QUINSTREET, INC Q1 FY2026 earnings call

• Fiscal Q1 was a good quarter with record revenue and exceeded revenue and adjusted EBITDA outlooks. • Auto insurance demand remained strong, home services grew double-digit rates. • Invested heavily in new media and products. • Expect further growth in auto insurance revenue and margin. • AI initiatives underway to accelerate markets. • Board authorized a new $40 million share repurchase program.

For Fiscal Q1, total revenue was $285.9 million. The financial services client vertical represented 73% of Q1 revenue, with $207.5 million. Auto insurance within financial services grew 16% sequentially and 4% year-over-year. Noninsurance financial services declined 10% year-over-year. The home services client vertical represented 27% of Q1 revenue, growing 15% year-over-year to a record $78.4 million.

• Fiscal Q2 revenue expected between $270 million and $280 million, adjusted EBITDA between $19 million and $20 million. • Full fiscal year 2026 revenue expected to grow at least 10% year-over-year, adjusted EBITDA at least 20% year-over-year.

• Uncertainty about tariffs and their impact on claims costs delaying carrier marketing spend growth. • Difficulty in quantifying exact impact of tariffs on carrier spending.

Q: Can you give more details on media investments and margin performance?

A: Focused on proprietary media campaigns in auto insurance, new products like QRP and 360 with strong growth and margin expansion.

Q: Follow-up on tariff comments?

A: No new tariffs, but no resolution of existing ones, clients spending strongly but not at expected rates due to tariff uncertainty.

Q: Spending trends among auto insurance carriers?

A: Broadening of spending with more players increasing spend.

Q: Changes in credit-driven verticals monetization?

A: Bifurcation in consumer profile, credit card business for upper income, M1 for lower-end, banking business growing with interest rates.

Q: Mix shift impacts on gross margin?

A: Mix shift may soften, margin expansion from auto mix, higher-margin businesses, and efficiency initiatives.