryan?

Speaker #3: So, we know that there's a path there. Now it's just being very tactical on how we go and get that. But we are very close. And again, this AEP, you'll see massive growth within the Kansas City facility. Ryan?

Speaker #2: Yeah. And with respect to the margins, obviously, we're at an inflection point. We had a really great quarter. We saw the step increase in terms of margin progression.

Ryan Clement: Yeah. With respect to the margins, obviously we are at an inflection point. We had a really great quarter. We saw the step increase in terms of margin progression. We talked about this coming year expecting margins to double on a year-over-year basis. Over the long term, we are still expecting low double-digit EBITDA margins. That is our long-term target for this segment. Obviously, efficiency gains both in Kansas City and other things that are on the horizon are all part of that story.

Speaker #2: And we've talked about this coming year, expecting margins to double on a year-over-year basis. Over the long term, we are still expecting low double-digit EBITDA margins.

Speaker #2: That's our long-term target for this segment. Obviously, efficiency gains—both in Kansas City and other things that are on the horizon—are all part of that story.

Speaker #4: Great. Thanks, guys.

Ben Hendrix: Great. Thanks, guys.

Speaker #1: Your next question comes from the line of George Sutton from Craig-Hallum. George, your line is now open.

Operator 2: Your next question comes

Operator: Your next question comes

Tim Danker: Thank you, Ben.

Operator 2: from the line of George Sutton from Craig-Hallum. George, your line is now open.

Operator: from the line of George Sutton from Craig-Hallum. George, your line is now open.

Speaker #2: Thank you. Hey, guys, my first question is around the MA market. You used a few adjectives like fluid, dynamic, and volatile, but you also mentioned green shoots that you're starting to see.

George Sutton: Thank you. Hey, guys. My first question is around the MA market. You used a few adjectives like fluid, dynamic, and volatile, but you also mentioned green shoots that you are starting to see. I wondered if you can give us an updated thought on carrier messaging that you are getting. You are obviously investing less this season, so just kind of curious, are we maintaining upside potential as the market turns? Any thoughts there would be helpful.

Speaker #2: I wondered if you can give us an updated thought on carrier messaging that you're getting. You're obviously investing less this season, so just kind of curious—are we maintaining upside potential if the market turns?

Speaker #2: Any thoughts there would be helpful.

Speaker #5: Hey, George. Appreciate you joining this morning and the question. Yeah, I think more broadly we are seeing a healing in the MA market. There has been year-over-year improvement, but there's still work to do.

Tim Danker: Hey, George, appreciate you joining this morning and the question. Well, I think more broadly, we are seeing a healing in the MA market. There has been year-over-year improvement, but there is still work to do. The payers are signaling to get to their 3% to 4% operating margin. There is more work that needs to happen, and we expect to see a lot of discipline in the market. That has been our conversations with carriers. Their MLRs are still elevated relative to historical norms, maybe better than forecasts, but higher than historical. A byproduct of that will be a continuation of some level of market disruption via plan terminations and benefit pullbacks. In our conversations, it feels like carrier dependent, that they are getting towards hopefully the later innings of this recovery and a reemergence to what we would call responsible or targeted growth in financial year 2028.

Speaker #5: The payers are signaling to get to their 3% to 4% operating margin, so there's more work that needs to happen. And we expect to see a lot of discipline in the market.

Speaker #5: That's been our conversations with carriers. Their MLRs are still elevated relative to historical norms—maybe better than forecast, but higher than historical. And a byproduct of that will be continuation of some level of market disruption via planned terminations and benefit pullbacks.

Speaker #5: In our conversations, it feels carrier-dependent, that they're getting towards, hopefully, the later stages of this recovery. And a re-emergence to what we would call responsible or targeted growth in planning for 2028. Certainly, things around special needs plans continue to be a focus for the payers—and one that we over-index to in our very line, too.

