UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-34628 QuinStreet, Inc. (Exact name of registrant as specified in its charter) Delaware 77-0512121 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Ide ...

Core Viewpoint - QuinStreet reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.26 per share, but showing an increase from $0.11 per share a year ago, indicating a mixed performance in earnings despite revenue growth [1][2]. Financial Performance - The company posted revenues of $262.05 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.59% and showing a year-over-year increase from $198.32 million [2]. - Over the last four quarters, QuinStreet has surpassed consensus revenue estimates three times, but has only exceeded EPS estimates once [2]. Stock Performance - QuinStreet shares have declined approximately 26.8% since the beginning of the year, contrasting with the S&P 500's gain of 7.9%, indicating underperformance relative to the broader market [3]. - The current Zacks Rank for QuinStreet is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $298.89 million, and for the current fiscal year, it is $1.05 on revenues of $1.17 billion [7]. - The trend of earnings estimate revisions is mixed ahead of the earnings release, which could influence future stock performance [6]. Industry Context - QuinStreet operates within the Zacks Internet - Delivery Services industry, which is currently ranked in the top 12% of over 250 Zacks industries, suggesting a favorable industry outlook that could positively impact stock performance [8].

Financial Data and Key Metrics Changes - Total revenue grew 32% year over year in Q4 and 78% for the full fiscal year 2025, reaching $1,100,000,000 [4][5][11] - Adjusted EBITDA increased by 101% in Q4 and approximately 300% for the full fiscal year, amounting to $81,300,000 [4][5][11] - The company ended Q4 with over $100,000,000 in cash and no bank debt, indicating a strong balance sheet [5][11] Business Line Data and Key Metrics Changes - Auto insurance revenue surged 62% year over year in Q4, while home services revenue grew 21% [4][10] - For the full fiscal year, financial services represented 75% of total revenue, growing 108% year over year to $817,200,000, while home services accounted for 24% of revenue, growing 24% [10][11] Market Data and Key Metrics Changes - The auto insurance market showed renewed demand, with expectations of strong sequential revenue growth in Q1 [6][9] - The company noted that carrier spending growth moderated in the second half of the fiscal year due to tariff uncertainties, but some clients began to reaccelerate spending [6][7] Company Strategy and Development Direction - The company plans to continue investing aggressively in media capacity and products to capitalize on pent-up demand in auto insurance [8][9] - The outlook for fiscal Q1 is projected at approximately $280,000,000 in revenue and $20,000,000 in adjusted EBITDA, with a full fiscal year 2026 revenue growth expectation of about 10% and adjusted EBITDA growth of about 20% [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive advantages and financial strength to pursue long-term market opportunities [5][6] - The management highlighted that the auto insurance market is expected to see significant spending increases as tariff impacts become clearer [7][8] Other Important Information - The company is launching a new version of its media optimization platform, QMP, in home services, which is expected to enhance growth and operational efficiency [42][66] - The company is also focusing on margin expansion initiatives, with expectations for adjusted EBITDA margins to grow faster than revenue [34][52] Q&A Session Summary Question: Can you walk through carrier spend trends across Q4? - Management noted consistent spending levels in Q4, with indications of increased spending as the quarter progressed and expectations for further increases in Q1 and Q4 of the calendar year [16][18] Question: Can you discuss the assumptions in the initial 2026 guidance? - The guidance is characterized as conservative, reflecting strong carrier economics and potential for increased spending in the second half of the calendar year [20][22] Question: What are the trends with the carrier base? - The company observed strong activity across its carrier base, with more carriers spending over $1,000,000 per month than ever before [26][28] Question: Can you elaborate on margin expansion initiatives? - Management highlighted strong progress in margin expansion initiatives, including optimization of existing media and new media capacity growth [34][36] Question: How are tariffs impacting the home services segment? - Management indicated no significant impact from tariffs on home services spending levels, with expectations for continued growth [41][44] Question: What is the mix of media sources and contributions from acquisitions? - The company refrained from disclosing specific media mix details but noted successful acquisitions that expanded media sourcing capabilities [45][46] Question: What is driving the sequential margin compression in Q1? - The compression is attributed to media capacity catching up with increasing demand, with ongoing investments to build new capacity [51][52] Question: How are other financial services verticals performing? - All financial services verticals grew year over year, with personal loans undergoing a margin optimization program [53][54] Question: How will a lower interest rate environment affect home services growth? - A lower interest rate environment is expected to support growth in home services due to increased home buying activity [58][59] Question: Where are investments in product development being directed? - Investments are focused on QRP, home services financing, and improvements in core technologies, including a new unified contact platform [60][66]

