Core Viewpoint - QuinStreet (QNST) has experienced a significant downtrend, with a 14.8% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - QNST's current RSI reading is 25.55, indicating that the heavy selling pressure may be exhausting itself, which could lead to a reversal in the stock's trend [5]. - The RSI helps investors identify potential entry points for stocks that have fallen below their fair value due to unwarranted selling pressure [3]. Group 2: Fundamental Indicators - Analysts covering QNST have raised their earnings estimates for the current year, resulting in a 4.7% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - QNST holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [8].

Core Insights - CarInsurance.com released an analysis of car insurance premiums across U.S. cities, highlighting significant cost differences between neighboring municipalities and states [1] - The report titled "The Most Expensive Cities for Car Insurance in 2025 (and the Cheapest)" identifies various factors influencing premiums, including population density, traffic risk, crime, weather, and local laws [1] Summary by Categories Premium Analysis - The analysis reveals dramatic variations in car insurance costs across different U.S. cities [1] - The report emphasizes the importance of understanding local factors that contribute to these premium differences [1] Contributing Factors - Key factors affecting car insurance premiums include: - Population density - Traffic risk - Crime rates - Weather conditions - Local laws [1]

It's been just over a year since I took profits on QuinStreet Inc. (NASDAQ: QNST ), and in that time, the shares have lost about 13% of their value against a gain of about 21% for the S&P 500. Given that I locked inI'm a quant investment newsletter writer who marries fundamental analysis with the latest research in momentum. Over the past few years, I’ve developed a piece of software that helps me track the level of optimism and pessimism embedded in stock price. I seek to challenge the assumptions embedded ...

Industry Overview - The Zacks Internet - Delivery Services industry includes companies providing services through Internet-based platforms, such as food delivery, online travel booking, and web hosting [2] - The industry is characterized by growth-stage companies investing heavily in R&D and sales & marketing, which may hinder short-term profitability [2] Growth Drivers - Increased smartphone usage and improved Internet access are driving growth in the delivery services sector, with 4G and emerging 5G technology enhancing user experiences [3] - Shifting consumer preferences towards convenience and online services are expected to benefit the industry, particularly in food ordering and travel booking [4] - Technological advancements, such as smart routing algorithms and real-time GPS tracking, are improving delivery efficiency and customer experience [5] Challenges - Persistent macroeconomic uncertainties, inflation, and high interest rates pose significant challenges to the industry [1] - Higher upfront costs associated with market expansion may negatively impact profitability, especially as competition intensifies from major tech companies like Amazon and Alphabet [7] - The potential fallout from tariff wars could indirectly affect revenue growth and margins due to reduced spending from small businesses and startups [6] Industry Performance - The Zacks Internet - Delivery Services industry has underperformed compared to the S&P 500 and the broader Computer and Technology sector over the past year, gaining only 0.2% [11] - The industry currently holds a Zacks Industry Rank of 103, placing it in the top 42% of approximately 250 Zacks industries, indicating solid near-term prospects [9][10] Valuation Metrics - The industry is trading at a forward 12-month price-to-sales (P/S) ratio of 1.64X, significantly lower than the S&P 500's 5.44X and the sector's 7.1X [14] Company Highlights - **GoDaddy (GDDY)**: Focused on cloud-based technology products, benefiting from strong momentum in its Applications & Commerce business, with a Zacks Consensus Estimate for 2025 earnings revised upward by 2.2% to $6.05 per share [17][18][19] - **Vipshop Holdings (VIPS)**: An online discount retailer in China, improving its financial performance through enhanced product offerings and a focus on high-margin apparel businesses, with a current-year earnings estimate revised upward by $0.05 to $2.44 per share [23][24] - **QuinStreet (QNST)**: A provider of online marketing services, positioned to benefit from the shift to online business models, with a fiscal 2026 earnings estimate remaining unchanged at $1.05 per share [27][28] - **Asure Software (ASUR)**: A cloud computing firm focusing on human capital management solutions, with a 2025 earnings estimate revised upward by $0.02 to $0.79 per share [31][32]

[Company Information](index=1&type=section&id=Company%20Information) QuinStreet, Inc. is a Delaware corporation that filed its 10-K annual report for the fiscal year ended June 30, 2025 - QuinStreet, Inc. is a Delaware corporation that filed its 10-K annual report for the fiscal year ended June 30, 2025[2](index=2&type=chunk) Company Information Details | Metric | Details | | :--- | :--- | | Ticker Symbol | QNST | | Registered Exchange | Nasdaq Global Select Market | | Well-Known Seasoned Issuer | Yes | | Accelerated Filer Type | Large Accelerated Filer | | Aggregate Market Value of Non-Affiliate Voting Stock (as of December 31, 2024) | $1,249,815,185 | | Number of Common Shares Outstanding (as of August 11, 2025) | 57,676,080 | | Internal Control Effectiveness Report | Yes | | Error Correction Restatement | No | | Shell Company | No | PART I [CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS](index=3&type=section&id=CAUTIONARY%20NOTE%20ON%20FORWARD-LOOKING%20STATEMENTS) This report contains numerous forward-looking statements regarding the company's future financial condition, business strategies, and operational objectives, which are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from expectations, with no obligation to update these statements - Forward-looking statements cover future financial condition, business strategies, and management's operational objectives, identified by words like 'believe,' 'may,' 'estimate,' 'expect,' etc[12](index=12&type=chunk) - Key risks and uncertainties include industry developments, regulatory changes, reliance on third-party media and internet search companies, economic conditions, banking risks, cybersecurity, product development capabilities, M&A integration, and scrutiny of environmental, social, and governance (ESG) practices[12](index=12&type=chunk)[14](index=14&type=chunk) - The company assumes no obligation to update forward-looking statements and cautions readers about risks and uncertainties[13](index=13&type=chunk) [Item 1. Business](index=4&type=section&id=Item%201.%20Business) QuinStreet is a leading performance marketing platform and technology provider in the financial and home services industries, acquiring high-intent digital media traffic for clients on a pay-per-click, pay-per-lead, or pay-per-action basis through proprietary technology and data, primarily generating revenue from North America while investing in technology and data advantages [Our Company](index=4&type=section&id=Our%20Company) QuinStreet is a leading performance marketing platform and technology provider for the financial and home services industries, leveraging proprietary technology to deliver high-intent digital media traffic to clients through various measurable formats, with revenue primarily generated via pay-per-click, pay-per-lead, or other 'pay-per-action' models, and competitive advantages rooted in media buying power, technology, data, and market share - QuinStreet is a leading performance marketing platform and technology provider for the financial and home services industries[15](index=15&type=chunk) - The company uses proprietary performance marketing technology to provide high-intent digital media traffic to clients, in forms such as qualified clicks, leads, calls, applications, and customers[15](index=15&type=chunk) - Revenue is primarily generated through pay-per-click, pay-per-lead, or other 'pay-per-action' models, with the company bearing media costs[16](index=16&type=chunk) - Competitive advantages include media buying power, proprietary technology, extensive performance marketing data and experience, and significant online media market share in its service markets[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) [Market Opportunity](index=5&type=section&id=Market%20Opportunity) Marketing strategies are shifting from offline analog advertising to digital, requiring new core capabilities and driving demand for the company's vertical marketing and media services due to increasing online marketing complexity - Marketing strategies are shifting from offline analog advertising to digital advertising, requiring new core capabilities[22](index=22&type=chunk) - Market trends include a shift from qualitative, impression-driven to analytical, data-driven marketing; from customer management to results-oriented customer relationships; from passive push to audience-initiated information acquisition; and from mass media buying to fragmented media optimization[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - Increasing complexity in online marketing drives demand for the company's vertical marketing and media services, which aggregate multi-client offerings and effectively match visitor needs[26](index=26&type=chunk) [Our Business Model](index=6&type=section&id=Our%20Business%20Model) The company generates revenue by delivering measurable marketing results such as qualified clicks, leads, or customers, managing media costs and profitability through optimization of media sources, creative capabilities, proprietary technology, and data application, while diversifying internet visitor sources - The company generates revenue by providing measurable marketing results such as qualified clicks, leads, calls, applications, or customers[27](index=27&type=chunk) - The company bears media costs and balances customer acquisition costs with its own media costs and revenue targets by optimizing media sources, creative capabilities, proprietary technology, and data