QuinStreet, Inc. (NASDAQ: QNST) announced strong results for its fiscal second quarter of 2026, surpassing management forecasts and highlighting ongoing demand for auto insurance and new growth avenues in home services. During the earnings call, CEO Doug Valenti stated that QuinStreet “exceeded our outlook for both revenue and Adjusted EBITDA,” showcasing the company’s progress on significant initiatives.
CFO Greg Wong noted that the December quarter marked the company’s “second consecutive quarter of record revenue,” despite traditionally being the seasonally slowest period. QuinStreet reported revenue of $288.8 million, with financial services accounting for 75% of this figure.
Financial Performance and Market Dynamics
Wong reported that revenue from financial services declined by 1% year-over-year, totaling $216.8 million. In contrast, revenue from home services grew 13% year-over-year, reaching $71 million. Although financial services faced challenges, auto insurance demand remained robust, with a sequential growth of 6% compared to the previous quarter. Wong attributed this growth to strong client fundamentals, despite a 2% year-over-year decline due to a comparison with last year’s elevated spending by insurance carriers.
The non-insurance segment of financial services, including personal loans and credit cards, saw a notable growth of 10% year-over-year, reflecting diversified revenue streams for the company.
Valenti emphasized QuinStreet’s expectations for further growth in auto insurance revenue and margins in the upcoming quarters, bolstered by expanding product offerings and market presence.
Home Services Expansion and Strategic Acquisition
The home services division is emerging as a significant contributor to QuinStreet’s revenue, with Valenti revealing that it is now approaching $300 million annually. Following the acquisition of HomeBuddy, this figure is projected to increase to between $400 million and $500 million per year. Valenti described the home services market as QuinStreet’s “largest addressable market” and expressed a strongly positive long-term outlook.
Wong provided details about the HomeBuddy acquisition, which finalized in early January 2026, stating that it is expected to generate at least $30 million in Adjusted EBITDA within the first year. Valenti noted that HomeBuddy introduces a new product line of auction-driven exclusive leads, expanding QuinStreet’s media capabilities to satisfy client demands.
In response to questions about seasonal trends, Valenti acknowledged that the March quarter tends to be weaker due to weather impacts, while the June and September quarters typically perform better.
Adapting to Market and Technological Trends
When discussing concerns regarding AI disruption, Valenti reported positive trends related to traffic and emphasized QuinStreet’s ability to leverage AI technologies effectively. He stated that the company has observed a record volume of activity on Google, with AI-driven searches creating new opportunities for campaign management. Valenti characterized fears of AI-driven disintermediation as “overblown,” asserting that QuinStreet is well-positioned to benefit from AI through proprietary data and advanced algorithms.
Wong concluded the earnings call by highlighting the company’s financial position, reporting $107 million in cash and equivalents, with no bank debt prior to a recent draw related to the HomeBuddy acquisition. He noted that a one-time non-cash tax benefit of $48 million was recorded during the quarter due to a reversal of a valuation allowance against deferred tax assets.
Looking ahead, QuinStreet remains committed to disciplined capital allocation, focusing on investments in new products, strategic acquisitions, and share repurchases. The company anticipates an annual revenue growth of at least 10% and Adjusted EBITDA growth of at least 20%, excluding the impact of HomeBuddy.
QuinStreet operates a performance marketing platform that connects companies with potential customers across various sectors, including financial services, education, insurance, healthcare, and home services. With its focus on data-driven marketing, QuinStreet continues to optimize customer acquisition and retention for its clients.
