PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The company's Q1 2025 financials show strong revenue growth to $166.6 million and net income of $8.0 million despite a legal settlement [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet strengthened with total assets rising to $232.1 million, driven by increased cash and stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $124,968 | $102,116 | | Accounts receivable, net | $61,803 | $61,346 | | Total current assets | $194,335 | $171,780 | | Total assets | $232,145 | $210,530 | | **Liabilities & Equity** | | | | Accounts payable | $57,286 | $59,975 | | Accrued expenses and other current liabilities | $19,867 | $9,794 | | Total liabilities | $82,645 | $75,162 | | Total stockholders' equity | $149,500 | $135,368 | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q1 2025 revenue surged 83% to $166.6 million, boosting net income to $8.0 million despite a $7.9 million legal charge Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $166,632 | $91,065 | | Total cost and operating expenses | $158,635 | $89,299 | | *Legal settlement* | *$7,900* | *$0* | | Income from operations | $7,997 | $1,766 | | Net income | $7,990 | $1,907 | | Diluted EPS | $0.21 | $0.05 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity grew to $149.5 million, primarily driven by net income and stock-based compensation - The increase in total stockholders' equity during Q1 2025 was mainly due to **net income of $7,990 thousand** and **stock-based compensation of $5,420 thousand**[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased significantly to $23.3 million, driven by higher net income and working capital changes Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23,306 | $10,440 | | Net cash used in investing activities | ($1,133) | ($770) | | Net cash provided by financing activities | $669 | $999 | | **Net increase in cash** | **$22,852** | **$10,664** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail significant customer concentration, revenue by vertical, and an $8.2 million legal settlement accrued in the quarter - The company has significant customer concentration; in Q1 2025, two customers accounted for **43% and 13% of total revenue**, respectively[30](index=30&type=chunk) Revenue by Insurance Vertical (in thousands) | Vertical | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Automotive | $152,715 | $77,538 | | Home and renters | $13,904 | $12,689 | | Other | $13 | $838 | | **Total revenue** | **$166,632** | **$91,065** | - The company recorded a **legal settlement liability of $8.2 million** related to litigation, which was settled post-quarter by selling the related entities[73](index=73&type=chunk)[74](index=74&type=chunk)[84](index=84&type=chunk) - Related-party transactions for website visitor referrals amounted to **$7.2 million in expenses** for Q1 2025, a significant increase from $2.3 million in Q1 2024[77](index=77&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong revenue growth driven by the auto vertical, a lower VMM, and strong liquidity post-quarter - The company's performance is heavily dependent on the auto insurance industry, which accounted for **92% of revenue** in Q1 2025[92](index=92&type=chunk) Key Performance Metrics (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $166,632 | $91,065 | | Net Income | $7,990 | $1,907 | | Adjusted EBITDA | $22,507 | $7,588 | | Variable Marketing Dollars | $46,860 | $30,818 | | Variable Marketing Margin | 28.1% | 33.8% | - The decrease in Variable Marketing Margin (VMM) to **28.1%** in Q1 2025 from 33.8% was attributed to competitive advertising pricing[128](index=128&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Revenue grew 83% due to a $75.2 million rise in the automotive vertical, though offset by higher marketing costs and a legal charge - The **83.0% revenue increase** was primarily due to a $75.2 million increase in the automotive vertical from its two largest customers[120](index=120&type=chunk) - Sales and marketing expense increased by 82.9% to $129.4 million, driven by a **$59.6 million increase in advertising costs**[123](index=123&type=chunk) - General and administrative expenses increased 27.3% to $8.4 million, primarily due to higher personnel and legal costs[125](index=125&type=chunk) - A **legal settlement expense of $7.9 million** was recorded in Q1 2025 related to a liability from a prior acquisition[126](index=126&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $125.0 million in cash, no debt, and robust operating cash flow - As of March 31, 2025, the company had **$125.0 million in cash** and access to a $25.0 million revolving line of credit with no outstanding balance[129](index=129&type=chunk) - The company is required to maintain a minimum Adjusted Quick Ratio of 1.10 to 1.00 and was in compliance as of March 31, 2025[131](index=131&type=chunk) - Net cash provided by operating activities increased to **$23.3 million** in Q1 2025 from $10.4 million in Q1 2024[134](index=134&type=chunk)[135](index=135&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports minimal exposure to market risks, including interest rate and foreign currency exchange rate fluctuations - The company had no outstanding borrowings as of March 31, 2025, and therefore had **no material exposure to interest rate fluctuations**[143](index=143&type=chunk) - Exposure to foreign currency exchange rate risk is considered **immaterial**[144](index=144&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal controls over financial reporting were effective - Management concluded that as of the end of the period, the company's disclosure controls and procedures were **effective**[147](index=147&type=chunk) - **No material changes** occurred during the quarter that affected the company's internal control over financial reporting[148](index=148&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company settled a significant civil action post-quarter and accrued an $8.2 million liability for it in Q1 2025 - Information regarding legal proceedings is detailed in Note 8, which describes litigation with former equity owners and its settlement[150](index=150&type=chunk)[73](index=73&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report - **No material changes** have occurred in the risk factors since the filing of the Annual Report on Form 10-K for 2024[151](index=151&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not issue any unregistered equity securities or repurchase any of its own stock during the first quarter - There were **no sales of unregistered equity securities** during the three months ended March 31, 2025[152](index=152&type=chunk) - The company **did not purchase any of its registered equity securities** during the first quarter of 2025[153](index=153&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) Subsequent to the quarter, the company sold the Parachute Companies to settle litigation and amended its loan agreement - On May 1, 2025, the company **sold the Parachute Companies for $0.5 million cash** to settle all litigation claims[154](index=154&type=chunk)[156](index=156&type=chunk) - On May 1, 2025, the company **amended its loan agreement** with Western Alliance Bank to consent to the sale[158](index=158&type=chunk) - Two company officers adopted **Rule 10b5-1 trading plans** in March 2025 for future sales of common stock[160](index=160&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including key agreements and officer certifications