QuinStreet Reports Fiscal Fourth Quarter and FY2025 Results FOSTER CITY, CA – August 7, 2025 – QuinStreet, Inc. (Nasdaq: QNST), a leader in performance marketplaces and technologies for the financial services and home services industries, today announced financial results for the fiscal fourth quarter and fiscal year ended June 30, 2025. For the fiscal fourth quarter, the Company reported revenue of $262.1 million, up 32% year-over-year. GAAP net income for the fiscal fourth quarter was $3.2 million, or $0. ...

Group 1 - QuinStreet (QNST) shares have increased by 8.1% over the past four weeks, closing at $16.06, with a mean price target of $28.40 indicating a potential upside of 76.8% [1] - The mean estimate consists of five short-term price targets with a standard deviation of $5.90, where the lowest estimate of $19 suggests an 18.3% increase, and the highest estimate of $35 indicates a potential surge of 117.9% [2] - Analysts show a consensus that QNST will report better earnings than previously estimated, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for QNST has increased by 31.4% due to two estimates moving higher and one moving lower over the last 30 days [12] - QNST holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential upside [13] - While price targets can be misleading, the direction indicated by the consensus price target may serve as a useful guide for potential price movements [10][13]

Group 1 - QuinStreet (QNST) closed at $15.88, with a 1.4% gain over the past four weeks, and a mean price target of $28.40 suggests a 78.8% upside potential [1] - The mean estimate includes five short-term price targets with a standard deviation of $5.90, indicating variability; the lowest estimate of $19 represents a 19.7% increase, while the highest target of $35 suggests a 120.4% surge [2] - Analysts show strong agreement on QNST's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock upside [4][11] Group 2 - The Zacks Consensus Estimate for the current year has increased by 31.4% over the past month, with two estimates rising and one falling [12] - QNST holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for near-term upside [13] - While consensus price targets may not be reliable for predicting exact gains, they can provide a directional guide for price movement [10][13]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited condensed consolidated financial statements for the three and nine months ended March 31, 2025, showing significant revenue growth and a return to net income. Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $81,815 | $50,488 | | Total current assets | $228,384 | $169,087 | | Total assets | $417,235 | $368,546 | | Total current liabilities | $156,674 | $126,398 | | Total liabilities | $181,760 | $151,721 | | Total stockholders' equity | $235,475 | $216,825 | Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net revenue | $269,842 | $168,587 | $831,657 | $415,193 | | Gross profit | $27,862 | $14,311 | $83,021 | $28,813 | | Operating income (loss) | $4,912 | $(5,332) | $2,317 | $(26,626) | | Net income (loss) | $4,416 | $(7,048) | $1,501 | $(29,167) | | Diluted EPS | $0.08 | $(0.13) | $0.03 | $(0.53) | Condensed Consolidated Statements of Cash Flows (Nine Months Ended Mar 31, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $55,083 | $(4,517) | | Net cash used in investing activities | $(8,387) | $(19,086) | | Net cash used in financing activities | $(15,385) | $(10,485) | | Net increase (decrease) in cash | $31,328 | $(34,075) | | Cash at end of period | $81,831 | $39,617 | - The company operates as one reportable segment, as the chief operating decision maker reviews financial information on a consolidated basis[75](index=75&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strong performance, highlighting a significant 100% YoY revenue increase for the nine-month period, driven by a 147% surge in the financial services vertical, particularly the insurance business. [Management Overview](index=29&type=section&id=Management%20Overview) QuinStreet is a leader in performance marketplaces for financial and home services, focusing on sustainable revenue growth and long-term market opportunity. - The company's primary financial objective is to create sustainable revenue growth at target profitability levels, not to maximize short-term profits[83](index=83&type=chunk) Revenue Contribution by Vertical (Three and Nine Months Ended Mar 31, 2025) | Vertical | % of Net Revenue (Q3 2025) | % of Net Revenue (9M 2025) | | :--- | :--- | :--- | | Financial Services | 74% | 76% | | Home Services | 24% | 23% | | Other | 2% | 1% | - A single client in the financial services vertical accounted for **27% of net revenue** for the three months ended March 31, 2025. For the nine-month period, two clients accounted for **23% and 13% of net revenue**, respectively[86](index=86&type=chunk) - The auto insurance industry, a key part of the financial services vertical, began to recover in calendar 2024 due to rate increases and optimizations, leading to increased advertising spending and a return to net income for the company starting in the quarter ended March 31, 2025[88](index=88&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) For the third quarter of fiscal 2025, net revenue grew 60% year-over-year to $269.8 million, driven by a 78% increase in the Financial Services vertical. Net Revenue by Vertical (in thousands) | Vertical | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :--- | :--- | :--- | :--- | :--- | | Financial Services | $199,724 | $112,250 | $630,549 | $255,708 | | Home Services | $65,448 | $53,908 | $190,098 | $152,636 | | Total Net Revenue | $269,842 | $168,587 | $831,657 | $415,193 | - The increase in gross profit margin for both the three and nine-month periods was attributed to a decrease in personnel cost and depreciation as a percentage of net revenue, partially offset