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EverQuote Inc (EVER)
NASDAQ:EVER
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EverQuote
(NASDAQ:EVER)
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Rating:74Outperform
Price Target:
$27.00
▲(14.16% Upside)
EverQuote's strong financial recovery and positive earnings call sentiment are the most significant factors driving the score. The company's strategic initiatives, including AI enhancements and a share repurchase program, further bolster confidence. Technical indicators suggest some caution in the short term, but the overall outlook remains positive.
Positive Factors
Revenue Growth
Strong revenue growth indicates successful market penetration and product adoption, enhancing long-term business sustainability.
AI-Driven Enhancements
Leveraging AI for operational efficiency can lead to sustainable cost reductions and improved service delivery, strengthening competitive advantage.
Share Repurchase Program
The share repurchase program reflects management's confidence in cash flow generation and commitment to returning value to shareholders.
Negative Factors
Geographic Challenges
Persistent geographic challenges may limit growth potential in key markets, impacting overall revenue expansion.
Competitive Pressure
Increased competition in advertising could pressure margins and require higher marketing spend, affecting profitability.
Historical Cash Flow Volatility
Volatile cash flow history indicates potential challenges in maintaining consistent cash generation, impacting financial stability.
EverQuote (EVER) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$863.53M
Dividend YieldN/A
Average Volume (3M)441.18K
Price to Earnings (P/E)19.0
Beta (1Y)1.30
Revenue Growth92.91%
EPS GrowthN/A
CountryUS
Employees324
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.39
Shares Outstanding32,908,580
10 Day Avg. Volume427,484
30 Day Avg. Volume441,176
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit1.30
Enterprise Value/Ebitda13.03
Forecast
1Y Price Target
$33.17Price Target Upside40.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EverQuote Business Overview & Revenue Model
Company DescriptionEverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company's online marketplace offers consumers shopping for auto, home and renters, life, and health insurance. It serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.
How the Company Makes MoneyEverQuote generates revenue primarily through a performance-based model, where it earns money by providing leads to insurance carriers and agents. The company collects consumer information through its online platform, which is then sold to insurers as potential customer leads. Additionally, EverQuote may earn revenue through partnerships with insurance companies, where it receives a fee for each lead that results in a sale or policy issuance. The company's focus on optimizing lead generation and enhancing its technology infrastructure also plays a critical role in driving its earnings, as it seeks to improve conversion rates and customer satisfaction.
EverQuote Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call detailed strong financial performance with significant year-over-year growth in revenue and profitability. The introduction of an inaugural share repurchase program and strategic investments in AI further signal confidence and strategic growth. However, some challenges persist in specific geographies and competitive pressures in the advertising landscape. Overall, the highlights notably outweigh the lowlights.Q2-2025 Updates
Positive Updates
Record Growth and Financial Performance
In Q2 2025, EverQuote achieved a 34% year-over-year revenue growth, reaching $156.6 million. The company recorded a net income of $14.7 million, up from $6.4 million in the prior year, and adjusted EBITDA increased to $22 million, with a margin of 14%, marking record levels of operating cash flow, net income, and adjusted EBITDA margin.
Strong Performance in Auto and Home Insurance Verticals
Revenue from the auto insurance vertical increased by 36% year-over-year to $139.6 million, and the home and renters insurance vertical grew by 23% year-over-year to $17 million.
Inaugural Share Repurchase Program
EverQuote announced a $50 million share repurchase program, reflecting confidence in the business and its cash flow generation.
AI-Driven Enhancements and Efficiency
The company has been leveraging AI to improve operational efficiency, including AI-driven smart campaigns that improved spend efficiency by 20% and AI voice agents in call centers to reduce reliance on human agents.
Expansion of Credit Facility
EverQuote entered into a new 3-year $60 million committed credit facility, providing additional financial flexibility.
Negative Updates
Geographic and Carrier Challenges
Despite positive overall trends, certain geographies like California remain challenged. Some carriers are still lagging in budget increases, though they plan to reactivate in the second half of the year.
Competitive Pressure in Advertising Landscape
The company experienced elevated competitive pressure in traffic acquisition due to increased carrier direct advertising efforts, impacting the broader advertising landscape.
