EVER

It has been about a month since the last earnings report for Astera Labs, Inc. (ALAB). Shares have lost about 13.9% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Astera Labs, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Astera Labs reported second-quarter 2026 non-GAAP earnings of 80 cents per share, up 81.8% year over year. The figure beat the Zacks Consensus Estimate by 15.94%.Revenues surged 104.4% year over year to $392.4 million, surpassing the Zacks Consensus Estimate by 8.93%. Broad-based demand across AI fabrics and signal-conditioning products drove the upside, while PCIe 6 offerings generated more than half of quarterly revenues. The top line increased 27% sequentially, reflecting strength across the company’s product portfolio. Management cited expanding design activity across customers and product categories as AI infrastructure deployments require greater connectivity bandwidth and more complex switching architectures.Aries generated record quarterly revenues on solid adoption of PCIe 6 retimers across scale-up and scale-out applications. Demand also benefited from continued PCIe 5 deployments, particularly for inference workloads and higher attach rates associated with newer AI server platforms. The Scorpio product family delivered significant growth as the X-Series began shipping in initial production volumes across multiple lane configurations. The high-radix Scorpio X-Series entered volume production and is expected to scale materially during the second half of 2026.Management expects Scorpio to become the company’s largest product family in the third quarter, one quarter earlier than previously projected. The transition will be led by the 320-lane Scorpio X-Series fabric switch, which supports larger accelerator clusters and includes hardware-based Hypercast and in-network compute capabilities. Taurus revenues grew strongly on increased unit shipments across AI and general-purpose computing platforms. The company also delivered preproduction volumes of 100-gigabit-per-lane Taurus Smart Cable Modules for 800-gigabit active electrical cables.Astera Labs expanded the Taurus portfolio with 3.2-terabit Smart Retimers and Smart Redrivers supporting 200-gigabit-per-lane Ethernet and UALink connectivity. Management expects the new offerings to double the Taurus market opportunity to more than $4 billion by 2030.The company also reported renewed momentum for its Leo CXL memory controllers. ALAB secured a new standard Leo design win with a U.S. hyperscaler and expects standard and custom products to enter volume production at two U.S. hyperscalers in 2027. Non-GAAP gross margin was 73.7% in the second quarter of 2026, contracting 230 basis points year over year. The margin performance reflected a broader product mix as Astera Labs scaled its AI fabric and signal-conditioning portfolios.Non-GAAP operating expenses totaled $135.8 million, rising 10% sequentially as Astera Labs continued investing in its product roadmap. Research and development expenses surged 103.7% year over year to $135.9 million. Sales and marketing expenses increased 41.7% year over year to $26.4 million, while general and administrative expenses rose 76.2% year over year to $36 million.In the second quarter of 2026, non-GAAP operating margin expanded 290 basis points sequentially to 39.1%. Astera Labs ended June 30, 2026, with $1.25 billion in cash, cash equivalents, and marketable securities, up $68.5 million from the prior quarter. Cash provided by operating activities was $87.7 million, supporting continued investments in technology development and portfolio expansion. For the third quarter of 2026, revenues are expected to be between $540 million and $560 million. The midpoint implies sequential growth of approximately 40%, driven by the Scorpio X-Series production ramp, continued Aries PCIe 6 retimer strength and preproduction Taurus shipments for 800-gigabit Ethernet applications.Non-GAAP gross margin is projected to be approximately 72%. Non-GAAP operating expenses are expected to be between $156 million and $160 million, with the operating margin forecasted to be roughly 43%.Management projects non-GAAP earnings between $1.16 and $1.21 per share. The outlook assumes interest and other income of approximately $12 million, a 12% non-GAAP tax rate and about 185 million shares outstanding. In the past month, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 71.68% due to these changes. Currently, Astera Labs, Inc. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock has a grade of F on the value side, putting it in the fifth quintile for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Astera Labs, Inc. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Astera Labs, Inc. belongs to the Zacks Internet - Software industry. Another stock from the same industry, EverQuote (EVER), has gained 8.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. EverQuote reported revenues of $195.09 million in the last reported quarter, representing a year-over-year change of +24.6%. EPS of $0.65 for the same period compares with $0.39 a year ago. EverQuote is expected to post earnings of $0.67 per share for the current quarter, representing a year-over-year change of +34%. Over the last 30 days, the Zacks Consensus Estimate has changed +24.4%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for EverQuote. Also, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Astera Labs, Inc. (ALAB) : Free Stock Analysis Report EverQuote, Inc. (EVER) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for EverQuote (EVER). Shares have added about 4.