QuinStreet (NASDAQ:QNST) Releases Earnings Results, Beats Expectations By $0.11 EPS

QuinStreet (NASDAQ:QNST) announced its earnings results on Wednesday. The technology company reported $0.50 earnings per share for the quarter, beating analysts’ consensus estimates of $0.39 by $0.11, FiscalAI reports. QuinStreet had a net margin of 6.28% and a return on equity of 12.73%. The firm had revenue of $416.65 million for the quarter, compared to analyst estimates of $373.88 million.

Here are the key takeaways from QuinStreet’s conference call:

• QuinStreet posted record fiscal Q1 revenue of $416.7 million, up 46% year over year, and record adjusted EBITDA of $42.7 million, up 108%; adjusted EBITDA margin expanded 300 basis points to 10.2%.
• Growth was broad across major verticals: auto insurance revenue rose 42% amid strong carrier demand, while home services revenue increased 86%, supported by the HomeBuddy integration and broader contractor offerings.
• The company raised fiscal 2027 guidance to $1.5 billion–$1.6 billion in revenue and $155 million–$165 million in adjusted EBITDA. Management expects the December quarter to decline sequentially because of typical holiday-season softness and is not counting on an auto-insurance budget flush.
• Management sees AI as both a productivity tool and a potential marketing channel, reporting good results from Google AI search advertising and integrations with other platforms; however, AI-agent shopping remains small, and adoption depends on addressing client concerns such as security, compliance, and channel conflict.
• QuinStreet completed a small home-services acquisition, Get The Referral, for an initial amount in the high single-digit millions, with potential earnouts, and said its acquisition pipeline remains active, particularly in home services.

QuinStreet Stock Up 5.3%

QNST stock traded up $0.97 during trading on Wednesday, hitting $19.26. 1,393,116 shares of the stock traded hands, compared to its average volume of 860,081. The stock has a market cap of $1.10 billion, a price-to-earnings ratio of 13.66 and a beta of 0.84. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.22 and a quick ratio of 1.22. QuinStreet has a 1 year low of $10.28 and a 1 year high of $22.29. The firm’s 50 day moving average is $16.84 and its two-hundred day moving average is $14.55.

Insider Transactions at QuinStreet

In other news, Director Asmau Ahmed sold 15,000 shares of the stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $20.85, for a total transaction of $312,750.00. Following the sale, the director owned 34,979 shares in the company, valued at $729,312.15. This represents a 30.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Douglas Valenti sold 751,631 shares of the business’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $20.50, for a total transaction of $15,408,435.50. Following the completion of the transaction, the chief executive officer owned 996,278 shares of the company’s stock, valued at approximately $20,423,699. The trade was a 43.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 829,631 shares of company stock worth $16,999,952. Corporate insiders own 3.50% of the company’s stock.

Analyst Ratings Changes

Several research firms have weighed in on QNST. Wall Street Zen cut QuinStreet from a “strong-buy” rating to a “buy” rating in a research report on Saturday. B. Riley Financial restated a “buy” rating on shares of QuinStreet in a research note on Friday, August 7th. Northland Securities set a $23.00 price target on QuinStreet in a research report on Thursday, September 17th. Lake Street Capital raised QuinStreet from a “hold” rating to a “buy” rating and set a $21.00 price target on the stock in a research note on Friday, August 7th. Finally, Zacks Research lowered QuinStreet from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 6th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, QuinStreet presently has an average rating of “Moderate Buy” and a consensus price target of $23.50.

About QuinStreet

QuinStreet, Inc is a performance marketing and online marketplace company that connects consumers with brands and service providers. The company uses digital media, data, and technology to help businesses acquire customers and generate leads through channels such as search, social media, display advertising, and other online marketing platforms.

QuinStreet operates vertical marketplaces in areas including insurance, financial services, home services, and business services. Its platforms help consumers research products and services, compare available options, and connect with providers, while giving advertisers tools to reach consumers who are actively seeking information or purchasing opportunities.

Founded in 1999, QuinStreet is headquartered in Foster City, California, and primarily serves the U.S.