Quinstreet (QNST) AI Stock Analysis

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Quinstreet

(NASDAQ:QNST)

62Neutral

Quinstreet's overall score is supported by a strong balance sheet, effective cash flow management, and impressive revenue growth highlighted in the earnings call. However, profitability challenges, negative P/E ratio, and bearish technical indicators weigh on the score. The optimistic outlook in the earnings call provides some upside potential despite risks from tariffs and spending volatility.

Positive Factors

Auto Insurance Growth

Auto insurance revenue showed record growth—up 615% year-over-year.

Earnings

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.

Insurance Sector Growth

Insurance vertical revenues increased over 600% year over year against a depressed comp, with improved carrier profitability supporting marketing spending to acquire policyholders, leading to revenue growth for QNST.

Negative Factors

Growth Uncertainty

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.

Operating Challenges

The only nitpick in the quarter was some margin pressure from a confluence of a) supply constraints, b) media investments and c) TCPA volatility.

Regulatory Concerns

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. S&P 500 (SPY)

Market Cap

$904.40M

Dividend YieldN/A

Average Volume (3M)853.88K

Price to Earnings (P/E)―

Beta (1Y)0.97

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. Volume1,319,024

30 Day Avg. Volume853,876

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

$25.25

Price Target Upside64.50% 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 through a revenue model based on performance marketing and lead generation. The company partners with businesses in various sectors to deliver targeted advertising campaigns that drive customer acquisitions. Revenue is primarily generated through cost-per-action (CPA) and cost-per-lead (CPL) models, where clients pay Quinstreet for each successful lead or customer action generated through its marketing efforts. Quinstreet's sophisticated data analytics and technology platforms enable it to provide high-quality leads and optimize marketing expenditures for its clients, ensuring strong performance outcomes and ongoing partnerships.

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

Neutral

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price15.35

Price Trends

50DMA

17.13

Negative

100DMA

19.71

Negative

200DMA

19.77

Negative

Market Momentum

MACD

-0.36

Positive

RSI

42.63

Neutral

STOCH

28.81

Neutral

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 15.35 is below the 20-day moving average (MA) of 16.96, below the 50-day MA of 17.13, and below the 200-day MA of 19.77, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 42.63 is Neutral, neither overbought nor oversold. The STOCH value of 28.81 is Neutral, 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEXN	75 Outperform	$741.59M	21.57	8.57%	―	1.63%	―
MGNI	74 Outperform	$2.19B	78.37	4.30%	―	5.59%	―
IAS	74 Outperform	$1.33B	28.31	4.80%	―	13.84%	1494.51%
CRTO	69 Neutral	$1.52B	11.59	13.46%	―	-1.18%	100.33%
EEX	69 Neutral	$918.73M	286.96	1.62%	0.97%	4.87%	―
QNST	62 Neutral	$904.40M	―	-0.29%	―	88.81%	99.16%
Sector *	60 Neutral	$14.09B	6.86	-3.35%	3.70%	2.42%	-36.28%

* Communication Services Sector Average

Performance Comparison

QNST

Quinstreet

15.35

-2.92

-15.98%

CRTO

Criteo SA

28.42

-8.82

-23.68%

MGNI

Magnite

15.54

4.26

37.77%

EEX

Emerald Expositions Events

4.67

-1.19

-20.31%

NEXN

Nexxen International

11.21

5.30

89.68%

IAS

Integral Ad Science

8.09

-1.81

-18.28%

Quinstreet Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q3-2025)

% Change Since: -16.03%|

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.