SelectQuote, Inc. (SLQT) witnessed a remarkable surge of 37.42% in its stock price during the pre-market trading session on Tuesday, February 11, 2025. This significant upward movement was fueled by two key catalysts:
Firstly, the company announced a $350 million strategic investment from funds managed by renowned firms such as Bain Capital, Morgan Stanley Private Credit, and Newlight Partners. This investment will enable SelectQuote to recapitalize its balance sheet, reduce its annual debt servicing costs, and provide ample liquidity and flexibility to fund future growth initiatives, particularly in its rapidly expanding Healthcare Services business.
Secondly, SelectQuote reported impressive financial results for the second quarter of fiscal 2025, surpassing market expectations. The company's revenue grew by 19% year-over-year to $481.1 million, driven by robust performance in both its Senior and Healthcare Services segments. Additionally, the company's net income surged to $53.2 million, while consolidated adjusted EBITDA increased by 30% compared to the same period last year, reaching $88 million with an 18% margin.
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