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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on QNST

QuinStreet's recent earnings miss is a significant negative driver, with Q2 earnings of $0.20 per share falling short of estimates. This disappointment is likely to weigh on the company's performance. Additionally, the company's lack of growth initiatives and failure to impress with its quarterly results may continue to pressure the stock. The recent earnings call transcript highlights the company's struggles to meet expectations, with CEO Doug Valenti and CFO Greg Wong failing to provide a convincing growth strategy.

1.c. Company Highlights

2. QuinStreet's Fiscal First Quarter 2026 Results: A Strong Start to the Year

QuinStreet reported a record revenue of $285.9 million in the September quarter, with Adjusted net income of $13.1 million or $0.22 per share, and Adjusted EBITDA of $20.5 million. The revenue growth was driven by a strong performance in the auto insurance segment, which grew 16% sequentially and 4% year-over-year. The company's EPS of $0.22 met the analyst estimates. The Adjusted EBITDA margin was 7.2%, indicating a stable profitability profile. With a P/E Ratio of 76.08 and P/S Ratio of 0.73, the market is pricing in a certain level of growth, which is expected to be driven by the company's continued investment in new media campaigns and growth of new products and services.

Publication Date: Nov -26

📋 Highlights
  • Record Revenue and Earnings:: Achieved $285.9M revenue, $13.1M adjusted net income ($0.22/share), and $20.5M adjusted EBITDA.
  • Auto Insurance Growth:: 16% sequential growth in auto insurance revenue, with new products like QRP and 360 driving profitability.
  • Home Services Expansion:: 15% YoY growth to $78.4M, leveraging performance marketing and consumer equity in home projects.
  • Share Repurchase Program:: Announced $40M share buyback, reflecting confidence in financial strength and business model.
  • EBITDA Guidance:: Full fiscal year 2026 EBITDA expected to grow ≥20% YoY, with Q2 EBITDA between $19M–$20M.

Segment Performance

The auto insurance segment was the key driver of growth, with revenue increasing 16% sequentially and 4% year-over-year. The home services client vertical also grew 15% year-over-year to a record $78.4 million. Non-insurance financial services declined 10% year-over-year due to a large limited-time promotional offer in the year-ago period. According to Douglas Valenti, the company has seen a broadening of spending among auto insurance carriers, with non-biggest players growing their spend at a significantly higher rate than larger players.

Outlook and Guidance

The company expects revenue in fiscal Q2 to be between $270 million and $280 million and adjusted EBITDA to be between $19 million and $20 million. The full fiscal year 2026 revenue is expected to grow at least 10% year-over-year, and full fiscal year adjusted EBITDA is expected to grow at least 20% year-over-year. Analysts estimate next year's revenue growth at 10.2%, indicating a stable growth profile. With an EV/EBITDA ratio of 23.38, the market is pricing in a certain level of profitability growth.

Share Repurchase and Capital Allocation

The company announced a new $40 million share repurchase program, reflecting the strength of their underlying business model and financial position. This move is expected to return value to shareholders and demonstrate the company's confidence in its growth prospects.

Valuation and Return Metrics

With a ROE of 4.46% and ROIC of 4.2%, the company's return metrics indicate a stable profitability profile. The Net Debt / EBITDA ratio of -3.12 indicates a healthy debt profile, with the company having sufficient cash to meet its debt obligations. The Free Cash Flow Yield of 14.14% is also attractive, indicating a potential return opportunity for investors.

