SelectQuote Inc. (NYSE:SLQT) is one of the best penny stocks under $1 to buy right now. On February 5, SelectQuote reported a 12% year-over-year revenue increase to $537 million for FQ2 2026, driven by a strong performance in its senior segment and a 26% revenue jump for SelectRx. To support its expansion, SelectQuote secured a $415 million senior credit facility, effectively refinancing its debt with extended maturities to 2031 and improving overall capital flexibility. Despite these gains, the company ...

Group 1 - SelectQuote, Inc. has signed a new multi-year agreement with a major pharmacy benefit manager (PBM), effective January 1, 2026, which is expected to enhance visibility into reimbursement rates and provide better economic predictability for Medicare [1][2]. - The agreement aims to improve financial stability and consistency for both SelectQuote and the PBM partner, allowing SelectQuote to continue investing in its SelectRx pharmacy [2][3]. - CEO Tim Danker emphasized that the new contract will enhance visibility to reimbursement rates, supporting the growth of SelectRx and improving medication adherence and health outcomes for patients [3]. Group 2 - On January 13, SelectQuote secured a $415 million senior secured credit facility with Pathlight Capital, intended to refinance existing debt and support working capital needs, which is expected to lower the cost of capital and improve overall liquidity [4]. - SelectQuote operates as a direct-to-consumer insurance brokerage, facilitating the comparison and purchase of various insurance policies, including term life, Medicare supplement/Advantage, auto, and home insurance [5].

Core Insights - SelectQuote reported a strong quarter driven by effective execution during the Medicare Advantage season, achieving near-record senior EBITDA margins of 39% despite modest year-over-year growth [4][10][24] - The company has made significant advancements in its health care services segment, with revenue increasing by 26% year over year, highlighting the impact of SelectRx on the health and quality of life for seniors [4][25] - Recent changes by a national carrier partner necessitated a reduction in fiscal 2026 guidance, with an expected $20 million impact from both the carrier's marketing budget cuts and PBM reimbursement changes, totaling a $40 million aggregate impact [6][7][30] Financial Performance - SelectQuote's revenue grew by 12% year over year, totaling $537 million, driven by both senior and health care services businesses [22][24] - Senior revenue reached $262 million, growing 2% due to increased approved policy volumes, while adjusted EBITDA for the senior segment was $102 million, consistent with last year's performance [24][31] - The company expects operating cash flow for fiscal 2026 to be between $25 million and $35 million, representing a significant increase compared to the previous year [8][32] Strategic Developments - A multiyear agreement with a key pharmacy benefit manager (PBM) enhances visibility into drug reimbursement pricing, which is crucial for expanding profitability [5][37] - The new $415 million credit facility improves capital flexibility, extending debt maturities to 2031 and allowing the company to pursue growth opportunities strategically [5][29] - SelectQuote's operational model focuses on profitability and cash flow over growth, with a commitment to optimizing customer targeting and capital deployment [21][55] Market Dynamics - The Medicare Advantage market is experiencing disruptions, with a significant number of plans being terminated and changes in policy features, leading to increased consumer engagement [13][17] - SelectQuote's strategy during the AEP focused on retaining tenured agents and proactively connecting with policyholders, resulting in a policy volume growth of 4% [9][10] - The company achieved a recapture rate of 33%, indicating strong customer retention and the effectiveness of its service model in a dynamic market [15][17] Future Outlook - Despite the recent guidance reduction, SelectQuote maintains confidence in its long-term growth, profitability, and cash flow potential, with targets of over 20% EBITDA margins for the senior division and an annualized adjusted EBITDA exit rate of $40 million to $50 million for health care services [31][32] - The company is positioned to capitalize on market opportunities, leveraging its diversified model and operational efficiencies to drive shareholder value [65]

Financing Overview - SelectQuote has secured $415 million in financing, which includes a $325 million term loan from Pathlight Capital and a $90 million credit facility from UMB Bank [1] - The refinancing extends the company's term debt maturity to January 2031 and enhances liquidity for ongoing operations [1] Credit Facility Details - The revolving credit facility has been increased to $90 million during peak periods, up from $72 million previously [2] - The new term loan features lower principal amortization and offers greater investment flexibility compared to prior term debt [2] Management Commentary - CEO Tim Danker expressed satisfaction with the new financing agreement, highlighting it as a significant milestone for optimizing the capital structure and supporting growth in senior health insurance and healthcare services [3] - The new facility provides a modestly lower cost of capital and includes provisions for potential future interest rate reductions of up to 100 basis points [3] Business Model Confidence - The refinancing reflects lender confidence in SelectQuote's business model, supported by approximately $1 billion in commissions receivable and increasing cash generation from the SelectRx pharmacy and healthcare services division [4] - CFO Ryan Clement noted that the financing validates the business model and strengthens liquidity and financial flexibility for strategic priorities [5] Previous Investments - In February, SelectQuote received a $350 million investment from funds managed by Bain Capital, Morgan Stanley Private Credit, and Newlight Partners [5]