Company Guidance
During the EverQuote Second Quarter 2025 Earnings Call, the company provided guidance for the third quarter, expecting revenue to range between $163 million and $169 million, representing a 15% year-over-year growth at the midpoint. The company anticipates Variable Marketing Dollars (VMD) to be between $47 million and $50 million, marking a 10% year-over-year growth at the midpoint. Adjusted EBITDA is projected to be between $22 million and $24 million, reflecting a 22% year-over-year growth at the midpoint. EverQuote highlighted its focus on leveraging AI to enhance operational efficiency and productivity, which was evident in their record adjusted EBITDA margin of 14% and net income of $14.7 million for Q2 2025. The company also announced an inaugural share repurchase program, authorizing up to $50 million in share buybacks over the next 12 months, highlighting its confidence in sustained cash flow generation and strategic growth initiatives.EverQuote Financial Statement Overview
Summary
EverQuote demonstrates a strong financial recovery with improved profitability and cash flow metrics. The company has effectively managed costs and leveraged equity to enhance returns. While historical challenges are evident, current trends indicate a positive trajectory. Continued focus on revenue growth and cash flow stability will be crucial for sustaining this momentum.Income Statement
EverQuote's income statement shows strong gross profit margins consistently above 92%, indicating efficient cost management. The company has transitioned from negative to positive net profit margins, with a notable improvement to 7.57% in the TTM period. Revenue growth is positive, with a 6.86% increase in the TTM period, reflecting a recovery from previous declines. EBIT and EBITDA margins have also improved, supporting a positive outlook.78
Positive
Balance Sheet
The balance sheet is stable with a low debt-to-equity ratio of 0.0186 in the TTM period, indicating low leverage. Return on equity has improved significantly to 32.51%, demonstrating effective use of equity to generate profits. The equity ratio is healthy, suggesting a strong capital structure. However, past negative ROE indicates previous challenges in profitability.72
Positive
Cash Flow
Cash flow analysis reveals strong free cash flow growth of 19.88% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 1.33, suggesting efficient conversion of income to cash. The free cash flow to net income ratio is high at 0.97, reflecting robust cash flow relative to earnings. Historical volatility in cash flow metrics suggests potential risks.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 615.25M | 500.19M | 287.92M | 404.13M | 418.51M | 346.94M |
| Gross Profit | 594.15M | 479.27M | 265.47M | 380.15M | 394.57M | 325.56M |
| EBITDA | 59.40M | 37.42M | -26.06M | -23.07M | -15.79M | -6.07M |
| Net Income | 46.55M | 32.17M | -51.29M | -24.42M | -19.43M | -11.20M |
Balance Sheet | ||||||
| Total Assets | 241.42M | 210.53M | 110.92M | 156.52M | 143.61M | 129.05M |
| Cash, Cash Equivalents and Short-Term Investments | 148.19M | 102.12M | 37.96M | 30.84M | 34.85M | 42.87M |
| Total Debt | 3.17M | 3.63M | 2.16M | 6.44M | 8.23M | 10.69M |
| Total Liabilities | 71.15M | 75.16M | 30.02M | 49.03M | 58.48M | 58.07M |
| Stockholders Equity | 170.27M | 135.37M | 80.91M | 107.49M | 85.13M | 70.98M |
Cash Flow | ||||||
| Free Cash Flow | 89.86M | 62.45M | -6.67M | -20.08M | 4.33M | 6.85M |
| Operating Cash Flow | 92.35M | 66.57M | -2.83M | -15.79M | 7.19M | 10.67M |
| Investing Cash Flow | -5.09M | -4.11M | 9.35M | -4.29M | -18.82M | -18.75M |
| Financing Cash Flow | -8.00K | 1.71M | 577.00K | 15.84M | 3.62M | 4.91M |
EverQuote Technical Analysis
Negative
23.65
Price Trends
24.09
Negative
24.15
Negative
23.18
Positive
Market Momentum
0.04
Positive
46.93
Neutral
16.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVER, the sentiment is Negative. The current price of 23.65 is below the 20-day moving average (MA) of 23.99, below the 50-day MA of 24.09, and above the 200-day MA of 23.18, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 16.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVER.
EverQuote Risk Analysis
EverQuote disclosed 31 risk factors in its most recent earnings report. EverQuote reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
EverQuote Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $746.73M | 11.67 | 10.97% | 6.13% | 14.20% | 38.92% | |
74 Outperform | $863.53M | 19.05 | 34.34% | ― | 92.91% | ― | |
70 Outperform | $1.04B | 95.64 | -0.36% | ― | 12.01% | ― | |
67 Neutral | $742.29M | 13.97 | 5.97% | ― | -15.79% | ― | |
56 Neutral | $818.05M | -107.31 | 174.03% | ― | 116.58% | 62.29% | |
54 Neutral | $824.86M | -12.65 | -14.98% | ― | 9.65% | 56.50% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
EVER
EverQuote
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.