application[28](index=28&type=chunk) - The company effectively manages media cost risks and ensures profitability through a revenue-sharing model with third-party publishers[28](index=28&type=chunk) - Internet visitor sources are diversified, including proprietary websites, PPC advertising, third-party media, email lists, and online advertising networks[29](index=29&type=chunk)[31](index=31&type=chunk) [Our Strategy](index=7&type=section&id=Our%20Strategy) The company aims to be a leading internet performance marketing firm by focusing on sustainable revenue through measurable client value, ethical practices, vertical specialization, world-class organization building, continuous product and technology evolution, data advantage utilization, and customer-centric media source development - The company aims to be one of the largest and most successful performance marketing companies on the internet, achieving this through key components[32](index=32&type=chunk)[36](index=36&type=chunk) - Focus on generating sustainable revenue by providing measurable value to clients - Ethically build the company and industry by providing quality content and website experiences - Maintain vertical focus, growing by deepening expertise and coverage in existing client verticals, and selectively entering new ones through organic growth and acquisitions - Build a world-class organization with optimal capabilities for delivering measurable marketing results and high media cost returns for clients - Develop and evolve best-in-class products, technology, and platforms to manage successful internet performance marketing campaigns, focusing on technology that improves media yield, enhances client outcomes, and achieves scale efficiencies - Build and apply unique data advantages through long-running, large-scale marketing campaigns in client verticals, including steep learning curves for optimizing each media type and client outcome - Build and partner with vertical content websites that attract high-intent visitors - Be a client-centric organization and develop broad media sources and capabilities to reliably meet client needs Client Revenue Concentration | Fiscal Year | Number of Clients Accounting for 23% of Net Revenue | Number of Clients Accounting for 12% of Net Revenue | Top 20 Clients as % of Net Revenue | | :--- | :--- | :--- | :--- | | 2025 | 2 | 1 | 62% | | 2024 | 1 | 1 | 46% | Product Development Expenses | Fiscal Year | Product Development Expenses (Millions USD) | | :--- | :--- | | 2025 | 33.9 | | 2024 | 30.0 | [Intellectual Property](index=9&type=section&id=Intellectual%20Property) The company protects its proprietary rights through patents, trade secrets, trademarks, and copyright laws, supplemented by confidentiality agreements and technological measures - The company protects its proprietary rights through patents, trade secrets, trademarks, and copyright laws, as well as confidentiality agreements and technological measures[37](index=37&type=chunk) - QuinStreet is a registered trademark in the U.S. and other jurisdictions, and owns registered and unregistered trademarks and domain name registrations for many websites[37](index=37&type=chunk) [Our Competitors](index=9&type=section&id=Our%20Competitors) The company competes with advertising and direct marketing service agencies, as well as online marketing and media companies, based on factors such as return on marketing spend, price, media acquisition capabilities, lead generation, and reliability - The company primarily competes with advertising and direct marketing service agencies, as well as online marketing and media companies[38](index=38&type=chunk) - Competitive factors include return on marketing spend, price, ability to acquire targeted media, ability to provide large volumes or precise customer leads, and reliability[38](index=38&type=chunk) - Specific competitors include LendingTree and MediaAlpha in financial services, and large websites or portals like Google, Yahoo!, Microsoft, and Meta[39](index=39&type=chunk)[40](index=40&type=chunk) [Government Regulation](index=9&type=section&id=Government%20Regulation) The company's operations are subject to various federal and state laws and regulations, including those governing spam, telemarketing, user privacy, data security, intellectual property, and taxation, with additional compliance requirements in highly regulated sectors like financial services - The company's business is subject to multiple federal and state laws and regulations, including those concerning spam (CAN-SPAM Act), telemarketing (Telemarketing Sales Rule, TCPA), user privacy, data security, intellectual property, and taxation[41](index=41&type=chunk) - In highly regulated industries like financial services, the company must also comply with state licensing laws, federal and state laws prohibiting unfair acts and practices, and advertising laws; the company holds licensed insurance agent qualifications in all fifty states[42](index=42&type=chunk) [Human Capital Resources](index=9&type=section&id=Human%20Capital%20Resources) The company is committed to employee development, attraction, and retention, guided by core values of leadership, ownership, embracing new ideas, understanding stakeholder needs, and pursuing excellence, investing in professional growth and competitive compensation - The company is committed to employee development, attraction, and retention, guided by core values of leadership, ownership, embracing new ideas, understanding stakeholder needs, and pursuing excellence[43](index=43&type=chunk) - The company invests in professional learning and personal development opportunities, and is committed to pay equity and equality, offering market-competitive compensation packages including short-term and long-term incentives[43](index=43&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) Employee Composition as of June 30, 2025 | Department | Number of Employees | | :--- | :--- | | Operations | 519 | | Product Development | 305 | | Sales and Marketing | 68 | | Administration | 46 | | **Total** | **938** | [Available Information](index=11&type=section&id=Available%20Information) The company files reports with the SEC, including 10-K, 10-Q, and 8-K, which are freely available on its investor relations website and the SEC's public reference room or website - The company files reports with the U.S. Securities and Exchange Commission (SEC), including 10-K, 10-Q, and 8-K, which are freely available through its investor relations website[48](index=48&type=chunk) - The public can review company filings at the SEC's public reference room or on its website (www.sec.gov)[49](index=49&type=chunk) [Item 1A. Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) Investing in the company's common stock involves high risks, including industry immaturity, reduced client marketing spend, reliance on third-party media and internet search companies, data privacy and security risks, economic and regulatory changes, technological adaptation challenges, volatile operating results, and risks related to intellectual property and common stock ownership, which could materially adversely affect the company's business, financial condition, and operating results [Summary of Risks Associated with Our Business](index=12&type=section&id=Summary%20of%20Risks%20Associated%20with%20Our%20Business) The company faces risks from an evolving industry and business model, potential reductions in client marketing spend, reliance on third-party media and search engines, data privacy and security threats, economic and regulatory shifts, technology adaptation challenges, and intellectual property protection issues - The industry is still developing, and business models are constantly evolving, making it difficult to evaluate business prospects - Reduced client online marketing spend, client churn, or declining advertising revenue could severely harm the business - Reliance on third-party media sources for visitors means reduced media supply or increased prices could lead to revenue decline or increased costs - Facing data privacy and security risks, failure to adequately protect personal information could result in significant expenses and reputational damage - Reliance on internet search companies to direct visitors means changes in search algorithms could lower website rankings and visitor numbers - Negative changes in economic and regulatory environments could materially adversely affect revenue, business, and growth - Cash and cash equivalents may face risks from banking institutions - Failure to continuously enhance and adapt products and services to keep pace with technological and industry standard changes could lead to loss of competitiveness - Operating results are volatile and difficult to predict, potentially falling below analyst and investor expectations - Changes in business models, increased investments, and rising expenditures could lead to fluctuations in Adjusted EBITDA margins - Disruptions or failures in information technology and communication systems could impair service delivery capabilities - Technologies or service providers that limit marketing or data collection and use capabilities could significantly reduce service value - Failure to adequately protect intellectual property could harm competitive position and business[51](index=51&type=chunk) [Risks Related to Our Business and Industry](index=14&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) The company operates in an evolving industry, facing risks from regulatory changes, media availability, search engine dependence, cybersecurity threats, technology optimization, and M&A integration, alongside challenges from client marketing spend fluctuations, macroeconomic conditions, and operational disruptions - The company operates in an evolving industry with constantly changing business models, facing risks from regulatory changes, media availability, reliance on search companies, cybersecurity, technology optimization, and M&A integration[53](index=53&type=chunk)[56](index=56&type=chunk) - Reduced client marketing spend or client churn, especially from major clients (two clients accounted for **23%** and **12%** of net revenue in FY2025, respectively), could lead to rapid revenue decline[55](index=55&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - The company heavily relies on third-party media