Core Points - EverQuote, Inc. is a leading online insurance marketplace that connects consumers with insurance providers [3] - The company aims to become the largest online source of insurance policies by leveraging data, technology, and knowledgeable advisors [3] Upcoming Investor Conferences - EverQuote will present and host one-on-one investor meetings at the following conferences: - 20th Annual Needham Technology, Media, & Consumer 1x1 Conference on May 9th, 2025, virtually [1] - B. Riley Securities 25th Annual Investor Conference on May 21st, 2025, in Marina del Rey, CA [1] - William Blair 45th Annual Growth Stock Conference on June 4th, 2025, in Chicago, IL [2] - Wolfe Research Small and Mid-Cap Conference on June 5th, 2025, virtually [3] - 2025 BMO Insurance Summit on June 12th, 2025, in New York, NY [3] Presentation Details - The presentation at the William Blair conference will be available via live audio webcast and archived replay on EverQuote's investor relations website [2]

Core Insights - EverQuote (EVER) reported a first-quarter 2025 operating net income per share of 38 cents, exceeding the Zacks Consensus Estimate by 17.8% and showing a year-over-year increase of over sevenfold [1] - The first quarter marked the fourth consecutive quarter of record revenue and adjusted EBITDA performance, with improvements across all verticals [1] Revenue Performance - Revenues in the Automotive insurance vertical surged 97% year over year to $152.7 million, surpassing both the Zacks Consensus Estimate of $143 million and the internal estimate of $142.2 million [2] - Home and Renters insurance vertical revenues totaled $13.9 million, reflecting a 10% year-over-year increase, but fell short of the Zacks Consensus Estimate of $15.3 million [2] - Revenues in the Other insurance vertical plummeted 98.4% year over year to $13 million, significantly missing the Zacks Consensus Estimate of $24 million [3] - Total revenues reached $166.6 million, exceeding the Zacks Consensus Estimate by 5.4% and representing an 83% year-over-year increase [3] Cost and Margin Analysis - Total costs and operating expenses rose 77.6% to $158.6 million, driven by increased sales and marketing, cost of revenues, research and development, and general and administrative expenses [4] - EverQuote's variable marketing margin increased 52.3% year over year to $46.9 million, slightly above the Zacks Consensus Estimate of $45.4 million [4] - Adjusted EBITDA for the quarter was $22.5 million, marking a 196% year-over-year increase [5] Financial Position - At the end of the first quarter of 2025, EverQuote had cash and cash equivalents of $125 million, a 22% increase from the end of 2024 [6] - Total assets grew to $232.1 million, up 10.3% from the end of 2024, while total stockholders' equity increased 10.4% to $149.5 million [6] - Cash from operations was reported at $23.3 million, reflecting a 124% year-over-year increase [6] Future Guidance - For Q2 2025, EverQuote estimates revenues in the range of $155-$160 million and a variable marketing margin between $45-$47 million, with adjusted EBITDA expected to be between $20 million and $22 million [7] Market Position - EverQuote currently holds a Zacks Rank 1 (Strong Buy), indicating a favorable outlook in the market [8]

