EverQuote Q3 2025 Conference Call Summary Company Overview - **Company**: EverQuote (NasdaqGM:EVER) - **Date**: November 19, 2025 - **Key Speakers**: CEO Jayme Mendal, CFO Joseph Sanborn Key Financial Metrics - **Q3 Performance**: Record results across all financial metrics including revenues, VMD, EBITDA, and net income [5][5][5] - **Year-on-Year Growth**: 20% growth expected in the second half of the year, with a target path to reach $1 billion in revenue [5][5][5] Industry Insights - **Carrier Underwriting**: - Currently healthy with mid-to-high 80s combined ratios across carriers [7][7][7] - The industry is in a soft market cycle expected to last multiple years [7][7][7] - 80% of top 25 carriers have not yet reached historical peak spending levels [9][9][9] - **Market Dynamics**: - New advertising spend expected to be higher than previous peaks due to increased premiums [11][11][11] - Stability in underwriting costs is crucial for carrier health, with recent price increases averaging 40% over the past few years [20][20][20] Growth Drivers - **Digital Advertising Shift**: - Insurance is lagging in digital advertising compared to other sectors, with only one-third of advertising spend currently online [21][21][21] - High consumer shopping levels due to increased insurance costs create a favorable backdrop for growth [22][22][22] - **Smart Campaigns**: - AI-driven bidding product that improves return on ad spend by over 20% [15][15][15] - Majority of carriers are now using Smart Campaigns, leading to increased budget allocation to EverQuote [18][18][18] Expansion Opportunities - **Product Diversification**: - Currently, 90% of business is in auto insurance, with plans to expand into home insurance, which presents a higher growth opportunity [29][29][29] - Introduction of multiple products for agents, including marketing services and subscription models [34][34][34] - **Marketing Channel Revitalization**: - Plans to revive and expand into new marketing channels, including social media and AI search [36][36][36] Challenges and Considerations - **Market Volatility**: - External factors affecting advertising costs can impact margins [56][56][56] - The company aims for a long-term EBITDA margin target of 20% while managing operational expenses effectively [57][57][57] M&A Strategy - **Future M&A Considerations**: - Focus on organic growth with a path to $1 billion in revenue, but open to sector consolidation and technology acquisitions to enhance product offerings [60][60][60][62][62][62] Conclusion - **Outlook**: The company is well-positioned for growth with a healthy market environment, strong execution in digital advertising, and plans for product and channel expansion. The focus remains on leveraging technology to enhance marketing effectiveness and drive revenue growth.

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: EverQuote (EVER) - EverQuote currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [3][4]. - The stock has shown significant price increases, with shares up 18.06% over the past week and 25.86% over the past month, compared to the Zacks Insurance - Multi line industry's 0.7% and 0.05% respectively [6]. - Over the last three months, EverQuote shares have risen 12.08%, and over the past year, they are up 32.41%, while the S&P 500 has only increased by 6.64% and 15.78% in the same periods [7]. Trading Volume - EverQuote's average 20-day trading volume is 610,672 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, six earnings estimates for EverQuote have been revised upwards, increasing the consensus estimate from $1.31 to $1.43 for the full year, with no downward revisions [10]. - For the next fiscal year, six estimates have also moved upwards, indicating positive sentiment regarding future earnings [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, EverQuote is positioned as a solid momentum pick, making it a noteworthy consideration for investors seeking growth opportunities [12].

