QuinStreet's Q4 2025: Diverging Insights on Carrier Spending, Media Demand, and FCC Impacts

Revenue and EBITDA Growth:
- QuinStreet, Inc. reported total revenue growth of 32% year-over-year in Q4 2025 and a record full fiscal year 2025 revenue of $1.1 billion, up 78%.
- Adjusted EBITDA grew by 101% in Q4 and 299% for the full fiscal year, reaching $81 million.
- Growth was driven by strong performance in Auto Insurance, which grew 62%, and Home Services, which grew 21%, despite moderated carrier spending due to tariff uncertainties.

Auto Insurance Market Dynamics:
- The company experienced renewed demand from auto insurance clients, leading to an expected strong sequential growth in auto insurance revenue in fiscal Q1.
- The pent-up demand is expected to increase as the full level and impact of tariffs become more clear, with carriers starting to reaccelerate spending.
- The strong financial results and combined ratios of carriers are allowing them to absorb potential impacts from tariffs.

Outlook and Margin Expansion:
- QuinStreet expects revenue to be approximately $280 million and adjusted EBITDA to be $20 million in fiscal Q1, with full fiscal year 2026 revenue expected to grow by 10% and adjusted EBITDA by 20%.
- The company aims to further expand margins through aggressive investments in media capacity to meet demand and optimize existing media for better margins.

Financial Services Performance:
- Financial Services, representing 71% of Q4 revenue, grew by 36% year-over-year, while Home Services, contributing 27%, grew by 21%.
- The growth was supported by broad-based carrier demand, with most carriers spending over $1 million per month, and strong engagement with clients in digital performance marketing.

Margin Expansion and Product Initiatives:
- Margin expansion is expected to continue with initiatives like optimizing media for better carrier participation, growing new media capacity, and developing new product market opportunities.
- Key product development investments include QRP, 360 Finance, core technology improvements, and a new call platform for enhancing consumer engagement and remarketing.