QuinStreet (QNST) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 FY2026 revenue of $346.1 million, up 28% year-over-year, with strong growth in both financial services and home services, and significant contribution from the HomeBuddy acquisition.

• Net income for Q3 FY2026 was $7.4 million, up 67% year-over-year, with adjusted net income of $17.8 million and adjusted EBITDA of $29.6 million, up 53% year-over-year.

• Gross profit margin improved to 12% in Q3 FY2026, reflecting operational efficiencies and AI-driven productivity.

• Integration of HomeBuddy is ahead of schedule, contributing to growth and operational synergies.

• AI initiatives are driving productivity, campaign performance, and new revenue streams, including early participation in OpenAI's ad platform.

Financial highlights

• Q3 FY2026 revenue: $346.1 million, up 28% year-over-year; adjusted EBITDA: $29.6 million, up 53% year-over-year.

• Net income: $7.4 million ($0.13 per diluted share); adjusted net income: $17.8 million ($0.31 per diluted share).

• Gross profit: $104.2 million; operating income: $10.3 million (2.9% margin); gross margin: 12%.

• Free cash flow: $33.8 million; normalized free cash flow: $22.0 million.

• Cash and cash equivalents at quarter end: $102 million; net debt of $54 million.

Outlook and guidance

• Q4 FY2026 revenue expected between $350 million and $370 million, at least 34% year-over-year growth.

• Q4 adjusted EBITDA expected between $37 million and $43 million, at least 67% year-over-year growth.

• Management expects continued margin expansion, new quarterly records, and strong double-digit growth next fiscal year, excluding new acquisitions.

• Focus on sustainable revenue growth, profitability, and investment in growth initiatives.