Tim Danker: Certainly, things around Special Needs Plans continue to be a focus for the payers and one that we over-index to and are very aligned to. So our current plan of action, as you heard from our comments, is to match the market in terms of prudence around MA growth, and continue to focus on cash flow. That was our indication around slightly lower policy volumes. But we will continue to be opportunistic around as we see opportunities. We are nimble, and I think we have proven that over the past four years. It has been honestly tough sledding, and we have produced mid-20s EBITDA margins for four years. We will be in position to do that again. We will be in position to react to the market if there is interesting opportunities.

Speaker #5: So our current plan of action, as you heard from our comments, is to match the market in terms of prudence around MA growth. That’s it, and continue to focus on cash flow.

Speaker #5: That was our indication around slightly lower policy volumes, but we will continue to be opportunistic as we see opportunities; we're nimble. And I think we've proven that over the past four years—it's been, honestly, tough sledding.

Speaker #5: And we've produced mid-20s EBITDA margins for four years. We'll be in position to do that again. We'll be in position to react to the market if there are interesting opportunities.

Speaker #5: But overall, the message is a resounding, enterprise-wide focus on cash flow—how that can accrete equity value to shareholders and improve our equity value.

Tim Danker: Overall, the message is a resounding enterprise-wide focus on cash flow, how that can accrete equity value to shareholders and improvement of our equity value.

Speaker #2: On the RX side, a couple of dynamics I just wanted to ask about. First, on the pricing impacts of the IRA, just so we fully understand—that went into effect in early '26?

George Sutton: On the SelectRx side, a couple of dynamics I just wanted to ask about. First, on the pricing impacts of the IRA, just so we fully understand. I understand that went into effect in early 2026, but how impactful, if you can quantify that? Ryan mentioned serving the customers that need us the most. What I read into that is those who have the most prescriptions and therefore are more profitable versus those who have limited needs. Can you just walk through how you are managing that relative to the growth of that segment?

Speaker #2: But how impactful is that, if you can quantify it? And then Ryan mentioned serving the customers that need us the most. What I read into that is those who have the most prescriptions and therefore are more profitable, versus those who have limited needs.

Speaker #2: Can you just walk through how you're managing that relative to the growth of that segment?

Tim Danker: Yes, sorry. On the IRA and the impact of that, it is obviously trying to push down cost to the overall consumer. There are some really tough dynamics on that because it puts a lot of pressure on the payers, and then puts pressure on the pharmacies from a revenue perspective. To Ryan's point, it does not put a lot of pressure on the pharmacies from an overall margin perspective.

Bob Grant: Yes, sorry. On the IRA and the impact of that, it is obviously trying to push down cost to the overall consumer. There are some really tough dynamics on that because it puts a lot of pressure on the payers, and then puts pressure on the pharmacies from a revenue perspective. To Ryan's point, it does not put a lot of pressure on the pharmacies from an overall margin perspective.

Speaker #4: Yes, sorry. On the IRA and the impact of that, it's obviously trying to push down costs for the overall consumer. There are some really tough dynamics with that because it puts a lot of pressure on the payers.

Speaker #4: And then puts pressure on the pharmacies from a revenue perspective, but to Ryan's point, doesn’t put a lot of pressure on the pharmacies from an overall margin perspective.

Speaker #4: So, the IRA, though, has introduced some things because the payer's cost for drugs has gone up so much, because they're eating a lot of that.

Robert Grant: The IRA, though, has introduced some things where because the payer's cost for drugs has gone up so much because they are eating a lot of that, they have changed some of the plan designs. That has been part of some of the impact of this kind of disruption, too, where they are introducing coinsurance for drugs and things like that. Those things that we had not really seen before. The IRA has ultimately, though, put a lot of pressure, I would say, in the front half of the year on the cost of drugs for consumers because of the insurance and those things. That will continue to be the case. Again, Ryan will talk about it. It does put pressure on our revenue, not our margins, though, which is why you see margin progression, but revenue pressure. Ryan?