Group 1 - The investment approach during the Q1 earnings season focuses on careful single-stock selection, particularly in small and mid-cap stocks that are insulated from macroeconomic shocks [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and advising seed-round startups, contributing to themes shaping the industry [2]

Core Insights - EverQuote (EVER) reported revenue of $166.63 million for the quarter ended March 2025, marking an 83% year-over-year increase and a surprise of +5.41% over the Zacks Consensus Estimate of $158.08 million [1] - The earnings per share (EPS) for the same period was $0.38, compared to $0.05 a year ago, resulting in an EPS surprise of +18.75% against the consensus estimate of $0.32 [1] Financial Performance Metrics - Variable Marketing Dollars amounted to $46.86 million, exceeding the six-analyst average estimate of $45.41 million [4] - Automotive revenue reached $152.72 million, surpassing the average estimate of $143.04 million from four analysts, representing a significant year-over-year increase of +97% [4] - Home and Renters revenue was reported at $13.90 million, slightly below the four-analyst average estimate of $15.32 million, with a year-over-year change of +9.6% [4] - Other revenue was only $0.01 million, significantly lower than the three-analyst average estimate of $0.24 million, reflecting a drastic year-over-year decline of -98.5% [4] Stock Performance - EverQuote's shares have returned +23.3% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - EverQuote (EVER) reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.32 per share, and showing significant growth from $0.05 per share a year ago, indicating strong performance in the insurance sector [1][2]. Financial Performance - The company achieved revenues of $166.63 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.41%, and up from $91.07 million year-over-year [2]. - Over the last four quarters, EverQuote has consistently exceeded consensus EPS estimates, demonstrating a strong earnings performance [2]. Stock Performance - EverQuote shares have increased approximately 33.6% since the beginning of the year, contrasting with a decline of -3.3% in the S&P 500 [3]. - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for continued outperformance in the near future [6]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $150.15 million, and for the current fiscal year, it is $1.20 on revenues of $626.23 million [7]. - The insurance industry, particularly the Insurance - Multi line sector, is currently ranked in the top 25% of Zacks industries, suggesting a favorable environment for stock performance [8].

Financial Data and Key Metrics Changes - Total revenues in Q1 reached $166.6 million, an increase of 83% year-over-year and 13% sequentially [13] - Adjusted EBITDA for Q1 was a record $22.5 million, compared to $7.6 million in the prior year period [17] - Net income for Q1 was $8 million, which would have been $15.9 million excluding a non-cash charge related to divesting assets [16] Business Line Data and Key Metrics Changes - Revenue from the auto insurance vertical was $152.7 million in Q1, up 97% year-over-year [14] - Revenue from home and renters insurance was $13.9 million in Q1, up 10% year-over-year and 23% sequentially [14] - Variable marketing dollars (VMD) increased to $46.9 million for Q1, up 52% from the prior year [14] Market Data and Key Metrics Changes - Strong enterprise carrier spend was up over 175% from the comparable period last year [13] - Paid products per agency increased by 25% year-over-year in March [9] Company Strategy and Development Direction - The company aims to become the number one growth partner to property and casualty (P&C) insurance providers by delivering better-performing referrals, larger traffic scale, and a broader suite of products [6][10] - Investments in technology and AI capabilities are planned for the second half of 2025 to drive operational efficiency and strengthen competitive advantages [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about carrier profitability, noting that many carriers are exceeding their profitability targets and are focused on growth [24] - The company expects revenue for Q2 to be between $155 million and $160 million, representing 34% year-over-year growth at the midpoint [18] Other Important Information - The company reported strong operating cash flow of $23.3 million for Q1, ending the quarter with no debt and cash and cash equivalents of $125 million [17] - The company is focused on expanding relationships with customers into adjacent growth areas, particularly for local insurance agents [9] Q&A Session Summary Question: Can you provide additional insights on second half trends and carrier profitability? - Management indicated that carrier profitability is favorable, with many carriers operating below their target combined ratios, which supports growth [24][25] Question: How has the industry responded to the vacated FCC rule regarding one-on-one consent? - The company continues to maintain certain mechanisms that were tested during the one-to-one consent period, even after the requirement was lifted [31][32] Question: Can you quantify the impact of TCPA on VMM and the expected benefits from AI and ML? - VMM was 28.1% in Q1, with expectations for a slight increase in Q2, and AI/ML is expected to drive operational efficiency and improve customer outcomes [36][39] Question: What are the results seen in the agent channel after the new platform rollout? - The agent business experienced healthy growth of 20-30% this quarter, with a focus on deepening relationships and expanding offerings [44][45] Question: What are the priorities for cash allocation moving forward? - The company plans to focus on organic investments in technology, potential M&A opportunities, and considering share buybacks [74][78] Question: How should operating expenses be viewed throughout the year? - Operating expenses are expected to remain relatively flat in the near term, with incremental investments planned for technology and AI capabilities in the second half [82][83]