Core Insights - EverQuote's Q3 results exceeded Wall Street expectations, driven by strong carrier spending and advancements in its AI-powered Smart Campaigns platform [1][3] - The company has established itself as the leading customer acquisition partner for a major national carrier, highlighting its technological effectiveness and market differentiation [1] Financial Performance - Revenue reached $173.9 million, surpassing analyst estimates of $166.7 million, representing a 20.3% year-on-year growth and a 4.3% beat [6] - Adjusted EPS was $0.68, exceeding analyst expectations of $0.55, marking a 23.3% beat [6] - Adjusted EBITDA stood at $25.07 million, above analyst estimates of $22.8 million, with a margin of 14.4% and a 10% beat [6] - Q4 CY2025 revenue guidance is set at $177 million at the midpoint, above analyst estimates of $161.1 million [6] - Q4 CY2025 EBITDA guidance is $22 million at the midpoint, exceeding analyst estimates of $21.13 million [6] - Operating margin improved to 10.1%, up from 8.1% in the same quarter last year [6] - Market capitalization is currently $914.4 million [6] Analyst Insights - Questions from analysts focused on the sustainability of carrier profitability and advertising budgets, with management indicating healthy underwriting margins and room for increased ad spending [6] - New channel investments are expected to initially run at lower margins but should achieve parity with existing channels after one to two quarters of optimization [6] - The shift from lead generation to a multiproduct model aims to enhance value-added services and recurring revenue, particularly for agents [6] - Future operating leverage is anticipated from automation through AI, streamlined engineering, and voice agents [6]

Core Insights - Investors should consider adding stocks with strong liquidity to their portfolios, as liquidity indicates a company's ability to meet short-term obligations and supports business expansion [1][2] - Four top-ranked stocks recommended for investment include EverQuote, Inc. (EVER), Amicus Therapeutics, Inc. (FOLD), Lam Research Corporation (LRCX), and Cboe Global Markets, Inc. (CBOE) [2][9] Liquidity Measures - Current Ratio: Measures current assets against current liabilities; a ratio below 1 indicates more liabilities than assets, while a range of 1-3 is ideal [4] - Quick Ratio: Indicates a company's ability to pay short-term obligations, with a desirable ratio of more than 1 [5] - Cash Ratio: The most conservative measure, focusing on cash and equivalents relative to current liabilities; a ratio greater than 1 is desirable but may indicate inefficiency [6] Screening Parameters - Asset Utilization: A measure of efficiency, calculated as total sales over the last 12 months divided by the average total assets; companies with a ratio higher than their industry average are considered efficient [7][8] - Growth Score: A proprietary score added to ensure that liquid and efficient stocks also have solid growth potential [8] Company-Specific Insights - **EverQuote, Inc. (EVER)**: Reported revenues of $173.9 million, a 20% year-over-year increase; projected fourth-quarter revenues between $174-$180 million [12][13] - **Amicus Therapeutics, Inc. (FOLD)**: Revenues of $169.1 million, a 19% year-over-year increase; expects total revenues to grow by 15-22% in 2025 [14][15] - **Lam Research Corporation (LRCX)**: Reported revenues of $5.32 billion, a 28% increase year-over-year; projects second-quarter revenues of $5.2 billion [16][17] - **Cboe Global Markets, Inc. (CBOE)**: Achieved record revenues of $605.5 million, a 14% year-over-year increase; raised 2025 organic revenue growth target to low double-digit to mid-teens [18][19]

Core Points - Evergold Corp. has closed a non-brokered private placement of an unsecured convertible debenture for gross proceeds of $350,000 [1] - The convertible debenture has an interest rate of 7.5% per annum and matures on November 6, 2027 [1] - The principal amount can be converted into up to 1,521,739 common shares at a conversion price of $0.23 per share [1] - Investors will receive 3,000 detachable common share purchase warrants for each $1,000 of principal, totaling 1,050,000 warrants [1] - C.J. Greig Holdings Ltd., a related party, acquired the entire $350,000 principal amount of the convertible debenture [3] - The issuance of securities is exempt from formal valuation and minority shareholder approval requirements under MI 61-101 [3] - Evergold Corp. is a mineral exploration company with a successful track record, including the establishment of GT Gold Corp. and a significant discovery sold to Newmont for $456 million [4] Drilling Update - Drilling has commenced on a core hole below promising intersections of precious and critical metals at the DEM Mountain Zone [2] - The drilling is expected to take one week to ten days [2]