分组1 - Lemonade reported a quarterly loss of $0.51 per share, better than the Zacks Consensus Estimate of a loss of $0.72, and improved from a loss of $0.95 per share a year ago, resulting in an earnings surprise of +29.17% [1] - The company achieved revenues of $194.5 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.92%, and up from $136.6 million in the same quarter last year [2] - Lemonade has surpassed consensus EPS estimates for four consecutive quarters, indicating a consistent performance trend [2] 分组2 - The stock has gained approximately 59.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.1% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.42 on revenues of $214.64 million, and for the current fiscal year, it is -$2.60 on revenues of $719.13 million [7] - The Zacks Industry Rank for Insurance - Multi line is in the top 28% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased PubMatic, Inc. securities during the specified class period of the upcoming lead plaintiff deadline for a class action lawsuit [1][3]. Group 1: Class Action Details - Investors who bought PubMatic securities between February 27, 2025, and August 11, 2025, may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the court to serve as lead plaintiff by October 20, 2025 [3]. Group 2: Case Background - The lawsuit alleges that during the class period, PubMatic made false and misleading statements regarding its business operations, specifically related to a significant demand side platform buyer shifting clients to a new platform, which negatively impacted PubMatic's ad spend and revenue [5]. - The misleading statements led to investor damages when the true situation was revealed [5]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time and being ranked No. 1 for securities class action settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4].

Core Viewpoint - DJS Law Group is investigating CarMax, Inc. for potential violations of securities laws following disappointing financial results in Q2 2025, which led to a significant drop in the company's stock price [2]. Group 1: Financial Performance - CarMax reported a 6.3% decline in comparable store used unit sales for Q2 2025 [2]. - The company experienced a decline in net earnings for the quarter [2]. - Following the release of these disappointing results, CarMax shares fell approximately 20% [2]. Group 2: Legal Investigation - The investigation by DJS Law Group focuses on whether CarMax issued misleading statements or failed to disclose important information to investors [2]. - Shareholders who suffered losses are encouraged to contact DJS Law Group to participate in the investigation [2]. Group 3: DJS Law Group's Focus - DJS Law Group specializes in securities class actions, corporate governance litigation, and M&A appraisals, aiming to enhance investor returns through advocacy [3]. - The firm represents some of the largest hedge funds and alternative asset managers, emphasizing the value of litigation claims as significant assets [3].

Core Viewpoint - A class action lawsuit has been filed against Unicycive Therapeutics, Inc. for allegedly making false and misleading statements regarding its FDA approval prospects for a treatment related to hyperphosphatemia in chronic kidney disease patients on dialysis [1][2]. Group 1: Lawsuit Details - The class period for the lawsuit is from March 29, 2024, to June 27, 2025, with a deadline for lead plaintiff appointments set for October 14, 2025 [2]. - The complaint alleges that Unicycive was overly optimistic about the chances of FDA approval for its treatment, leading to materially misleading public statements throughout the class period [2]. Group 2: Shareholder Participation - Shareholders who purchased shares during the specified class period are encouraged to contact the DJS Law Group for potential lead plaintiff appointments, although this is not required to participate in any recovery [2][3]. - Once registered, shareholders will be enrolled in a portfolio monitoring software to receive updates on the case's status, with no cost or obligation to participate [3]. Group 3: DJS Law Group's Role - DJS Law Group specializes in securities class actions and corporate governance litigation, focusing on enhancing investor returns through advocacy [4].

Core Viewpoint - A class action lawsuit has been filed against Charter Communications, Inc. for alleged violations of the Securities Exchange Act, specifically related to misleading statements about revenue and customer retention following the end of the Affordable Connectivity Program [1][2]. Summary by Sections Class Action Details - The class period for the lawsuit is from July 26, 2024, to July 24, 2025, with a deadline for lead plaintiff appointments set for October 13, 2025 [2]. - The complaint alleges that Charter made false and misleading statements regarding its ability to manage customer losses, which were not supported by reality [2]. Shareholder Participation - Shareholders who purchased shares during the specified class period are encouraged to contact the law firm for potential lead plaintiff appointments, although this is not a requirement for recovery [2][3]. - Once registered, shareholders will receive updates through a portfolio monitoring software at no cost [3]. Law Firm Background - DJS Law Group specializes in securities class actions and corporate governance litigation, focusing on enhancing investor returns through advocacy [4].

Core Viewpoint - Investors in Sable Offshore Corp. have the opportunity to lead a securities fraud class action lawsuit due to alleged misleading statements regarding the company's oil production activities [1][2]. Summary by Relevant Sections Lawsuit Details - The lawsuit claims that between May 19, 2025, and June 3, 2025, Sable Offshore Corp. failed to disclose that it had not restarted oil production off the coast of California, despite representations to the contrary [2]. - The positive statements made by the defendants about the company's business and prospects were deemed materially misleading and lacked a reasonable basis during this period [2]. Participation Information - Investors who suffered losses on their Sable investments are encouraged to participate in the lawsuit, with a lead plaintiff deadline set for September 26, 2025 [2]. - Interested parties can contact Glancy Prongay & Murray LLP for more information or to learn about their rights regarding this matter [3][4].