QuinStreet (QNST) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 revenue of $287.8 million, up 2% year-over-year, exceeding outlook for both revenue and adjusted EBITDA, marking a second consecutive quarter of record revenue in a seasonally low period.

• Net income for the quarter was $50.2 million, primarily due to a $48.9 million tax benefit from the release of a valuation allowance on deferred tax assets.

• Strong progress on strategic initiatives, including AI integration and the acquisition of HomeBuddy, which expands product, media, and client footprints in home services.

• Auto insurance demand remained robust, outperforming historical seasonality, and home services continued double-digit growth.

• Completed the acquisition of HomeBuddy in January for $115 million upfront and $75 million in post-closing payments, funded by cash and a new $150 million revolving credit facility.

Financial highlights

• Q2 total revenue was $287.8 million; adjusted net income was $14 million ($0.24 per share); adjusted EBITDA was $21 million, up 8% year-over-year.

• Gross profit for the quarter was $27.7 million, with a gross margin of 9.6%–10%.

• Operating income was $1.2 million, compared to an operating loss of $1.4 million in the prior year.

• Ended the quarter with $107 million in cash and equivalents and no bank debt.

• Diluted EPS was $0.87, compared to $(0.03) in the prior year.

Outlook and guidance

• Q3 revenue expected between $330 million–$340 million; adjusted EBITDA between $26.5 million–$30.5 million.

• Full fiscal year 2026 revenue expected between $1.25 billion–$1.3 billion; adjusted EBITDA between $110 million–$115 million.

• Excluding HomeBuddy, full-year revenue expected to grow at least 10% and adjusted EBITDA at least 20%; targeting 10% quarterly adjusted EBITDA margin this fiscal year.

• Management expects continued revenue growth from sustainable sources at target profitability levels, with ongoing investment in growth initiatives.

• The company believes existing cash, future operating cash flow, and available borrowings will be sufficient to meet anticipated requirements for at least the next 12 months.