Bob Grant: The IRA, though, has introduced some things where because the payer's cost for drugs has gone up so much because they are eating a lot of that, they have changed some of the plan designs. That has been part of some of the impact of this kind of disruption, too, where they are introducing coinsurance for drugs and things like that. Those things that we had not really seen before. The IRA has ultimately, though, put a lot of pressure, I would say, in the front half of the year on the cost of drugs for consumers because of the insurance and those things. That will continue to be the case. Again, Ryan will talk about it. It does put pressure on our revenue, not our margins, though, which is why you see margin progression, but revenue pressure. Ryan?

Speaker #4: They have changed some of the plan designs and that's been part of the that's been part of some of the impact of this kind of disruption too where they're introducing co-insurance for drugs and things like that.

Speaker #4: Those are things that we hadn't really seen before. So, the IRA has ultimately, I’d say, put a lot of pressure in the front half of the year on the cost of drugs for consumers, because of the co-insurance and those things.

Speaker #4: That will continue to be the case. And again, Ryan will talk about it. It does put pressure on our revenue, not our margins though, which is why you see margin progression, but revenue pressure.

Speaker #4: Ryan?

Speaker #2: Yeah. So with respect to—I mean, the way it works, the overarching cost to the consumer comes down. But we actually do receive, elsewhere in the cost of goods line item, a rebate back from manufacturers.

Ryan Clement: Yeah. With respect to, I mean, the way it works, the overarching cost to the consumer comes down. But we actually do receive, elsewhere in the cost of goods line item, a rebate back from manufacturers. Again, the impact at the top line is more meaningful than it is on the bottom line. As you mentioned, it went into effect calendar Q1, and so that has created some pressure. Certainly as we look to 2027, where you have kind of the wraparound impact of having the full year plus 2027 IRA drugs, we expect it to be a headwind to the top line. Again, it is less significant in terms of even a margin where we expect margins to actually double year over year. We are really, really pleased with the business's results and the cash generation both in 2027, but also what we see beyond 2027.

Speaker #2: So again, the impact at the top line is more meaningful than it is on the bottom line. As you mentioned, it went into effect calendar Q1.

Speaker #2: And so that's created some pressure. And certainly, as we look to 2027, where you've got kind of the wraparound impact of having the full year plus 2027 IRA drugs, we expect it to be a headwind to the top line.

Speaker #2: But again, it's less significant in terms of EBITDA margin, where we expect margins to actually double year over year. We're really, really pleased with the business's results and the cash generation, both in 2027 and what we see beyond 2027.

Speaker #2: So I thought the points on leverage reduction and the impact to your cash flows were pretty meaningful. Ryan, I'm just curious, what is a realistic assumption for leverage reduction?

George Sutton: I thought the points on leverage reduction and the impact to your cash flows being pretty meaningful. Ryan, I am just curious, what is a realistic assumption for leverage reduction? Is it just simply limited to the cash flows that you generate, or are there considerations around more aggressive use of the receivables balance or segment M&A? Anything like that?

Speaker #2: Is it simply limited to the cash flows that you generate, or are there considerations around more aggressive use of the receivables balance or segment M&A?

Speaker #2: Anything like that?

Speaker #3: Yeah. I mean, I think obviously we kind of—this is a key area for the business, and how do we reduce our overall cost of capital.

Ryan Clement: Yeah. I think, obviously, this is a key area for the business, and how do we reduce our overall cost of capital? I would say, there are a range of paths. But I think the one that is probably most prominent, obviously, is the significant progression in operating cash flow is our key area of focus. 2027, we have talked about $60 million-plus. We are not specifically guiding to 2028, but we see increasing levels of cash flow in our multi-year forecast, and we do expect to be a cash payer in terms of the PIC, but also see a path to delevering and a lower cost of capital via a future refinancing.

Speaker #3: So I'd say there are a range of paths, but I think the one that's probably most prominent, obviously, is the significant progression in operating cash flow as our key area of focus.

Speaker #3: For 2027, we've talked about $60-plus million. We're not specifically guiding to 2028, but we see increasing levels of cash flow in our multi-year forecast. And we do expect to be a cash payer in terms of the PIC, but also see a path to deleveraging and a lower cost of capital via a future refinancing.

Speaker #5: George, I would just add.

