EverQuote, Inc. Q1 FY2026 earnings call

• Delivered excellent results in Q1, exceeding high end of guidance range across revenue, VMD, and adjusted EBITDA, with 30% growth in adjusted EBITDA to a record $29.3 million. • Strategy is working as planned, scaling marketplace and deepening provider relationships. • Committed to growing revenue 20% and expanding profitability since 2018, delivering 4X revenue growth and over $100 million of annualized adjusted EBITDA expansion. • Strong balance sheet with over $178 million cash and no debt, and three quarters of annualized adjusted EBITDA at or above $100 million. • Leveraging AI to drive productivity and innovation, including building an AI cockpit for sales and service teams, adding AI layer on site management platform. • AI benefits customers through traffic engine, proprietary data, and smart campaigns, with plans to roll out more AI-powered products and features. • Revenue per employee increased nearly 3x from Q1 2023 to Q1 2026, and ramping up agentic AI tools deployment.

In Q1, total revenue grew 15% year-on-year to $190.9 million. Auto insurance vertical revenue was $172.4 million, up 13% year-on-year. Home insurance vertical revenue grew 33% to $18.5 million. Variable marketing dollars (VMD) increased to a record $55.9 million in Q1, up 19% from the prior year period. Variable marketing margin (VMM) was 29.3% for the quarter. Adjusted EBITDA increased 30% from the prior year period to $29.3 million, representing a 15.4% adjusted EBITDA margin. Cash Operating Expenses were $26.6 million in Q1. Operating cash flow was a record $29.6 million. Cash balance was over $178 million with no debt.

• Expect Q2 2026 revenue to be between $185 and $195 million (21% year-over-year growth at midpoint), VMD between $55 and $57 million (23% year-over-year growth at midpoint), and adjusted EBITDA between $28 and $30 million (32% year-over-year growth at midpoint). • Remain committed to achieving $1 billion in revenues over next two to three years while generating strong cash flow and adjusted EBITDA growth. • Continuing to build on AI capabilities through developing AI-first products, hiring AI talent, and deploying agentic AI tools across functions.

Q: Corey Carpenter with J.P. Morgan asked about what drove carriers' performance and if the cadence would continue.

A: Carriers' underwriting environment is healthy, with 80s combined ratios in auto and similar for home. Upside in Q1 was broad based on carriers spending more than initially planned. Carrier demand is recovering, and macro factors like energy prices haven't impacted carrier conversations much.

Q: Maria Ritz with Canaccord asked about first half strength being incremental vs pull forward and LLM traffic.

A: First half strength is continuation of what's seen, not pull forward. On LLM traffic, it's under technical integrations, with testing in platforms, but friction in accessing apps. Paid advertising and content strategy are part of the plan to capture LLM traffic.

Q: Navid Khan with B Riley Securities asked about carrier demand and buyback.

A: Carrier demand has recovery, with a top five carrier not on the platform until Q1. Buyback plan continues, with 19.9 million shares repurchased in Q1, and capital allocation includes fortress balance sheet, buybacks, and M&A as an option to accelerate strategy.

Q: Ralph Shacker with William Blair asked about consumer shopping and VMM.

A: Consumer shopping levels are normalizing but elevated, and VMM was over 29% in Q1, with view of high 20s for balance of year.

Q: Jed Kelly with Oppenheimer asked about market competition, macro impact, and capital allocation.

A: Market has healthy dynamic, macro factors like gas prices impact consumers but carriers have cushion. Capital allocation includes fortress balance sheet, buybacks, and M&A for accelerating strategy.

Q: Jason Cryer with Craig Hallam asked about market transition and AI adoption.

A: Strategy lends well to market transition, and AI adoption is accelerating internally and for customers, with more internal productivity gains and customer product additions.