QUINSTREET, INC Q2 FY2026 earnings call

• Fiscal Q2 was productive and successful, exceeding revenue and adjusted EBITDA outlooks. Auto insurance demand remained strong with sequential growth besting seasonality. Home services grew at double-digit rates and acquired Homebody, which expands product, media, and client footprints for home services. • AI application across the business is progressing, expected to lead to increased opportunities. • Capital allocation priorities include investing in new products/initiatives, accretive acquisitions, and share repurchases. • Recent acquisition of Homebody was funded with cash from balance sheet and revolver credit facility, and Homebody is expected to generate $30 million or more of adjusted EBITDA in the first twelve months after closing.

In fiscal Q2, total revenue was $287.8 million. The financial services client vertical represented 75% of Q2 revenue, with auto insurance growing 6% sequentially and noninsurance financial services (personal loans, credit cards, banking) growing 10% year over year. The home services client vertical represented 25% of Q2 revenue and grew 13% year over year to $71 million. Home services is now running at close to $300 million per year in revenue, with the addition of Homebody expected to add to this, and the overall home services market is estimated to spend over $70 billion on marketing.

• Fiscal Q3 total revenue expected to be between $330 million and $340 million, total adjusted EBITDA between $26.5 million and $30.5 million. • Full fiscal year 2026 total revenue expected to be between $1.25 billion and $1.3 billion, total full fiscal year adjusted EBITDA between $110 million and $115 million. • Expect to reach 10% quarterly adjusted EBITDA margin in this fiscal year, even excluding Homebody.

• Concerns about AI bubble and disruption/disintermediation, though QuinStreet believes fears of disruption are overblown as its business is unique, proprietary, and not commodity. • Macro environment factors like potential consumer stress affecting some financial services verticals, and choppiness in certain banking segments due to market volatility.

Q: Talk about traffic trends and how QuinStreet navigates AI changes.

A: Traffic trends are net positive, with no negative trends seen. QuinStreet sees more opportunity with AI as searches involve AI-based answers, creating more places for campaigns. Concerns about AI disruption are overblown as QuinStreet's business is unique and not commodity.

Q: Talk about cross-sell opportunity with Homebody and R&D initiatives.

A: Homebody brings ability to scale dramatically in social display and native media ecosystem, which is a big opportunity for feeding home services client demand. R&D initiatives like new media for auto insurance, expanding insurance footprint to agent-driven models, and SMB/commercial focus are tracking well, with some already at good scale and expected to drive growth and profitability in the future.