sources for visitors, and reduced media supply, increased prices, or regulatory actions could lead to revenue decline or increased costs[60](index=60&type=chunk) - Data privacy and security risks are significant, especially when handling personal information and using AI technology; any security breach or data leak could result in legal liabilities, reputational damage, and business losses[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - Reliance on internet search companies to direct visitors means changes in search algorithms (including AI integration) could lead to lower website rankings, reduced visitor traffic, and revenue[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) - Macroeconomic conditions (such as tariffs, geopolitical conflicts, inflation, recession) and evolving regulatory environments (such as TCPA amendments, data privacy laws, CFPB guidance) could materially adversely affect the company's business, revenue, and growth[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - Cash and cash equivalents may face risks from banking institutions, such as bank failures potentially limiting access to funds[82](index=82&type=chunk)[83](index=83&type=chunk) - Failure to continuously adapt to rapidly changing technology and industry standards (including artificial intelligence and machine learning) could lead to decreased competitiveness, client churn, or reduced advertising inventory[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - Operating results are influenced by various factors, including client volume, media availability, seasonality, interest rate fluctuations, and regulatory changes, leading to volatile quarterly and annual performance that is difficult to predict[88](index=88&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk) - Changes in business models and significant investments in new businesses, products, and technologies could lead to fluctuations in Adjusted EBITDA margins[89](index=89&type=chunk) - Disruptions or failures in information technology and communication systems (such as natural disasters, cyberattacks) could impair service delivery capabilities, leading to revenue loss and reputational damage[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - Acquisitions, investments, and divestitures may complicate operations, leading to dilution, liabilities, amortization expenses, or goodwill impairment, and diverting management's attention[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - Reliance on third-party call centers, internet, and data center providers means service disruptions or failures could harm the business[113](index=113&type=chunk)[114](index=114&type=chunk) - Underdevelopment or slow growth of the online marketing services market, and client acceptance issues with new metrics, could limit business success and revenue growth[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) - Failure to effectively detect click fraud or other advertising fraud could lead to client dissatisfaction, churn, and revenue loss[120](index=120&type=chunk) - Technologies, service providers, or other factors limiting the collection and use of user data, could significantly reduce service value and revenue generation capabilities[121](index=121&type=chunk)[122](index=122&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) - Increasing scrutiny from investors, clients, and employees regarding environmental, social, and governance (ESG) practices and reporting could lead to additional costs, resource allocation, and risks, impacting reputation, client acquisition, and employee retention[126](index=126&type=chunk) [Risks Related to Our Intellectual Property](index=39&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) Failure to adequately protect intellectual property could harm the company's competitive position and business, including unauthorized disclosure of confidential information, costly infringement litigation, and management distraction - Failure to adequately protect intellectual property could harm the company's competitive position and business, including unauthorized disclosure of confidential information, costs of infringement litigation, and management distraction[127](index=127&type=chunk)[128](index=128&type=chunk) - Third parties may sue the company for intellectual property infringement, which, even if successful, could result in high defense or settlement costs and may require changes in business practices[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) - As a content creator and distributor, the company may face legal claims for defamation, negligence, deceptive advertising, copyright or trademark infringement due to the nature of its content, leading to damages and business harm[132](index=132&type=chunk) [Risks Related to the Ownership of Our Common Stock](index=42&type=section&id=Risks%20Related%20to%20the%20Ownership%20of%20Our%20Common%20Stock) The company's stock price is highly volatile, influenced by performance, analyst expectations, negative publicity, economic downturns, media availability, trading volume, insider sales, M&A announcements, and litigation threats, with additional risks from internal control deficiencies, goodwill impairment, anti-takeover provisions, and the absence of common stock dividends - The company's stock price is highly volatile and may be affected by various factors, including performance, analyst expectations, negative publicity, economic downturns, media availability, trading volume, executive/major shareholder stock sales, M&A announcements, and litigation threats[133](index=133&type=chunk)[134](index=134&type=chunk)[136](index=136&type=chunk) - Analysts ceasing coverage or issuing negative opinions could lead to a decline in stock price and trading volume[137](index=137&type=chunk) - Stock repurchase programs may not be fully executed or enhance long-term shareholder value, and could increase stock price volatility or reduce cash reserves[138](index=138&type=chunk) - The company may face short-selling strategies, leading to stock price declines and potentially triggering shareholder lawsuits[139](index=139&type=chunk) - Future large sales of stock by shareholders could depress the stock price and affect the company's ability to raise capital through new stock issuance[140](index=140&type=chunk) - Failure to maintain appropriate and effective internal controls could impair the ability to accurately and timely prepare financial statements or effectively prevent fraud[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) - Goodwill or intangible asset impairment could result in significant earnings write-offs, affecting financial condition and operating results[144](index=144&type=chunk)[145](index=145&type=chunk) - Provisions in the company's charter and Delaware law may deter acquisitions that shareholders deem favorable and could entrench management[146](index=146&type=chunk)[148](index=148&type=chunk) - The company currently does not intend to pay common stock dividends, and shareholder returns will depend on stock price appreciation[147](index=147&type=chunk) [General Risk Factors](index=47&type=section&id=General%20Risk%20Factors) The company faces general risks including counterparty non-performance, reliance on key management and employees, reputational damage from various sources, potential need for additional capital, and challenges associated with international operations such as adapting to foreign preferences, regulatory compliance, political and economic changes, tariffs, exchange rate fluctuations, and intellectual property protection - Counterparty failure to fulfill obligations could result in losses for the company or negatively impact operating results and cash flows[149](index=149&type=chunk) - The company relies on its management team and other key employees, and the loss of any key employee could harm the business[150](index=150&type=chunk) - Reputational damage could adversely affect business, financial condition, and operating results, stemming from legal proceedings, government investigations, negative media coverage, or security breaches[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - Additional capital may be required in the future to meet financial obligations and business objectives, but such capital may not be available or on favorable terms[155](index=155&type=chunk) - Operating in international markets may expose the company to additional risks, including adapting to foreign customer preferences, complying with foreign laws and regulations, changes in political and economic conditions, tariffs, exchange rate fluctuations, taxation, language and cultural differences, inadequate intellectual property protection, and challenges in managing overseas operations[156](index=156&type=chunk)[157](index=157&type=chunk) [Item 1B. Unresolved Staff Comments](index=48&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments in this report - No unresolved staff comments[158](index=158&type=chunk) [Item 1C. Cybersecurity](index=49&type=section&id=Item%201C.