Financial Performance - Net revenue for the three months ended September 30, 2025, was $285.9 million, a 2% increase from $279.2 million in the same period of 2024[103]. - Gross profit decreased by 5% to $26.9 million, with a gross profit margin of 9% compared to 10% in the prior year[102][104]. - Operating expenses totaled $22.2 million, a decrease of 25% from $29.6 million in the same period of 2024[105]. - General and administrative expenses saw a significant reduction of 45%, down to $9.3 million from $16.8 million[108]. - Cash provided by operating activities was $19.6 million, compared to cash used of $13.7 million in the prior year[118]. - Cost of revenue increased by 3% to $258.9 million, primarily due to increased media and marketing costs[104]. Client Verticals - Financial services client vertical represented 73% of net revenue for the three months ended September 30, 2025, compared to 76% for the same period in 2024[76]. - One client in the financial services vertical accounted for 21% of net revenue for the three months ended September 30, 2025[77]. - Revenue from home services client vertical increased by $10.1 million, or 15%, while revenue from financial services client vertical decreased by $3.4 million, or 2%[103]. Strategic Initiatives - Strategic acquisitions, including BestCompany and AquaVida in fiscal year 2024, are a key element of the company's corporate strategy[81]. - The company has enhanced its product set to improve media segmentation and monetization, addressing challenges in the financial services vertical[78]. - The company aims for sustainable revenue growth while investing in various growth initiatives rather than maximizing short-term profits[74]. Market and Regulatory Environment - The auto insurance industry began to benefit from rate increases starting in calendar 2024, leading to increased advertising spending and revenue growth[80]. - Regulatory changes, such as amendments to the Telephone Consumer Protection Act, may impact revenue and profitability[87]. - The company is exposed to market risks primarily due to fluctuations in interest rates[129]. Cash and Shareholder Activities - As of September 30, 2025, the company had cash and cash equivalents of $101.3 million[113]. - The company repurchased 462,440 shares at an average price of $15.41 per share, totaling $7.1 million during the three months ended September 30, 2025[115]. Seasonal and Operational Factors - Seasonality affects revenue, particularly with lower media availability and client budgets during the holiday period[83]. - There have been no material changes in the company's contractual obligations as of June 30, 2025[128]. - The company invests cash equivalents in money market funds for working capital and acquisition financing[130]. - The company does not have material exposure to changes in the fair value of investments due to the short-term nature of these investments[130]. - A hypothetical decline of 1% in interest rates would not have a material effect on the company's financial statements[130].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - QuinStreet reported quarterly earnings of $0.22 per share, matching the Zacks Consensus Estimate, and showing no change from the previous year [1] - The company achieved revenues of $285.85 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.10% and up from $279.22 million year-over-year [2] Financial Performance - Earnings per share (EPS) for the last quarter was $0.25, which was below the expected $0.26, resulting in a surprise of -3.85% [1] - Over the last four quarters, QuinStreet has not surpassed consensus EPS estimates [1] - The company has topped consensus revenue estimates three times in the last four quarters [2] Stock Performance - QuinStreet shares have declined approximately 35.4% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3] - The current Zacks Rank for QuinStreet is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $271.91 million, and for the current fiscal year, it is $1.06 on revenues of $1.19 billion [7] - The outlook for the Internet - Delivery Services industry, where QuinStreet operates, is currently in the bottom 32% of over 250 Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - QuinStreet reported record revenue of $285.9 million for Q1 2026, with adjusted net income of $13.1 million, or $0.22 per share, and adjusted EBITDA of $20.5 million [10] - The company expects Q2 revenue to be between $270 million and $280 million, with adjusted EBITDA between $19 million and $20 million [9][12] - Full fiscal year 2026 revenue is projected to grow at least 10% year over year, while adjusted EBITDA is expected to grow at least 20% year over year [9][12] Business Line Data and Key Metrics Changes - The financial services client vertical accounted for 73% of Q1 revenue, declining 2% year over year to $207.5 million [10] - Auto insurance revenue grew 16% sequentially and 4% year over year, while non-insurance financial services declined 10% year over year [10] - Home services represented 27% of Q1 revenue, growing 15% year over year to a record $78.4 million [10] Market Data and Key Metrics Changes - The company noted strong demand in auto insurance, with marketing budgets shifting towards digital and performance marketing [4] - There is uncertainty regarding tariffs impacting claims costs, which may delay expected increases in carrier marketing spend [5][22] - The total addressable market opportunity is estimated to be less than 10% penetrated, indicating significant growth potential [5] Company Strategy and Development Direction - QuinStreet aims to achieve a 10% quarterly adjusted EBITDA margin in the current fiscal year, focusing on media optimization, higher margin products, and operational efficiency [6] - The company is investing in new media capacity and expanding its product and market footprint to drive growth and expand margins [5] - QuinStreet is also focusing on artificial intelligence to enhance consumer access and engagement, expecting it to accelerate growth in their markets [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong growth in auto insurance revenue and margins due to favorable market fundamentals [4] - The company anticipates a significant increase in carrier marketing spend once tariff uncertainties are resolved [22] - Management highlighted a broadening of spending among auto insurance carriers, with a record number of clients spending over $1 million per month [28] Other Important Information - The Board of Directors authorized a new $40 million share repurchase program, reflecting confidence in the company's long-term outlook [9] - QuinStreet has maintained a strong financial position with $101 million in cash and equivalents and no bank debt [11] Q&A Session Summary Question: Details on media investments and performance - Management discussed scaling proprietary media campaigns in response to auto insurance demand, noting margins have improved and are expected to continue expanding [17][19] Question: Impact of tariffs on spending - Management clarified that while there are no new tariffs, existing ones are causing clients to be conservative in their spending, despite strong financial performance [20][22] Question: Spending trends among auto insurance carriers - Management observed a broadening of spending, with non-major players increasing their spend significantly, while larger players continue to spend strongly [26][28] Question: Changes in monetization of credit-driven verticals - Management noted that lower-end consumers are under pressure, but demand for credit and debt relief products remains healthy, particularly among upper-income consumers [33][34] Question: Activity in home services segment - Management reported robust demand for home services, indicating a healthy market with significant growth opportunities [36]