Tim Danker: George, I would just add.

Speaker #4: Thank you.

George Sutton: Thank you, guys.

Speaker #5: I would just add all those options are on the table. We absolutely want to be really clear that, to Ryan's point, we see a clear path in terms of increasing cash flow generation, natural deleveraging, a better cost of capital—all of the above—that can lead to enhancements in equity value for shareholders.

Tim Danker: I would just add all those options are on the table. We absolutely want to be really clear that, to Ryan's point, we see a clear path in terms of increasing cash flow generation, natural deleveraging, a better cost of capital, all of the above that can lead to enhances in equity value for shareholders.

Speaker #2: Perfect. Thank you, guys.

George Sutton: Perfect. Thank you, guys.

Speaker #1: Your next question comes from the line of Steven Koosh from Jefferies. Your line is now open. Please go ahead.

Operator 2: Your next question comes from the line of Steven Kuish from Jefferies. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Steven Kuish from Jefferies. Your line is now open. Please go ahead.

Steven Kuish: Hi, this is Steven on for David. Thanks for taking a couple questions. The cash flow, wanted to start there. The EBITDA down a little under $10 million year-over-year, but operating cash flow improving $30 million. Is that $40 million delta primarily a function of the slower growth in senior, or are there other factors in play?

Steven Couche: Hi, this is Steven on for David. Thanks for taking a couple questions. The cash flow, wanted to start there. The EBITDA down a little under $10 million year-over-year, but operating cash flow improving $30 million. Is that $40 million delta primarily a function of the slower growth in senior, or are there other factors in play?

Speaker #6: Hi, this is Steven Unford, Dave. Thanks for taking a couple of questions. So, the cash flow—I wanted to start there. The EBITDA is down a little under $10 million year over year, but operating cash flow improved by $30 million.

Speaker #6: Is that $40 million delta primarily a function of the slower growth in Senior, or are there other factors in play?

Speaker #3: No, I mean the primary drivers of the improved cash flow are the continued progression in healthcare services, as we expect those margins to expand. We’ve highlighted the significant progress we’re seeing from our Kansas pharmacy, and we expect that to continue.

Ryan Clement: No, the primary drivers of the improved cash flow is continued progression in Healthcare Services, as we expect those margins to expand. We have highlighted the significant progress we are seeing from our Kansas pharmacy, and we expect that to continue to sort of build upon that as we roll out the pharmacy management system that we have built out. Additionally, the AI and technology efforts are also ramping nicely, which is a meaningful contributor to pretty significant anticipated cost savings, around $30 million. A lot of that is tied to kind of combination of reducing labor intensity through AI, but also streamlining some of our back office functions. So we have, as you mentioned, we have been prudent with our investments, but the vast majority of that step increase is actually driven by the Healthcare Services segment.

Speaker #3: Or to build upon that, as we roll out the pharmacy management system that we've built out. Additionally, the AI and technology efforts are also ramping nicely, which is a meaningful contributor to pretty significant anticipated cost savings—around $30 million. A lot of that's tied to a combination of reducing labor intensity through AI, but also streamlining some of our back-office functions.

Speaker #3: So, as you mentioned, we have been prudent with our expenses. That step increase is actually driven by the Healthcare Services segment.

Speaker #6: Okay. And then on healthcare services, I just wanted to clarify: You expect membership by the end of fiscal year '27 to be roughly flat with the end of fiscal year '26?

Steven Kuish: Okay. On Healthcare Services, I just wanted to clarify, you expect membership by the end of fiscal year 2027 to be roughly flat with the end of fiscal year 2026. If so, is that despite sort of lower approved policies coming out of senior?

Steven Couche: Okay. On Healthcare Services, I just wanted to clarify, you expect membership by the end of fiscal year 2027 to be roughly flat with the end of fiscal year 2026. If so, is that despite sort of lower approved policies coming out of senior?

Speaker #6: And if so, is that despite sort of lower approved policies coming out of Senior?

Speaker #3: That is correct.

Tim Danker: That is correct.