%20Cybersecurity) The company's cybersecurity program, part of its overall risk management framework, aims to identify, assess, and respond to cybersecurity threats through regular security committee meetings, employee training, multiple information security policies, and third-party support and vendor management, with no material cybersecurity incidents impacting business strategy, operating results, or financial condition to date [Risk Management and Strategy](index=49&type=section&id=Risk%20Management%20and%20Strategy) The company's cybersecurity risk management plan employs a risk-based approach to identify, assess, and respond to threats that could impact data, networks, or consumer information, supported by regular security committee meetings, employee training, and comprehensive information security policies - The company's cybersecurity risk management plan employs a risk-based approach to identify, assess, and respond to cybersecurity threats that could affect data, networks, or consumer information[160](index=160&type=chunk) - Regular security committee meetings are held to report on cybersecurity threats, responses, strategies, and improvement plans - New employees receive cybersecurity training, which is also conducted annually, with more detailed training for employees with higher data and system access - Over twenty information security policies have been developed, covering specific aspects like vendor management - Third-party consultants are engaged for penetration testing and SOC 2 Type II certification to supplement internal testing and audits - Background checks are conducted for employees and contractors, and user access is managed using the principle of least privilege, reviewed at least quarterly - The information security team reviews privacy impact assessments to ensure third-party data access and information sharing practices are controlled within the company's cybersecurity environment[161](index=161&type=chunk)[162](index=162&type=chunk) [Impact of Cybersecurity Risks on Business Strategy, Results of Operations or Financial Condition](index=50&type=section&id=Impact%20of%20Cybersecurity%20Risks%20on%20Business%20Strategy,%20Results%20of%20Operations%20or%20Financial%20Condition) Given that almost all of the company's business is online, cybersecurity incidents could materially adversely affect business strategy, operating results, or financial condition, although no such material incidents have occurred to date, and cyber liability insurance coverage may not be sufficient for all related claims - Almost all of the company's business is conducted online, and cybersecurity incidents could materially adversely affect business strategy, operating results, or financial condition[163](index=163&type=chunk) - To date, the company has not experienced any cybersecurity incidents that have had a material impact on its business strategy, operating results, or financial condition[163](index=163&type=chunk) - The company purchases cyber liability insurance, but its coverage may not be sufficient to address all related claims[163](index=163&type=chunk) [Cybersecurity Governance](index=50&type=section&id=Cybersecurity%20Governance) The Audit Committee reviews management's assessment and plans for cybersecurity and other enterprise risks, receiving regular updates from the security committee, while the information security team is responsible for identifying, assessing, and mitigating cybersecurity risks and reports to a security committee comprising the CTO, CEO, CFO, and Chief Legal Officer - The Audit Committee reviews management's assessment and plans for the company's cybersecurity and other enterprise risks, and regularly receives updates from the security committee[164](index=164&type=chunk) - The information security team is responsible for identifying, assessing, and mitigating cybersecurity risks, reporting to a security committee composed of the Chief Technology Officer, CEO, CFO, and Chief Legal Officer[165](index=165&type=chunk) [Item 2. Properties](index=50&type=section&id=Item%202.%20Properties) As of June 30, 2025, the company's headquarters in Foster City, California, spans approximately 22,915 square feet under a lease extending to October 2028, with additional leased facilities in the U.S., India, and Mexico supporting engineering, sales, marketing, and operations, all deemed sufficient for current needs - The company's headquarters is located in Foster City, California, with a lease term until October 2028[166](index=166&type=chunk) - The company leases other facilities in the U.S., India, and Mexico for engineering, sales, marketing, and operations[167](index=167&type=chunk) - The company believes its existing facilities are sufficient to meet current needs[167](index=167&type=chunk) [Item 3. Legal Proceedings](index=50&type=section&id=Item%203.%20Legal%20Proceedings) The company may be involved in legal proceedings and claims in the ordinary course of business, including cases with uncertain damage amounts, for which liabilities are accrued when losses are probable and reasonably estimable; based on current information, the company does not believe that pending or threatened legal proceedings, individually or in aggregate, will have a material adverse effect on its financial condition, results of operations, or cash flows - The company may be involved in legal proceedings and claims in the ordinary course of business, including cases with uncertain damage amounts[168](index=168&type=chunk) - The company accrues liabilities when losses are probable and reasonably estimable[168](index=168&type=chunk) - Based on current knowledge, the company does not believe that pending or threatened legal proceedings will have a material adverse effect on its financial condition, operating results, and cash flows[168](index=168&type=chunk) [Item 4. Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[169](index=169&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=51&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the Nasdaq Global Select Market under the symbol QNST, with a closing price of $14.51 per share and approximately 35 registered shareholders as of August 11, 2025; the company has never declared or paid common stock dividends and does not intend to in the near term, while a board-authorized stock repurchase program from April 2022 allows for up to $40 million in common stock repurchases, with approximately $16.8 million available as of June 30, 2025 - The company's common stock trades on the Nasdaq Global Select Market under the symbol QNST[171](index=171&type=chunk) Common Stock Information | Metric | Details | | :--- | :--- | | Closing Price as of August 11, 2025 | $14.51/share | | Number of Registered Shareholders as of August 11, 2025 | Approximately 35 | | Dividend Policy | Never declared or paid, no intention to pay in the short term | | Stock Repurchase Program Authorized Amount (April 2022) | $40.0 Million | | Amount Available for Repurchase as of June 30, 2025 | $16.8 Million | | FY2025 Repurchase Activity | None | | Shares Repurchased in FY2024 | 247,618 shares | | Total Repurchase Cost in FY2024 | $2.2 Million | - No sales of unregistered equity securities occurred in FY2025[179](index=179&type=chunk) [Item 6. [Reserved]](index=52&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved - This item is reserved[180](index=180&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses the company's financial condition and operating results for the fiscal year ended June 30, 2025, highlighting its business model as a performance marketing leader in financial and home services, key financial objectives, and business trends; FY2025 saw significant growth in net revenue and gross profit, and a return to net income, primarily driven by strong performance in the financial services vertical, particularly insurance, with detailed analysis of operating expenses, interest and other income/expense, income taxes, Adjusted EBITDA, liquidity, and cash flows, alongside an overview of critical accounting policies and recent accounting pronouncements [Management Overview](index=53&type=section&id=Management%20Overview) The company is a leading performance marketing platform and technology provider in the financial and home services industries, focused on customer acquisition in high-value, information-intensive markets, generating revenue through measurable marketing results and achieving robust financial outcomes by managing media costs and profit margins, with a primary financial objective of sustainable revenue growth and target profitability while investing in growth initiatives - The company is a leading performance marketing platform and technology provider in the financial and home services industries, focused on customer acquisition in high-value, information-intensive markets[182](index=182&type=chunk) - The company generates revenue by providing measurable marketing results such as qualified clicks, leads, calls, applications, or customers, achieving robust financial outcomes through media costs and profit margins[183](index=183&type=chunk) - The company's primary financial objectives are to achieve sustainable revenue growth and target profitability levels while investing in growth initiatives[184](index=184&type=chunk) FY2025 Net Revenue Composition | Client Vertical | % of Net Revenue | | :--- | :--- | | Financial Services | 75% | | Home Services | 24% | | Other Revenue | 1% | [Trends Affecting our Business](index=54&type=section&id=Trends%20Affecting%20our%20Business) The financial services vertical, particularly auto insurance, faced challenges from media availability, competition, and search algorithm changes, but recovered in FY2025 due to rate increases and product optimization, while the company expanded through acquisitions and strategic partnerships, with overall performance influenced by seasonality and evolving federal, state, and industry regulations - The financial services vertical previously faced challenges from limited high-quality media availability, increased competition, and changes in search algorithms, but the company responded by enhancing products, strategic partnerships, and acquisitions[188](index=188&type=chunk) - The auto insurance industry was affected by macroeconomic, weather, and supply chain events, leading to higher loss ratios and reduced advertising spend, but began to benefit from rate increases and product optimization in calendar year 2024, increasing advertising spend, and the company saw a recovery in net revenue in Q3 and Q4 of FY2025[189](index=189&type=chunk)[190](index=190&type=chunk) - The company expands client and media relationships through acquisitions (e.g., BestCompany and AquaVida) and develops new media sources and strategic partnerships to address media acquisition challenges[191](index=191&type=chunk)[192](index=192&type=chunk) - The company's performance is subject to seasonal fluctuations, with the second fiscal quarter (ending December 31) typically weaker and the third fiscal quarter (ending March 31) typically stronger, and the home services vertical also exhibits seasonal trends[193](index=193&type=chunk)[194](index=194&type=chunk) - Changes and enforcement of federal, state, and industry regulations (such as TCPA amendments) directly and indirectly impact the company's business, potentially leading to fluctuations in business volume and mix[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk) [Basis of Presentation](index=56&type=section&id=Basis%20of%20Presentation) Net revenue is primarily derived from fees earned by providing qualified marketing results across financial services, home services, and other