QuinStreet(QNST) - 2026 Q1 - Quarterly Results

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].