QuinStreet (QNST) Q3 2025 earnings summary

Executive summary

• Revenue grew 60% year-over-year to $269.8 million in fiscal Q3 2025, with adjusted EBITDA up 145% to $19.4 million and net income of $4.4 million, marking a return to profitability.

• Financial services vertical accounted for 74% of Q3 revenue, with revenue up 78% year-over-year and auto insurance revenue up 165%; home services revenue increased 21% to a record $65.4 million.

• Gross profit margin improved to 10% from 8% in the prior year quarter.

• Ended the quarter with $81.8 million in cash and no bank debt, reflecting a strengthened financial position.

• Company returned to profitability after prior periods of net losses, driven by increased client demand and improved industry conditions.

Financial highlights

• Q3 2025 net revenue: $269.8 million (up 60% year-over-year); nine months: $831.7 million (up 100%).

• Adjusted net income for Q3 was $12.4 million ($0.21 per share); GAAP net income was $4.4 million ($0.08 per share).

• Gross profit for Q3 was $27.9 million, up from $14.3 million in the prior year quarter; gross margin was 10%.

• Operating income for Q3 2025 was $4.9 million, compared to a loss of $5.3 million in Q3 2024.

• Cash and cash equivalents at March 31, 2025: $81.8 million, up from $50.5 million at June 30, 2024.

Outlook and guidance

• Fiscal year 2025 revenue guidance maintained at $1.065–$1.105 billion, implying at least 18% year-over-year growth in Q4.

• Adjusted EBITDA for the year expected between $80–$85 million, implying at least 89% year-over-year growth in Q4.

• Q4 outlook range widened due to tariff-related uncertainties and potential volatility in client spending.

• Management expects continued double-digit revenue and profit growth in both the short and long term.

• Liquidity is sufficient to meet anticipated cash requirements for at least the next 12 months.