EverQuote, Inc. Q4 FY2025 earnings call

2025 was a phenomenal year with 38% revenue growth. Delivered growth by scaling marketplace, launching new products, integrating AI, and deepening provider relationships. Have a 7 - year track record of delivering against commitments. Accelerate towards an AI - first future by further accelerating engineering team's path to agentic coding and AI tool adoption, and rolling out new products/features combining data and generative AI. Since 2023, more than doubled revenues while keeping operating expenses flat.

In 2025, revenue grew 38% to $692.5 million. Fourth quarter revenue grew 32% to $195.3 million. Auto insurance revenue in Q4 was $179.9 million, up over 32% YOY, full year auto insurance revenue grew 41% to $629.8 million. Home insurance revenue in Q4 was $15.4 million, up 37% YOY, full year home insurance revenue grew 20% to $62.7 million. Adjusted EBITDA in 2025 grew 62% to $94.6 million. Q4 adjusted EBITDA increased 32% to $25.1 million. Full year GAAP net income increased to $99.3 million compared to $32.2 million in 2024. Cash operating expenses in 2025 were effectively flat year - over - year. Ended 2025 with no debt and cash and cash equivalents of $171.4 million.

Expect revenue for first quarter of 2026 to be between $175 million and $185 million. Expect VND to be between $49 million and $52 million. Expect adjusted EBITDA to be between $23.5 million and $26.5 million. Carrier partners indicate 2026 will be a growth year for profitable policy growth. Path to $1 billion revenue in 2 - 3 years with top line growth rates around 13% - 21% and EBITDA dollar growth at least 20% in 2026.

Forward - looking statements subject to risks and uncertainties that could cause actual results to differ materially from expectations. Refer to SEC filings for discussion of risks and uncertainties.

Q: Outlook for full year 2026 based on Q1 guide, can we give some insight on the rest of the year?

A: Carrier partners indicating 2026 is a growth year for profitable policy growth, disciplined approach in Q1 due to strong Q4, path to $1 billion in 2 - 3 years with 13% - 21% top line growth and at least 20% EBITDA dollar growth in 2026.

Q: Traffic investments in Q4 and AI - related search quality and spillover into Q1 and 2026?

A: Made investments in new traffic channels, experienced expected scale in Q4, margins normalizing in Q1, actively building into LLM chatbot platforms and expect traffic from them in 2026 through content, technical integrations, and programmatic advertising.

Q: Update on new products and becoming a holistic suite, and confidence in growth reaccelerating?

A: Smart Campaigns expanded to bulk of carrier customers and will roll out to local agents, 40% of agents using more than one product. Path to $1 billion comes from distribution, more carrier budget, more agents using more products, traffic into new channels, and home vertical growth.

Q: How AI agents progress within platform and VMD margin?

A: Not a software business, data - powered marketplace, AI agents can help with operations and customer experience, VMM margin expected to be in high 20s for rest of year, bouncing around due to not running business for VMM and advertising cost pressures.

Q: Potential upside case to 1Q and catalysts for faster growth?

A: Large national carrier coming back online, progress in California, insurance going online being a laggard.

Q: Capital allocation, M&A appetite?

A: Continue to generate cash flow, strong balance sheet, ongoing share buyback program, and selectively looking at acquisitions to accelerate organic growth.

Q: Traffic from LLM platforms and carrier base contribution?

A: No material impact on traffic mix from LLM platforms yet, will start to originate meaningful traffic in 2026, 75% of top 25 carriers in Q4 were below peak quarterly spend, potential for carrier base competition movement in 2026.

Q: Carriers not wanting to put quotes on third - party sites and AI impact on carriers' traffic lean?

A: Carriers protective of rates, but players like EverQuote can carve out role in connecting consumers with insurance distribution. If carriers implement AI and become more profitable, they will likely lean more into traffic - driving channels.

Q: Discipline in first quarter of 2026 across carriers and tax deferred tax benefit?

A: Discipline is a theme across multiple carriers, tax deferred tax benefit in quarter was primarily driven by release of valuation allowance against deferred tax assets, a non - cash and one - time charge due to sustained profitability allowing use of NOLs