Core Viewpoint - EverQuote (EVER) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook that may continue to drive stock gains [1][10]. Estimate Revisions - The upward trend in earnings estimate revisions reflects increasing analyst optimism regarding EverQuote's earnings prospects, which is expected to positively influence its stock price [2]. - The Zacks Rank system, which categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell), has shown that stocks ranked 1 have historically outperformed, with an average annual return of +25% since 2008 [3]. - There is a strong consensus among analysts to raise earnings estimates for EverQuote, leading to a significant increase in consensus estimates for both the next quarter and the full year [3]. Current-Quarter Estimates - For the current quarter, EverQuote is projected to earn $0.35 per share, reflecting a year-over-year increase of +6.1% [6]. - The Zacks Consensus Estimate for the current quarter has risen by 5.61% over the past 30 days, with four estimates increasing and no negative revisions [6]. Current-Year Estimates - The full-year earnings estimate stands at $1.38 per share, representing a substantial year-over-year change of +56.8% [7]. - The consensus estimate for the current year has also increased by 5.2%, supported by four upward revisions and no negative changes [8]. Zacks Rank - EverQuote currently holds a Zacks Rank 1 (Strong Buy), indicating strong potential for stock performance based on favorable estimate revisions [9]. - Research indicates that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [9]. Bottom Line - EverQuote has experienced a 9.2% stock gain over the past four weeks, driven by solid estimate revisions, suggesting it may be a timely addition to investment portfolios [10].

Core Viewpoint - EverQuote (EVER) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, which reflects the changing earnings picture of a company [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, making the Zacks rating system valuable for investors [4][6]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to significant stock price movements based on their buying or selling actions [4]. EverQuote's Earnings Outlook - EverQuote's rising earnings estimates and the Zacks rating upgrade suggest an improvement in the company's underlying business, which is expected to drive the stock price higher [5][10]. - For the fiscal year ending December 2025, EverQuote is projected to earn $1.38 per share, with a 5.8% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System Performance - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of EverQuote to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - EverQuote Inc.'s share price rebounded to levels seen from May to September 2025 following the release of its Q3 2025 results [1] Company Performance - The recovery in share price indicates a positive market reaction to the company's quarterly results, suggesting improved investor sentiment [1] Market Context - The share price movement reflects a stabilization after a period of decline, indicating potential resilience in the company's market position [1]

