One-glance verdict
Undervalued
$96.69 our estimate vs market $18.08
Wall Street consensus: $22.40 (-76.8% lower than our fair-value estimate)
81% below our estimate, below the bear case
Fundamentals snapshot
QuinStreet, Inc.
QNST · NMS · Communication Services · Advertising Agencies
Current price
$18.08
52-week range
$10.29 - $22.29
Market cap
$1.03B
Balance sheet
Healthy
8.06x Adequate
Net cash $50.66M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 110.9% last year.
- Reward Returns 28.6% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Insider ownership is only 4.7% (peer median: 5.7%).
What this company does
QuinStreet, Inc.
QuinStreet is an internet marketing company that helps businesses, primarily in the insurance and financial services industries, find new customers online. It operates by creating websites and ads that connect people looking for a product, like a home loan, with companies that offer it. QuinStreet makes money only when these connections lead to a specific result, like a phone call or a completed application, which means its revenue is directly tied to how effectively it can generate high-quality leads (potential customers who are likely to buy something) for its clients.
How the company got here
QuinStreet was founded in 1999 to help businesses find customers online. The company went public in 2010, raising money to grow its operations. Over the years, QuinStreet has bought several other companies to strengthen its position in specific industries, such as the acquisition of Insure.com to expand in the insurance market and the purchase of Modernize to enter the home services industry. These acquisitions have been a key part of its strategy to focus on areas where consumers are making big purchasing decisions.
What it actually does
QuinStreet is a digital marketing company that acts as a matchmaker between you and other businesses. When you search online for things like car insurance or a home contractor, you might land on a website owned by QuinStreet, such as CarInsurance.com or Modernize. The company's goal is to connect you with one of its business clients, and it gets paid by that client for sending a potential customer their way. This is known as performance marketing, because QuinStreet only gets paid when it delivers a result, like a click, a call, or a customer application.
Financial Services
This is QuinStreet's largest business area and it's where the company makes most of its money. This segment focuses on connecting people with companies that offer financial products. For example, if you're looking for car insurance, a new credit card, or a personal loan, QuinStreet's websites will provide you with information and comparisons to help you choose a provider. The financial services companies then pay QuinStreet for these customer leads.
Home Services
This is a newer but rapidly growing part of QuinStreet's business. Through websites like Modernize, the company connects homeowners with contractors and professionals for services like window replacement, solar panel installation, and roofing. Just like with their financial services, the home service providers pay QuinStreet for generating customer interest and connecting them with potential clients. This segment has become a significant contributor to the company's overall revenue.
What management is betting on now
QuinStreet's management is focused on continuing to grow its Home Services business, which they see as a large market with a lot of potential. They are also investing heavily in technology, including artificial intelligence and their QuinStreet Rating Platform, to better match consumers with their clients. The company is also looking to make smart acquisitions (buying other companies) that will add to its growth and profitability. Additionally, they are focused on expanding their margins (the portion of sales that turns into profit) as the business grows.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$-14.14M
FY2025 Q2
$38.23M
FY2025 Q3
$29.47M
FY2025 Q4
$29.35M
FY2026 Q1
$18.43M
FY2026 Q2
$20.73M
FY2026 Q3
$36.40M
FY2026 Q4
$52.35M
Revenue
$373.88M
Net income
$19.11M
Diluted EPS
0.32
Operating cash flow
$53.15M
Free cash flow
$52.35M
Fetching…
Sources
Revenue
$346.14M
Net income
$7.36M
Diluted EPS
0.13
Operating cash flow
$36.93M
Free cash flow
$36.40M
Fetching…
Sources
Revenue
$287.85M
Net income
$50.23M
Diluted EPS
0.87
Operating cash flow
$21.62M
Free cash flow
$20.73M
Fetching…
Sources
Revenue
$285.85M
Net income
$4.54M
Diluted EPS
0.08
Operating cash flow
$19.60M
Free cash flow
$18.43M
Fetching…
Sources
Revenue
$262.05M
Net income
$3.21M
Diluted EPS
0.05
Operating cash flow
$29.90M
Free cash flow
$29.35M
Fetching…
Sources
Revenue
$269.84M
Net income
$4.42M
Diluted EPS
0.08
Operating cash flow
$30.11M
Free cash flow
$29.47M
Fetching…
Sources
Revenue
$282.60M
Net income
$-1.55M
Diluted EPS
-0.03
Operating cash flow
$38.68M
Free cash flow
$38.23M
Fetching…
Sources
Revenue
$279.22M
Net income
$-1.37M
Diluted EPS
-0.02
Operating cash flow
$-13.71M
Free cash flow
$-14.14M
Fetching…
Sources
Is it cheap or expensive?
Fair value $96.69 vs current price $18.08
Wall Street consensus is the average analyst price target: $22.40 (-76.8% lower than our fair-value estimate).
Our most-likely fair value is $96.69 a share — about 434.8% above today's price of $18.08, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $50.7M - more cash than debt. Interest coverage 8.1x.
Net debt
$-50.66M
Interest coverage
8.06x
QuinStreet, Inc.'s profit covers its interest bill about 8.1 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
QNST
BASELINE
QuinStreet, Inc.
Total debt $77.66M Interest coverage 8.06x This is the baseline the peer rows are being compared against.
Total debt $1.94M Interest coverage 18.63x +131% vs QNST Carries about 2.3x more debt cushion than QNST.
Total debt $12.20M Interest coverage 108.67x +1,248% vs QNST Carries about 13.5x more debt cushion than QNST.
Total debt $157.40M Interest coverage 9.38x +16% vs QNST Carries about 1.2x more debt cushion than QNST.
Total debt $356.09M Interest coverage 0.58x -93% vs QNST Carries about 13.9x less debt cushion than QNST.
Total debt $22.09M Interest coverage -20.30x -100% vs QNST This peer has almost no interest-payment cushion compared with QNST.
What you should know
The case for and against QNST
3 Rewards
1 Risk
Rewards
-
Revenue grew 110.9% last year.
-
Returns 28.6% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Insider ownership is only 4.7% (peer median: 5.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
12.91x
Forward P/E
9.67x
P/B
3.16x
P/S
0.80x
EV/EBITDA
16.76x
PEG ratio
1.13x
Profitability
How much profit each dollar creates
Gross margin
11.3%
Operating margin
5.1%
Net margin
6.3%
ROE
28.6%
ROA
4.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.24x
Current ratio
1.22x
Quick ratio
1.19x
Total debt
$77.66M
Total cash
$128.31M
Growth
How the business has been compounding
Revenue TTM
$1.29B
Revenue 5Y CAGR
22.3%
EPS TTM
1.40
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$131.30M
Free CF TTM
$127.91M
FCF margin
9.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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