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is EverQuote due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. EVER Q2 Beat Earnings Estimates on Auto, Home Insurance GrowthEverQuote, Inc. reported second-quarter 2026 operating net income per share of 65 cents, significantly exceeding the Zacks Consensus Estimate by 6.6%. The bottom line increased 66.7% from the prior-year period level. Total revenues rose 24.6% year over year to $195 million. The top line exceeded the Zacks Consensus Estimate by 2.6%. The quarterly results benefited from continued strength in the Automotive and Home & Renters insurance verticals, supported by higher variable marketing dollars and record adjusted EBITDA Revenues in the Automotive insurance vertical grew 23.3% year over year to $172.1 million, surpassing the Zacks Consensus Estimate of $170.4 million. Our estimate was $170.5 million. Revenues in the Home and Renters insurance vertical increased 35.2% year over year to $23 million, exceeding the Zacks Consensus Estimate of $19.4 million. Our estimate was $19 million. Revenues in the Other insurance vertical declined 100% year over year. Total costs and operating expenses rose 20.5% year over year to $171.6 million, mainly due to higher sales and marketing, research and development costs and general and administrative expenses. Our estimate was $164 million.EverQuote’s variable marketing dollars increased 25% year over year to $56.9 million, which beat the Zacks Consensus Estimate of $56.4 million. Adjusted EBITDA rose 37.1% year over year to $30.1 million, which outpaced our estimate of $29.6 million. EverQuote exited the second quarter of 2026 with cash and cash equivalents of $192.3 million, up 12.3% from the 2025-end level. Total assets increased 4.3% from the 2025-end level to $341 million, while total stockholders' equity rose 7.9% from the 2025-end level to $256.8 million. Cash from operations was $24.3 million, compared with $25.3 million in the prior-year quarter. During the second quarter, EVER repurchased 0.578 million shares of its common stock for approximately $9.1 million. For the third quarter of 2026, EverQuote guided revenues in the range of $198-$208 million. Management expects variable marketing dollars in the $56-$59 million range, suggesting 23% year-over-year growth. Adjusted EBITDA is projected in the range of  $28-$31 million In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted 12.79% due to these changes. At this time, EverQuote has a great Growth Score of A, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. It's no surprise EverQuote has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. EverQuote belongs to the Zacks Internet - Software industry. Another stock from the same industry, AppFolio (APPF), has gained 12.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. AppFolio reported revenues of $281.12 million in the last reported quarter, representing a year-over-year change of +19.3%. EPS of $1.71 for the same period compares with $1.38 a year ago. AppFolio is expected to post earnings of $1.78 per share for the current quarter, representing a year-over-year change of +35.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.5%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for AppFolio. Also, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EverQuote, Inc. (EVER) : Free Stock Analysis Report AppFolio, Inc. (APPF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

EverQuote’s second quarter results reflected robust demand from both insurance carriers and local agents, with particular strength in the home insurance vertical and continued adoption of its AI-driven marketing tools. Management noted record high revenue from carrier and agent channels, attributing the results to an expanded customer base and the ramp-up of a major carrier returning to the platform. CEO Jayme Mendal highlighted that “carrier combined ratios in the 80s for the most part among the major carriers” created an environment where “carriers remain very hungry for growth,” driving increased willingness to pay and greater openness to new digital solutions. The quarter also saw the scaling of Smart Campaigns, EverQuote’s AI-powered bidding product, now used by seven of the top ten carriers, and early results from its agent-facing version suggest improved conversion rates. Is now the time to buy EVER? Find out in our full research report (it’s free). Revenue: $195.1 million vs analyst estimates of $190.2 million (24.6% year-on-year growth, 2.6% beat) Adjusted EPS: $0.65 vs analyst estimates of $0.65 (in line) Adjusted EBITDA: $30.1 million vs analyst estimates of $29.09 million (15.4% margin, 3.5% beat) Operating Margin: 12%, up from 9% in the same quarter last year Market Capitalization: $906 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ralph Schackart (William Blair) asked about changes in carrier appetite and AI-driven automation. CEO Jayme Mendal explained that both auto and home carriers are prioritizing growth, with increased willingness to pay and more openness to digital partnerships. Naved Khan (B. Riley Securities) inquired about Smart Campaigns adoption among agents and the impact of AI search channel changes. Mendal responded that agents using Smart Campaigns are seeing improved conversion rates and that LLM-driven