EVER earnings analysis
What we found in EVER's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
EverQuote delivered strong Q2 operating results, with revenue up 24.6% year over year to $195.086 million, gross margin at 97.8%, and operating margin improving to 12.0%. Both automotive and home-and-renters verticals grew on increased carrier referral spend, while net income reached $19.186 million. Liquidity and cash generation remain robust, but the filing highlights meaningful auto-insurance and customer concentration, a higher expected 2026 tax rate, and no quantitative 10-Q guidance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 24.6% year over year
- Q2 revenue increased $38.457 million, or 24.6% year over year, to $195.086 million. Sequentially, revenue rose from $190.9 million in Q1 2026 to $195.1 million in Q2 2026.
- Material gross and operating leverage
- Gross margin expanded to 97.8% from 96.9% a year earlier as cost of revenue declined 10.0% to $4.359 million despite the $38.457 million revenue increase. Operating margin rose to 12.0% from 9.1% in Q2 2025.
- Profitability rose year over year
- Net income increased 30.5% to $19.186 million from $14.701 million, while Adjusted EBITDA increased 37.1% to $30.103 million from $21.956 million. Diluted EPS was $0.53, up from $0.39 in Q2 2025 and $0.51 in Q1 2026.
- Both core insurance verticals expanded
- Both core verticals contributed to growth: automotive revenue rose to $172.051 million from $139.584 million, and home and renters rose to $23.035 million from $17.034 million, principally from higher carrier spend for referrals.
- Operating cash flow increased with low capex
- Six-month operating cash flow increased to $53.922 million from $48.603 million. Investing cash use was only $3.102 million, including $2.700 million of capitalized software development, indicating low capital intensity; the filing does not report free cash flow as a metric.
- Strong liquidity and completed repurchase
- Liquidity was substantial at $192.3 million of cash and cash equivalents, plus a $60.0 million undrawn revolving credit facility. The company repurchased $29.0 million of stock in the first six months and completed its $50.0 million authorization.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- High auto vertical and customer concentration
- Revenue remains highly exposed to auto insurance: 89% of six-month revenue came from auto providers, and the two largest auto carrier customers represented 35% and 11% of revenue. Carrier underwriting cycles and advertising-spend changes can therefore materially affect demand.
- Working capital turned into a cash use
- Working capital was a $4.5 million use of operating cash in the first six months, including a $4.2 million decrease in accounts payable/accruals and a $0.9 million increase in accounts receivable, despite $53.922 million of operating cash flow.
- Higher tax rate is an earnings headwind
- Q2 income-tax expense rose to $5.324 million from $0.363 million because the valuation allowance was released in Q4 2025. Management expects a higher tax rate in 2026, which can constrain net-income conversion even if operating income grows.
- No formal risk-factor update; credit covenants remain
- The filing states there were no material changes to the risk factors in the 2025 Form 10-K. Nonetheless, the company’s $60.0 million revolver includes operating restrictions and a 1.30-to-1.00 minimum Adjusted Quick Ratio trigger for cash-sweep rights if the threshold is not maintained.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.53
- Gross margin
- 97.8%
- Operating margin
- 12.0%
- Segment
- Automotive revenue: $172.051 million (88.2% of Q2 revenue), up $32.467 million / 23.3% year over year.
- Segment
- Home and renters revenue: $23.035 million (11.8% of Q2 revenue), up $6.001 million / 35.2% year over year.
- Segment
- Other insurance vertical revenue: $0.0 million.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS outlook. Management expects 2026 revenue to increase versus 2025, driven by automotive and home-and-renters carrier spending, while expecting sales and marketing, R&D, and G&A expense to rise in 2026.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 5, 2026
- EverQuote (EVER) reported Q1 2026 earnings with total revenue of $190.9 million, surpassing estimates by 6% and reflecting a year-over-year growth of 14.5%. However, EPS of $0.51 fell short of consensus expectations by…
- 10-K · February 24, 2026
- EverQuote describes itself as a results-driven online marketplace connecting high-intent insurance shoppers with carriers and agents, powered by proprietary data and machine learning. The company delivered strong…
- 10-Q · November 4, 2025
- EverQuote reported Q3 revenue of $173.94M (up from $144.53M a year ago) and GAAP diluted EPS of $0.50 (vs. $0.31 a year ago), driven by higher referral volumes in the automotive vertical and continued margin leverage.…
- 10-K · February 25, 2025
- EverQuote describes a proprietary, data-driven insurance marketplace focused on P&C (historically automotive) that leverages machine learning, a 60-carrier distribution network and campaign management tools to drive…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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