QuinStreet (QNST) Stock Forecast & Price Target

QuinStreet Inc has reported total home service revenues of $59.6 million, reflecting over 20% year-over-year growth, which positions the company favorably even against modest headwinds from regulatory changes. The management has increased the midpoint of their FY25 revenue guidance by approximately 8.5%, resulting in revised expectations for revenue and adjusted EBITDA to $1,084.9 million and $82.6 million, respectively. Furthermore, the substantial year-over-year growth of over 600% in the insurance vertical, paired with a broader digital advertising trend that indicates increased client spending, bodes well for QuinStreet's financial performance moving forward.

QuinStreet Inc. reported that despite exceeding 2Q25 adjusted EBITDA dollars guidance by approximately 8%, the adjusted EBITDA margin fell short of previous expectations at 6.9%, primarily due to challenges in the auto insurance media segment. The company faces potential risks from adverse regulatory conditions and market dynamics, which could hinder its ability to maintain web traffic and lead volume, ultimately affecting revenue growth. Additionally, there remains uncertainty regarding client spending fluctuations, particularly from large clients like Progressive, which have historically had a significant impact on QuinStreet's revenue streams.