search represents a new opportunity for incremental traffic. Maria Ripps (Canaccord Genuity) questioned the timeline and revenue impact of new AI solutions for consumers and providers. CFO Joseph Sanborn clarified that these offerings are in early rollout stages with immaterial near-term revenue, but expected to be important over the longer term. Charles Peters (Raymond James) sought clarity on balancing AI investment costs with margin expansion. Sanborn stressed that operating expense increases are planned and controlled, while efficiency gains from automation help maintain margin growth. Jed Kelly (Oppenheimer & Co.) asked about margin pressure from carrier testing and the outlook for variable marketing margin (VMM) versus marketing dollar growth. Management stated there was no material margin pressure from carrier tests and reiterated a focus on maximizing variable marketing dollars. Over the coming quarters, the StockStory team will monitor (1) the rollout and adoption rates of EverQuote’s new AI-powered products among agents and carriers, (2) sustained growth and diversification in the home insurance vertical, and (3) the impact of expanded marketing channels—particularly those tied to large language model search—on traffic acquisition and conversion. Progress on these fronts will be key to tracking EverQuote’s strategic execution and path toward its long-term revenue targets. EverQuote currently trades at $25.76, up from $24.10 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Monday, Aug. 3, 2026 at 4:30 p.m. ET Vice President of Investor Relations - Sara Buda Chief Executive Officer - Jayme Mendal Chief Financial Officer and Chief Administrative Officer - Joseph Sanborn Need a quote from a Motley Fool analyst? Email [email protected] Operator: Hello everyone. Thank you for joining us and welcome to the EverQuote Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to [ Sara Buda ], Vice President of Investor Relations. Please go ahead. Sara Buda: Thank you. Good afternoon, and welcome to EverQuote's Second 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 CEO; and Joseph Sanborn, EverQuote's CFO 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 third 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 10-K and our quarterly reports on 10-Q on file with the Securities and Exchange Commission and available on the Investor Relations section of our website. Finally, during the course of today's call, we will refer to certain non-GAAP financial measures, which include adjusted EBITDA and adjusted EBITDA margin, variable marketing dollars and variable marketing margin, which we believe are helpful to investors. A reconciliation of GAAP to non-GAAP measures was included in the press release we issued after the close of market today, which is available on the Investor Relations section of our website. And with that, I'll now turn the call over to Jayme. Jayme Mendal: Thank you, Sara, and thank you all for joining us today. We continue to execute well and deliver strong results. In Q2, we grew revenue 25% year-over-year to $195.1 million and grew adjusted EBITDA 37% year-over-year to a record $30.1 million. Importantly, we achieved these results while continuing to advance our strategy, unlock new growth levers and extend our market leadership position. We continue to experience a healthy market backdrop for both auto and homeowners insurance, as carriers remain profitable and hungry for growth. Against this backdrop, carriers are turning to EverQuote as a trusted partner to help them grow policies in force. In Q2, we further broadened carrier demand, including a ramp with 1 major carrier that returned to the marketplace as expected. We also grew local agent demand for referrals to record high levels while increasing the number of products per agent as we advance our 1-stop growth partner strategy with local agents. Both carrier and agent revenue reached record high levels in the quarter. Additionally, our home vertical continues to perform well, growing 35% year-over-year in Q2, also to record levels. While we execute on behalf of customers, we are also investing to extend our AI leadership position in the market. Our Smart Campaigns AI bidding solution continues to scale, supporting customers' aggressive customer acquisition goals by helping them deploy marketing budgets more effectively and efficiently. Seven of our top 10 carriers now use Smart Campaigns, and in Q2, the amount of revenue flowing through the product increased by over 100% versus the same period last year. Also in Q2, we released our agent-facing version of Smart Campaigns to the first cohort of local agents. As Smart Campaigns becomes our customers' dominant bidding approach, we are strengthening these relationships by embedding our technology into their core workflows and achieving deeper data integrations all while helping customers achieve their growth goals. Within our walls, use of AI for everything from coding to automating operational tasks to prototyping products has reached an inflection point as our teams integrate AI into their daily workflows to drive greater productivity and velocity. We are seeing daily active use pervasive across our corporate staff, and within engineering, we are exceeding industry benchmarks with a 25% measured increase in efficiency. On a daily basis, I am impressed by yet another creative, high-value AI-derived output from an EverQuote team member. To name just a