QuinStreet (QNST) Stock Forecast & Price Target

QuinStreet Inc. reported home service revenues of $59.6 million, showing a year-over-year increase of over 21%, despite modest headwinds from regulatory changes. The company has raised its FY25 revenue guidance midpoint by approximately 8.5%, resulting in projected revenues of $1,084.9 million, which represents a 77% year-over-year growth, along with an adjusted EBITDA estimate of $82.6 million at a 7.6% margin. Additionally, the significant year-over-year increase of over 600% in insurance vertical revenues, coupled with an anticipated rise in digital advertising budgets, suggests strong potential for continued financial performance and growth.

QuinStreet Inc. reported adjusted EBITDA dollars for 2Q25 that exceeded guidance and consensus estimates; however, the adjusted EBITDA margin fell short of earlier projections, attributed to challenges in the auto insurance media segment. The company's dependency on the auto insurance sector and potential consumer experience shortcomings could lead to a decline in web traffic and lead volume, adversely impacting revenue growth. Additionally, fluctuations in client spending, as demonstrated by prior impacts from changes in Progressive's spending behavior, introduce further uncertainty into QuinStreet’s financial stability and outlook.