EverQuote, Inc.

What they do

EverQuote operates a results-driven online marketplace that connects high-intent consumers shopping for insurance with carriers and agents. It generates revenue by selling consumer inquiries as referrals to insurance providers, who pay for pre-validated leads matching their underwriting criteria. The company serves both auto and home/renters insurance verticals, with free services for consumers.

Revenue drivers

• Auto insurance vertical — Largest segment, deriving 89% of revenue in the six months ended June 30, 2026; Q2 2026 revenue of $172.1 million, up 23% year-over-year.
• Home and renters insurance vertical — Smaller but faster-growing segment; Q2 2026 revenue of $23.0 million, up 35% year-over-year.
• Carrier and agent customers — Highly concentrated; two largest auto carrier customers accounted for 35% and 11% of revenue in H1 2026. Growth depends on carrier advertising spend.

Recent performance

In Q2 2026, revenue grew 25% year-over-year to $195.1 million, with net income of $19.2 million and record Adjusted EBITDA of $30.1 million. For the six months ended June 30, 2026, revenue rose 19.4% to $385.9 million, net income was $37.9 million, and Adjusted EBITDA was $59.4 million. Full-year 2025 revenue was $692.5 million with net income of $99.3 million, up from $500.2 million and $32.2 million in 2024. Operating cash flow was $24.3 million in Q2 2026. The company ended Q2 with $192.3 million in cash and no outstanding debt.

Strategy

Management plans to expand consumer traffic through existing and new advertising channels, including its verified partner network, and to grow the number of insurance providers and their spend. The company is investing in AI innovation and new product development to introduce solutions that harness data and intelligence at scale. It aims to be the leading growth partner for P&C insurance providers, with a stated path to $1 billion in revenue. In Q2 2026, it repurchased 578 thousand shares for approximately $9.1 million.

Risks

• Auto insurance industry cyclicality — High dependence on auto insurance carriers' ad spend, which dropped sharply in 2022-2023 due to underwriting losses and remains volatile.
• Customer concentration — Top customers account for a large share of revenue; loss of any major carrier could materially hurt results.
• Variable marketing costs — Profitability depends on acquiring quote requests at attractive prices; rising acquisition costs or declining lead quality could compress margins.
• Carrier spend below historical peaks — Several top carrier customers remain below their prior peak spending, limiting upside if market conditions worsen.

Outlook

For Q3 2026, management guides revenue of $198.0-$208.0 million, Variable Marketing Dollars of $56.0-$59.0 million, and Adjusted EBITDA of $28.0-$31.0 million. Management cites healthy demand as carriers continue to target digital channel growth. The company reaffirms its path to $1 billion in revenue and plans to invest in AI and new product development to sustain long-term growth.