Core Insights - QuinStreet reported Q3 CY2025 results that exceeded market revenue expectations, with sales increasing by 2.4% year-on-year to $285.9 million [1][8] - The company anticipates next quarter's revenue to be around $275 million, aligning closely with analysts' estimates [1][8] - Non-GAAP profit of $0.22 per share was consistent with analysts' consensus estimates [1][8] Company Overview - QuinStreet, founded in 1999, specializes in high-intent consumer traffic and operates digital performance marketplaces connecting clients in financial and home services with consumers [4] Revenue Growth - QuinStreet achieved $1.1 billion in revenue over the past 12 months, positioning itself as a smaller player in the business services sector, which may limit its advantages compared to larger competitors [6] - The company has demonstrated a remarkable compounded annual growth rate of 16.9% in sales over the last five years, indicating strong demand [7] Financial Performance - Revenue for Q3 CY2025 was $285.9 million, surpassing analyst estimates of $279.9 million, reflecting a 2.4% year-on-year growth [8] - Adjusted EPS was $0.22, matching analyst expectations of $0.21 [8] - Adjusted EBITDA was $20.52 million, exceeding analyst estimates of $20.16 million, with a margin of 7.2% [8] - Operating margin improved to 1.7%, up from -0.4% in the same quarter last year [8] - Free cash flow increased to $15.51 million, compared to -$16.31 million in the same quarter last year [8] - Market capitalization stands at $856 million [8]

