EverQuote Accelerated Revenue Growth as Home Business Expanded
Adjusted EBITDA reached a record $30.1 million, up 37.1% from a year earlier.
EverQuote (EVER), an online insurance marketplace, accelerated second-quarter revenue growth as its home and renters business gained a larger share of sales.
The quarter marked a rebound from the first quarter’s slower expansion while leaving revenue roughly level with the fourth quarter. Sales increased about 2.2% sequentially and grew 24.6% from a year earlier, compared with 15% growth in the prior quarter and 32% in the fourth quarter of 2024.
Revenue rose to $195.1 million from a year earlier, reaching the top of EverQuote’s prior guidance range of $185 million to $195 million. Net income increased 30.5% to $19.2 million, while operating income climbed 65.8% to $23.5 million. Income-tax expense rose to $5.3 million from $0.4 million, tempering the increase in net income.
Automotive revenue increased 23.3% to $172.1 million, accelerating from 13% growth in the first quarter, though it was essentially unchanged sequentially. Home and renters revenue grew 35.2% to $23.0 million and increased about 24.7% from the first quarter, lifting the vertical’s share of total revenue to about 11.8% from 9.7%.
Profitability continued to outpace sales growth. Adjusted EBITDA margin widened to 15.4% from 14.0% a year earlier, and operating margin rose to about 12.0% from 9.0%. Operating cash flow declined 3.8% to $24.3 million and fell about 17.8% from the first quarter’s record level.
For the third quarter, EverQuote expects revenue of $198 million to $208 million. The $203 million midpoint implies sequential growth of about 4.1%. The company projects adjusted EBITDA of $28 million to $31 million and Variable Marketing Dollars of $56 million to $59 million, placing their midpoints at $29.5 million and $57.5 million, respectively.
EverQuote repurchased 578,000 shares for $9.1 million during the quarter, down from $19.9 million in the first quarter. Cash and equivalents rose to $192.3 million at June 30 despite $29.0 million of first-half repurchases, and the company continued to carry no outstanding debt.