Online insurance comparison site EverQuote (NASDAQ:EVER) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 33.7% year on year to $156.6 million. The company expects next quarter’s revenue to be around $166 million, coming in 0.9% above analysts’ estimates. Its non-GAAP profit of $0.56 per share was 10.5% above analysts’ consensus estimates.
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EverQuote (EVER) Q2 CY2025 Highlights:
- Revenue: $156.6 million vs analyst estimates of $156.9 million (33.7% year-on-year growth, in line)
- Adjusted EPS: $0.56 vs analyst estimates of $0.51 (10.5% beat)
- Adjusted EBITDA: $21.96 million vs analyst estimates of $21.09 million (14% margin, 4.1% beat)
- Revenue Guidance for Q3 CY2025 is $166 million at the midpoint, above analyst estimates of $164.6 million
- EBITDA guidance for Q3 CY2025 is $23 million at the midpoint, above analyst estimates of $21.17 million
- Operating Margin: 9%, up from 5.4% in the same quarter last year
- Market Capitalization: $858.4 million
StockStory’s Take
EverQuote’s Q2 results were met with a negative market reaction, as investors weighed robust revenue growth and margin expansion against ongoing sector competition and uncertainties tied to the insurance carrier landscape. Management pointed to strong carrier demand and a rebound in enterprise carrier spend, especially in auto insurance, as key drivers. CEO Jayme Mendal noted, “carrier demand remained stable, reflecting a carrier landscape that is broadly healthy, coupled with consumer shopping levels that remain strong.” The company also highlighted continued progress in leveraging AI to improve both traffic acquisition and operational efficiency.
Looking ahead, EverQuote’s guidance is underpinned by expectations of sustained carrier growth, further adoption of AI-driven products, and incremental investments in technology and data. Management emphasized that the roadmap to surpassing $1 billion in annual revenue is increasingly clear, driven primarily by organic expansion and deeper engagement with existing carriers and agents. CFO Joseph Sanborn stated that the company will “continue to invest in growth initiatives, including AI,” while maintaining a focus on balancing operating expenses to preserve adjusted EBITDA margins at or near current levels.
Key Insights from Management’s Remarks
Management attributed the quarter’s performance to enterprise carrier recovery, multiproduct agent adoption, and operational efficiency initiatives, while calling out competitive pressures in advertising channels.
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Enterprise carrier rebound: Demand from large insurance carriers returned to historical levels, with one major carrier reaching record spend. Management expects a “full carrier panel” by year-end, excluding some lagging geographies like California.
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AI-driven marketplace differentiation: EverQuote deployed machine learning and AI tools to improve traffic routing and bidding, resulting in a 20% improvement in spend efficiency for carriers using its smart campaigns product. Management believes this “flywheel” effect compels carriers to allocate more budget to EverQuote versus other platforms.
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Multiproduct agent engagement: The company is transitioning from a simple leads vendor to a strategic partner for local agents, with over one-third of agents now using multiple products. Paid products per agent rose over 15% in the last six months, increasing wallet share and stickiness.
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Expansion of acquisition channels: Facing increased competition in core search marketing as carriers step up direct advertising, EverQuote accelerated investments in social and video platforms. Management noted that these channels are beginning to scale, offsetting competitive pressures in search.
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Operational efficiency through AI: EverQuote is layering AI-driven applications across engineering and operations, including AI copilots in software development and AI voice agents in call centers, contributing to record adjusted EBITDA margin and net income.
Drivers of Future Performance
EverQuote expects continued top-line growth and stable margins, driven by carrier demand recovery, AI adoption, and expansion into new marketing channels.
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Carrier landscape normalization: Management anticipates a return to a full panel of participating carriers by the end of the year, with demand stabilizing as underwriting profitability remains strong. The company believes that laggard states like California will slowly reactivate, supporting growth into 2026.
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AI-powered efficiency and product expansion: Investments in AI are expected to drive additional operational leverage and product enhancements, including smarter bidding and routing systems, as well as new conversational workflows for both agents and consumers. Management sees these as key to deepening carrier and agent relationships.
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Competitive and regulatory risks: The company is monitoring potential headwinds from tariff changes, competitive pressure in traffic acquisition, and evolving search and advertising dynamics. Management acknowledged that while tariffs have created some uncertainty, carriers currently have the financial strength to absorb related impacts.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will focus on (1) evidence that EverQuote is regaining a full panel of carrier participation, (2) the pace and success of AI-driven product adoption among both carriers and agents, and (3) scalability of new acquisition channels like social and video. Execution on these fronts will be critical to sustaining both growth and profitability.
EverQuote currently trades at $23.85, down from $25.77 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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