Online insurance comparison site EverQuote (NASDAQ:EVER) announced better-than-expected revenue in Q2 CY2026, with sales up 24.6% year on year to $195.1 million. Its GAAP profit of $0.53 per share was 2.6% above analysts' consensus estimates.
Is now the time to buy EverQuote? Find out in our full research report .
EverQuote (EVER) Q2 CY2026 Highlights:
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Revenue:$195.1 million vs analyst estimates of $190.2 million (24.6% year-on-year growth, 2.6% beat)
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EPS (GAAP):$0.53 vs analyst estimates of $0.52 (2.6% beat)
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Adjusted EBITDA:$30.1 million vs analyst estimates of $29.09 million (15.4% margin, 3.5% beat)
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Operating Margin:12%, up from 9% in the same quarter last year
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Free Cash Flow Margin:11.7%, down from 14.7% in the previous quarter
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Market Capitalization:$892.1 million
Company Overview
Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Revenue Growth
A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, EverQuote grew its sales at an exceptional 27% compounded annual growth rate. Its growth beat the average consumer internet company and shows its offerings resonate with customers.
This quarter, EverQuote reported robust year-on-year revenue growth of 24.6%, and its $195.1 million of revenue topped Wall Street estimates by 2.6%.
Looking ahead, sell-side analysts expect revenue to grow 10.3% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is above average for the sector and suggests the market is baking in some success for its newer products and services.
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Cash Is King
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
EverQuote has shown robust cash profitability, driven by its attractive business model that enables it to reinvest or return capital to investors while maintaining a cash cushion. The company's free cash flow margin averaged 13.3% over the last two years, quite impressive for a consumer internet business.
Taking a step back, we can see that EverQuote's margin expanded by 15.5 percentage points over the last few years. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability.
EverQuote's free cash flow clocked in at $22.76 million in Q2, equivalent to a 11.7% margin. The company's cash profitability regressed as it was 3.6 percentage points lower than in the same quarter last year, prompting us to pay closer attention. Short-term fluctuations typically aren't a big deal because investment needs can be seasonal, but we'll be watching to see if the trend extrapolates into future quarters.
Key Takeaways from EverQuote's Q2 Results
It was encouraging to see EverQuote beat analysts' EBITDA expectations this quarter. We were also happy its revenue outperformed Wall Street's estimates. Overall, we think this was a decent quarter with some key metrics above expectations. Investors were likely hoping for more, and shares traded down 6.2% to $22.61 immediately following the results.
So do we think EverQuote is an attractive buy at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free .
