Selectquote, Inc. (SLQT) SEC Filing 10-K Annual Report for the fiscal year ending Friday, June 30, 2023

Interest Expense, Net The following table presents our interest expense, net for the years ended June 30 and the percentage changes from the prior year: 2023 compared to 2022-Interest expense increased $37.0 million, or 85%, in 2023 compared to 2022, as a result of interest incurred on the Term Loans due to additional principal outstanding and changes under the Fourth Amendment, the amortization and write-off of additional deferred financing costs associated with the amendments to the Senior Secured Credit Facility, as well as higher interest rates during the period.

2022 compared to 2021-Selling, general, and administrative expenses increased $26.7 million, or 42%, in 2022 compared to 2021, primarily due to $13.7 million in higher compensation costs due to additional headcount to support the growth in the business; $4.3 million in depreciation and amortization expenses due to additional fixed assets and software in service; $4.5 million in professional services fees due to increases in recruiting, accounting and legal, and insurance costs; and $3.1 million of charges related to the impairment of long-lived intangible assets as described in Note 7 to the consolidated financial statements.

2022 compared to 2021-Interest expense increased $14.3 million, or 49%, in 2022 compared to 2021, primarily as a result of the increase in our outstanding balances on the Term Loans and DDTL Facility, amortization of additional deferred financing costs associated with the amendments to the Senior Secured Credit Facility, and the ticking fee interest assessed on the remaining available borrowing capacity of the DDTL Facility.