verticals, while cost of revenue includes media, personnel, amortization, depreciation, and facility expenses, and operating expenses are categorized into product development, sales and marketing, and general and administrative, with interest and other net expenses and income tax provisions reflecting the company's tax liabilities - Net revenue primarily derives from fees earned by providing qualified marketing results such as clicks, leads, calls, applications, or customers, categorized into financial services, home services, and other revenue verticals[198](index=198&type=chunk) - Cost of revenue primarily includes media and marketing costs, personnel costs, intangible asset amortization, depreciation expense, and facility expenses[199](index=199&type=chunk) - Operating expenses are categorized into product development, sales and marketing, and general and administrative expenses, primarily comprising personnel costs, professional service fees, and facility expenses[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk) - Interest and other (expense) income, net, primarily includes interest expense, interest income, and other non-operating items[203](index=203&type=chunk) - The provision for income taxes reflects the company's tax liabilities in the U.S. and other operating jurisdictions[204](index=204&type=chunk) [Results of Operations](index=58&type=section&id=Results%20of%20Operations) In FY2025, the company achieved significant growth in net revenue and gross profit, returning to net income, driven by a 108% increase in financial services revenue, particularly insurance, while managing a 73% increase in cost of revenue and a 41% rise in operating expenses, with a notable improvement in Adjusted EBITDA and a higher effective tax rate due to profitability Consolidated Results of Operations Overview (FY2023-2025) | Metric (Thousands USD) | FY2025 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | Net Revenue | $1,093,711 | $613,514 | $580,624 | | Cost of Revenue | $982,840 | $567,268 | $532,101 | | Gross Profit | $110,871 | $46,246 | $48,523 | | Gross Margin | 10.1% | 7.5% | 8.4% | | Operating Income (Loss) | $6,193 | $(28,065) | $(20,816) | | Income (Loss) Before Income Taxes | $5,633 | $(30,396) | $(21,362) | | Provision for Income Taxes | $(926) | $(935) | $(47,504) | | Net Income (Loss) | $4,707 | $(31,331) | $(68,866) | Net Revenue by Vertical Change (FY2025 vs FY2024) | Vertical | FY2025 (Thousands USD) | FY2024 (Thousands USD) | Change Amount (Thousands USD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Financial Services | $817,157 | $392,579 | $424,578 | 108% | | - Insurance Business | - | - | $414,400 | 200% | | - Banking and Credit Card Business | - | - | $11,700 | - | | Home Services | $261,794 | $211,944 | $49,850 | 24% | | Other Revenue | $14,760 | $8,991 | $5,769 | 64% | | **Total Net Revenue** | **$1,093,711** | **$613,514** | **$480,197** | **78%** | - Cost of revenue increased by **$415.6 million (73%)** in FY2025, primarily driven by a **$406.8 million increase in media and marketing costs** due to higher revenue volume; gross margin increased from **8% in FY2024 to 10% in FY2025**, mainly due to lower personnel costs and depreciation as a percentage of net revenue, partially offset by a higher proportion of revenue from the financial services vertical, which has a higher media cost-to-revenue ratio[209](index=209&type=chunk)[210](index=210&type=chunk) Operating Expense Changes (FY2025 vs FY2024) | Operating Expense (Thousands USD) | FY2025 | FY2024 | Change Amount (Thousands USD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Product Development | $33,872 | $30,045 | $3,827 | 13% | | Sales and Marketing | $18,289 | $13,607 | $4,682 | 34% | | General and Administrative | $52,517 | $30,659 | $21,858 | 71% | | **Total Operating Expenses** | **$104,678** | **$74,311** | **$30,367** | **41%** | - Interest and other (expense) income, net, was a negative **$0.56 million** in FY2025, a **76% reduction** from negative **$2.331 million** in FY2024, primarily due to reduced interest on estimated deferred payments related to acquisitions and lower impairment charges on equity investments recorded in FY2024[215](index=215&type=chunk) Provision for Income Taxes and Effective Tax Rate (FY2023-2025) | Metric (Thousands USD) | FY2025 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | Provision for Income Taxes | $(926) | $(935) | $(47,504) | | Effective Tax Rate | 16.5% | (3.1%) | (222.4%) | - The effective tax rate increased in FY2025 primarily because the company generated pre-tax income, compared to a pre-tax loss in the prior year; the significant increase in the provision for income taxes in FY2023 was mainly due to a **$52.4 million valuation allowance** recorded against net deferred tax assets[218](index=218&type=chunk)[219](index=219&type=chunk) Adjusted EBITDA (FY2023-2025) | Metric (Thousands USD) | FY2025 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $81,263 | $20,365 | $16,690 | - Adjusted EBITDA is defined as net income (loss) adjusted for depreciation and amortization, stock-based compensation expense, interest and other net expenses, provision for income taxes, restructuring costs, acquisition costs, litigation settlement expenses, tax settlement expenses, and contingent consideration adjustments[221](index=221&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company's primary liquidity sources include **$101.1 million in cash and cash equivalents** and future cash generated from operations, which are deemed sufficient to meet short-term and long-term needs for working capital, capital expenditures, internal software development, common stock repurchases, and acquisitions, with approximately **$16.8 million remaining for repurchases** under a board-authorized program - As of June 30, 2025, the company's primary liquidity sources include **$101.1 million in cash and cash equivalents** and cash generated from future operations[226](index=226&type=chunk) - Short-term and long-term liquidity needs primarily stem from working capital, capital expenditures, internal software development costs, common stock repurchases, and acquisitions[227](index=227&type=chunk) - The company's Board of Directors authorized a new stock repurchase program in April 2022, allowing for repurchases of up to **$40.0 million** of common stock; as of June 30, 2025, approximately **$16.8 million** remained available for repurchases[228](index=228&type=chunk) - The company believes its primary liquidity sources are sufficient to meet cash needs for at least the next 12 months and the foreseeable future[229](index=229&type=chunk) [Cash Flows](index=65&type=section&id=Cash%20Flows) In FY2025, the company generated **$85.0 million in net cash from operating activities**, driven by net income and non-cash adjustments, while investing activities resulted in **$11.4 million in outflows** for software development and capital expenditures, and financing activities saw **$23.0 million in outflows** primarily for acquisition-related deferred payments and tax withholdings on restricted stock releases, partially offset by stock option exercises Cash Flow Overview (FY2023-2025) | Cash Flow (Thousands USD) | FY2025 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | $84,980 | $12,039 | $11,838 | | Net Cash from Investing Activities | $(11,443) | $(22,735) | $(15,125) | | Net Cash from Financing Activities | $(22,996) | $(12,511) | $(19,459) | - Net cash inflow from operating activities was **$85.0 million** in FY2025, primarily driven by **$4.7 million in net income**, **$76.0 million in non-cash adjustments** (including stock-based compensation, depreciation and amortization, fair value changes in contingent consideration), and a **$4.2 million net increase in working capital changes**[232](index=232&type=chunk)[233](index=233&type=chunk) - Net cash outflow from investing activities was **$11.4 million** in FY2025, primarily for **$9.4 million in internal software development costs** and **$2.1 million in capital expenditures**[235](index=235&type=chunk)[236](index=236&type=chunk) - Net cash outflow from financing activities was **$23.0 million** in FY2025, primarily for **$13.7 million in acquisition-related deferred payments and contingent consideration**, and **$13.2 million in tax withholdings related to restricted stock releases**, partially offset by **$4.0 million from stock option exercises** and common stock issuances under the employee stock purchase plan[237](index=237&type=chunk)[238](index=238&type=chunk) [Contractual Obligations](index=67&type=section&id=Contractual%20Obligations) As of June 30, 2025, the company's total contractual obligations amount to **$36.9 million**, comprising **$13.2 million in operating leases**, **$10.2 million in acquisition-related deferred payments**, and **$13.6 million in acquisition-related contingent consideration**, with the majority due within three years, excluding certain uncommenced operating leases and long-term income tax liabilities whose timing and amount cannot be reasonably estimated Contractual Obligations Payment Schedule as of June 30, 2025 (Thousands USD) | Contractual Obligation | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Leases | $13,201 | $3,482 | $6,627 | $3,059 | $33 | | Acquisition-Related Deferred Payments | $10,179 | $8,416 | $1,763 | $0 | $0 | | Acquisition-Related Contingent Consideration | $13,558 | $5,155 | $8,403 | $0 | $0 | | **Total** | **$36,938** | **$17,053** | **$16,793** | **$3,059** | **$33** | - This table excludes approximately **$0.5 million** in future minimum payments for uncommenced operating leases and approximately **$2.8 million** in long-term income tax liabilities, as the timing and amount of payment cannot be reasonably estimated[241](index=241&type=chunk)[242](index=242&type=chunk) [Critical Accounting Policies and Estimates](index=68&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's consolidated financial statements are prepared under GAAP, requiring management estimates and assumptions that impact reported assets, liabilities, contingencies, revenues, and expenses, with key policies covering revenue recognition, stock-based compensation, income taxes, acquisitions, goodwill, and long-lived asset impairment - The company prepares consolidated financial statements in accordance with GAAP, requiring