few, recent examples include AI agents designed to emulate human shopper personas and identify friction points in our web experiences, as well as upgrades to our AI traffic bidding platform, which put us on a path to increasingly agentic traffic operations. This trend of delivering innovative products at a faster pace will only increase from here. As evidenced by our financial results, our consistent, strong execution on behalf of customers has made us a trusted growth partner of choice for the largest carriers and thousands of local agents. We continue to integrate AI across our operations and our products, and are emerging as an AI leader within our industry. From this position of strength, we see an opportunity to do more to support customers while unlocking new growth vectors for the business. Initially, we will focus on 2 areas: 1, amplifying visibility with consumers through new products that are purpose-built for AI search and agentic commerce. And 2, building AI native growth solutions for carriers and agents, which allow them to derive benefits of AI without having to build and manage as much of the technology in-house. With our rich AI heritage and deep customer relationships, we are uniquely positioned to lead the P&C distribution sector through its transition into the AI era. We look forward to sharing more details of these newer developments in the coming months. I have never been more excited about where we are and where we are going. We have a unique blend of talent, market leadership, ability to innovate, trusted customer relationships, and financial strength. This positions us to build on recent progress, expand our competitive moat, and create a multi-billion dollar market leader with durable long-term growth. I will now turn the call over to Joseph, who will discuss our financial results and outlook. Joseph Sanborn: Thank you, Jayme, and good afternoon, everyone. Q2 marked another positive quarter for EverQuote with strong revenue and adjusted EBITDA growth. We grew revenue 25% and adjusted EBITDA 37% year-over-year. We also drove record variable marketing dollars, or VMD, and record adjusted EBITDA, while at the same time generating strong cash flow. Now let's turn to the details of the second quarter. Total revenue grew 25% year-over-year to $195.1 million. Revenue from our auto insurance vertical increased to $172.1 million in Q2, up 23% year-over-year. We continue to benefit from our broad and differentiated distribution with growth across carriers and agents, including a large carrier ramping as Jayme mentioned. We also are delivering on the operational plan we've discussed to scale beyond the auto vertical. In Q2, revenue from our home insurance vertical grew 35% to a record $23 million, as we capitalized on strong monetization across high-quality traffic sources and secured increased budget from key carriers. VMD increased to $56.9 million in the second quarter, up 25% from the prior year period. Variable marketing margin, or VMM, was 29.2% for the quarter. Turning to operating expenses in the bottom line, in the second quarter, we grew GAAP net income to $19.2 million, up from $14.7 million in the prior year period. Q2 adjusted EBITDA increased 37% from the prior year period to $30.1 million, representing a 15.4% adjusted EBITDA margin. Cash operating expenses, which excludes advertising spend in certain non-cash and other charges, were $26.8 million in Q2, up slightly from Q1, as expected. We delivered strong operating cash flow of $24.3 million for the second quarter. In Q2, we repurchased 578,000 shares totaling approximately $9 million under our share repurchase program. In aggregate, under this program, we have repurchased 2.5 million shares totaling $50 million. We are pleased with the results and expect our Board will revisit authorizing a new program later this year as part of our ongoing review of capital allocation. We ended the period with no debt and cash and cash equivalents of $192 million. In summary, our Q2 results reflect continued strong execution. We diversified our revenue across additional carriers in the quarter, further scaled our home vertical, and expanded our AI capabilities to drive innovation for our customers and deliver efficiencies within our own operations. Turning to guidance for the third quarter of 2026. We expect revenue to be between $198 million and $208 million, representing 17% year-over-year growth at the midpoint. We expect VMD to be between $56 million and $59 million, representing 15% year-over-year growth at the midpoint. And we expect adjusted EBITDA to be between $28 million and $31 million, representing 18% year-over-year growth at the midpoint. Looking to the remainder of the year, we are seeing a healthy environment as carriers focus on growing policies in force, and as they choose EverQuote to achieve their goals. We are executing well and remain confident in our ability to achieve $1 billion in annual revenues on the timeline we initially communicated to investors last November, while also generating strong cash flow. We expect to reach this goal by first, driving better performance to gain share. Second, obtaining bigger scale as we bring more provider budget and traffic onto our platform. Third, delivering a broader portfolio of solutions to our clients. And finally, achieving greater operating efficiency through investments in AI automation. As Jayme mentioned, we are increasing our focus on how to build upon our