Speaker #5: Yeah, that's correct. That's correct, Steven. We do expect to be roughly flat at the end of the year. We'll go through our normal—there'll be a little bit of a pullback going into Q1 as we come off of the SEP period before ramping into AEP and OEP.

Tim Danker: Well, that is correct, Steven. We do expect to be roughly flat at the end of the year. We will go through our normal. There will be a little bit of a pullback going into Q1 as we come off of the SEP period before ramping into AEP and OEP. Again, part of this is predicated upon the slight pullback in our senior business. But again, the real focus is what Bob Grant was highlighting around operational efficiencies, the introduction of new technology, the hyper-focus around margin accretion, nailing down the operations, improving the cash flow, and then pushing more into the scaling of the business. Got it. Then maybe if I could sneak in one more. On senior conversion rates remained really strong. It was actually above 100% this quarter. Can you help us understand how that is possible, and then any impact that had on the quarter financially?

Speaker #5: Again, part of this is predicated upon the slight pullback in our Senior business. But again, the real focus is what Bob was highlighting around operational efficiencies—the introduction of new technology, the hyper-focus on margin accretion, nailing down the operations, improving the cash flow, and then pushing more into the scaling of the business.

Speaker #6: Got it. And then maybe if I could sneak in one more—on senior conversion rates, they remained really strong. It was actually above 100% this quarter.

Speaker #6: Can you help us understand how that's possible, and then any impact that had on the quarter financially? And then, do you expect—I know you've done some work around conversion rates and trying to improve those.

Steven Kuish: Do you expect, I know you've done some work around conversion rates and trying to improve those. Do you expect the conversion rates in fiscal 2027 to stay high like we've seen in the back half of fiscal 2026?

Steven Couche: Do you expect, I know you've done some work around conversion rates and trying to improve those. Do you expect the conversion rates in fiscal 2027 to stay high like we've seen in the back half of fiscal 2026?

Speaker #6: Do you expect the conversion rates in fiscal '27 to stay high like we've seen in the back half of fiscal '26?

Speaker #4: Are you referring to talking-to-sales-agent conversion? Is that what you're speaking to, or Ryan? Sorry.

Robert Grant: If you're talking to sales agent conversion, is that what you're speaking to, or Ryan? Sorry.

Bob Grant: If you're talking to sales agent conversion, is that what you're speaking to, or Ryan? Sorry.

Speaker #6: Yeah, right. Yes, I mean on the actual policies themselves. So, as far as sales agent close rates, just as a reminder, because SEP has materially changed, right?

Tim Danker: Right. Yes. Let me know.

Robert Grant: I'll speak.

Bob Grant: I'll speak.

Tim Danker: No, that's fine.

Robert Grant: Ryan can talk to approval rates on the actual policies themselves. As far as sales agent close rates, just as a reminder, because SEP has materially changed, right? We pulled back a little bit, which was reflected in the number of policies in that quarter, year-over-year, due to there not being as many opportunities for a consumer to buy. When we do that, right, our best people end up taking those leads, and we see higher conversion rates, which took down the estimated pressure we had on Q4 conversion rates. I would say for the next year, as a percentage of our overall policies, core agents, which I think everybody here, that means you've been through one AEP with us, have significantly higher conversion rates. We would anticipate AEP and OEP to have high conversion rates relative to the environment.

Bob Grant: Ryan can talk to approval rates on the actual policies themselves. As far as sales agent close rates, just as a reminder, because SEP has materially changed, right? We pulled back a little bit, which was reflected in the number of policies in that quarter, year-over-year, due to there not being as many opportunities for a consumer to buy. When we do that, right, our best people end up taking those leads, and we see higher conversion rates, which took down the estimated pressure we had on Q4 conversion rates. I would say for the next year, as a percentage of our overall policies, core agents, which I think everybody here, that means you've been through one AEP with us, have significantly higher conversion rates. We would anticipate AEP and OEP to have high conversion rates relative to the environment.

Speaker #6: We've pulled back a little bit, which was reflected in the number of policies in that quarter. Year over year, this is due to there not being as many opportunities for a consumer to buy.