Financial Performance - The company reported record revenue of $285.9 million for the fiscal first quarter, representing a 2% year-over-year increase[3]. - GAAP net income for the quarter was $4.5 million, or $0.08 per diluted share, while adjusted net income was $13.1 million, or $0.22 per diluted share[3]. - Adjusted EBITDA for the quarter was $20.5 million, up 1% year-over-year, with a goal to reach a 10% quarterly adjusted EBITDA margin in the current fiscal year[3][4]. - Net revenue for the three months ended September 30, 2025, was $285.853 million, an increase of 2.3% from $279.219 million in the same period of 2024[22]. - Gross profit decreased to $26.940 million, down 5.4% from $28.405 million year-over-year[22]. - Operating income improved to $4.789 million compared to a loss of $1.207 million in the prior year[22]. - Net income for the quarter was $4.535 million, a significant recovery from a loss of $1.366 million in the same quarter of 2024[22]. - Adjusted net income rose to $13.116 million, compared to $12.543 million in the same period last year[26]. - Free cash flow for the quarter was $15.509 million, a turnaround from a negative $16.312 million in the prior year[30]. Cash Flow and Balance Sheet - The company generated $19.6 million in operating cash flow and ended the quarter with $101.3 million in cash and cash equivalents, with no bank debt[4][6]. - The balance sheet remains strong with total assets of $442.6 million and total liabilities of $195.9 million[20]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $101.313 million, up from $24.997 million at the end of the previous year[24]. Future Outlook - The company expects fiscal Q2 revenue to be between $270 million and $280 million, and adjusted EBITDA to be between $19 million and $20 million[4]. - Full fiscal year 2026 revenue is projected to grow at least 10% year-over-year, with adjusted EBITDA expected to grow at least 20% year-over-year[4]. Business Segments - Auto Insurance demand remained strong, and Home Services continued to grow at strong double-digit rates[4][6]. - Revenue from Financial Services was $207.475 million, down from $210.891 million, while Home Services revenue increased to $78.378 million from $68.328 million[32]. Shareholder Actions - The board has authorized a new $40 million share repurchase program, reflecting confidence in the company's long-term outlook[4][6]. Investment in Technology - The company is investing in Artificial Intelligence (AI) to enhance growth in its markets and expects to benefit from its structured proprietary data[4]. Stock Information - Stock-based compensation expense included in operating expenses was $9.203 million, compared to $8.407 million in the same quarter of 2024[26]. - The company reported a weighted average diluted share count of 58.769 million for the quarter, up from 55.823 million in the prior year[26].

Core Viewpoint - The market anticipates QuinStreet (QNST) to report flat earnings of $0.22 per share for the quarter ended September 2025, with revenues expected to rise slightly by 0.3% to $279.96 million compared to the previous year [3][12]. Earnings Expectations - The earnings report is crucial as it may influence the stock price significantly, depending on whether the actual results exceed or fall short of expectations [2][12]. - A positive Earnings ESP of +4.55% indicates that analysts have recently become more optimistic about QuinStreet's earnings prospects, suggesting a likelihood of beating the consensus EPS estimate [12]. Estimate Revisions - The consensus EPS estimate has been revised 3.03% higher in the last 30 days, reflecting a collective reassessment by covering analysts [4]. - The Most Accurate Estimate is higher than the Zacks Consensus Estimate, indicating a bullish sentiment among analysts [12]. Historical Performance - In the last reported quarter, QuinStreet was expected to post earnings of $0.26 per share but delivered only $0.25, resulting in a surprise of -3.85% [13]. - Over the past four quarters, QuinStreet has only beaten consensus EPS estimates once [14]. Predictive Indicators - A positive Earnings ESP combined with a Zacks Rank of 2 (Buy) enhances the likelihood of an earnings beat, with historical data showing a nearly 70% success rate for such combinations [10]. - The predictive power of the Earnings ESP is significant primarily for positive readings, while negative readings do not reliably indicate an earnings miss [9][11]. Conclusion - QuinStreet is viewed as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just the earnings report [15][17].

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]

Core Insights - QuinStreet Inc. (NASDAQ: QNST) has experienced a decline of approximately 13% in share value over the past year, contrasting with a 21% gain in the S&P 500 index [1] Group 1: Company Performance - The shares of QuinStreet Inc. have lost about 13% of their value in the last year [1] - The S&P 500 index has gained approximately 21% during the same period [1] Group 2: Investment Strategy - The investment approach combines fundamental analysis with momentum research to identify potential investment opportunities [1] - A software tool has been developed to track levels of optimism and pessimism in stock prices, aiming to exploit market disconnects [1] - The focus is on investing in companies that have a higher than average chance of delivering positive surprises in the near future [1]