estimates and assumptions that impact reported assets, liabilities, contingent matters, and amounts of revenue and expenses[243](index=243&type=chunk)[244](index=244&type=chunk) - **Revenue Recognition:** Revenue primarily derives from providing qualified marketing results, recognized under the five-step framework of ASC 606; contracts are typically one-month terms, terminable at will; the company identifies a single performance obligation, a series of distinct services, and recognizes revenue as services are provided; transaction prices are fixed, with no need to estimate variable consideration; the company assesses whether it is a principal (recognizing revenue on a gross basis) or an agent (recognizing revenue on a net basis) - **Stock-Based Compensation:** Stock-based compensation expense is measured at fair value on the grant date; fair value of service-based restricted stock units (RSUs) is determined based on the closing price of common stock on the grant date; fair value of stock options and Employee Stock Purchase Plan (ESPP) purchase rights is estimated using the Black-Scholes option pricing model; expense is recognized on a straight-line or graded vesting basis, with an estimated future forfeiture rate - **Income Taxes:** Deferred taxes are recorded using the asset and liability method; realizability of deferred tax assets is assessed, and a valuation allowance is recorded based on factors like cumulative losses and future earnings projections; tax benefits from uncertain tax positions are recognized only when it is 'more likely than not' that they will be sustained - **Acquisitions and Business Combinations:** Transactions are evaluated as either asset acquisitions or business combinations; asset acquisitions are accounted for using a cost accumulation and allocation model; business combinations use the acquisition method, allocating the total consideration to the fair value of acquired assets and assumed liabilities; goodwill is the excess of the purchase price over the fair value of identifiable assets and liabilities; contingent consideration is measured at fair value and adjusted periodically - **Goodwill:** Goodwill impairment is tested at least annually at the reporting unit level, with qualitative factors such as economic conditions, industry competition, stock price, and cash flows used to assess the need for a quantitative test; no impairment was identified as of April 30, 2025 - **Long-Lived Assets:** Long-lived assets (such as property, plant, and equipment and finite-lived purchased intangible assets) are evaluated for impairment when events or changes in circumstances indicate that their carrying amount may not be recoverable; no impairment was identified as of April 30, 2025[246](index=246&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk)[255](index=255&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[268](index=268&type=chunk) [Recent Accounting Pronouncements](index=74&type=section&id=Recent%20Accounting%20Pronouncements) The company has adopted ASU No. 2023-07, 'Segment Reporting: Improvements to Reportable Segment Disclosures,' effective June 30, 2025, with no material impact, and is currently evaluating the impact of ASU 2023-09, 'Income Taxes: Improvements to Income Tax Disclosures,' and ASU 2024-03, 'Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures,' which will become effective in future fiscal years - **Adopted:** ASU No. 2023-07, 'Segment Reporting: Improvements to Reportable Segment Disclosures,' became effective on June 30, 2025, with no material impact on consolidated financial statements - **Not Yet Adopted:** ASU 2023-09, 'Income Taxes: Improvements to Income Tax Disclosures,' will be effective for fiscal years beginning after December 15, 2024, and the company is evaluating its impact on financial statement disclosures - **Not Yet Adopted:** ASU 2024-03, 'Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures,' will be effective for fiscal years beginning after December 15, 2026, and the company is evaluating its impact on financial statement disclosures[269](index=269&type=chunk)[348](index=348&type=chunk)[349](index=349&type=chunk)[350](index=350&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=74&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risk primarily from interest rate fluctuations, but considers the impact of interest rate changes on the fair value of its cash equivalents, invested in money market funds, to be immaterial due to their short-term nature, with a hypothetical 1% decrease in interest rates not expected to materially affect consolidated financial statements - The company's primary market risk exposure is interest rate fluctuations[270](index=270&type=chunk) - The company invests cash equivalents in money market funds, and due to the short-term nature of these investments, believes that changes in interest rates do not have a material impact on their fair value[271](index=271&type=chunk) - A hypothetical 1% decrease in interest rates would not have a material impact on the consolidated financial statements[271](index=271&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=75&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes the company's consolidated financial statements for the fiscal year ended June 30, 2025, comprising the balance sheets, statements of operations and comprehensive income (loss), statements of stockholders' equity, and statements of cash flows, along with the independent registered public accounting firm's report from PwC, and detailed notes covering company overview, significant accounting policies, revenue, net income (loss) per share, fair value measurements, acquisitions, balance sheet components, intangible assets and goodwill, income taxes, leases, commitments and contingencies, stockholders' equity, and stock benefit plans [Report of Independent Registered Public Accounting Firm](index=76&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PwC issued an unqualified opinion on the company's consolidated balance sheets as of June 30, 2025 and 2024, and the consolidated statements of operations and comprehensive income (loss), stockholders' equity, and cash flows for the three years ended June 30, 2025, also providing an unqualified opinion on the effectiveness of internal control over financial reporting as of June 30, 2025, with revenue recognition identified as a key audit matter - PricewaterhouseCoopers LLP (PwC) issued an unqualified opinion on the company's consolidated balance sheets as of June 30, 2025 and 2024, and the consolidated statements of operations and comprehensive income (loss), stockholders' equity, and cash flows for the three years ended June 30, 2025[277](index=277&type=chunk)[278](index=278&type=chunk) - PwC also issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of June 30, 2025[278](index=278&type=chunk) - Key audit matters include revenue recognition, where auditors dedicated significant effort and evaluated the effectiveness of the company's revenue recognition process controls and related audit evidence[284](index=284&type=chunk)[285](index=285&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk) [Consolidated Balance Sheets](index=79&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets present the company's financial position as of June 30, 2025 and 2024, detailing assets including **$101.1 million in cash and cash equivalents** and **$135.8 million in net accounts receivable**, alongside liabilities such as **$62.2 million in accounts payable** and **$87.2 million in accrued liabilities**, culminating in **total assets of $431.1 million** and **total stockholders' equity of $244.0 million** for FY2025 Consolidated Balance Sheets (Thousands USD) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $101,078 | $50,488 | | Accounts receivable, net | $135,804 | $111,786 | | Prepaid expenses and other assets | $8,644 | $6,813 | | **Total current assets** | **$245,526** | **$169,087** | | Property and equipment, net | $16,818 | $19,858 | | Operating lease right-of-use assets | $9,620 | $10,440 | | Goodwill | $125,056 | $125,056 | | Intangible assets, net | $28,475 | $38,008 | | Other non-current assets | $5,612 | $6,097 | | **Total assets** | **$431,107** | **$368,546** | | **Liabilities and Stockholders' Equity** | | | | Accounts payable | $62,247 | $48,204 | | Accrued liabilities | $87,225 | $68,822 | | Other current liabilities | $13,572 | $9,372 | | **Total current liabilities** | **$163,044** | **$126,398** | | Operating lease liabilities (non-current) | $7,382 | $7,879 | | Other non-current liabilities | $16,637 | $17,444 | | **Total liabilities** | **$187,063** | **$151,721** | | **Stockholders' Equity** | | | | Common stock | $58 | $55 | | Additional paid-in capital | $369,958 | $347,449 | | Accumulated other comprehensive loss | $(268) | $(268) | | Accumulated deficit | $(125,704) | $(130,411) | | **Total stockholders' equity** | **$244,044** | **$216,825** | | **Total liabilities and stockholders' equity** | **$431,107** | **$368,546** | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=80&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) The consolidated statements of operations and comprehensive income (loss) show the company's financial performance for FY2025, FY2024, and FY2023, reporting **net income of $4.7 million** in FY2025, a significant improvement from **net losses of $31.3 million** and **$68.9 million** in the prior two fiscal years, driven by **$1.09 billion in net revenue** and a **gross profit of $110.9 million** for FY2025 Consolidated Statements of Operations and Comprehensive Income (Loss) (Thousands USD, except per share data) | Item | FY2025 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | Net revenue | $1,093,711 | $613,514 | $580,624 | | Cost of revenue | $982,840 | $567,268 | $532,101 | | Gross profit | $110,871 | $46,246 | $48,523 | | Operating expenses: | | | | | Product development | $33,872 | $30,045 | $28,893 | | Sales and marketing | $18,289 | $13,607 | $12,542 | | General and administrative | $52,517 | $30,659 | $27,904 | | Operating income (loss) | $6,193 | $(28,065) | $(20,816) | | Interest income | $23 | $408 | $296 | | Interest expense | $(400) | $(680) | $(790) | | Other (expense) income, net | $(183) | $(2,059) | $(52) | | Income (loss) before income taxes | $5,633 | $(30,396) | $(21,362) | | Provision