Financial Performance - Total revenue for the three months ended September 30, 2025, was $173.9 million, a year-over-year increase of 20.3% from $144.5 million in 2024[96] - Net income for the nine months ended September 30, 2025, was $41.6 million, compared to $19.9 million in 2024, representing a year-over-year increase of 109.5%[96] - Revenue for the nine months ended September 30, 2025, was $497.2 million, an increase of $144.5 million or 41.0% from $352.7 million in the same period of 2024[125] - The company reported a net income of $18.9 million for the three months ended September 30, 2025, compared to $11.6 million for the same period in 2024, reflecting an increase of $7.3 million or 63.1%[122] - Adjusted EBITDA for the three months ended September 30, 2025, was $25.1 million, up from $18.8 million in 2024, reflecting a year-over-year increase of 33.5%[96] - Adjusted EBITDA for the nine months ended September 30, 2025, was $69.5 million, an increase of $30.2 million or 76.8% from $39.3 million in the same period of 2024[121] Revenue Sources - Revenue from auto insurance providers accounted for 90% of total revenue for the nine months ended September 30, 2025, with the two largest auto insurance carrier customers contributing 37% of total revenue[98] - The company generated $157.6 million in revenue from the automotive vertical for the three months ended September 30, 2025, compared to $130.0 million in 2024, marking a 21.3% increase[107] - Direct channels accounted for 85% of total revenue for the three months ended September 30, 2025, compared to 86% in the same period of 2024[123] Expenses - Sales and marketing expenses for the three months ended September 30, 2025, increased to $135.4 million, up $23.6 million or 21.1% from $111.8 million in the same period of 2024[130] - Research and development expenses for the three months ended September 30, 2025, were $7.9 million, a slight decrease of $0.1 million or 1.0% from $8.0 million in the same period of 2024[132] - Research and development expenses increased by $1.3 million, from $21.9 million in 2024 to $23.2 million in 2025, representing a 5.9% increase[134] - General and administrative expenses rose by $3.2 million, from $22.1 million in 2024 to $25.3 million in 2025, a 14.4% increase[136] - Legal settlement expenses for the nine months ended September 30, 2025, totaled $8.2 million, including $7.8 million for litigation settlement costs[137] Cash Flow and Financing - Net cash provided by operating activities was $68.4 million for the nine months ended September 30, 2025, compared to $46.4 million in 2024[150] - A share repurchase program was authorized for up to $50.0 million, with $21.0 million repurchased as of September 30, 2025[148] - During the nine months ended September 30, 2025, net cash used in financing activities was $20.8 million, primarily due to $21.0 million used for share repurchase[154] - As of September 30, 2025, the company had cash and cash equivalents of $145.8 million and $60.0 million available under a revolving line of credit[143] - As of September 30, 2025, there were no outstanding borrowings under the revolving line of credit, indicating no material exposure to interest rate fluctuations[160] Future Outlook - The company expects overall revenue growth in 2025 compared to 2024, driven by increased spending from carrier partners in the automotive and home and renters verticals[107] - The company plans to increase consumer traffic by leveraging platform features and data assets, while also managing advertising spend based on profitability[99] Other Financial Metrics - Cost of revenue for the three months ended September 30, 2025, decreased to $4.7 million, down $0.7 million or 13.5% from $5.5 million in the same period of 2024[126] - The percentage of revenue attributed to cost of revenue for the three months ended September 30, 2025, was 2.7%, down from 3.8% in the same period of 2024[126] - Interest income increased by $0.4 million and $1.2 million for the three and nine months ended September 30, 2025, respectively, due to higher interest earned on cash balances[138] - Variable marketing dollars for the nine months ended September 30, 2025, increased by $31.3 million, from $111.2 million in 2024 to $142.5 million, a 28.2% increase[142] - The remaining purchase commitment for advertising as of September 30, 2025, was $15.5 million, with $3.5 million due in the next twelve months[156] - The company has exposure to foreign currency exchange rate changes due to contracts with foreign vendors and subsidiaries, but this exposure is considered immaterial[161]

Core Insights - EverQuote (EVER) reported a third-quarter 2025 operating net income per share of 50 cents, exceeding the Zacks Consensus Estimate by 35.1%, with a year-over-year increase of 6.1% [1][8] - Total revenues reached $174 million, surpassing the Zacks Consensus Estimate by 4.6%, and reflecting a 20% year-over-year growth [1][8] Revenue Breakdown - Revenues from the Automotive insurance vertical increased by 21% year over year to $157.6 million, exceeding the Zacks Consensus Estimate of $150 million [3] - Home and Renters insurance revenues totaled $16.3 million, marking a 15% year-over-year increase, slightly below the Zacks Consensus Estimate of $16.7 million [3] - Revenues in the Other insurance vertical fell dramatically by 97.7% year over year to $0.01 million, missing the Zacks Consensus Estimate of $0.1 million [4] Expense and Profitability Analysis - Total costs and operating expenses rose by 17.7% to $142.5 million, driven by increased sales and marketing, research and development, and general and administrative expenses [4] - Adjusted EBITDA was reported at $25.1 million, a 33% year-over-year increase, with an adjusted EBITDA margin expanding to 14.4% [5][8] Financial Position - EverQuote ended the third quarter with cash and cash equivalents of $145.8 million, a 42.7% increase from the end of 2024 [6] - Total assets grew by 14.6% to $256.1 million, while total stockholders' equity increased by 29.2% to $174.9 million [6] Future Guidance - For the fourth quarter, EverQuote estimates revenues between $169 million and $174 million, indicating a 20% year-over-year growth at the midpoint [7] - The company expects variable marketing dollars to be in the range of $46 million to $48 million, representing a 7% year-over-year growth at the midpoint [7] - Adjusted EBITDA is projected to be between $21 million and $23 million, reflecting a 16% year-over-year growth at the midpoint [7]