QuinStreet (QNST) Stock Forecast & Price Target

QuinStreet Inc has demonstrated robust performance in its home services segment, achieving revenues of $59.6 million, representing a year-over-year growth of 21%, despite headwinds from regulatory changes. The company has raised its FY25 revenue guidance midpoint by approximately 8.5%, projecting revenues of $1,084.9 million, which reflects a substantial 77% year-over-year increase, and adjusted EBITDA estimates have been increased to $82.6 million with a 7.6% margin. Additionally, the significant 600% year-over-year growth in insurance vertical revenues, driven by improving carrier profitability and increased digital advertising budgets, underpins a positive outlook for the company's future performance.

QuinStreet Inc. reported adjusted EBITDA for 2Q25 that exceeded both guidance and consensus estimates; however, the adjusted EBITDA margin fell short of prior projections, declining to 6.9% due to challenges related to the auto insurance media segment and investments in media supply. There are concerns about potential declines in web traffic and lead volume if the company fails to create an appealing shopping experience, alongside risks stemming from regulatory issues that could hinder revenue growth. Additionally, the volatility in client spending, as evidenced by past fluctuations in revenue linked to clients like Progressive, adds another layer of uncertainty to QuinStreet's financial stability.