The chart below shows how QNST performed 10 days before and after its earnings report, based on data from the past quarters. Typically, QNST sees a +0.13% change in stock price 10 days leading up to the earnings, and a +3.80% change 10 days following the report. On the earnings day itself, the stock moves by -0.97%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record Revenue Growth: Record revenue of $282.6 million in fiscal Q2, representing a 130% year-over-year growth, significantly outpacing typical seasonality.
Strong EBITDA Performance: Adjusted EBITDA for the quarter was $19.4 million, indicating strong profitability and operational leverage, with expectations for further margin expansion in future quarters.
Financial Services Revenue Surge: The Financial Services client vertical accounted for 78% of Q2 revenue, growing 208% year-over-year, primarily driven by a 615% increase in auto insurance revenue.
Diversified Revenue Growth: Non-insurance client verticals also performed well, achieving a 15% year-over-year growth, showcasing diversified revenue streams.
Strong Balance Sheet Position: The company closed the quarter with $58 million in cash and equivalents and no bank debt, reflecting a strong balance sheet position.
Negative
Profitability Decline Despite Revenue: Adjusted net income decreased to $11,900,000 or $0.2 per share, indicating a decline in profitability despite record revenue.
TCPA Compliance Disruption: The company faced a significant disruption due to TCPA compliance preparations, which negatively impacted operational efficiency and focus during the quarter.
Margin Optimization Challenges: Margins were lower than expected due to a heavy mix of auto insurance that was not yet optimized, suggesting potential inefficiencies in revenue generation.
Home Services Growth Challenges: The home services vertical experienced a tough comparison against prior year performance, leading to flat growth in credit card services, indicating challenges in maintaining momentum in this segment.
Future Revenue Growth Concerns: Despite record revenue, the company anticipates a normalization of auto insurance growth rates, which may lead to reduced revenue growth in the future.
Earnings call transcript: QuinStreet Q2 2025 sees earnings beat, stock rises
QNST.O
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