existing success and pursue incremental opportunities to propel our business beyond our $1 billion revenue target by delivering new AI-first products that add incremental value to our customers. Consistent with our prior commentary, we are making targeted investments in the second half of this year to develop and bring these new solutions to market. Additionally, we are pursuing select strategic commercial partnerships with AI-first companies to complement our own internal product development and capabilities. We look forward to providing further updates as our initiatives progress throughout the year. In conclusion, it was a positive quarter underpinned by strong fundamentals and a focused strategy. The strength of our ongoing financial performance reflects that our strategy to be a trusted growth partner for P&C insurance providers is working. We are executing amidst a favorable market backdrop as carriers continue to shift spend to digital channels. We are well positioned as an AI beneficiary as we bring both new value to customers and drive incremental efficiencies throughout our business. We remain committed to our previously stated path to $1 billion in annual revenue with strong cash flow generation, and we have built a business with strong underlying fundamentals and a fortress balance sheet that allows us to invest for the long term and capture new growth opportunities while continuing to drive value for our customers and shareholders alike. Jayme and I will now take your questions. Operator: We will now begin the question and answer session. [Operator Instructions] Your first question comes from Ralph Schackart with William Blair. Ralph Schackart: Jayme, you talked about the healthy market backdrop in prepared remarks. Maybe just sort of give us an update what you're seeing with the market today versus maybe last quarter or since the business has progressed through 2026. And then also, as you were going through sort of the AI products, you mentioned in the AI bidding part of the prepared remarks that you are sort of leaning in, I guess, with the agentic traffic operations or maybe some automation there. Maybe if you could provide a little bit more color on that and the potential impact to the business or VMD, it'd be great. Jayme Mendal: Sure. Thanks, Ralph. So as it relates to the carrier market, the market remains healthy as it has been throughout the year so far. Carrier combined ratios in the 80s for the most part among the major carriers, and that's true across auto and now the homeowner segment, too. So I would say that the carriers remain very hungry for growth. If there's 1 thing that we're starting to feel a bit more as the year progresses is kind of equal appetite for homeowners growth as there was for auto growth coming into the year. And you see that starting to be reflected in some of the strength in our home vertical this quarter, and we expect that to persist into the back part of the year. Then to your second question, as it relates to our AI bidding platform, we have automated a lot of our traffic bidding over the years. We've talked about it many times before. A lot of that was done through the application of machine learning to automate decisions as it relates to bidding for traffic. And now what we're beginning to do is overlay more sort of agentic action on top of the ML bidding that has been occurring for a long time. And so this is now getting into like deeper automation of a lot of the operations, which will -- has historically every time we do something like this, we see the benefit both in the effectiveness of the bidding, which would flow through in VMD, but also in the efficiency, because we can sort of manage a larger traffic portfolio with less human intervention needed. Operator: Your next question comes from Naved Khan with B. Riley Securities. Naved Khan: Great. A couple of questions from me. Maybe first on the Smart Campaigns 3.0. I think you were rolling out a beta with the agents, and I'm wondering how that adoption is going and what the performance is for the Smart Campaigns with the agents? That's one. And then the second question I have is just around your marketing channel mix in the last quarter. Have you kind of made any changes or anything that might have contributed to this trend during the quarter as a result of your marketing changes, if there were any? Jayme Mendal: Sure. So as it relates to Smart Campaigns, there have been a number of developments over the last quarter. On the carrier side, we're continuing to, sort of, evolve to our Smart Campaigns 3.0, which has more features built into it to improve the efficiency of the model. But probably the bigger change this past quarter was introducing Smart Campaigns to agents for the first time. So agents are now able to bid more dynamically than they have been able to in the past. It's early days, but the early data that we're getting would suggest significant conversion rate improvements for the agents who have opted into that product. So good progress on that front. With respect to the marketing mix, I guess the change that we've been talking about since the beginning of the year is the ramp of new traffic programs and traffic channels, particularly into some of the more higher funnel areas. So that continues. I wouldn't say there's been any change that is material or noteworthy over the last quarter, but we continue to work to broaden and expand that traffic portfolio, particularly