QuinStreet Reports Strong Q2 2026 Earnings, Sees Growth Ahead

QuinStreet, Inc. (NASDAQ: QNST) announced that its fiscal second-quarter 2026 results surpassed management’s expectations, driven by robust demand in auto insurance and the recent acquisition of HomeBuddy. During the earnings call, CEO Doug Valenti highlighted that the company “exceeded our outlook for both revenue and Adjusted EBITDA,” indicating positive momentum across various business segments.

Chief Financial Officer Greg Wong reported that this quarter marked the company’s “second consecutive quarter of record revenue,” despite traditionally being the lowest revenue quarter of the fiscal year. The company’s total revenue reached $287.8 million, with financial services contributing 75%, or $216.8 million, while home services accounted for 25%, amounting to $71 million.

Financial Performance and Sector Insights

The financial services sector saw a marginal year-over-year decline of 1% in revenue, primarily due to a challenging comparison with last year’s unprecedented surge in insurance carrier spending. Wong noted that auto insurance revenue grew 6% sequentially compared to the previous quarter, defying typical seasonal trends. Although year-over-year figures for auto insurance were down 2%, non-insurance financial services such as personal loans and credit cards experienced a growth of 10% year-over-year.

Valenti expressed optimism for the auto insurance segment, expecting “further significant growth in revenue and margin in coming quarters,” driven by favorable client and market fundamentals. The home services division is also thriving, running at nearly $300 million annually, with expectations to reach between $400 million and $500 million per year following the HomeBuddy acquisition.

Strategic Acquisitions and Future Outlook

The acquisition of HomeBuddy, finalized shortly after the quarter ended, is anticipated to enhance QuinStreet’s service offerings. Wong detailed that HomeBuddy is projected to generate over $30 million in Adjusted EBITDA within its first year. Valenti underscored the significance of this acquisition, noting that it introduces auction-driven exclusive leads to QuinStreet’s portfolio, expanding their capabilities in social and native advertising channels.

When discussing the impact of seasonality, Valenti acknowledged that the March quarter tends to be weaker due to weather conditions, while the June and September quarters usually exhibit stronger performance. This seasonal dynamic plays a crucial role in shaping the company’s quarterly projections.

Amid concerns about AI disruption, Valenti reassured stakeholders that QuinStreet has experienced “only net positive trends” with AI. He stated that the firm has maintained a record volume of traffic on Google and that AI-driven searches have created new opportunities for campaign management. Valenti emphasized that QuinStreet has successfully integrated AI into its core marketplace algorithms since 2008, which positions the company favorably in the evolving digital landscape.

Wong added that QuinStreet ended the quarter with $107 million in cash and equivalents, with no outstanding bank debt prior to a draw on a new revolving credit facility associated with the HomeBuddy acquisition. He noted a one-time, non-cash tax benefit of $48 million related to deferred tax assets, which has been excluded from non-GAAP results.

Looking ahead, QuinStreet maintains its forecast for full-year revenue growth of at least 10% and Adjusted EBITDA growth of at least 20%. Valenti reiterated that the HomeBuddy acquisition is expected to be “purely additive and accretive” to the company’s performance. Additionally, QuinStreet is exploring opportunities beyond direct-carrier clicks, expanding into leads, calls, and agent-driven models within the insurance sector.

QuinStreet continues to focus on disciplined capital allocation, prioritizing investments in new products, strategic acquisitions, and share buybacks. The management team aims to achieve a quarterly Adjusted EBITDA margin of 10% by the end of fiscal 2026, even excluding the impact of HomeBuddy.

As QuinStreet navigates the evolving market landscape, its commitment to leveraging technology and strategic acquisitions positions it for sustained growth and innovation in the performance marketing sector.