QuinStreet Reports Record Fiscal First Quarter 2027 Results
QUINSTREET, INC (QNST) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 QuinStreet Reports Record Fiscal First Quarter 2027 Results • Record quarterly Revenue of $416.7 million, up 46% year-over-year • Record quarterly Net Income of $17.0 million, up 275% year-over-year • Record quarterly Adj. EBITDA of $42.7 million, up 108% year-over-y
How this was made
The 30-second read
Why it matters
The record earnings and raised FY27 outlook could drive buying interest, especially from growth‑focused investors.
Market read
First‑report earnings with raised guidance, offering a clear catalyst for short‑term price movement.
What to watch
Potential execution risk in AI initiatives and reliance on auto‑insurance carriers.
Record quarterly Revenue of $416.7 million, up 46% year-over-year; record quarterly Net Income of $17.0 million, up 275% year-over-year; record quarterly Adj. EBITDA of $42.7 million, up 108% year-over-year; raising FY27 outlook for Revenue and Adj. EBITDA.
Revenue, GAAP net income, adjusted net income, adjusted EBITDA, operating cash flow, free cash flow and normalized free cash flow all increased from the prior-year quarter. The company raised its fiscal 2027 revenue and adjusted EBITDA outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenue, three months ended September 30GAAP | $416.7M | – | 46% |
| Cost of revenue, three months ended September 30GAAP | $363.3M | – | – |
| Gross profit, three months ended September 30GAAP | $53.32M | – | – |
| Product development expense, three months ended September 30GAAP | $10.97M | – | – |
| Sales and marketing expense, three months ended September 30GAAP | $7.56M | – | – |
| General and administrative expense, three months ended September 30GAAP | $11.50M | – | – |
| Operating income, three months ended September 30GAAP | $23.29M | – | – |
| Interest income, three months ended September 30GAAP | $15K | – | – |
| Interest expense, three months ended September 30GAAP | −$2.20M | – | – |
| Other income (expense), net, three months ended September 30GAAP | $13K | – | – |
| Income before income taxes, three months ended September 30GAAP | $21.13M | – | – |
| Provision for income taxes, three months ended September 30GAAP | −$4.11M | – | – |
| Net income, three months ended September 30GAAP | $17.02M | – | 275% |
| Basic net income per share, three months ended September 30GAAP | $ 0.30 | – | – |
| Diluted net income per share, three months ended September 30GAAP | $ 0.29 | – | – |
| Weighted-average basic shares, three months ended September 30GAAP | 56.88M | – | – |
| Weighted-average diluted shares, three months ended September 30GAAP | 58.85M | – | – |
| Adjusted net income, three months ended September 30non-GAAP | $29.23M | – | – |
| Adjusted diluted net income per share, three months ended September 30non-GAAP | $ 0.50 | – | – |
| Weighted average shares used in computing adjusted diluted net income per share, three months ended September 30non-GAAP | 58.85M | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $42.67M | – | 108% |
| Net cash provided by operating activities, three months ended September 30GAAP | $23.25M | – | – |
| Capital expenditures, three months ended September 30GAAP | −$155K | – | – |
| Internal software development costs, three months ended September 30GAAP | −$2.79M | – | – |
| Free cash flow, three months ended September 30non-GAAP | 20.30M | – | – |
| Normalized free cash flow, three months ended September 30non-GAAP | $35.97M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $141.5M | – | – |
| Accounts receivable, net, September 30, 2026GAAP | 207.5M | – | – |
| Total assets, September 30, 2026GAAP | $754.3M | – | – |
| Accounts payable, September 30, 2026GAAP | $113.0M | – | – |
| Total current liabilities, September 30, 2026GAAP | 272.3M | – | – |
| Debt, noncurrent, September 30, 2026GAAP | 70M | – | – |
| Total liabilities, September 30, 2026GAAP | 410.4M | – | – |
| Total stockholders' equity, September 30, 2026GAAP | 343.9M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Financial ServicesManagement cited continued strength and broadening of carrier demand in Auto Insurance and progress expanding the footprint for future growth in that client vertical. | $271.0M | – | – |
| Home ServicesManagement cited strong momentum across the Home Services platform, including HomeBuddy, whose integration continues to go well. | $145.7M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fiscal Q2 outlook
- Revenuebetween $360 and $380 million
- NoteAdjusted EBITDA: between $32 and $33 million
- Note29% revenue growth year-over-year at the midpoint of the revenue range
- Note54% adjusted EBITDA growth year-over-year at the midpoint of the adjusted EBITDA range
- NoteFull fiscal year 2027 revenue: between $1.5 and $1.6 billion
- NoteFull fiscal year adjusted EBITDA: between $155 and $165 million
- Note20% revenue growth year-over-year at the midpoint of the full fiscal year revenue range
- Note42% adjusted EBITDA growth year-over-year at the midpoint of the full fiscal year adjusted EBITDA range
Capital returns
- Repurchase of common stock, three months ended September 30, 2026: $ — (in thousands)
- Repurchase of common stock, three months ended September 30, 2025: $ (6,745) (in thousands)
What drove it
- Revenue grew 46% year-over-year to a record quarterly $416.7 million.
