Analyst Zach Cummins from B. Riley has revised the price target for QuinStreet (QNST, Financial), reducing it from $34 to $28, while maintaining a Buy rating on the company's shares. QuinStreet's third-quarter performance largely met market expectations, driven by its record-breaking home services revenue. However, the company's credit-focused segments underperformed, which impacted overall results. Despite potential short-term fluctuations, the firm believes QuinStreet is strategically positioned to achieve sustainable revenue growth and enhance adjusted EBITDA margins over the coming years.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for QuinStreet Inc (QNST, Financial) is $25.75 with a high estimate of $31.50 and a low estimate of $19.00. The average target implies an upside of 63.39% from the current price of $15.76. More detailed estimate data can be found on the QuinStreet Inc (QNST) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, QuinStreet Inc's (QNST, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for QuinStreet Inc (QNST, Financial) in one year is $26.21, suggesting a upside of 66.31% from the current price of $15.76. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the QuinStreet Inc (QNST) Summary page.
QNST Key Business Developments
Release Date: May 07, 2025
- Revenue Growth: 60% year over year, totaling $269.8 million for fiscal Q3.
- Adjusted EBITDA: Increased 145% year over year, reaching $19.4 million.
- Adjusted Net Income: $12.4 million or $0.21 per share.
- Financial Services Revenue: Grew 78% year over year to $199.7 million, with Auto Insurance up 165%.
- Home Services Revenue: Increased 21% year over year to $65.4 million, a record quarter.
- Cash Position: Ended the quarter with $82 million in cash and no bank debt.
- Full Fiscal Year Revenue Outlook: Expected between $1.065 billion and $1.105 billion.
- Full Fiscal Year Adjusted EBITDA Outlook: Expected between $80 million and $85 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- QuinStreet Inc (QNST, Financial) reported a 60% year-over-year revenue growth in fiscal Q3 2025.
- The Financial Services client vertical saw a 78% increase in revenue, with Auto Insurance growing by 165%.
- Home Services revenue reached a new quarterly record with a 21% year-over-year growth.
- The company ended the quarter with over $80 million in cash and no bank debt, strengthening its financial position.
- QuinStreet Inc (QNST) expects continued double-digit revenue and profit growth in both the short and long term.
Negative Points
- The implied outlook range for fiscal Q4 is wider than usual due to tariff-related uncertainties, introducing potential volatility to client spending.
- Sequential revenue decline in the Auto Insurance sector was noted, attributed to an exceptionally strong previous quarter.
- Concerns about tariffs potentially increasing costs for clients, which could impact their marketing budgets.
- The company is experiencing a wait-and-see approach from clients regarding tariff impacts, affecting the ramp-up of spending.
- Despite strong financial results, there is uncertainty about the exact implementation and impact of tariffs, which could affect future performance.