Speaker #6: When we do that, right, our best people end up taking those leads, and we see higher conversion rates, which took down the estimated pressure we had on Q4 conversion rates.

Speaker #6: I would say, for the next year, as a percentage of our overall policies, core agents—which, I think, for everybody here means you've been through one AEP with us—have significantly higher conversion rates.

Speaker #6: So we would anticipate AEP and OEP to have high conversion rates relative to the environment, and we should see those push and be similar to last year, maybe a little bit greater due to a greater percentage of our overall agent base being core agents, even though we're pulling back on policies a little bit.

Robert Grant: We should see those push and be similar to last year, maybe a little bit greater due to a greater percentage of our overall agent base being core agents, even though we're pulling back on policies a little bit. We do feel really good about where we are there, and especially the force of agents that we have. Ryan, do you want to talk about approval rates?

Bob Grant: We should see those push and be similar to last year, maybe a little bit greater due to a greater percentage of our overall agent base being core agents, even though we're pulling back on policies a little bit. We do feel really good about where we are there, and especially the force of agents that we have. Ryan, do you want to talk about approval rates?

Speaker #6: So, we do feel really good about where we are there, and especially the force of agents that we have. Ryan, do you want to talk about approval rates?

Speaker #3: Yeah. And so, in terms of approvals—and I think the dynamic that you were speaking to was approved policies exceeded submitted policies—which, what actually allows that to happen is not all policies get approved.

Ryan Clement: Yeah, in terms of approval, and I think the dynamic that you were speaking to was approved policies exceeded submitted policies, which what actually allows that to happen is, not all policies get approved in the first month that they're submitted. You have the busy OEP season, and then you've got a slowing down into SEP, but there's still approvals that trickle in from the OEP season. That's really what drove that. But as Bob mentioned, the approval rates have been strong. The conversion rates within our agent workforce has also been strong, and we're pleased with the overall performance.

Speaker #3: In the first month that they're submitted. And so you have the busy OEP season, and then you've got a slowing down into SEP. But there are still approvals that trickle in from the OEP season, and so that's really what drove that.

Speaker #3: But as Bob mentioned, the approval rates have been strong. The conversion rates within our agent workforce have also been strong, and we're pleased with the overall performance.

Speaker #6: Great. Thank you.

Steven Kuish: Great. Thank you.

Steven Couche: Great. Thank you.

Speaker #1: Your next question comes from the line of Michael Kupinski from Noble Capital Markets, Inc. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Michael Kupinski from Noble Capital Markets, Inc.. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Michael Kupinski from Noble Capital Markets, Inc.. Your line is open. Please go ahead.

Speaker #5: Thank you, and thank you for taking the questions. You guys have a very strong cash flow story. I can't imagine that the market couldn't recognize that at some point here.

Michael Kupinski: Thank you, and thank you for taking the questions. You guys have a very strong cash flow story. I cannot imagine that the market could not recognize that at some point here. You have $1 billion of commissions receivable and more than $60 million of operating cash flow expected this year. Can you kind of help me understand how much of the fiscal 2027 cash generation is coming from the existing commissions receivable book? And more broadly, can you give us a framework for the cash you expect to generate over the next three to five years?

Speaker #5: You have $1 billion of commissions receivable and more than $60 million of operating cash flow expected this year. Can you kind of help me understand how much of the fiscal '27 cash generation is coming from the existing commissions receivable book?

Speaker #5: And more broadly, can you give us a framework for the cash you expect to generate over the next three to five years?

Speaker #3: Yeah. So, in terms of operating cash flow, as you mentioned, strong progress in 2026. We expect to build upon that in 2027 with operating cash flow exceeding $60 million.