for income taxes | $(926) | $(935) | $(47,504) | | Net income (loss) | $4,707 | $(31,331) | $(68,866) | | Comprehensive income (loss) | $4,707 | $(31,333) | $(68,871) | | Net income (loss) per share: | | | | | Basic | $0.08 | $(0.57) | $(1.28) | | Diluted | $0.08 | $(0.57) | $(1.28) | [Consolidated Statements of Stockholders' Equity](index=81&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) The consolidated statements of stockholders' equity detail changes in common stock, additional paid-in capital, accumulated other comprehensive loss, and accumulated deficit for the fiscal years ended June 30, 2025 and 2024, showing an increase in **total stockholders' equity from $216.8 million in FY2024 to $244.0 million in FY2025**, primarily due to **net income of $4.7 million** and an increase in **additional paid-in capital of $22.5 million** Consolidated Statements of Stockholders' Equity (Thousands USD, except share data) | Item | Balance as of June 30, 2023 | FY2024 Changes | Balance as of June 30, 2024 | FY2025 Changes | Balance as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Common stock (thousands of shares) | 54,193 | 1,281 | 55,473 | 1,686 | 57,160 | | Common stock (amount) | $54 | $1 | $55 | $3 | $58 | | Additional paid-in capital | $329,093 | $18,356 | $347,449 | $22,499 | $369,958 | | Accumulated other comprehensive loss | $(266) | $(2) | $(268) | $0 | $(268) | | Accumulated deficit | $(99,080) | $(31,331) | $(130,411) | $4,707 | $(125,704) | | **Total stockholders' equity** | **$229,801** | **$(15,196)** | **$216,825** | **$27,219** | **$244,044** | | Treasury stock (shares) | 0 | (247,618) | 0 | 0 | 0 | | Treasury stock (amount) | $0 | $(2,200) | $0 | $0 | $0 | [Consolidated Statements of Cash Flows](index=82&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows show a **net increase in cash and cash equivalents of $50.6 million** in FY2025, primarily driven by **$85.0 million in net cash from operating activities**, partially offset by **$11.4 million in net cash used in investing activities** and **$23.0 million in net cash used in financing activities**, resulting in **ending cash and cash equivalents of $101.1 million** Consolidated Statements of Cash Flows (Thousands USD) | Cash Flow Activity | FY2025 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $84,980 | $12,039 | $11,838 | | Net cash from investing activities | $(11,443) | $(22,735) | $(15,125) | | Net cash from financing activities | $(22,996) | $(12,511) | $(19,459) | | Effect of exchange rate changes | $50 | $18 | $(15) | | Net increase (decrease) in cash and cash equivalents | $50,591 | $(23,189) | $(22,761) | | Cash and cash equivalents at beginning of period | $50,503 | $73,692 | $96,453 | | Cash and cash equivalents at end of period | $101,094 | $50,503 | $73,692 | Supplemental Cash Flow Information (Thousands USD) | Item | FY2025 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | Income taxes paid | $576 | $470 | $372 | | Purchases of property and equipment included in accrued liabilities | $1,413 | $846 | $1,228 | [Notes to Consolidated Financial Statements](index=84&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed information supporting the consolidated financial statements, covering company overview, significant accounting policies, revenue, net income (loss) per share, fair value measurements, acquisitions, balance sheet components, intangible assets and goodwill, income taxes, leases, commitments and contingencies, stockholders' equity, and stock benefit plans [1. The Company](index=84&type=section&id=1.%20The%20Company) QuinStreet, Inc., founded in April 1999 and reincorporated in Delaware in December 2009, is a leading performance marketing company in the financial and home services industries, headquartered in Foster City, California, with offices in the U.S., India, and Mexico, primarily deriving business and revenue from North America - QuinStreet, Inc. was founded in April 1999 and reincorporated in Delaware in December 2009, operating as a leading performance marketing company in the financial and home services industries[298](index=298&type=chunk) - The company is headquartered in Foster City, California, with offices in the U.S., India, and Mexico, primarily deriving its business and revenue from North America[298](index=298&type=chunk) [2. Summary of Significant Accounting Policies](index=84&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the company's significant accounting policies, including consolidation principles, use of estimates, revenue recognition, credit risk concentration,

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]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) QuinStreet reported strong financial results for Q4 and FY2025, with significant year-over-year growth in revenue, GAAP net income, adjusted net income, and adjusted EBITDA. The company also generated substantial operating cash flow for the full fiscal year [Fiscal Fourth Quarter and Full Year 2025 Financial Performance](index=1&type=section&id=Fiscal%20Fourth%20Quarter%20and%20Full%20Year%202025%20Financial%20Performance) QuinStreet reported strong financial results for Q4 and FY2025, with significant year-over-year growth in revenue, GAAP net income, adjusted net income, and adjusted EBITDA. The company also generated substantial operating cash flow for the full fiscal year | Metric | Q4 FY25 | Q4 FY24 | YoY Change (Q4) | FY25 | FY24 | YoY Change (FY) | | :-------------------------- | :-------- | :-------- | :-------------- | :--------- | :--------- | :-------------- | | Revenue | $262.1M | $198.3M | +32% | $1.1B | $613.5M | +78% | | GAAP Net Income | $3.2M | ($2.2M) | N/A | $4.7M | ($31.3M) | N/A | | GAAP Diluted EPS | $0.06 | ($0.04) | N/A | $0.08 | ($0.57) | N/A | | Adjusted Net Income | $14.7M | $6.5M | +126% | $51.4M | $6.3M | +716% | | Adjusted Diluted EPS | $0.25 | $0.11 | +127% | $0.88 | $0.11 | +700% | | Adjusted EBITDA | $22.1M | $11.0M | +101% | $81.3M | $20.4M | +299% | | FY25 Operating Cash Flow | N/A | N/A | N/A | $85.0M | N/A | N/A | | FY25 Cash & Equivalents | N/A | N/A | N/A | $101.1M | N/A | N/A | [CEO Commentary and Strategic Outlook](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Outlook) CEO Doug Valenti highlighted strong revenue growth and margin expansion in FY25, driven by investments and early contributions from new initiatives. He noted renewed demand in Auto Insurance, despite moderation in H2 FY25 due to tariff uncertainties, and anticipates strong sequential growth in Q1 FY26. The company plans continued aggressive investment to capitalize on pent-up demand in Auto Insurance and expects further margin expansion in FY26 - Full year revenue grew **78%** and Adjusted EBITDA grew **299%**, reflecting ongoing investments and early contributions from new market and product initiatives[7](index=7&type=chunk) - Renewed demand from Auto Insurance clients was a key driver for FY25 success, with some clients re-accelerating spending, leading to an expectation of strong sequential Auto Insurance revenue growth in FYQ1[7](index=7&type=chunk) - The company expects FYQ1 revenue of approximately **$280 million** and Adjusted EBITDA of about **$20 million**. For full fiscal year 2026, revenue is projected to grow about **10%** and Adjusted EBITDA about **20%**, with continued margin expansion efforts[7](index=7&type=chunk) [Key Performance Indicators (Exhibit 99.1)](index=1&type=section&id=Key%20Performance%20Indicators%20(Exhibit%2099.1)) Exhibit 99.1 reiterated key financial and operational achievements for Q4 and FY25, emphasizing strong revenue growth, significant improvement in net income and adjusted EBITDA, and a healthy balance sheet with expectations for continued margin expansion in FY26 - FYQ4 Revenue increased **32% YoY** to **$262 million**, accompanied by strong margin growth[9](index=9&type=chunk) - FYQ4 Auto Insurance revenue surged **62% YoY**, while Home Services revenue grew **21%**[9](index=9&type=chunk) - FY25 Revenue reached **$1.1 billion**, a **78% YoY** increase, and Net Income improved to **$4.7 million** from a **$31.3 million** net loss in FY24[9](index=9&type=chunk) - FY25 Adjusted EBITDA grew **299%** to **$81.3 million** from **$20.4 million** in FY24, with expectations for continued margin expansion in FY26[9](index=9&type=chunk) - The company maintains strong cash flows and a healthy balance sheet, with over **$100 million** in cash and no bank debt[9](index=9&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) QuinStreet, Inc. is a leading provider of performance marketplaces and technologies, primarily serving the financial services and home services industries [About QuinStreet](index=3&type=section&id=About%20QuinStreet) QuinStreet, Inc. is a leading provider of performance marketplaces and technologies, primarily serving the financial services and home services industries. The company specializes in online marketplace solutions that connect consumers with relevant brands and products - QuinStreet, Inc. is a leader in performance marketplaces and technologies for the financial services and home services industries[10](index=10&type=chunk) - The company pioneers online marketplace solutions to match searchers with brands in digital media, providing consumers with information and tools to select products and brands[10](index=10&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section defines several non-GAAP financial measures and explains their rationale for complementing GAAP results, offering additional insights into operating performance and resource allocation [Definitions and Rationale](index=3&type=section&id=Definitions%20and%20Rationale) This section defines several non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted Net Income per Share, Free Cash Flow, and Normalized Free Cash Flow. It explains that these measures are provided to complement GAAP results, offering additional insights into operating performance, resource allocation, and ongoing operating trends, though they should not be considered substitutes for GAAP - Adjusted EBITDA is defined as net income (loss) adjusted for taxes, depreciation, amortization, stock-based compensation, interest, acquisition costs, contingent consideration, litigation/tax settlement, and restructuring costs[11](index=11&type=chunk) - Adjusted Net Income is defined