Quinstreet (QNST)
NASDAQ:QNST
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Quinstreet
(NASDAQ:QNST)
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Rating:68Neutral
Price Target:
$12.00
▼(-0.83% Downside)
Action:ReiteratedDate:02/07/26
The score is driven primarily by solid financial performance (strong cash generation, low leverage, and a rebound to profitability) and a positive earnings outlook with accretive M&A and raised growth/margin expectations. These strengths are partly offset by weak technical momentum (price below key moving averages with negative MACD and bearish oscillators) despite a supportive P/E-based valuation.
Positive Factors
Strong cash generation & low leverage
QuinStreet's TTM operating cash flow (~$101M) and FCF (~$93M), with FCF about 93% of net income and very low leverage (debt-to-equity ~0.03), create durable financial flexibility to fund product investment, accretive M&A and weather cyclical shocks without immediate capital raises.
Negative Factors
High revenue concentration
With ~75% of revenue from financial services, QuinStreet remains exposed to vertical-specific spending cycles, carrier or lender budget shifts, and regulatory developments. This concentration means modest adverse trends in that vertical can materially affect revenue and cash generation durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & low leverage
QuinStreet's TTM operating cash flow (~$101M) and FCF (~$93M), with FCF about 93% of net income and very low leverage (debt-to-equity ~0.03), create durable financial flexibility to fund product investment, accretive M&A and weather cyclical shocks without immediate capital raises.
Read all positive factors
Quinstreet (QNST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$689.63M
Dividend YieldN/A
Average Volume (3M)505.42K
Price to Earnings (P/E)4.1
Beta (1Y)1.10
Revenue Growth43.12%
EPS GrowthN/A
CountryUS
Employees899
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.24
Shares Outstanding56,993,940
10 Day Avg. Volume567,570
30 Day Avg. Volume505,424
Financial Highlights & Ratios
PEG Ratio-1.69
Price to Book (P/B)3.73
Price to Sales (P/S)0.83
P/FCF Ratio10.97
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit5.34
Enterprise Value/Ebitda15.69
Forecast
1Y Price Target
$19.60Price Target Upside61.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.27
Revenue Forecast (FY)$1.27B
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, appli...
How the Company Makes Money
Quinstreet generates revenue primarily through performance-based marketing, where it earns commissions for successfully generating leads or conversions for its clients. This model includes pay-per-click (PPC) advertising, where clients pay for cli...
Quinstreet Key Performance Indicators (KPIs)
Quinstreet Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive and growth-oriented message: record revenue, beat outlook, meaningful guidance for higher revenue and EBITDA, a strategic and accretive acquisition (Homebody) expected to add $30M+ adjusted EBITDA and expand higher-margin media footprint, and long-term margin targets supported by AI and product initiatives. Offsetting items included modest year-over-year softness in parts of the financial services vertical (auto insurance down ~2% YoY), current adjusted EBITDA margin below the 10% target (~7.3% last quarter), and added near-term financing and payment obligations from the Homebody acquisition. On balance, the positive operational results, clear guidance, and strategic M&A + AI positioning outweigh the noted risks and challenges.Positive Updates
Record Revenue and Strong Q2 Results
Total revenue for fiscal Q2 was $287.8 million (second consecutive record quarter), adjusted EBITDA was $21.0 million, and adjusted net income was $14.0 million or $0.24 per share. The company exceeded its outlook for both revenue and adjusted EBITDA.
Negative Updates
Concentration in Financial Services and Small YoY Decline
Financial services vertical represented 75% of Q2 revenue and declined 1% year-over-year to $216.8 million, leaving company exposed to shifts in that concentrated vertical.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Strong Q2 Results
Total revenue for fiscal Q2 was $287.8 million (second consecutive record quarter), adjusted EBITDA was $21.0 million, and adjusted net income was $14.0 million or $0.24 per share. The company exceeded its outlook for both revenue and adjusted EBITDA.
