EverQuote's Q2 2025: Unpacking Contradictions in Carrier Budgets, Tariffs, and VMM Margins

Carrier budget commitments and tariff impact, VMM margin expectations, carrier budget commitment and impact of tariffs, carrier spending trends and seasonality are the key contradictions discussed in EverQuote's latest 2025Q2 earnings call



Revenue Growth and Financial Performance:
- EverQuote achieved record revenue of $156.6 million in Q2 2025, up 34% year-over-year.
- The growth was primarily driven by strong enterprise carrier spend, up over 61% from the same period last year.
- Positive carrier profitability and healthy consumer shopping levels contributed to this growth.

Operating Efficiency and AI Integration:
- EverQuote reported record adjusted EBITDA margin of 14% in Q2, up from 13.5% in Q1 2025.
- This was attributed to disciplined expense management and the integration of AI and technology investments.
- The company is leveraging AI through applications such as AI voice agents and AI-driven bidding systems.

Carrier and Agent Engagement:
- Carrier demand remained stable, with one major carrier growing its spend to record levels, indicating a full recovery.
- Agent and captive carrier demand also remained strong, with continued growth from the local agent base.
- The company is transitioning from a leads vendor to a strategic growth partner, offering multiple products to consolidate agent marketing budgets.

Share Repurchase and Financial Flexibility:
- EverQuote announced a $50 million share repurchase program, reflecting confidence in its business and strong cash flow generation.
- The company entered a new $60 million committed credit facility, further enhancing its financial flexibility.
- This strategic move positions EverQuote for continued investment in growth initiatives, including AI capabilities.