In This Article:
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Revenue Growth: 60% year over year, totaling $269.8 million for fiscal Q3.
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Adjusted EBITDA: Increased 145% year over year, reaching $19.4 million.
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Adjusted Net Income: $12.4 million or $0.21 per share.
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Financial Services Revenue: Grew 78% year over year to $199.7 million, with Auto Insurance up 165%.
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Home Services Revenue: Increased 21% year over year to $65.4 million, a record quarter.
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Cash Position: Ended the quarter with $82 million in cash and no bank debt.
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Full Fiscal Year Revenue Outlook: Expected between $1.065 billion and $1.105 billion.
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Full Fiscal Year Adjusted EBITDA Outlook: Expected between $80 million and $85 million.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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QuinStreet Inc (NASDAQ:QNST) reported a 60% year-over-year revenue growth in fiscal Q3 2025.
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The Financial Services client vertical saw a 78% increase in revenue, with Auto Insurance growing by 165%.
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Home Services revenue reached a new quarterly record with a 21% year-over-year growth.
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The company ended the quarter with over $80 million in cash and no bank debt, strengthening its financial position.
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QuinStreet Inc (NASDAQ:QNST) expects continued double-digit revenue and profit growth in both the short and long term.
Negative Points
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The implied outlook range for fiscal Q4 is wider than usual due to tariff-related uncertainties, introducing potential volatility to client spending.
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Sequential revenue decline in the Auto Insurance sector was noted, attributed to an exceptionally strong previous quarter.
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Concerns about tariffs potentially increasing costs for clients, which could impact their marketing budgets.
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The company is experiencing a wait-and-see approach from clients regarding tariff impacts, affecting the ramp-up of spending.
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Despite strong financial results, there is uncertainty about the exact implementation and impact of tariffs, which could affect future performance.
Q & A Highlights
Q: Can you provide insight into your conversations with auto carriers regarding their ability to absorb tariff pressures? A: Douglas Valenti, CEO: Conversations with auto carriers indicate that tariffs, if fully implemented, could negatively affect loss ratios by increasing claim costs. However, carriers are currently in a strong financial position and could absorb a wide range of tariff implementations. We haven't seen material reductions in client spending due to tariffs, but there is a wait-and-see approach regarding future aggressiveness in spending.