EverQuote (EVER) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $166.6 million, up 83% year-over-year, marking the fourth consecutive quarter of record revenue and Adjusted EBITDA, driven by strong auto insurance vertical recovery and increased carrier spend.

• Adjusted EBITDA reached $22.5 million, up 197% year-over-year, with margin improving to 13.5%.

• Net income was $8.0 million, including a $7.9 million non-cash legal settlement charge; excluding this, net income was $15.9 million.

• Focused on becoming the top growth partner for P&C insurance providers by leveraging AI, data, and technology to deliver better referrals, increased traffic, and a broader suite of products.

• Expanded provider budgets and set new highs for P&C quote request volume and revenue in Q1.

Financial highlights

• Auto insurance vertical revenue was $152.7 million, up 97% year-over-year; home and renters insurance revenue was $13.9 million, up 10% year-over-year and 23% sequentially.

• Variable marketing dollars (VMD) increased to $46.9 million, up 52% year-over-year; VMM was 28.1%.

• Operating cash flow was $23.3 million, with cash and equivalents at $125.0 million and no debt.

• Sales and marketing expense rose to $129.4 million (77.7% of revenue), mainly from higher advertising costs.

• Basic EPS was $0.22, up from $0.06; diluted EPS was $0.21, up from $0.05.

Outlook and guidance

• Q2 2025 revenue expected between $155.0 and $160.0 million, representing 34% year-over-year growth at midpoint.

• Q2 VMD expected between $45.0 and $47.0 million, 26% year-over-year growth at midpoint.

• Q2 adjusted EBITDA expected between $20.0 and $22.0 million, 62% year-over-year growth at midpoint.

• Plans to increase investments in technology, data, and AI in the second half of 2025, while maintaining disciplined expense management and EBITDA margins near current levels.

• Management highlights multi-year tailwinds from the ongoing shift of P&C insurance distribution and advertising spend online.