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]

Financial Data and Key Metrics Changes - Total revenue grew 32% year over year in Q4 and 78% for the full fiscal year 2025, reaching $1,100,000,000 [4][5][11] - Adjusted EBITDA increased by 101% in Q4 and approximately 300% for the full fiscal year, amounting to $81,300,000 [4][5][11] - The company ended Q4 with over $100,000,000 in cash and no bank debt, indicating a strong balance sheet [5][11] Business Line Data and Key Metrics Changes - Auto insurance revenue surged 62% year over year in Q4, while home services revenue grew 21% [4][10] - For the full fiscal year, financial services represented 75% of total revenue, growing 108% year over year to $817,200,000, while home services accounted for 24% of revenue, growing 24% [10][11] Market Data and Key Metrics Changes - The auto insurance market showed renewed demand, with expectations of strong sequential revenue growth in Q1 [6][9] - The company noted that carrier spending growth moderated in the second half of the fiscal year due to tariff uncertainties, but some clients began to reaccelerate spending [6][7] Company Strategy and Development Direction - The company plans to continue investing aggressively in media capacity and products to capitalize on pent-up demand in auto insurance [8][9] - The outlook for fiscal Q1 is projected at approximately $280,000,000 in revenue and $20,000,000 in adjusted EBITDA, with a full fiscal year 2026 revenue growth expectation of about 10% and adjusted EBITDA growth of about 20% [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive advantages and financial strength to pursue long-term market opportunities [5][6] - The management highlighted that the auto insurance market is expected to see significant spending increases as tariff impacts become clearer [7][8] Other Important Information - The company is launching a new version of its media optimization platform, QMP, in home services, which is expected to enhance growth and operational efficiency [42][66] - The company is also focusing on margin expansion initiatives, with expectations for adjusted EBITDA margins to grow faster than revenue [34][52] Q&A Session Summary Question: Can you walk through carrier spend trends across Q4? - Management noted consistent spending levels in Q4, with indications of increased spending as the quarter progressed and expectations for further increases in Q1 and Q4 of the calendar year [16][18] Question: Can you discuss the assumptions in the initial 2026 guidance? - The guidance is characterized as conservative, reflecting strong carrier economics and potential for increased spending in the second half of the calendar year [20][22] Question: What are the trends with the carrier base? - The company observed strong activity across its carrier base, with more carriers spending over $1,000,000 per month than ever before [26][28] Question: Can you elaborate on margin expansion initiatives? - Management highlighted strong progress in margin expansion initiatives, including optimization of existing media and new media capacity growth [34][36] Question: How are tariffs impacting the home services segment? - Management indicated no significant impact from tariffs on home services spending levels, with expectations for continued growth [41][44] Question: What is the mix of media sources and contributions from acquisitions? - The company refrained from disclosing specific media mix details but noted successful acquisitions that expanded media sourcing capabilities [45][46] Question: What is driving the sequential margin compression in Q1? - The compression is attributed to media capacity catching up with increasing demand, with ongoing investments to build new capacity [51][52] Question: How are other financial services verticals performing? - All financial services verticals grew year over year, with personal loans undergoing a margin optimization program [53][54] Question: How will a lower interest rate environment affect home services growth? - A lower interest rate environment is expected to support growth in home services due to increased home buying activity [58][59] Question: Where are investments in product development being directed? - Investments are focused on QRP, home services financing, and improvements in core technologies, including a new unified contact platform [60][66]