SelectQuote, Inc. announced a $415 million credit facility that combines a $325 million term loan from Pathlight Capital LP and a $90 million revolving line from UMB Bank, extending the company’s debt maturity to 2031 and bolstering working‑capital flexibility for future growth initiatives.
The facility was announced on January 12, 2026, and the proceeds will be used to fully repay existing term debt due in June 2026 and September 2027. The refinancing follows a period of mixed profitability: the company reported $328.8 million in revenue and a $30.5 million net loss in the first quarter of fiscal 2026, compared with $481.1 million in revenue and a $53.2 million net income in the second quarter of fiscal 2025. Repaying maturing debt ahead of schedule reduces refinancing risk and allows SelectQuote to focus on expanding its healthcare services platform.
Segment performance highlights the mix of growth and headwinds that underlie the company’s financial picture. In Q1 FY2026, the Senior segment generated $59.0 million, Healthcare Services $46.6 million, and Life $221.4 million. The Life segment remains the largest revenue driver, but the Senior and Healthcare Services segments are growing as the company expands its Medicare distribution network and its SelectRx pharmacy and other healthcare services offerings. The mix shift toward higher‑margin healthcare services supports the company’s strategy to diversify beyond insurance distribution.
CEO Tim Danker said the new financing “positions us well to continue to invest and grow our industry‑leading senior health insurance and healthcare services businesses.” He added that the deal reflects confidence from lenders in SelectQuote’s business model and the strength of its commissions receivable, which totaled roughly $1 billion at the end of the quarter.
Investors reacted positively, with the stock surging nearly 22% in the week leading up to the announcement. Market participants cited the extended debt maturity, lower cost of capital, and the company’s strong cash generation from commissions and its growing healthcare services division as key drivers of the rally.
The credit facility strengthens SelectQuote’s balance sheet and provides a lower‑cost, longer‑term source of capital that can be deployed to accelerate growth in its Medicare distribution and healthcare services businesses. While the company faces headwinds such as changes in SelectRx reimbursement rates and a decline in Senior segment revenue due to eligibility rule adjustments, the new liquidity cushion and extended maturity give management flexibility to navigate these challenges and pursue strategic opportunities in the healthcare services space.
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