Ryan Clement: Yeah. So in terms of operating cash flow, as you mentioned, strong progress in 2026. Expect to build upon that in 2027 with operating cash flow exceeding $60 million. In terms of the commission receivables, obviously, we have sold policies for years and have $1 billion in receivables, like you mentioned, and those cash flows trickle in. When you think about kind of where we ended fiscal 2026 and where we end 2027, we actually expect that commission receivables balance to be relatively flat. So we are writing policies and replacing that balance as we are drawing down on or collecting on the prior policy sales. And in terms of future periods, while we are not specifically guiding to 2028, we are absolutely managing the business to grow operating cash flow over the long term.

Speaker #3: In terms of the commission receivables, obviously we've sold policies for years and have a billion dollars in receivables, like you mentioned, and those cash flows trickle in.

Speaker #3: When you think about kind of where we ended fiscal '26 and where we end 2027, we actually expect that commission receivables balance to be relatively flat.

Speaker #3: So, we are writing policies and replacing that balance as we are drawing down on or collecting on the prior policy sales. In terms of future periods, while we're not specifically guiding to 2028, we are absolutely managing the business to grow operating cash flow over the long term.

Speaker #3: We have a multi-year plan, and we again have visibility and line of sight to stronger operating cash flow in the future that we believe will ultimately lead to refinancing and a lower cost of capital.

Ryan Clement: We have a multi-year plan, and we again have visibility and line of sight to stronger operating cash flow in the future that we believe will ultimately lead to refinancing at a lower cost of capital. We are intensely focused on cash generation.

Speaker #3: So we are intensely focused on cash generation.

Speaker #5: And Michael, I might just add to that—I'm sorry, go ahead. Yeah? Yeah, Michael, I might just add to Ryan's comment that hopefully we've made it really clear that we have a lot of conviction around the improvement in cash flow.

Tim Danker: Michael, I might just add to that.

Michael Kupinski: Would you guys consider, I am sorry. Go ahead. Yeah.

Tim Danker: Yeah, Michael, I might just add to Ryan's comment that hopefully we have made it really clear that we have a lot of conviction around the improvement in cash flow. You saw the $44 million year-over-year improvement. We are talking about a doubling this year. We are talking about the doubling of margins in Healthcare Services. While we cannot provide today, we are not here to talk about a 3-year outlook. That might be something we talk about in the future. All of our business lines are operating cash flow generative. Healthcare Services, you can see the inflection point in Q4 in our $50 million run rate, the doubling of margins. That business is going to continue to grow and kick off cash flow.

Speaker #5: You saw the $44 million year-over-year improvement. We're talking about a doubling this year. We're talking about the doubling of margins in Healthcare Services.

Speaker #5: So, while we can't provide that today, we're not here to talk about a three-year outlook. That might be something we discuss in the future.

Speaker #5: All of our business lines are operating cash flow generative. Healthcare Services—you can see the inflection point in the fourth quarter and our $50 million run rate.

Speaker #5: The doubling of margins—that business is going to continue to grow and kick off cash flow. Our life insurance business—we didn't spend a lot of time talking about it—but it's a very nice contributor.

Tim Danker: Our life insurance business, we didn't spend a lot of time talking about it, but it's a very nice contributor to cash flow and a senior business that has a lot of utility, around a billion dollar back book. What we're choosing to do around being prudent this year, more to come on that front, but would make a point that we have a high degree of conviction and a growing cash flow base which will help the company lead to deleveraging a better cost of capital and a lot of accretion of value to shareholders.

Speaker #5: To cash flow. And a senior business that has a lot of utility around a $1 billion back book and what we're choosing to do around being prudent this year.

Speaker #5: So more to come on that front, but I would make the point that we have a high degree of conviction and a growing cash flow base, which will help the company lead to deleveraging, a better cost of capital, and a lot of accretion of value to shareholders.

Speaker #5: Gotcha. And then, obviously, your outlook for very strong free cash flow—has that changed your thinking around another receivable securitization?

Michael Kupinski: Got you. Then, obviously your outlook for very strong free cash flow, has that changed your thinking around another receivable securitization?

Ryan Clement: I don't know that it's changed our position. Obviously, we put a tremendous amount of effort into putting the infrastructure in place in support of the securitization, and it's still in place. It's performing. It is a path that's available to us given our current capital structure. There isn't an immediate need to make a change. It is something that, again, we have out there as an option. Obviously, one other piece, though, is the Medicare market dynamics, which the last two years have been somewhat disruptive. At this point, I would say the probability in the short term is relatively low.

