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Quinstreet (QNST)
NASDAQ:QNST

Quinstreet (QNST) AI Stock Analysis

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QN

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)

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
55
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
62
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
68
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.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
928.72M613.51M580.62M582.10M578.49M490.34M
Gross Profit
86.90M46.25M48.52M53.73M70.53M52.48M
EBIT
-9.37M-28.07M-20.82M-4.69M30.72M19.38M
EBITDA
14.01M-5.76M-2.50M11.23M46.01M30.42M
Net Income Common Stockholders
-12.13M-31.33M-68.87M-5.25M23.55M18.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
57.84M50.49M73.68M96.44M110.32M107.51M
Total Assets
409.65M368.55M337.15M419.91M449.92M358.41M
Total Debt
6.55M10.97M1.26M3.86M8.54M8.69M
Net Debt
-51.28M-39.52M-72.42M-92.58M-101.77M-98.82M
Total Liabilities
185.40M151.72M107.35M133.91M154.37M102.46M
Stockholders Equity
224.25M216.82M229.80M286.00M295.55M255.94M
Cash FlowFree Cash Flow
37.41M-4.69M-3.17M21.16M45.52M43.35M
Operating Cash Flow
45.64M12.04M11.84M28.67M50.62M47.61M
Investing Cash Flow
-18.73M-22.73M-15.13M-9.22M-36.46M8.87M
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
75
Outperform
$741.59M21.578.57%1.63%
74
Outperform
$2.19B78.374.30%5.59%
IAIAS
74
Outperform
$1.33B28.314.80%13.84%1494.51%
69
Neutral
$1.52B11.5913.46%-1.18%100.33%
EEEEX
69
Neutral
$918.73M286.961.62%0.97%4.87%
62
Neutral
$904.40M-0.29%88.81%99.16%
60
Neutral
$14.09B6.86-3.35%3.70%2.42%-36.28%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.