SelectQuote Q2 2026 earnings snapshot

SelectQuote (SLQT) just posted Q2 2026 results with revenue of US$537.1 million and basic EPS of US$0.37, anchored by net income of US$69.3 million. The company reported revenue of US$481.1 million and EPS of US$0.31 in Q2 2025 compared with US$537.1 million and EPS of US$0.37 in Q2 2026. Trailing 12 month EPS reached US$0.30 on revenue of about US$1.6 billion. With the business now profitable on a trailing basis, investors may focus on how durable these margins appear as the story shifts from loss making quarters to consistent earnings.

See our full analysis for SelectQuote.

With the headline numbers reported, the next step is to compare this latest earnings release with widely followed narratives about SelectQuote's growth prospects, risk profile, and profitability trajectory.

Trailing US$1.6b revenue now paired with profits

• On a trailing 12 month basis, SelectQuote generated about US$1.6b in revenue and US$55.2 million in net income, which works out to basic EPS of roughly US$0.30.
• Bulls often focus on the fact that the company became profitable over the last year and has around 2.8% average annual earnings growth over five years, and that picture lines up with the trailing US$55.2 million profit, although the step up in EPS to US$0.30 is relatively recent rather than a long multi year trend.
  • That shift to profit contrasts with earlier trailing periods that were loss making, even though revenue was already over US$1.4b, so the story is less about sales growth and more about earnings quality improving.
  • This heavier weight on recent profitability means a bullish view leaning on a long stable earnings track record is not fully backed by the data, which shows the profit phase has only just taken hold.

P/E of 3.5x versus peers above 12x

• Using the trailing 12 month earnings, the shares trade on a P/E of 3.5x, compared with 20.9x for peers, 12.9x for the US insurance industry, and 19.3x for the broader US market.
• Bullish investors often argue that such a low P/E hints at a potential discount, yet the same dataset also flags forecasts for very large EPS declines over the next three years, which pushes against the idea that the low multiple is only about mispricing.
  • The combination of a P/E at 3.5x and projected revenue growth of 6.4% per year versus 10.2% for the US market shows the valuation is being set against slower expected top line growth.
  • When you line up those slower revenue projections with the expectation of substantial EPS declines, it helps explain why the market is not assigning peer like multiples despite the recent return to profit.

To see how this valuation gap fits with the broader story around growth and risk, you might want to read the full narrative that investors are building around the stock. Curious how numbers become stories that shape markets? Explore Community Narratives

Recent profits meet weak interest coverage

• Over the last 12 months, SelectQuote reported US$55.2 million in net income but also has interest payments that are described as not well covered by earnings, which makes the income statement improvement only part of the picture.
• Bears point to the weak interest coverage and forecasts of substantial EPS declines as reasons to be cautious, and the trailing figures give that concern some backing because the profit pool of US$55.2 million still has to support interest costs that are flagged as a major financial risk.
  • When you add in that the share price has been relatively volatile over the past three months, the negative view that earnings may not fully support the capital structure lines up with the risk disclosures.
  • At the same time, the move from trailing losses to a US$55.2 million profit challenges an overly bearish argument that the business cannot generate earnings at all, since it has already done so over the last year.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on SelectQuote's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

SelectQuote couples a very low 3.5x P/E with forecasts for substantial EPS declines and weak interest coverage, which raises questions about resilience and downside risk.

If that mix of fragile earnings and financial risk makes you uneasy, it could be worth shifting your focus toward companies in the 86 resilient stocks with low risk scores that score better on stability and balance sheet strength.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.