EverQuote (EVER) Q1 2025 earnings summary

Executive summary

• Achieved fourth consecutive quarter of record revenue and Adjusted EBITDA, with Q1 2025 revenue at $166.6 million, up 83% year-over-year, driven by strong execution, operational efficiency, and increased carrier spend in the automotive vertical.

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

• Net income for Q1 2025 was $8.0 million, including a $7.9 million non-cash legal settlement charge related to divesting P&C direct-to-consumer agency assets.

• Ended Q1 2025 with $125 million in cash and no debt.

• Focused on leveraging AI, data, and technology to deliver better referrals, increased traffic, and a broader suite of products.

Financial highlights

• Q1 2025 total revenue was $166.6 million, up 83% year-over-year; automotive insurance revenue was $152.7 million (up 97%), and home/renters insurance revenue was $13.9 million (up 10%).

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

• Adjusted EBITDA was $22.5 million, up from $7.6 million a year ago; operating cash flow was $23.3 million.

• Net income margin for Q1 2025 was 4.8%.

• Cash and cash equivalents at March 31, 2025, were $125 million.

Outlook and guidance

• Q2 2025 revenue expected between $155 million and $160 million, representing 34% year-over-year growth at midpoint.

• Q2 VMD expected between $45 million and $47 million, 26% year-over-year growth at midpoint.

• Q2 adjusted EBITDA expected between $20 million and $22 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 EBITDA margins near current levels.

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