as net income (loss) adjusted for amortization, stock-based compensation, acquisition costs, contingent consideration, litigation/tax settlement, restructuring costs, and impairment of investment, net of estimated taxes[11](index=11&type=chunk) - Free Cash Flow is defined as net cash provided by operating activities less capital expenditures and internal software development costs, while Normalized Free Cash Flow further adjusts for changes in operating assets and liabilities[11](index=11&type=chunk)[17](index=17&type=chunk) - These non-GAAP measures are considered relevant and useful for analyzing operating performance, internal planning, resource allocation, and evaluating operational strategies, and are widely used by investors and analysts in the industry[12](index=12&type=chunk)[13](index=13&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - The company cannot provide a quantitative reconciliation for Adjusted EBITDA guidance to GAAP without unreasonable efforts due to high variability and low visibility of certain items[15](index=15&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) QuinStreet's financial statements reflect significant improvements in net income and cash flow for FY25, driven by strong revenue growth and effective cost management [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows an increase in total assets and stockholders' equity from June 30, 2024, to June 30, 2025, primarily driven by a significant increase in cash and cash equivalents. Total liabilities also increased during the period | Balance Sheet Item (in thousands) | June 30, 2025 | June 30, 2024 | YoY Change | | :-------------------------------- | :------------ | :------------ | :--------- | | Cash and cash equivalents | $101,078 | $50,488 | +100.2% | | Accounts receivable, net | $135,804 | $111,786 | +21.5% | | Total current assets | $245,526 | $169,087 | +45.2% | | Total assets | $431,107 | $368,546 | +17.0% | | Total current liabilities | $163,044 | $126,398 | +29.0% | | Total liabilities | $187,063 | $151,721 | +23.3% | | Total stockholders' equity | $244,044 | $216,825 | +12.6% | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) QuinStreet demonstrated strong operational improvement, moving from a net loss in Q4 and FY24 to net income in Q4 and FY25. This was driven by substantial revenue growth and improved gross profit margins, despite increases in operating expenses | Income Statement Item (in thousands) | Q4 FY25 | Q4 FY24 | YoY Change (Q4) | FY25 | FY24 | YoY Change (FY) | | :----------------------------------- | :----------- | :----------- | :-------------- | :----------- | :----------- | :-------------- | | Net revenue | $262,054 | $198,321 | +32.1% | $1,093,711 | $613,514 | +78.3% | | Gross profit | $27,850 | $17,433 | +59.8% | $110,871 | $46,246 | +139.7% | | Operating income (loss) | $3,876 | ($1,439) | N/A | $6,193 | ($28,065) | N/A | | Net income (loss) | $3,206 | ($2,164) | N/A | $4,707 | ($31,331) | N/A | | Diluted EPS | $0.06 | ($0.04) | N/A | $0.08 | ($0.57) | N/A | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company significantly increased cash generated from operating activities in both Q4 and FY25, leading to a substantial net increase in cash and cash equivalents for the full fiscal year, contrasting with a decrease in the prior year. Investing activities continued to use cash, while financing activities also resulted in a net cash outflow | Cash Flow Item (in thousands) | Q4 FY25 | Q4 FY24 | YoY Change (Q4) | FY25 | FY24 | YoY Change (FY) | | :---------------------------------------- | :----------- | :----------- | :-------------- | :----------- | :----------- | :-------------- | | Net cash provided by operating activities | $29,897 | $16,554 | +80.6% | $84,980 | $12,039 | +605.9% | | Net cash used in investing activities | ($3,056) | ($3,648) | -16.2% | ($11,443) | ($22,735) | -49.7% | | Net cash used in financing activities | ($7,611) | ($2,025) | +275.8% | ($22,996) | ($12,511) | +83.8% | | Net increase (decrease) in cash | $19,263 | $10,886 | +76.9% | $50,591 | ($23,189) | N/A | | Cash, cash equivalents at end of period | $101,094 | $50,503 | +100.2% | $101,094 | $50,503 | +100.2% | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations of GAAP net income to various non-GAAP measures, highlighting significant improvements in adjusted net income, adjusted EBITDA, and free cash flow for FY25 [Reconciliation of Net Income (Loss) to Adjusted Net Income](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20Net%20Income) QuinStreet's Adjusted Net Income and Adjusted Diluted Net Income per Share saw substantial year-over-year increases for both the fourth quarter and the full fiscal year 2025, reflecting the exclusion of certain non-cash and non-recurring items from GAAP net income | Metric (in thousands, except per share) | Q4 FY25 | Q4 FY24 | YoY Change (Q4) | FY25 | FY24 | YoY Change (FY) | | :-------------------------------------- | :----------- | :----------- | :-------------- | :----------- | :----------- | :-------------- | | Net income (loss) | $3,206 | ($2,164) | N/A | $4,707 | ($31,331) | N/A | | Adjusted net income | $14,676 | $6,541 | +124.4% | $51,440 | $6,303 | +716.1% | | Adjusted diluted net income per share | $0.25 | $0.11 | +127.3% | $0.88 | $0.11 | +700.0% | [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA) Adjusted EBITDA experienced significant growth in both Q4 and FY25, more than doubling in the quarter and nearly quadrupling for the full year, indicating strong operational performance when excluding non-cash and certain non-recurring expenses | Metric (in thousands) | Q4 FY25 | Q4 FY24 | YoY Change (Q4) | FY25 | FY24 | YoY Change (FY) | | :-------------------- | :----------- | :----------- | :-------------- | :----------- | :----------- | :-------------- | | Net income (loss) | $3,206 | ($2,164) | N/A | $4,707 | ($31,331) | N/A | | Adjusted EBITDA | $22,134 | $11,030 | +100.7% | $81,263 | $20,365 | +299.0% | [Reconciliation of Cash Provided by Operating Activities to Free Cash Flow and Normalized Free Cash Flow](index=12&type=section&id=Reconciliation%20of%20Cash%20Provided%20by%20Operating%20Activities%20to%20Free%20Cash%20Flow%20and%20Normalized%20Free%20Cash%20Flow) QuinStreet achieved positive Free Cash Flow and Normalized Free Cash Flow for both Q4 and FY25, with substantial year-over-year improvements, particularly for the full fiscal year, demonstrating enhanced cash-generating capacity | Metric (in thousands) | Q4 FY25 | Q4 FY24 | YoY Change (Q4) | FY25 | FY24 | YoY Change (FY) | | :---------------------------------------- | :----------- | :----------- | :-------------- | :----------- | :----------- | :-------------- | | Net cash provided by operating activities | $29,897 | $16,554 | +80.6% | $84,980 | $12,039 | +605.9% | | Free cash flow | $26,842 | $12,906 | +107.9% | $73,538 | ($4,686) | N/A | | Normalized free cash flow | $18,767 | $7,159 | +162.1% | $69,291 | $2,326 | +2877.3% | [Revenue Disaggregation](index=13&type=section&id=Revenue%20Disaggregation) QuinStreet's revenue growth in Q4 and FY25 was significantly driven by both Financial Services and Home Services segments, with Financial Services remaining the largest contributor [Revenue by Segment](index=13&type=section&id=Revenue%20by%20Segment) Both Financial Services and Home Services segments contributed significantly to QuinStreet's revenue growth in Q4 and FY25. Financial Services remained the largest segment and showed robust growth, while Home Services also delivered solid performance | Revenue Segment (in thousands) | Q4 FY25 | Q4 FY24 | YoY Change (Q4) | FY25 | FY24 | YoY Change (FY) | | :----------------------------- | :----------- | :----------- | :-------------- | :----------- | :----------- | :-------------- | | Financial Services | $186,608 | $136,870 | +36.3% | $817,157 | $392,579 | +108.1% | | Home Services | $71,696 | $59,309 | +20.9% | $261,794 | $211,944 | +23.5% | | Other Revenue | $3,750 | $2,142 | +75.1% | $14,760 | $8,991 | +64.2% | | Total net revenue | $262,054 | $198,321 | +32.1% | $1,093,711 | $613,514 | +78.3% | [Additional Information](index=1&type=section&id=Additional%20Information) This section provides important legal disclaimers regarding forward-looking statements, investor contact details, and information for accessing the financial results conference call [Legal Notice Regarding Forward-Looking Statements](index=5&type=section&id=Legal%20Notice%20Regarding%20Forward-Looking%20Statements) This section serves as a legal disclaimer, identifying forward-looking statements within the press release and outlining various risks and uncertainties that could cause actual results to differ materially from those projected. It also directs readers to SEC filings for more information - The press release contains forward-looking statements identified by words like 'estimate', 'will', 'believe', 'expect', 'intend', 'outlook', 'potential', 'promises' and similar expressions[19](index=19&type=chunk) - Actual results may differ materially due to factors such as client marketing spend, visitor conversion, data privacy risks, regulatory changes, competition, intellectual property rights, and counterparty risks[19](index=19&type=chunk) - More information on potential factors affecting the business and financial results can be found in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC[19](index=19&type=chunk) [Investor Relations Contact](index=5&type=section&id=Investor%20Relations%20Contact) Provides contact information for investor relations inquiries - Investor Contact: Robert Amparo, (347) 223-1682, ramparo@quinstreet.com[20](index=20&type=chunk) [Conference Call Details](index=1&type=section&id=Conference%20Call%20Details) Details for accessing the conference call and live webcast to discuss the financial results, including dial-in numbers and webcast link, along with replay information - A conference call and live webcast were scheduled for August 7, 2025, at 2:00 p.m. PT[8](index=8&type=chunk) - Domestic dial-in: +1 800-717-1738; International dial-in: +1 646-307-1865. Webcast available at http://investor.quinstreet.com[8](index=8&type=chunk) - A replay of the call is available by dialing +1 844-512-2921 (domestic) or +1 412-317-6671 (international) using passcode 1170966[8](index=8&type=chunk)

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]