Key Highlights

  • Shares rose 0.95% pre-market to $24.50 from a $24.27 close.
  • Record Q3 Revenue of $218.1 million rose 25%, above a $203 million estimate.
  • The board authorized a new $50 million share buyback.

EverQuote (NASDAQ:EVER) shares edged up 0.95% in pre-market trading on Tuesday to $24.50, from a Monday close of $24.27. The stock had gained 3.23% in the prior session ahead of the report.

EverQuote is a Cambridge, Massachusetts online insurance marketplace that matches shoppers with carriers and agents. It does not underwrite or sell policies and has about 356 employees.

Auto and Home Drive Record Revenue

Revenue rose 25% to $218.1 million, above an estimate near $203 million. Auto revenue grew 21% to $190.4 million and home revenue grew 70% to $27.7 million. Variable Marketing dollars rose 25% to $62.6 million at a 28.7% margin.

Adjusted EBITDA grew 41% to $35.5 million, a 16.3% margin. GAAP EPS was $0.49, held back by higher taxes and a one-time $4 million fee for ending a vendor contract. Operating Cash Flow was $40.5 million.

Q4 Guidance and AI Strategy

Fourth quarter revenue is guided to $213 million to $223 million, about 12% growth at the midpoint, with adjusted EBITDA of $29 million to $32 million. Variable marketing Margin is expected to dip sequentially as the company invests in new AI traffic channels.

The company launched LUVA, an AI-native shopping product, and said engineering cycle time fell 36% quarter over quarter. LLM traffic is under 1% of total traffic.

Cash, Buyback and Valuation Data

The company ended the quarter with $229.1 million in cash and no debt. The $50 million buyback was authorized alongside targeted M&A and investment.

At $24.50, the shares sit about 15% below the 52-week high of $28.73 and about 77% above the 52-week low of $13.88. Market Capitalization is about $855.27 million, with a forward price-to-earnings ratio of 11.87.

Margin Investment and Carrier Demand to Follow

Management expects healthy carrier demand into 2027 and says it is on track for a $1 billion revenue goal within one to two years. Investors will watch margin trends as AI channel spending rises.