Online insurance comparison site EverQuote (NASDAQ: EVER) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 20.3% year on year to $173.9 million. On top of that, next quarter’s revenue guidance ($177 million at the midpoint) was surprisingly good and 9.9% above what analysts were expecting. Its GAAP profit of $0.50 per share was 30.6% above analysts’ consensus estimates.

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“In the third quarter, we achieved record top and bottom line performance and we are making steady progress towards our vision of becoming the leading growth partner to P&C insurance providers,” said Jayme Mendal, CEO of EverQuote.

Company Overview

Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, EverQuote grew its sales at a solid 15.5% compounded annual growth rate. Its growth beat the average consumer internet company and shows its offerings resonate with customers.

This quarter, EverQuote reported robust year-on-year revenue growth of 20.3%, and its $173.9 million of revenue topped Wall Street estimates by 4.3%. Company management is currently guiding for a 20% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 8.6% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and implies its products and services will see some demand headwinds.

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Cash Is King

If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.

EverQuote has shown impressive cash profitability, driven by its attractive business model that gives it the option to reinvest or return capital to investors. The company’s free cash flow margin averaged 11.9% over the last two years, better than the broader consumer internet sector.

Taking a step back, we can see that EverQuote’s margin expanded by 18.1 percentage points over the last few years. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability.

EverQuote’s free cash flow clocked in at $18.47 million in Q3, equivalent to a 10.6% margin. The company’s cash profitability regressed as it was 4.7 percentage points lower than in the same quarter last year, prompting us to pay closer attention. Short-term fluctuations typically aren’t a big deal because investment needs can be seasonal, but we’ll be watching to see if the trend extrapolates into future quarters.

Key Takeaways from EverQuote’s Q3 Results

We were impressed by how significantly EverQuote blew past analysts’ EBITDA expectations this quarter. We were also glad its revenue guidance for next quarter trumped Wall Street’s estimates. Zooming out, we think this was a solid print. The stock traded up 4.9% to $23.51 immediately following the results.

Sure, EverQuote had a solid quarter, but if we look at the bigger picture, is this stock a buy? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.