Financial Data and Key Metrics Changes - Total revenues in Q1 reached $166.6 million, an increase of 83% year over year and up 13% sequentially [11] - Adjusted EBITDA for Q1 was a record $22.5 million compared to $7.6 million in the prior year period [14] - Net income for Q1 was $8 million, which would have been $15.9 million excluding a non-cash charge related to divesting assets [13] Business Line Data and Key Metrics Changes - Revenue from the auto insurance vertical was $152.7 million in Q1, up 97% year over year [12] - Revenue from home and renters insurance was $13.9 million in Q1, up 10% year over year and up 23% sequentially [12] - Variable marketing dollars (VMD) increased to $46.9 million for Q1, up 52% from the prior year period [12] Market Data and Key Metrics Changes - Strong enterprise carrier spend was up over 175% from the comparable period last year [11] - Paid products per agency increased by 25% year over year in March [8] Company Strategy and Development Direction - The company aims to become the number one growth partner to property and casualty (P&C) insurance providers by delivering better performing referrals, bigger traffic scale, and a broader suite of products and services [5][6] - The company is focusing on expanding relationships with customers into adjacent growth areas, such as building a one-stop growth shop for local insurance agents [8] - Investments in technology, data assets, and AI capabilities are planned for the second half of 2025 to drive operational efficiency and strengthen competitive advantages [17] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term thesis of insurance advertising spend shifting to digital channels [14] - The outlook for carrier profitability is favorable, with healthy underwriting margins providing a cushion against potential inflation and claims costs [15][22] - The company expects revenue for Q2 to be between $155 million and $160 million, representing 34% year-over-year growth at the midpoint [16] Other Important Information - The company reported strong operating cash flow of $23.3 million for Q1, ending the quarter with no debt and cash and cash equivalents of $125 million [14] - The company is committed to maintaining expense discipline while investing in technology and operational efficiency [9][17] Q&A Session Summary Question: Can you provide additional insights on second half trends and carrier profitability? - Management indicated that carrier profitability is generally favorable, with many carriers overshooting their profitability targets, which supports growth [21][22] Question: How has the industry responded to the vacated FCC rule regarding one-to-one consent? - The company continues to maintain certain practices that were in place prior to the rule change, focusing on improving quality and performance for customers [28][29] Question: Can you discuss the impact of AI and ML on VMM? - Management noted that AI and ML are driving operational efficiency and improving customer outcomes, particularly through the traffic bidding technology [33][34] Question: What are the trends in the agent channel after the new platform rollout? - The agent business is healthy, with growth of 20% to 30% this quarter, and the company is focused on deepening relationships with agents [39][40] Question: What are the capital allocation priorities moving forward? - The company is considering investments in technology, potential M&A opportunities, and share buybacks as part of its capital allocation strategy [69][74]

Business Overview - The company operates a leading online insurance marketplace, connecting consumers and insurance providers[10] - The company's platform leverages over 4 billion consumer data points[14, 26] - The company's distribution model includes approximately 60 carriers and 6,000 third-party agents[14] Market Opportunity and Growth - The P&C distribution and advertising spend market is estimated at $117 billion annually[10, 16] - Digital advertising spend within the P&C insurance market is $7 billion[16] - The estimated digital advertising spend growth is approximately 15% annually from 2023 to 2026[17] - The company's estimated share of the P&C distribution and advertising spend market is less than 1%[17] Financial Performance - Q1 2025 revenue increased by 83% year-over-year to $166.6 million[32, 45] - Adjusted EBITDA for Q1 2025 was $22.5 million, a 197% increase year-over-year[32] - The company achieved record revenue of $500 million in 2024, representing a 74% year-over-year growth[17, 47]

Exhibit 99.1 EverQuote Announces First Quarter 2025 Financial Results CAMBRIDGE, Mass., May 5, 2025 (GLOBE NEWSWIRE) -- EverQuote, Inc. (Nasdaq: EVER), a leading online insurance marketplace, today announced financial results for the first quarter ended March 31, 2025. "2025 is off to a strong start, building on our momentum from last year, and we once again achieved record financial performance across our key financial metrics of revenue, Variable Marketing Dollars or VMD and Adjusted EBITDA," said Jayme M ...