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Quinstreet (QNST)
:QNST
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Quinstreet
(NASDAQ:QNST)
Rating:62Neutral
Price Target:
$17.50
▲( 17.29% Upside)
Positive Factors
Digital Advertising Budgets
The reaffirmed OUTPERFORM investment rating is supported by a return to growth in insurance spend and increased budgets on digital advertising.
Insurance Sector Performance
Auto insurance revenue showed record growth—up 615% year-over-year.
Revenue Growth
QuinStreet reported revenues of $282.6 million, topping the estimate of $239.5 million, with substantial improvement in insurer profitability supporting the solid revenue growth.
Negative Factors
Margin Pressure
The only nitpick in the quarter was some margin pressure from a confluence of a) supply constraints, b) media investments and c) TCPA volatility.
Operating Outlook
The overall pace of growth is starting to be impacted by the uncertain operating outlook, but it seems so far to be a slowing of growth as opposed to pullbacks in spend.
Quinstreet (QNST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$849.72M
Dividend YieldN/A
Average Volume (3M)813.64K
Price to Earnings (P/E)―
Beta (1Y)0.89
Revenue Growth88.81%
EPS Growth99.16%
CountryUS
Employees899
SectorCommunication Services
Sector Strength89
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.21
Shares Outstanding56,951,923
10 Day Avg. Volume910,913
30 Day Avg. Volume813,637
Financial Highlights & Ratios
PEG Ratio-1.96
Price to Book (P/B)4.76
Price to Sales (P/S)0.00
P/FCF Ratio28.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.25Price Target Upside69.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Quinstreet Business Overview & Revenue Model
Company DescriptionQuinStreet, Inc. is a prominent digital marketing and media company that specializes in performance-based customer acquisition. Founded in 1999 and headquartered in Foster City, California, the company serves clients across various sectors, including financial services, education, home services, and business-to-business technology. QuinStreet provides innovative marketing solutions and data-driven insights to help businesses target and acquire new customers effectively.
How the Company Makes MoneyQuinStreet makes money primarily through performance marketing and lead generation services. The company operates a robust network of websites and online media properties that attract targeted audiences for its clients. QuinStreet generates revenue by delivering qualified leads or clicks to its clients, who pay based on the performance of these leads, such as cost-per-click (CPC), cost-per-lead (CPL), or cost-per-action (CPA). Significant partnerships with major brands and the company's proprietary technology platforms contribute to its ability to deliver high-quality and scalable marketing solutions, thus driving its earnings.
Quinstreet Financial Statement Overview
Summary
Quinstreet's financial performance is mixed, showing positive revenue growth and effective cash management, but struggling with negative profitability margins and returns. The balance sheet is strong with low leverage, providing a stable foundation.Income Statement
Quinstreet's income statement shows challenges with declining profitability and negative margins. The gross profit margin at TTM (Trailing-Twelve-Months) is approximately 9.36%, and the net profit margin is negative, reflecting ongoing struggles with cost management and inefficiencies. Revenue shows moderate growth over the years, with a TTM revenue of $928.7M compared to $613.5M in the previous year, indicating some positive momentum.55
Neutral
Balance Sheet
The balance sheet reflects a stable capital structure with a low debt-to-equity ratio of 0.03 in TTM, indicating conservative leverage. The equity ratio of 54.76% suggests a strong equity base. However, the return on equity remains negative due to persistent losses, highlighting challenges in generating returns for shareholders.62
Positive
Cash Flow
Cash flow analysis shows improvement with a positive operating cash flow of $45.6M and a free cash flow of $37.4M in TTM. The operating cash flow to net income ratio is healthy, demonstrating effective cash management despite negative net income. The free cash flow growth rate has also improved significantly compared to previous years.68
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 928.72M | 613.51M | 580.62M | 582.10M | 578.49M | 490.34M | Gross Profit |
| 86.90M | 46.25M | 48.52M | 53.73M | 70.53M | 52.48M | EBIT |
| -9.37M | -28.07M | -20.82M | -4.69M | 30.72M | 19.38M | EBITDA |
| 14.01M | -5.76M | -2.50M | 11.23M | 46.01M | 30.42M | Net Income Common Stockholders |
| -12.13M | -31.33M | -68.87M | -5.25M | 23.55M | 18.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 57.84M | 50.49M | 73.68M | 96.44M | 110.32M | 107.51M | Total Assets |
| 409.65M | 368.55M | 337.15M | 419.91M | 449.92M | 358.41M | Total Debt |
| 6.55M | 10.97M | 1.26M | 3.86M | 8.54M | 8.69M | Net Debt |
| -51.28M | -39.52M | -72.42M | -92.58M | -101.77M | -98.82M | Total Liabilities |
| 185.40M | 151.72M | 107.35M | 133.91M | 154.37M | 102.46M | Stockholders Equity |
| 224.25M | 216.82M | 229.80M | 286.00M | 295.55M | 255.94M |
| Cash Flow | Free Cash Flow | ||||
| 37.41M | -4.69M | -3.17M | 21.16M | 45.52M | 43.35M | Operating Cash Flow |
| 45.64M | 12.04M | 11.84M | 28.67M | 50.62M | 47.61M | Investing Cash Flow |
| -18.73M | -22.73M | -15.13M | -9.22M | -36.46M | 8.87M | Financing Cash Flow |
| -14.62M | -12.51M | -19.46M | -33.31M | -11.31M | -11.63M |
Quinstreet Technical Analysis
Negative
14.92
Price Trends
16.84
Negative
19.26
Negative
19.67
Negative
Market Momentum
-0.56
Positive
38.99
Neutral
13.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QNST, the sentiment is Negative. The current price of 14.92 is below the 20-day moving average (MA) of 16.54, below the 50-day MA of 16.84, and below the 200-day MA of 19.67, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 13.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QNST.
