EverQuote (EVER) Q2 EPS Jumps 129%

Core Insights - EverQuote reported Q2 2025 results with GAAP EPS of $0.39, exceeding estimates of $0.35, while GAAP revenue was $156.6 million, slightly below the consensus of $157.2 million, indicating strong profitability and operational efficiency despite moderating growth rates [1][2] Financial Performance - GAAP EPS increased by 129.4% year-over-year from $0.17 in Q2 2024 [2] - GAAP revenue rose by 33.8% from $117.1 million in Q2 2024 [2] - Adjusted EBITDA reached $22.0 million, a 70.5% increase from $12.9 million in Q2 2024 [2] - Operating cash flow hit a record $25.3 million, more than doubling from $12.4 million in the previous year [2] Business Model and Strategy - EverQuote operates a digital marketplace that connects insurance shoppers with providers, leveraging a proprietary technology platform that utilizes AI and machine learning for optimized matching [3][4] - The company focuses on enhancing its Smart Campaigns product and expanding its offerings in the property and casualty insurance market, particularly in automotive, home, and renters' segments [4] Growth Drivers - The automotive insurance vertical was the primary growth driver, with revenue increasing by 36% to $139.6 million from $102.6 million in Q2 2024 [5] - Home and renters insurance also saw a 22.7% increase to $17.0 million [5] - The company achieved significant operational leverage, with adjusted EBITDA climbing to $22.0 million, a 69.8% increase [6] Market Trends and Outlook - Management anticipates revenue for Q3 2025 to be between $163.0 million and $169.0 million, reflecting a deceleration in growth compared to Q2 2025 [9] - Variable marketing dollars are projected to be between $47.0 million and $50.0 million, with adjusted EBITDA expected to range from $22.0 million to $24.0 million [9] - The company announced a $50.0 million share repurchase program, indicating confidence in its cash generation and balance sheet [10]