QuinStreet (QNST) Stock Forecast & Price Target

QuinStreet Inc demonstrated solid growth in its home services revenue, reaching $59.6 million, which reflected a year-over-year increase of 21% and surpassed estimates despite some regulatory headwinds. The company has raised its midpoint revenue guidance for FY25 by approximately 8.5%, projecting a total revenue of $1,084.9 million, which represents a significant 77% increase year-over-year, alongside an expected adjusted EBITDA margin of 7.6%. The strong momentum in the auto insurance vertical, coupled with increased digital advertising budgets among clients, positions QuinStreet favorably for continued growth and potential outperformance in the marketplace.

QuinStreet Inc. faces a challenging outlook due to a lower-than-expected adjusted EBITDA margin of 6.9% in 2Q25, which fell short of the prior estimate of 7.5%, primarily driven by margin pressures in the auto insurance media segment and increased media supply investments. Additionally, potential regulatory considerations and the risk of decreased consumer engagement could adversely affect revenue growth, further complicating its financial trajectory. Although the company anticipates low-double digit year-over-year revenue growth and aims for an adjusted EBITDA margin of 10%, fluctuations in client spending—even from major clients like Progressive—could significantly alter revenue stability and impact overall financial performance.