- Management reported continued strength and broadening carrier demand in Auto Insurance.
- Management reported strong momentum across Home Services and said the HomeBuddy integration continues to go well.
- Adjusted EBITDA grew 108% year-over-year to a record quarterly $42.7 million.
- Management said it is applying AI across the business to improve productivity and impact, with impressive results.
Concerns
- Interest expense was $ (2,196) (in thousands), compared with $ (68) (in thousands) in the prior-year quarter.
- Accounts receivable, net was 207,495 (in thousands) at September 30, 2026, compared with 181,225 (in thousands) at June 30, 2026.
- The company stated that it is still early in fiscal 2027 and will continue to refine its outlook as the year progresses.
- The release identifies risks around client marketing spend, visitor volumes and conversion economics, data privacy and security, regulation, competition, intellectual property, and counterparties.
What to watch
- Fiscal Q2 revenue outlook of between $360 and $380 million and adjusted EBITDA outlook of between $32 and $33 million.
- Execution in Auto Insurance as carrier demand broadens and the company expands its footprint.
- Home Services momentum and continued HomeBuddy integration.
- Progress applying AI across productivity, marketing optimization, compliance, channel integrity and media efficiency.
- Delivery against raised full fiscal year 2027 revenue outlook of between $1.5 and $1.6 billion and adjusted EBITDA outlook of between $155 and $165 million.
Balance sheet and cash flow
- Cash and cash equivalents: $ 141,512 (in thousands) at September 30, 2026, compared with $ 128,315 (in thousands) at June 30, 2026.
- Debt, noncurrent: 70,000 (in thousands) at September 30, 2026, unchanged from 70,000 (in thousands) at June 30, 2026.
- Net cash provided by operating activities: $ 23,252 (in thousands), compared with $ 19,601 (in thousands).
- Free cash flow: 20,304 (in thousands), compared with 15,509 (in thousands).
- Normalized free cash flow: $ 35,970 (in thousands), compared with $ 15,514 (in thousands).
- Accounts receivable, net: 207,495 (in thousands) at September 30, 2026, compared with 181,225 (in thousands) at June 30, 2026.
- Net increase in cash, cash equivalents and restricted cash: 13,197 (in thousands), compared with 219 (in thousands).
Analysis
QuinStreet reported a record fiscal first quarter, with net revenue of $ 416,652 (in thousands), compared with $ 285,853 (in thousands) in the prior-year quarter. The release characterized revenue growth as 46% year-over-year. Financial Services revenue was $ 270,956 (in thousands) and Home Services revenue was $ 145,696 (in thousands). Management attributed the performance to continued strength and broader carrier demand in Auto Insurance, as well as continued momentum in Home Services and HomeBuddy integration.