by a higher revenue mix from the financial services vertical, which has a higher media cost[116](index=116&type=chunk)[117](index=117&type=chunk) - General and administrative expenses for the nine months ended March 31, 2025, increased by **$17.3 million (75%) YoY**, primarily due to a **$12.4 million adjustment** to the fair value of contingent consideration related to an acquisition and a **$1.9 million increase** in stock-based compensation[124](index=124&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company's principal liquidity source was $81.8 million in cash and cash equivalents, with strong cash from operations. - As of March 31, 2025, principal sources of liquidity consisted of cash and cash equivalents of **$81.8 million**[127](index=127&type=chunk) Cash Flow Summary (Nine Months Ended Mar 31, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $55,083 | $(4,517) | | Net cash used in investing activities | $(8,387) | $(19,086) | | Net cash used in financing activities | $(15,385) | $(10,485) | - The **$55.1 million** in cash from operations for the nine months ended March 31, 2025, was primarily driven by net income of **$1.5 million** and non-cash adjustments of **$57.4 million** (including **$24.5 million stock compensation** and **$12.4 million change in fair value of contingent consideration**), offset by a **$3.8 million use of cash** for working capital[131](index=131&type=chunk)[132](index=132&type=chunk) - As of March 31, 2025, approximately **$16.8 million** remained available for stock repurchases under the authorized program[129](index=129&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure stems from interest rate fluctuations on its cash and cash equivalents, which management deems not material. - The company's main market risk is interest rate risk on its cash and cash equivalents, which are held in money market funds with maturities of 90 days or less[142](index=142&type=chunk)[143](index=143&type=chunk) - Management believes the exposure to interest rate changes is not material, and a hypothetical **1% decline** in interest rates would not have a material effect on the financial statements[143](index=143&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting. - Based on an evaluation as of March 31, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[144](index=144&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[145](index=145&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, none of which are expected to have a material adverse effect on its financial position. - The company is involved in legal proceedings from time to time in the ordinary course of business[147](index=147&type=chunk) - Management does not believe that any pending legal proceedings will have a material adverse effect on the company's financial position, results of operations, and cash flows[147](index=147&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) The company outlines significant risks including client concentration, reliance on third-party media, data privacy concerns, regulatory changes, and the need to adapt to new technologies like AI. - A substantial portion of revenue is generated from a limited number of clients. One client accounted for **27% of net revenue** for the three months ended March 31, 2025, and two clients accounted for **23% and 13%** for the nine-month period[156](index=156&type=chunk) - The company is exposed to significant data privacy and security risks, including cyber-attacks and ransomware. A failure to protect personal information could lead to significant expenses, regulatory action, and reputational damage[160](index=160&type=chunk)[161](index=161&type=chunk) - The business is highly dependent on internet search companies and third-party media partners. Changes in search engine algorithms or the loss of key media sources could significantly harm revenue[158](index=158&type=chunk)[166](index=166&type=chunk) - The business is subject to a complex and evolving regulatory environment, including the TCPA for telemarketing, state privacy laws (e.g., CCPA), and new FCC rules, which could increase costs and legal risks[173](index=173&type=chunk)[174](index=174&type=chunk)[178](index=178&type=chunk) - Failure to adapt to rapidly changing technologies, including the successful implementation and management of Artificial Intelligence (AIML), could render services obsolete and harm the company's competitive position[189](index=189&type=chunk)[190](index=190&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=84&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales or purchases of its equity securities during the quarter ended March 31, 2025. - There were no unregistered sales of equity securities during the period[266](index=266&type=chunk) - The company made no purchases of its own equity securities during the period[267](index=267&type=chunk) [Defaults Upon Senior Securities](index=84&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported that there were no defaults upon its senior securities during the reporting period. - None[268](index=268&type=chunk) [Mine Safety Disclosures](index=84&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business. - Not Applicable[269](index=269&type=chunk) [Other Information](index=84&type=section&id=Item%205.%20Other%20Information) The company disclosed that no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the third quarter of fiscal 2025. - During the three months ended March 31, 2025, no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement[270](index=270&type=chunk) [Exhibits](index=85&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL financial data files. - The filing includes CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906[272](index=272&type=chunk) - The filing includes Inline XBRL Instance Document, Taxonomy Extension Schema, and Cover Page Interactive Data File[272](index=272&type=chunk)