Speaker #3: I don't know that it's changed our position. Obviously, we put a tremendous amount of effort into putting the infrastructure in place in support of the securitization.

Speaker #3: And it's still in place. It's performing well, and it is a path that's available to us. Given our current capital structure, there isn't an immediate need to make a change.

Speaker #3: It is something that, again, we have out there as an option. Obviously, one other piece, though, is the Medicare market dynamics, which in the last two years have been somewhat disruptive.

Speaker #3: And so, at this point, I'd say the probability in the short term is relatively low.

Speaker #5: Gotcha. And then, with the free cash flow, just a little bit about capital allocation. I was just wondering about how you are allocating between debt reduction, addressing the preferred securities, and reinvesting in the business.

Michael Kupinski: Got you. Then with the free cash flow, just a little bit about capital allocation. I was just wondering about how you are allocating between debt reduction, addressing the preferred securities, and reinvesting the business. Then is there a leverage or capital structure target that you would consider returning capital to common shareholders?

Speaker #5: And then, is there a leverage or capital structure target that you would consider before returning capital to common shareholders?

Speaker #3: Yeah, so we are obviously excited about the cash generation of the business and where we're headed. In terms of capital allocation and what we're doing with it, delevering and high ROI investments would be kind of top of the list.

Ryan Clement: Yes. We are obviously excited about the cash generation of the business and where we are headed. In terms of capital allocation and what we are doing with it, de-levering and high ROI investments would be top of the list. When I say high ROI investments, I am talking ones that would further enhance the cash generation. Ultimately, de-levering is the key area of focus for the business, and that could come in the form of cash pay. On the PIC, we do intend to cash pay in the future. Again, it could also be other forms of de-levering. So we have not earmarked the dollars, if you will, but certainly are focused on cash generation and ultimately de-levering.

Speaker #3: And when I say high ROI investments, I'm talking about ones that would further enhance cash generation. But ultimately, deleveraging is the key area of focus for the business.

Speaker #3: And that could come in the form of cash pay on the PIC. We do intend to cash pay in the future. But again, it could also be other forms of delevering, so we haven't earmarked the dollars, if you will. But certainly, our focus is on cash generation and ultimately delevering.

Speaker #5: Fair enough. Thank you for taking my questions.

Michael Kupinski: Fair enough. Thank you for taking my questions.

Speaker #2: We have reached the end of the Q&A session. I will now turn the call back to Tim Danker, Chief Executive Officer, for closing remarks.

Operator 3: We have reached the end of the Q&A session. I will now turn the call back to Tim Danker, Chief Executive Officer, for closing remarks.

Operator: We have reached the end of the Q&A session. I will now turn the call back to Tim Danker, Chief Executive Officer, for closing remarks.

Speaker #5: I want to thank you all again for your time. We really do appreciate your support. As Ryan and I both noted, the SelectQuote model continues to drive consistent and reliable value to our customers and insurance carrier partners.

Tim Danker: I want to thank you all again for your time. We really do appreciate your support. As Ryan and I both noted, the SelectQuote model continues to drive consistent and reliable value to our customers and insurance carrier partners. We know the underlying cash flows for our services are real and significant, and we look forward to convincing more and more investors of that value in our equity in the months and years ahead. Thank you and have a great day. We will talk to you soon.

Speaker #5: We know the underlying cash flows for our services are real and significant, and we look forward to convincing more and more investors of that value in our equity in the months and years ahead.

Speaker #5: Thank you, and have a great day. We'll talk to you soon.

Speaker #2: This concludes today's call. Thank you for attending. You may now disconnect.

Operator 3: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining SelectQuote's fiscal Q4 and full year 2026 earnings call. The line will disconnect automatically.

Operator: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining SelectQuote's fiscal Q4 and full year 2026 earnings call. The line will disconnect automatically.