Read all positive updates
Company Guidance
QuinStreet guided fiscal Q3 revenue of $330–340 million and adjusted EBITDA of $26.5–30.5 million, and full fiscal 2026 revenue of $1.25–1.30 billion with adjusted EBITDA of $110–115 million; excluding the recently acquired Homebody, management still expects at least 10% full‑year revenue growth and at least 20% adjusted EBITDA growth and to achieve a quarterly adjusted EBITDA margin goal of 10% this fiscal year (up from roughly 7.3% last quarter). The Homebody deal (≈$115M at close — $45M cash, $70M revolver draw; $75M in post‑close payments over four years) is expected to be accretive, to generate $30M+ of adjusted EBITDA in the first 12 months, to expand home services from a ~ $300M run‑rate to roughly $400–500M, and sits alongside quarter‑end cash of $107M (Q2 revenue was $287.8M, Q2 adjusted EBITDA $21M, adjusted net income $14M or $0.24/sh; a one‑time non‑cash $48M tax benefit is excluded from non‑GAAP).Quinstreet Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.11B | 1.09B | 613.51M | 580.62M | 582.10M | 578.49M |
| Gross Profit | 110.37M | 110.87M | 46.25M | 48.52M | 53.73M | 70.53M |
| EBITDA | 37.53M | 30.54M | -5.76M | -1.42M | 11.23M | 46.83M |
| Net Income | 62.38M | 4.71M | -31.33M | -68.87M | -5.25M | 23.55M |
Balance Sheet | ||||||
| Total Assets | 493.03M | 431.11M | 368.55M | 337.15M | 419.91M | 449.51M |
| Cash, Cash Equivalents and Short-Term Investments | 106.96M | 101.08M | 50.49M | 73.68M | 96.44M | 110.32M |
| Total Debt | 6.38M | 10.20M | 10.97M | 4.58M | 3.86M | 8.54M |
| Total Liabilities | 198.59M | 187.06M | 151.72M | 107.35M | 133.91M | 154.37M |
| Stockholders Equity | 294.44M | 244.04M | 216.82M | 229.80M | 286.00M | 295.15M |
Cash Flow | ||||||
| Free Cash Flow | 92.56M | 82.91M | 6.69M | -3.17M | 21.16M | 48.65M |
| Operating Cash Flow | 101.23M | 84.98M | 12.04M | 11.84M | 28.67M | 50.62M |
| Investing Cash Flow | -13.63M | -11.44M | -22.73M | -15.13M | -9.22M | -36.46M |
| Financing Cash Flow | -38.46M | -23.00M | -12.51M | -19.46M | -33.31M | -11.31M |
Quinstreet Technical Analysis
Neutral
12.10
Price Trends
12.10
Positive
13.24
Negative
14.38
Negative
Market Momentum
>-0.01
Negative
50.90
Neutral
52.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QNST, the sentiment is Neutral. The current price of 12.1 is above the 20-day moving average (MA) of 12.02, above the 50-day MA of 12.10, and below the 200-day MA of 14.38, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 52.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for QNST.
Quinstreet Risk Analysis
Quinstreet disclosed 44 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $689.63M | 4.07 | 24.45% | ― | 43.12% | ― | |
68 Neutral | $1.25B | 11.93 | 13.07% | 5.41% | -0.94% | 47.48% | |
67 Neutral | $946.31M | 7.45 | 13.04% | ― | 0.32% | 69.78% | |
63 Neutral | $1.63B | 30.42 | 2.62% | ― | 5.70% | 97.88% | |
62 Neutral | $1.59B | 37.07 | 4.42% | ― | 6.76% | 1841.46% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $898.51M | -28.94 | -8.24% | 1.29% | 11.18% | ― |
* Communication Services Sector Average
QNST
Quinstreet
12.10
-3.20
-20.92%
DLX
Deluxe
27.67
13.68
97.81%
ZD
Ziff Davis
43.19
10.73
33.06%
STGW
Stagwell
6.28
1.21
23.87%
CRTO
Criteo SA
18.50
-10.78
-36.82%
EEX
Emerald Expositions Events
4.54
1.12
32.59%
Quinstreet Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
QuinStreet Secures New Credit Facility and Completes HomeBuddy Acquisition
Positive
Jan 2, 2026
On January 2, 2026, QuinStreet entered into a new senior secured credit agreement with MUFG Bank that establishes a $150 million revolving credit facility maturing on January 2, 2031, secured by first-priority liens on substantially all assets of ...
Business Operations and StrategyM&A Transactions
QuinStreet Acquires HomeBuddy to Boost Home Services
Positive
Dec 3, 2025
On November 30, 2025, QuinStreet, Inc. entered into a definitive agreement to acquire HomeBuddy, a digital marketplace platform that connects homeowners with home services professionals. The acquisition, valued at $115 million in cash and $75 mill...
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.