Quinstreet (QNST) AI Stock Analysis

• Market Cap: $938.97M
• Dividend Yield: N/A
• Average Volume (3M): 608.23K
• Price to Earnings (P/E): 207.7
• Beta (1Y): 0.99
• Revenue Growth: 78.27%
• EPS Growth: N/A
• Country: US
• Employees: 899
• Sector: Communication Services
• Sector Strength: 96
• Industry: Advertising Agencies
• EPS (TTM): 0.25
• Shares Outstanding: 57,676,080
• 10 Day Avg. Volume: 620,215
• 30 Day Avg. Volume: 608,228
• PEG Ratio: -1.69
• Price to Book (P/B): 3.73
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 10.97
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 7.64
• Enterprise Value/Ebitda: 27.73
• 1Y Price Target: $23.00
• Price Target Upside: 41.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: $17.00 ▲(4.42% Upside)

Quinstreet's overall stock score is driven by strong financial performance and positive earnings call sentiment, indicating robust revenue and EBITDA growth. However, the high P/E ratio suggests overvaluation, and technical indicators show a neutral to slightly bearish trend. The company's financial stability and strategic growth initiatives are positive, but profitability and valuation concerns weigh on the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and successful market penetration, enhancing long-term business sustainability.

Balance Sheet Strength

A strong balance sheet with no debt provides financial flexibility and reduces risk, supporting future strategic investments.

Cash Flow Generation

Strong cash flow generation enhances operational efficiency and supports reinvestment in growth initiatives, ensuring long-term viability.

Negative Factors

Profitability Margins

Weak profitability margins suggest challenges in cost management and pricing power, potentially limiting future earnings growth.

Margin Compression

Expected margin compression indicates increasing costs or pricing pressures, which could impact profitability and cash flow.

Carrier Spending Uncertainty

Uncertainty in carrier spending due to external factors can affect revenue stability and growth potential in key segments.

Quinstreet Business Overview & Revenue Model

Company Description

QuinStreet, 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 Money

Quinstreet generates revenue primarily through a performance-based model, earning fees for each qualified lead it delivers to its clients. This model allows the company to charge its clients on a cost-per-lead (CPL) basis, where clients pay for leads that meet specific criteria, ensuring they receive high-quality prospects. Additionally, Quinstreet may earn revenue through affiliate marketing arrangements, where it partners with businesses to promote their products and services and receives a commission for successful referrals. Key partnerships with major brands and service providers in its target sectors enhance Quinstreet's ability to attract and convert leads, thereby driving its earnings. The company's investments in technology and data analytics also play a crucial role in optimizing its marketing campaigns and improving lead quality, contributing to its overall financial performance.

Quinstreet Financial Statement Overview

Summary

Quinstreet demonstrates a solid recovery in revenue growth and cash flow generation, although profitability margins remain a concern. The company's low leverage and strong equity position provide financial stability, while improvements in cash flow metrics highlight operational efficiency. Continued focus on enhancing profitability will be crucial for sustained financial health.

Income Statement

Quinstreet has shown a positive revenue growth rate of 6.19% in the most recent year, indicating a recovery from previous declines. However, the company has struggled with profitability, as evidenced by a low gross profit margin of 10.14% and a net profit margin of 0.43%. The EBIT and EBITDA margins have improved but remain relatively low, suggesting ongoing challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.03, indicating minimal leverage. Return on equity has improved to 1.93%, showing a positive trend, but remains modest. The equity ratio is healthy at 56.61%, suggesting a strong capital structure.

Cash Flow

Cash flow performance is strong, with a significant free cash flow growth rate of 29.36%. The operating cash flow to net income ratio is robust at 18.06, indicating efficient cash generation relative to net income. Free cash flow to net income is also favorable, reflecting good cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.09B	1.09B	613.51M	580.62M	582.10M	578.49M
Gross Profit	110.87M	110.87M	46.25M	48.52M	53.73M	70.53M
EBITDA	30.54M	30.54M	-5.76M	-2.50M	11.23M	46.01M
Net Income	4.71M	4.71M	-31.33M	-68.87M	-5.25M	23.55M
Balance Sheet
Total Assets	431.11M	431.11M	368.55M	337.15M	419.91M	449.92M
Cash, Cash Equivalents and Short-Term Investments	101.08M	101.08M	50.49M	73.68M	96.44M	110.32M
Total Debt	7.38M	7.38M	10.97M	4.58M	3.86M	8.54M
Total Liabilities	187.06M	187.06M	151.72M	107.35M	133.91M	154.37M
Stockholders Equity	244.04M	244.04M	216.82M	229.80M	286.00M	295.55M
Cash Flow
Free Cash Flow	80.53M	82.91M	6.69M	-3.17M	21.16M	45.52M
Operating Cash Flow	84.98M	84.98M	12.04M	11.84M	28.67M	50.62M
Investing Cash Flow	-11.44M	-11.44M	-22.73M	-15.13M	-9.22M	-36.46M
Financing Cash Flow	-23.00M	-23.00M	-12.51M	-19.46M	-33.31M	-11.31M

Quinstreet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QNST, the sentiment is Positive. The current price of 16.28 is above the 20-day moving average (MA) of 15.50, above the 50-day MA of 15.76, and below the 200-day MA of 18.32, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 57.91 is Neutral, neither overbought nor oversold. The STOCH value of 71.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QNST.

Quinstreet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IAS	79 Outperform	$1.41B	25.25	5.52%	―	14.39%	1946.11%
CRTO	75 Outperform	$1.31B	9.49	12.79%	―	-0.40%	36.44%
NEXN	75 Outperform	$656.07M	13.04	9.91%	―	9.65%	―
MGNI	72 Outperform	$3.40B	84.99	5.82%	―	5.52%	―
QNST	66 Neutral	$938.97M	207.65	2.04%	―	78.27%	―
EEX	64 Neutral	$960.17M	121.55	1.98%	1.24%	9.96%	―
Sector *	60 Neutral	$47.27B	4.45	-11.27%	4.14%	1.88%	-40.90%