Core Viewpoint - QuinStreet, Inc. reported its fiscal third quarter 2025 financial results during a conference call, highlighting key financial metrics and future outlook [1][2]. Financial Results - The company discussed both GAAP and non-GAAP financial measures, with a reconciliation provided in the earnings press release available on their Investor Relations website [4]. Conference Call Participants - The conference call included key participants such as the CEO Doug Valenti and CFO Greg Wong, along with analysts from various research firms [1][2]. Forward-Looking Statements - The discussion included forward-looking statements that involve risks and uncertainties, with a reminder that actual results may differ from projections [3].

Company Performance - QuinStreet reported quarterly earnings of $0.21 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.06 per share a year ago [1] - The company posted revenues of $269.84 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.02%, and up from $168.59 million year-over-year [2] - QuinStreet has surpassed consensus revenue estimates three times over the last four quarters [2] Stock Movement and Outlook - QuinStreet shares have declined approximately 23.1% since the beginning of the year, compared to a 4.7% decline in the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.25 on revenues of $253.22 million, and for the current fiscal year, it is $0.88 on revenues of $1.08 billion [7] Industry Context - The Internet - Delivery Services industry, to which QuinStreet belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating potential challenges [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact QuinStreet's performance [5][6]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 60% year over year, reaching $269.8 million in fiscal Q3 [5][9] - Adjusted EBITDA increased by 145%, amounting to $19.4 million [5][9] - Adjusted net income was $12.4 million, translating to $0.21 per share [9] Business Line Data and Key Metrics Changes - Financial services client vertical revenue grew 78% year over year, contributing $199.7 million, with auto insurance specifically up 165% [5][10] - Home services revenue increased by 21% year over year, achieving a new quarterly record of $65.4 million [5][10] - Other revenue accounted for $4.7 million [10] Market Data and Key Metrics Changes - The company ended the quarter with over $80 million in cash and no bank debt, indicating a strengthened financial position [6][10] - The outlook for full fiscal year revenue is projected between $1.065 billion and $1.105 billion, implying at least 18% growth year over year in fiscal Q4 [7][11] Company Strategy and Development Direction - The company aims to maintain double-digit year-over-year revenue and profit growth in both the short and long term [6][7] - Focus areas include expense and cash flow management, margin expansion, and maintaining a strong balance sheet [6][8] - The company is investing in new product, media, and client expansion initiatives to fuel future performance [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to perform well regardless of macroeconomic conditions, emphasizing strong market opportunities and competitive advantages [12] - There is a cautious outlook regarding tariffs and their potential impact on client spending, leading to a wider range in fiscal Q4 guidance [7][11] Other Important Information - The company is adapting its media strategy to focus on proprietary media, which has shown higher margins compared to third-party sources [20][22] - New product initiatives are expected to contribute positively to margins, particularly in the personal loans and home services sectors [24][70] Q&A Session Summary Question: Insights into conversations with auto carriers regarding profitability and tariffs - Management noted that auto carriers are currently in a stable spending mode, with no material reductions in spending observed due to tariffs [16][18] Question: Approach to margin expansion versus investments - The company is focusing on top-line leverage and new media initiatives to sustain margin improvements while continuing to invest in growth [19][20] Question: Impact of tariffs on home services - Management indicated that while some clients are concerned about tariffs, there have been no significant reductions in spending [31][32] Question: Confidence in growth for fiscal year 2026 - Management expressed confidence in maintaining double-digit growth, despite uncertainties related to tariffs [45] Question: Performance of auto insurance business sequentially - The auto insurance business saw a sequential decline due to an exceptionally strong prior quarter, but overall spending remains stable [50][66] Question: Trends across different auto insurance carriers - The company has seen a broader engagement with more clients spending significant budgets online, indicating a positive trend in the market [58][60]