Quinstreet Risk Analysis
Quinstreet disclosed 43 risk factors in its most recent earnings report. Quinstreet 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
Quinstreet Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $677.77M | 16.04 | 8.57% | ― | 10.36% | ― | |
74 Outperform | $2.17B | 77.46 | 4.30% | ― | 5.59% | ― | |
74 Outperform | $1.29B | 27.61 | 4.80% | ― | 13.84% | 1494.51% | |
69 Neutral | $1.41B | 10.72 | 13.46% | ― | -1.18% | 100.33% | |
69 Neutral | $890.89M | 278.26 | 1.62% | 1.00% | 4.87% | ― | |
62 Neutral | $849.72M | ― | -0.29% | ― | 88.81% | 99.16% | |
61 Neutral | $14.08B | 5.95 | -4.18% | 3.68% | 2.79% | -36.29% |
* Communication Services Sector Average
Performance Comparison
QNST
Quinstreet
14.92
-3.38
-18.47%
CRTO
Criteo SA
26.29
-12.81
-32.76%
MGNI
Magnite
15.36
2.89
23.18%
EEX
Emerald Expositions Events
4.48
-1.39
-23.68%
IAS
Integral Ad Science
7.84
-1.99
-20.24%
NEXN
Nexxen International
10.62
4.23
66.20%
Quinstreet Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q3-2025)
| % Change Since: -18.38%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in revenue and key verticals, with a solid financial position and optimistic future outlook. However, concerns about tariffs and some sequential declines present challenges.Q3-2025 Updates
Positive Updates
Record Revenue Growth
QuinStreet's revenue grew by 60% year-over-year to $269.8 million, with adjusted EBITDA increasing by 145%.
Financial Services Vertical Performance
Financial services client vertical revenue increased by 78% year-over-year, driven largely by a 165% increase in auto insurance.
Home Services Segment Achievement
Home Services revenue grew 21% year-over-year to a new quarterly record of $65.4 million.
Strong Financial Position
QuinStreet ended the quarter with over $80 million in cash and no bank debt.
Optimistic Outlook and Growth Projections
The company expects full fiscal year 2025 revenue to be between $1.065 billion and $1.105 billion, with adjusted EBITDA growth of at least 89% year-over-year in fiscal Q4.
Negative Updates
Tariff-Related Uncertainties
Tariffs introduce risk and potential volatility to client spending, resulting in a wider outlook range for fiscal Q4.
Sequential Decline in Auto Insurance
Auto insurance revenue was down over 10% sequentially due to extraordinarily strong spending in the previous quarter.
Company Guidance
During QuinStreet's Fiscal Q3 2025 earnings call, CEO Doug Valenti reported robust financial performance with revenue growth of 60% year-over-year and adjusted EBITDA increasing by 145%. The financial services client vertical experienced impressive growth, with revenue up 78% year-over-year, driven significantly by a 165% increase in auto insurance revenues. Home services also achieved a record quarter with a 21% year-over-year increase in revenue. The company ended the quarter with over $80 million in cash and no bank debt, highlighting a strong financial position. For the full fiscal year 2025, QuinStreet maintained its revenue guidance between $1.065 billion and $1.105 billion, projecting at least 18% year-over-year growth in fiscal Q4. The expected adjusted EBITDA for the year is between $80 million and $85 million, implying a minimum 89% growth in the fourth quarter. The guidance reflects potential volatility due to tariffs and client spending uncertainties, but the company remains focused on cash flow management, margin expansion, and maintaining a strong balance sheet.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.