QuinStreet’s (NASDAQ:QNST) Q3 Sales Beat Estimates, Stock Jumps 11.2%

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]