EverQuote’s third quarter delivered results that surpassed Wall Street’s expectations, with management highlighting strong carrier spending and notable progress with its AI-powered Smart Campaigns platform. CEO Jayme Mendal credited the company’s product evolution—particularly the launch of Smart Campaigns 3.0 and increased adoption of multiproduct solutions by local agents—as driving both revenue growth and expanding operating leverage. Mendal emphasized that EverQuote has become the top customer acquisition partner for a major national carrier, underscoring the effectiveness of its technology and marketplace differentiation.
Is now the time to buy EVER? Find out in our full research report (it’s free for active Edge members).
EverQuote (EVER) Q3 CY2025 Highlights:
- Revenue: $173.9 million vs analyst estimates of $166.7 million (20.3% year-on-year growth, 4.3% beat)
- Adjusted EPS: $0.68 vs analyst estimates of $0.55 (23.3% beat)
- Adjusted EBITDA: $25.07 million vs analyst estimates of $22.8 million (14.4% margin, 10% beat)
- Revenue Guidance for Q4 CY2025 is $177 million at the midpoint, above analyst estimates of $161.1 million
- EBITDA guidance for Q4 CY2025 is $22 million at the midpoint, above analyst estimates of $21.13 million
- Operating Margin: 10.1%, up from 8.1% in the same quarter last year
- Market Capitalization: $914.4 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From EverQuote’s Q3 Earnings Call
- Maria Ripps (Canaccord Genuity): Asked about the sustainability of carrier profitability and implications for advertising budgets. CEO Jayme Mendal said current underwriting margins are healthy and carrier ad spend still has room to catch up, with cycles often lasting over five years.
- Zach Cummins (B. Riley Securities): Questioned the expected impact of new channel investments on marketing margins. CFO Joseph Sanborn explained that new channels run at lower margins initially, but should reach parity with existing channels after one to two quarters of optimization.
- Jason Kreyer (Craig-Hallum): Inquired about carriers’ use of rebates and potential impact on performance marketing budgets. Mendal responded that most carriers are focused on growth, and rebates have not affected EverQuote’s partner budgets.
- Ralph Schackart (William Blair): Sought more detail on EverQuote’s shift from lead generation to a multiproduct model. Mendal discussed expanding value-added services and recurring revenue, particularly for agents, and the aim to deepen relationships beyond single-product sales.
- Mitchell Rubin (Raymond James): Asked about efficiency improvements and where future operating leverage would be found. Sanborn highlighted automation through AI, streamlined engineering, and voice agents as primary sources of incremental leverage going forward.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will watch (1) the pace of adoption and performance gains from Smart Campaigns 3.0 and other AI-powered products, (2) the impact of new traffic channel investments on both volume and marketing margins as campaigns mature, and (3) whether carrier advertising budgets continue to rise, especially in key markets like California. Progress toward EverQuote’s $1 billion revenue target and the ability to sustain margin expansion will also be critical metrics.
EverQuote currently trades at $25.50, up from $22.42 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
Our Favorite Stocks Right Now
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
