SelectQuote vice chairman Tom Grant passes away

Published 02/07/2025, 21:34
SelectQuote vice chairman Tom Grant passes away

OVERLAND PARK, Kan. - SelectQuote, Inc. (NYSE:SLQT), a $412 million market cap insurance services company that has seen its stock surge 8.7% in the past week, announced that William Thomas "Tom" Grant II, Vice Chairman and former President of the company, died on July 1 following a battle with cancer.

Grant played a significant role in developing SelectQuote’s strategy over the past 15 years as the company expanded from a term life insurance brokerage into a diversified insurance and healthcare services business, which now generates annual revenue of $1.49 billion with a healthy 41% gross margin.

"Tom’s mark on SelectQuote was profound and cannot be overstated. The success of our company, and the millions of consumers we’ve helped, are directly attributable to the vision and leadership of Tom Grant," said Tim Danker, SelectQuote CEO, in a press release statement.

Grant’s sons, Bill Grant and Bob Grant, will continue in their executive roles at SelectQuote as Chief Operating Officer and President, respectively.

Founded in 1985, SelectQuote operates across three core business lines: SelectQuote Senior, which offers Medicare Advantage and Medicare Supplement plans; SelectQuote Healthcare Services, which includes the SelectRx Pharmacy and chronic care management services; and SelectQuote Life.

The company, which went public in 2020, pioneered a model of providing insurance comparisons from multiple companies, allowing consumers to select policies that meet their specific needs.

In other recent news, SelectQuote announced its Q3 Fiscal 2025 earnings, reporting an earnings per share (EPS) of $0.03, which fell short of the projected $0.04. Despite this earnings miss, the company experienced an 8% increase in revenue year-over-year, reaching $408.2 million, surpassing the forecasted $402.33 million. This growth was largely driven by the SelectRx segment, which saw a 41% increase in membership. The company’s consolidated adjusted EBITDA was reported at $38 million, with an operating cash flow of $71 million and a cash balance of $86 million. Despite the positive revenue growth, SelectQuote’s stock faced a decline, reflecting investor concerns over the EPS miss and future profitability. The company has maintained its full-year revenue and adjusted EBITDA ranges, although it anticipates results in the lower half of these ranges due to potential headwinds in Healthcare Services. In terms of operational changes, SelectQuote reduced its Medicare Advantage workforce by 26%, which may impact service levels. The company is also dealing with a legal matter, as it plans to defend against a Department of Justice complaint related to the Medicare Advantage system.

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