EverQuote 2025 Q2 Earnings Surpasses Expectations, Net Income Rises 129.6%

Generated by AI AgentAinvest Earnings Report Digest
Wednesday, Aug 6, 2025 8:35 am ET2min read
Aime RobotAime Summary

- EverQuote (EVER) reported Q2 2025 earnings with 33.7% revenue growth ($156.63M) and 129.6% net income increase ($14.7M), surpassing expectations.

- The company raised full-year guidance and announced a $50M share repurchase program, reflecting confidence in $47M+ variable marketing growth and 22% YoY Adjusted EBITDA growth.

- CEO Jayme Mendal highlighted AI-driven efficiency, stable market conditions, and 34% YoY revenue growth, positioning EverQuote as a key growth partner for insurers.

- Historical post-earnings strategies show 25.8% annualized returns for 30-day holdings, though live market conditions may vary due to transaction costs and volatility.

EverQuote(EVER) reported its fiscal 2025 Q2 earnings on Aug 05th, 2025. The company exceeded expectations with robust revenue and profit growth, including a 33.7% increase in total revenue and a record net income. also raised its full-year guidance, reflecting improved operational performance and strategic execution.

Revenue
EverQuote’s total revenue surged 33.7% to $156.63 million in Q2 2025, compared to $117.14 million in the same period last year. The automotive insurance vertical led the charge with a 36% year-over-year increase to $139.58 million, showcasing the company’s dominant position in that segment. The home and renters insurance segment also delivered strong performance, rising 22.7% to $17.03 million. A small miscellaneous segment contributed $11,000. The diversified yet focused revenue streams underscore the company’s strategic growth across key insurance verticals.

Earnings/Net Income
EverQuote’s earnings per share (EPS) soared 122.2% to $0.40 in Q2 2025 from $0.18 in Q2 2024, marking a continuation of its strong earnings momentum. Net income jumped 129.6% to $14.70 million, compared to $6.40 million a year ago. This represents a significant improvement in profitability and marks the highest Q2 net income in the company’s nine-year public history. The impressive EPS and net income figures indicate a healthy bottom-line performance driven by operational efficiency and strong top-line growth.

Price Action
The stock price of EverQuote edged up 0.38% during the latest trading day but declined 2.10% over the most recent full trading week and 3.14% month-to-date as of the earnings report date.

Post-Earnings Price Action Review
The strategy of purchasing EverQuote shares after an earnings beat and holding for 30 days has historically generated compelling returns, with an annualized return of 25.8% and an overall gain of 67.3%. This performance highlights the strong fundamental catalyst behind the earnings beat. The backtest underscores the value of pairing fundamental insights with a tactical holding period to optimize returns. Holding for 30 days appears to capture the majority of the positive momentum without overexposing the position to unnecessary risk. However, it is important to recognize that such strategies, while effective in the backtest, may yield different results in live markets due to varying conditions, transaction costs, and other real-world factors.

CEO Commentary
Jayme Mendal, CEO of EverQuote, emphasized the company’s strong second-quarter performance, including 34% year-over-year revenue growth and record operating cash flow. He highlighted stable market conditions, carrier profitability, and EverQuote’s execution on leveraging data and AI to drive growth for partners. The CEO expressed optimism about the company’s strategic direction, emphasizing progress toward positioning EverQuote as a leading growth partner for P&C insurers.

Guidance
EverQuote provided third-quarter 2025 guidance with revenue projected between $163.0–$169.0 million, representing 15% YoY growth at the midpoint. Variable marketing dollars are expected to grow 10% YoY to $47.0–$50.0 million, while Adjusted EBITDA is forecasted to reach $22.0–$24.0 million, reflecting 22% YoY growth. Additionally, the company announced a $50.0 million share repurchase program to further enhance shareholder value.

Additional News
EverQuote announced an inaugural $50.0 million share repurchase program, signaling confidence in its strong free cash flow and future performance. The program allows for purchases on the open market and is funded by existing cash and future cash flow. The company also highlighted its successful use of AI and disciplined expense management to drive efficiency and growth. The CEO and CFO both expressed optimism about the company’s ability to maintain a strong balance sheet while investing in long-term sustainable growth. The share repurchase program aligns with the company’s capital allocation strategy and reflects its commitment to returning value to shareholders.

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