Profitability improved materially from the prior-year quarter. Gross profit was $ 53,322 (in thousands), compared with $ 26,940 (in thousands), while operating income was $ 23,294 (in thousands), compared with $ 4,789 (in thousands). GAAP net income was $ 17,020 (in thousands), or $ 0.29 per diluted share, versus $ 4,535 (in thousands), or $ 0.08 per diluted share. Adjusted net income was $ 29,231 (in thousands), or $ 0.50 per diluted share, compared with $ 13,116 (in thousands), or $ 0.22 per diluted share. Adjusted EBITDA was $ 42,671 (in thousands), compared with $ 20,523 (in thousands), and the company described its growth as 108% year-over-year.
Cash generation increased despite higher accounts receivable at the quarter end. Net cash provided by operating activities was $ 23,252 (in thousands), compared with $ 19,601 (in thousands), while free cash flow was 20,304 (in thousands), compared with 15,509 (in thousands). Normalized free cash flow was $ 35,970 (in thousands), compared with $ 15,514 (in thousands). Cash and cash equivalents were $ 141,512 (in thousands) at September 30, 2026, compared with $ 128,315 (in thousands) at June 30, 2026, while noncurrent debt was 70,000 (in thousands) at both dates. The company reported no common-stock repurchases in the fiscal first quarter.
Management raised full fiscal year 2027 revenue outlook to between $1.5 and $1.6 billion and adjusted EBITDA outlook to between $155 and $165 million. Fiscal Q2 outlook calls for revenue between $360 and $380 million and adjusted EBITDA between $32 and $33 million. The release identifies AI as a strategic opportunity and says the company is applying it across the business to improve productivity and impact. Key reported watch items are delivery against the raised full-year outlook, Auto Insurance carrier demand, Home Services and HomeBuddy execution, and the balance between receivables growth and cash generation.
Management, verbatim
The September quarter, our fiscal Q1 was another record quarter and a good start to our fiscal year 2027. We grew revenue 46% year-over-year, and we grew adjusted EBITDA 108% year-over-year.
Doug Valenti, CEO of QuinStreet
We saw continued strength and broadening of carrier demand in Auto Insurance and made good progress expanding our footprint for future growth in that important client vertical. Strong momentum also continued across our Home Services platform, including HomeBuddy, whose integration continues to go well. Our overall footprint for Company growth, and expectations for continued strong performance – short and long term – have never been greater.
Doug Valenti, CEO of QuinStreet
We are raising our outlook for full fiscal year 2027. We now expect full fiscal year 2027 revenue to be between $1.5 and $1.6 billion, and full fiscal year adjusted EBITDA to be between $155 and $165 million. That represents 20% revenue growth year-over-year and 42% adjusted EBITDA growth year-over-year at the midpoints of their respective ranges. It is still early in the fiscal year. We believe that there may be opportunities to grow revenue and expand margins even further. We will continue to refine our outlook as the year progresses.
Doug Valenti, CEO of QuinStreet
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparisons of reported results with prior guidance are unavailable.
- Gross margin was not reported.
- GAAP and non-GAAP operating margins were not reported.
- Prior-quarter income-statement, EPS, adjusted EBITDA, and cash-flow comparisons were not reported.
- Guidance for gross margin, operating expenses, and tax rate was not reported.
- Dividend information was not reported.
- Segment year-over-year and quarter-over-quarter percentage changes were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
QuinStreet is a Nasdaq‑listed performance‑marketing company serving financial and home services sectors.
Ticker impact
QuinStreet reported record Q1 2027 revenue of $416.7M and raised FY27 revenue guidance to $1.5‑$1.6B.
likely upside as the market prices in raised guidance
Record earnings and higher outlook typically attract buying pressure, especially after a surprise upward guidance revision.
Market effects
Strengthens the performance‑marketing and digital media sector outlook.
Positive for US tech and internet advertising stocks.
Limited to investors tracking US growth‑stage tech firms.
Counterpoint
If the guidance is already priced in, the stock may face a short‑term pullback.
Key entities
- ExecutiveDoug Valenti
CEO of QuinStreet who commented on the results and outlook.
