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]