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The call was predominantly positive: EverQuote reported strong, above-guidance Q1 results with double-digit revenue growth, record adjusted EBITDA (+30%), improved VMM (~29.3%), record operating cash flow, a net cash balance of $178.5M with no debt, and continued execution on AI-driven productivity and product initiatives. Management provided constructive Q2 guidance (midpoint implying ~21% revenue growth and ~32% adjusted EBITDA growth) and reiterated a path to $1B in revenue over 2–3 years. Key risks and near-term challenges cited include normalization of consumer shopping traffic, ad market competitiveness (which can cause VMM volatility), early-stage LLM/app integration adoption, some revenue concentration, and limited disclosure beyond Q2. Overall, the highlights materially outweigh the lowlights, and management presented a confident, growth-and-profitability-focused outlook.
EverQuote guided Q2 2026 revenue of $185–$195 million (midpoint implying ~21% YoY growth), VMD of $55–$57 million (midpoint ≈23% YoY) and adjusted EBITDA of $28–$30 million (midpoint ≈32% YoY). Management framed that outlook against Q1 results of $190.9M revenue, $55.9M VMD, record adjusted EBITDA of $29.3M (15.4% margin; +30% YoY), GAAP net income of $18.7M, operating cash flow of $29.6M and cash of $178.5M with no debt, reiterated a path to $1 billion in revenues in 2–3 years, noted expected variable marketing margin in the high‑20s (roughly 27–29%), and signaled ongoing share repurchases (Q1 buybacks roughly offsetting ~7.5% dilution).
Adjusted EBITDA increased 30% year-over-year to a record $29.3 million, representing a 15.4% adjusted EBITDA margin; management emphasized continued year-over-year adjusted EBITDA growth and strong cash generation.
Total revenue grew 15% year-over-year to $190.9 million in Q1 2026, with guidance for Q2 2026 revenue of $185M–$195M (implying ~21% year-over-year growth at the midpoint).
Auto revenue rose 13% year-over-year to $172.4 million; home revenue grew 33% year-over-year to $18.5 million, reflecting successful execution of operational plans to expand non-auto verticals.
VMD reached a record $55.9 million, up 19% year-over-year. Variable marketing margin (VMM) improved to 29.3% for the quarter and management expects VMM to remain in the high-20s (roughly 27%–29%) for the balance of the year.
GAAP net income grew to $18.7 million (from $8.0 million year-ago) and operating cash flow was a record $29.6 million for the quarter.
Ended the quarter with $178.5 million in cash and cash equivalents, no debt, and repurchased approximately $20 million of shares in Q1 (offsetting ~7.5% dilution to date).
Management reaffirmed a path to $1 billion in revenue in 2–3 years and provided Q2 2026 guidance implying adjusted EBITDA of $28M–$30M (about 32% year-over-year growth at the midpoint).
Revenue per employee increased nearly 3x from Q1 2023 to Q1 2026; company is deploying Agentic AI tools (AI cockpit, AI layer on site management, smart campaigns) aimed at further productivity and product innovation.
Hello, everyone. Thank you for joining us, and welcome to EverQuote Q1 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Sara Buda with EverQuote Investor Relations.
Thank you. Good afternoon, and welcome to EverQuote's First Quarter 2026 Earnings Call. We will be discussing the results announced in our press release issued today after market close. With me on the call this afternoon are Jayme Mendal, EverQuote's Chief Executive Officer; and Joseph Sanborn, EverQuote's Chief Financial Officer and Chief Administrative Officer. During this call, we may make statements related to our business that may be considered forward-looking statements under federal securities laws, including statements considering our financial guidance for the second quarter of 2026. Forward-looking statements may be identified with words and phrases such as aim, expect, believe, intend, anticipate, plan, will, may, continue, upcoming and similar words and phrases. These statements reflect our views only as of today and should not be considered our views as of any subsequent date. We specifically disclaim any obligation to update or revise these forward-looking statements, except as required by law.
Forward-looking statements are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. For a discussion of those risks and uncertainties, please refer to our SEC filings, including our annual report on Form 10-K and our quarterly reports on Form 10-Q on file with the Securities and Exchange Commission an...