EverQuote (EVER -0.51%), an online insurance marketplace known for its AI-driven data platform, reported its second quarter 2025 results on August 4, 2025. The company announced GAAP EPS of $0.39, beating analyst estimates of $0.35 (GAAP), while GAAP revenue reached $156.6 million, just below the GAAP consensus of $157.2 million. These results reflect strong profitability and operational efficiency even as growth rates are beginning to moderate compared to earlier quarters. Overall, the period saw robust gains in earnings, record operating cash flow, and significant expansion in core insurance verticals, though management signaled a more measured growth outlook for the coming months, noting that growth is expected to moderate in the second half of the year.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $0.39 | $0.35 | $0.17 | 129.4% |
| Revenue (GAAP) | $156.6 million | $157.2 million | $117.1 million | 33.8% |
| Adjusted EBITDA | $22.0 million | $12.9 million | 70.5% | |
| Variable Marketing Dollars | $45.5 million | $36.5 million | 24.7% | |
| Operating Cash Flow | $25.3 million | $12.4 million | 104.0% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Inside EverQuote’s Business and Strategy
EverQuote operates a digital marketplace that matches insurance shoppers with providers. Its core value lies in a data-driven, proprietary technology platform that collects consumer data and deploys artificial intelligence (AI) and machine learning (ML) to optimize matches between buyers and insurance offerings.
The company’s competitive edge centers on this technology, which allows insurance carriers and agents to target the right consumers efficiently. Recent business focuses include leveraging its Smart Campaigns product, investing further in AI, and expanding offerings in the property and casualty (P&C) insurance market, especially in the automotive, home, and renters' segments. Success depends on the platform’s matching precision, network scale, and ability to manage marketing costs flexibly in response to changes in consumer demand and advertising budgets from providers.
Quarterly Developments and Performance Drivers
This period saw GAAP net income nearly double year over year and marked record highs for both operating cash flow ($25.3 million) and profit metrics (GAAP net income of $14.7 million and Adjusted EBITDA of $22.0 million). The automotive insurance vertical remained the core growth driver, with that segment’s revenue (GAAP) was up 36% to $139.6 million from $102.6 million in Q2 2024. Home and renters insurance also experienced healthy expansion, rising 22.7% to $17.0 million. The company's focus on core P&C offerings led to the predictable decline in non-insurance revenues (classified as “other revenue”), which dropped to $11,000, down 98.3% from the previous year (GAAP).
A major story in this quarter is the company’s operational leverage. Adjusted EBITDA climbed to $22.0 million, a 69.8% increase, while Operating cash flow reached $25.3 million, more than doubling from a year before. Much of this improvement stems from disciplined management of variable marketing dollars (VMD)—spending on customer acquisition was up 25% year-over-year, but that was well below the growth rate in total revenue. This points to efficiency improvements, notably in how AI is used to drive both traffic acquisition and match quality on the marketplace.
Product innovation played a significant role as well. The Smart Campaigns tool (a machine learning-driven application that automates bidding for online insurance advertising) reached a critical mass among carrier partners. This product, by using company data and ML, boosts insurance provider performance in EverQuote’s marketplace, reportedly resulting in increased provider budgets and a higher quote request volume. Deepening engagement on the agent side of its business.
Management noted industry-wide recovery and stability, with insurance carriers returning to digital advertising and increasing their marketing spend, particularly in auto. However, the business remains highly reliant on a few large carriers and faces regulatory risks around telemarketing practices and consumer data use. Legal settlement costs were minimal.
Looking Ahead: Outlook and Watchpoints
For the third quarter of fiscal 2025, management guided for revenue of $163.0 to $169.0 million. This represents an approximate 15% increase from the prior year at the midpoint of the revenue outlook range, a clear deceleration compared with Q2 2025’s year-over-year revenue growth of 34%, as revenue is expected to grow 15% year-over-year at the midpoint of guidance. The outlook for variable marketing dollars is $47.0 to $50.0 million, and adjusted EBITDA is expected within $22.0 to $24.0 million. The company expects EBITDA margins to remain similar to current levels, with continued disciplined expense management even as investments in technology and AI increase in the second half of the year.
As guidance signals a pace shift, investors should watch several key areas. These include the ability of EverQuote to maintain margin gains as revenue growth slows, further adoption and monetization from its technology investments, and the impact of ongoing regulatory and competitive developments in the online insurance lead generation market. The company recently announced a $50.0 million share repurchase program, reflecting confidence in its cash generation and balance sheet. Sustained performance will depend on management’s ability to deepen carrier and agency relationships, grow its user and data base, and keep delivering innovations that enhance the efficiency and value of its insurance marketplace.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