3. NewsRoom

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QuinStreet Announces Agreement to Acquire HomeBuddy

Dec -03

Source: businesswire.com

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QuinStreet, Inc. $QNST Shares Sold by Campbell & CO Investment Adviser LLC

Nov -17

Source: defenseworld.net

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Private Capital's Strategic Moves: Spotlight on Matthews International Corp

Nov -14

Source: gurufocus.com

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QuinStreet, Inc. (QNST) Q1 2026 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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QuinStreet (QNST) Q1 Earnings Meet Estimates

Nov -07

Source: zacks.com

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QuinStreet (QNST) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Oct -27

Source: zacks.com

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Here's Why QuinStreet (QNST) is Poised for a Turnaround After Losing 14.8% in 4 Weeks

Oct -14

Source: zacks.com

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CarInsurance.com Report Reveals Stark Car Insurance Rate Gaps Between U.S. Cities

Oct -03

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.70%)

6. Segments

Financial Services

Expected Growth: 8%

QuinStreet, Inc.'s Financial Services segment growth is driven by increasing demand for online insurance and loan services, expansion into new markets, strategic partnerships, and investments in digital marketing and technology. Additionally, the company's expertise in lead generation and conversion, as well as its strong brand portfolio, contribute to its 8% growth.

Home Services

Expected Growth: 7%

QuinStreet's Home Services segment growth is driven by increasing demand for home improvement and repair services, fueled by rising homeownership rates, aging housing stock, and growing consumer spending on home maintenance. Additionally, the company's online marketplace model, which connects homeowners with pre-screened professionals, is scalable and efficient, leading to high growth potential.

Other

Expected Growth: 10%

QuinStreet's 10% growth in 'Other' segment is driven by increasing demand for its online marketplace and media services, expansion into new verticals, and strategic partnerships. Additionally, the company's focus on digital marketing and lead generation, coupled with its ability to adapt to changing market conditions, has contributed to its growth momentum.

7. Detailed Products

InsuranceQuotes

A platform that connects consumers with insurance providers, offering quotes and policy information for various types of insurance, including auto, home, health, and life insurance.

CardRatings

A credit card comparison platform that provides unbiased reviews, ratings, and recommendations for various credit cards, including cashback, rewards, and low-interest cards.

Bankrate

A personal finance platform that provides news, tools, and resources for managing personal finances, including mortgage rates, credit cards, and investment advice.

NerdWallet

A personal finance platform that provides news, tools, and resources for managing personal finances, including investment advice, credit card reviews, and mortgage rates.

MyBankTracker

A banking platform that provides news, reviews, and resources for managing bank accounts, including checking and savings accounts, CDs, and credit cards.

8. QuinStreet, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

QuinStreet, Inc. operates in a niche market, providing online marketing and media services, which reduces the threat of substitutes.

Bargaining Power Of Customers

QuinStreet, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. However, large customers may still have some bargaining power.

Bargaining Power Of Suppliers

QuinStreet, Inc. has a diverse supplier base, and the company is not heavily dependent on any single supplier, reducing the bargaining power of suppliers.

Threat Of New Entrants

While there are some barriers to entry in the online marketing and media services industry, new entrants can still enter the market with innovative solutions, posing a moderate threat to QuinStreet, Inc.

Intensity Of Rivalry

The online marketing and media services industry is highly competitive, with many established players and new entrants, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.46%
Debt Cost 9.48%
Equity Weight 83.54%
Equity Cost 9.48%
WACC 9.48%
Leverage 19.70%

11. Quality Control: QuinStreet, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Emerald Holding

A-Score: 4.4/10

Value: 4.2

Growth: 2.9

Quality: 6.5

Yield: 1.0

Momentum: 7.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Inuvo

A-Score: 4.1/10

Value: 6.2

Growth: 3.9

Quality: 4.5

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
QuinStreet

A-Score: 3.8/10

Value: 3.9

Growth: 7.6

Quality: 5.1

Yield: 0.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Innovid

A-Score: 3.7/10

Value: 3.2

Growth: 4.7

Quality: 4.6

Yield: 0.0

Momentum: 9.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
National CineMedia

A-Score: 3.6/10

Value: 6.0

Growth: 2.4

Quality: 4.2

Yield: 5.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Cardlytics

A-Score: 2.7/10

Value: 8.8

Growth: 3.0

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.47$

Current Price

14.47$

Potential

-0.00%

Expected Cash-Flows