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Quinstreet (QNST)
NASDAQ:QNST
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Quinstreet
(NASDAQ:QNST)
Rating:62Neutral
Price Target:
$17.50
▲(14.68%Upside)
Positive Factors
Digital Advertising
The trend of carriers shifting budgets to digital channels and more carriers spending through QuinStreet and other performance channels is expected to continue to provide long-term growth potential.
Market Potential
The stock is seen to have good potential due to its capacity to compound earnings at a double-digit pace in fiscal 2026 and beyond.
Revenue Growth
Auto insurance revenue showed record growth—up 615% year-over-year.
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.
Regulatory Changes
Implementation of the FCC's new explicit consent rule under the Telephone Consumer Protection Act was postponed, but a more restrictive rule will eventually arrive.
Quinstreet (QNST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$861.11M
Dividend YieldN/A
Average Volume (3M)754.89K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth88.81%
EPS Growth99.16%
CountryUS
Employees899
SectorCommunication Services
Sector Strength84
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.21
Shares Outstanding56,951,923
10 Day Avg. Volume419,580
30 Day Avg. Volume754,892
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)2.07
Price to Sales (P/S)0.00
P/FCF Ratio-150.05
Enterprise Value/Market Cap0.47
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit4.01
Enterprise Value/Ebitda10.59
Forecast
1Y Price Target
$27.25Price Target Upside78.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Quinstreet Business Overview & Revenue Model
Company DescriptionQuinStreet, Inc., an online performance marketing company, provides customer acquisition services for its clients in the United States and internationally. The company offers online marketing services, such as qualified clicks, leads, calls, applications, and customers through its websites or third-party publishers. It serves financial and home services industries. The company was incorporated in 1999 and is headquartered in Foster City, California.
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 Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q3-2025)
| % Change Since: -16.52%|
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.Quinstreet Financial Statement Overview
Summary
Quinstreet presents a mixed financial picture. Revenue growth is promising, but margins and profitability need improvement. The balance sheet is strong with low leverage, and cash flow management is effective, suggesting potential for recovery if profitability issues are addressed.Income Statement
Quinstreet's TTM (Trailing-Twelve-Months) revenue growth is strong, but profitability is a concern with a net loss reported. The gross profit margin is relatively low at 9.75%, and the net profit margin is negative at -0.64%. EBIT and EBITDA margins are also low, indicating pressure on operating performance.55
Neutral
Balance Sheet
The debt-to-equity ratio is low at 0.03, indicating low leverage and financial stability. However, return on equity (ROE) is negative due to the net loss, and the equity ratio is healthy at 56.42%, reflecting a strong equity base.68
Positive
Cash Flow
Quinstreet shows robust operating cash flow, with a strong operating cash flow to net income ratio, indicating good cash generation even with a net loss. Free cash flow is positive, showcasing effective cash management despite negative net income.75
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.03B | 613.51M | 580.62M | 582.10M | 578.49M | 490.34M | Gross Profit |
| 100.45M | 46.25M | 48.52M | 53.73M | 70.53M | 52.48M | EBIT |
| 878.00K | -28.07M | -20.82M | -4.69M | 30.72M | 19.38M | EBITDA |
| 26.02M | -5.76M | -2.50M | 11.23M | 46.01M | 30.42M | Net Income Common Stockholders |
| -663.00K | -31.33M | -68.87M | -5.25M | 23.55M | 18.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 81.81M | 50.49M | 73.68M | 96.44M | 110.32M | 107.51M | Total Assets |
| 417.24M | 368.55M | 337.15M | 419.91M | 449.92M | 358.41M | Total Debt |
| 7.99M | 10.97M | 1.26M | 3.86M | 8.54M | 8.69M | Net Debt |
| -73.82M | -39.52M | -72.42M | -92.58M | -101.77M | -98.82M | Total Liabilities |
| 181.76M | 151.72M | 107.35M | 133.91M | 154.37M | 102.46M | Stockholders Equity |
| 235.47M | 216.82M | 229.80M | 286.00M | 295.55M | 255.94M |
| Cash Flow | Free Cash Flow | ||||
| 64.09M | 6.69M | -3.17M | 21.16M | 45.52M | 43.35M | Operating Cash Flow |
| 71.64M | 12.04M | 11.84M | 28.67M | 50.62M | 47.61M | Investing Cash Flow |
| -12.04M | -22.73M | -15.13M | -9.22M | -36.46M | 8.87M | Financing Cash Flow |
| -17.41M | -12.51M | -19.46M | -33.31M | -11.31M | -11.63M |
Quinstreet Technical Analysis
Negative
15.26
Price Trends
16.05
Negative
18.01
Negative
19.45
Negative
Market Momentum
-0.25
Negative
43.77
Neutral
17.42
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 15.26 is below the 20-day moving average (MA) of 15.43, below the 50-day MA of 16.05, and below the 200-day MA of 19.45, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 17.42 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.66B | 94.91 | 4.30% | ― | 5.59% | ― | |
72 Outperform | $1.35B | 28.91 | 4.80% | ― | 13.84% | 1494.51% | |
71 Outperform | $642.03M | 15.20 | 8.57% | ― | 10.36% | ― | |
71 Outperform | $1.28B | 9.63 | 13.46% | ― | -1.18% | 100.33% | |
69 Neutral | $962.48M | 300.62 | 1.62% | 1.24% | 4.87% | ― | |
62 Neutral | $861.11M | ― | -0.29% | ― | 88.81% | 99.16% | |
61 Neutral | $14.55B | 5.92 | -3.82% | 8.36% | 2.79% | -33.24% |
* Communication Services Sector Average
Performance Comparison
QNST
Quinstreet
15.26
-0.49
-3.11%
CRTO
Criteo SA
23.61
-12.28
-34.22%
MGNI
Magnite
18.72
5.53
41.93%
EEX
Emerald Expositions Events
4.85
-1.74
-26.40%
NEXN
Nexxen International
9.70
3.68
61.13%
IAS
Integral Ad Science
7.94
-1.72
-17.81%
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.