QuinStreet — Fiscal Year 2026 Earnings Summary

Financial Performance

• Fiscal Q4 2026 revenue reached $373.9 million, a 43% year-over-year increase; full year 2026 revenue was $1.3 billion, up 18% year-over-year.
• Fiscal Q4 2026 GAAP net income was $19.1 million ($0.33 diluted share), a 496% increase year-over-year; full year 2026 GAAP net income was $81.2 million ($1.40 diluted share), a 1,626% increase year-over-year.
• Fiscal Q4 2026 adjusted net income was $29.0 million ($0.50 diluted share); full year 2026 adjusted net income was $73.8 million ($1.27 diluted share).
• Fiscal Q4 2026 adjusted EBITDA was $41.4 million, up 87% year-over-year with an 11.1% margin (270 basis-point improvement); full year 2026 adjusted EBITDA was $112.5 million, up 38% year-over-year with an 8.7% margin (130 basis-point expansion).
• Full year 2026 operating cash flow was $130.9 million; the company ended the quarter with $128.3 million in cash and cash equivalents.
• Full year 2026 free cash flow was $116.6 million; normalized free cash flow was $88.2 million.
• Gross profit for Q4 2026 was $49.8 million; full year 2026 gross profit was $145.8 million.
• Operating expenses for Q4 2026 included $10.6 million in product development, $9.6 million in sales and marketing, and $10.5 million in general and administrative; full year 2026 figures were $37.3 million, $27.3 million, and $45.8 million, respectively.
• Stock-based compensation totaled $10.2 million for Q4 2026 and $37.4 million for full year 2026.
• Interest expense for Q4 2026 was $2.2 million; full year 2026 interest expense was $4.4 million.
• The balance sheet shows $70.0 million in noncurrent debt as of June 30, 2026, compared to zero in the prior year.
• Goodwill increased to $261.4 million as of June 30, 2026, from $125.1 million in the prior year.

Guidance and Future Outlook

• Fiscal Q1 2027 revenue is expected to be between $370 million and $380 million, implying 31% year-over-year growth at the midpoint.
• Fiscal Q1 2027 adjusted EBITDA is expected to be between $38 million and $40 million, implying 90% growth, a 10.4% margin, and a 320 basis-point margin expansion year-over-year at the midpoint.
• Full fiscal year 2027 revenue guidance is $1.45 billion to $1.55 billion, implying 16% year-over-year growth at the midpoint.
• Full fiscal year 2027 adjusted EBITDA guidance is $150 million to $160 million, implying 38% growth, a 10.3% margin, and a 160 basis-point margin expansion year-over-year at the midpoint.
• Management expects to continue growing revenue at strong double-digit rates and expanding margins in fiscal year 2027 and beyond.
• Management noted that revenue growth is driven by the shift of marketing budgets to digital and performance marketing, and by the company's ability to deliver results at scale.

Business Segments and Product Lines

• Financial Services revenue for Q4 2026 was $232.3 million; full year 2026 was $888.4 million.
• Home Services revenue for Q4 2026 was $141.6 million; full year 2026 was $405.4 million.
• Management highlighted strength in both Financial Services and Home Services segments during the quarter.
• The company is accelerating improvements in performance and productivity from new AI applications across the business.
• Core AI optimization algorithms are cited as a key competitive advantage.

Market and Competitive Landscape

• QuinStreet operates in performance marketplaces and technologies for the financial services and home services industries.
• The company believes it is still in the early innings of its market opportunities.
• Management attributes growth to the relentless shift of marketing budgets to digital and performance marketing.

Risks and Challenges

• Forward-looking statements identify risks including the ability to maintain and increase client marketing spend.
• Risks include the ability to maintain and increase website visitors and convert them into client prospects cost-effectively.
• The company faces exposure to data privacy and security risks.
• Regulatory risks include potential impacts from the FTC, FCC, Consumer Finance Protection Bureau, and other agencies.
• Competition for client budgets and access to third-party media is a stated risk.
• Risks related to intellectual property protection and counterparty performance are noted.

Management Commentary and Tone

• CEO Doug Valenti described the quarter as "another record quarter of strong performance and progress, capping a record year."
• Valenti stated that over the past two years, the company has more than doubled revenue and grown adjusted EBITDA by more than 450%.
• Management expressed confidence in refining their outlook as the year progresses, noting potential opportunities to grow revenue and expand margins further.

Other Key Points

• The company acquired businesses for $104.9 million during the full year 2026, contributing to the increase in goodwill and intangible assets.
• The company repurchased $31.4 million of common stock during the full year 2026.
• Proceeds from borrowings under a revolving credit facility totaled $70.0 million during the full year 2026.
• The company paid $1.8 million in revolving credit facility upfront fees during the full year 2026.
• Post-closing payments and contingent consideration related to acquisitions totaled $14.0 million for the full year 2026.
• A conference call and webcast were scheduled for August 6, 2026, at 2:00 p.m. PT.