into these higher funnel channels. Naved Khan: Okay. Maybe just on the channel, sort of, topic. Maybe just -- maybe talk about AI overviews, if that has had any effect, positive or negative, or maybe none in the quarter? Jayme Mendal: Yes, sure. So we have not experienced any direct effect to our paid search results. And what we -- but you've got this large source of traffic growing in the LLMs, which to us represents incremental opportunity because we have never historically invested in or had a significant amount of organic traffic to begin with. So our paid traffic remains healthy and strong. And now we've been making investments over the last year or so to really begin to access the AI search traffic more systematically. And there's a number of ways that you can do that. One is through more of a traditional, sort of, content strategy, so developing answers to the questions that people may pose through the LLMs. The second is through paid advertising, and you have platforms like OpenAI now opening up to paid advertising. And the third is through technical integrations. So we just -- we launched our ChatGPT app last quarter, and it's getting some traffic. But it's the combination of those things and how they work together to meet the needs of the LLMs that ultimately is going to allow us to start to tap into that traffic in a more material way and could become material over time, particularly as those platforms continue to grow. Operator: Your next question comes from Maria Ripps with Canaccord Genuity. Maria Ripps: Great. So you talked about introducing new solutions in the back half of the year, both on the consumer side and carrier side. Can you maybe help us understand some of the opportunities here? And is it largely around, sort of, conversion and, sort of, improving solutions, sort of, within your existing models? And then secondly, maybe is there anything you can share in terms of contribution, in terms of incremental revenue opportunity here? And, sort of, how should we think about that, whether that should start contributing later this year or next? Sort of how are you thinking about that? Jayme Mendal: Sure. So, there's sort of two sides of this. One is more on the consumer or shopper side. One is more on the provider side. I started to get at the consumer side with my response to Naved, but we see an opportunity to really amplify our visibility with consumers through new products that are really purpose-built for AI search and agentic commerce. And so, as that begins to grow, obviously, a large pool of insurance intent exists there. There's a number of ways to access that traffic, which I just referenced, but they all require the build of certain assets that meet the specific needs of the LLMs. And we're making investments in these assets to become a distribution point of choice for the LLMs within our vertical market. So that's the high level on that one, and we will have more specifics to share in the coming months. But then to go to the other side of the marketplace, as you look at the provider landscape, we operate in a market that is -- it's regulated, it's opaque, it's nuanced in many respects. And so horizontal solutions often don't work well for the insurance market. And we would -- we believe that within our market, we are really leading the charge with respect to the adoption of AI and understanding of how to deploy it, how to build with it. And with that, we see an opportunity to do more to support our customers. I think we're developing a suite of offerings, which will allow them to drive benefits of AI without having to build and manage as much of the technology in-house. And so the basic idea is roll out products like Smart Campaigns, which are consistent with our vision of helping carriers and agents grow, but really with a heightened focus on applying AI to the most relevant and impactful distribution use cases of our customers. And so that could range from marketing. You mentioned conversion. That would be in scope. Basically, anything within that distribution chain where we feel we can help our customers be more effective. Joseph Sanborn: Then Maria, maybe to address your point with regards to how do you think about revenues for these areas? We're very excited about both these areas, right? We think they're going to provide new opportunities to bring consumers in as the traffic landscapes evolve increasingly to working with large language models. Even in insurance, we think we're very well positioned for that. That happens over time. And we think the providers are really looking for us and are turning to actually coming to us saying, "Hey, how can you help us grow with new products?" So we're excited by these things. In terms of near-term impact, we don't view the revenue as material for this year in these new offerings. We think it's a period of really testing and innovation and bringing these things to market. And really going -- and particularly on the new products for providers, there's a period where we're really trying to invest in spending time with them as we bring these products for, say, "How do these work for you?" Doing the innovation, just similar -- the same way we rolled out Smart Campaigns. We did that with carriers and agents. You'll see a similar profile use here as well as we go to market. Operator: Your next question comes from Gregory Peters with Raymond James. Charles Peters: I was curious listening to your comments about the Smart Campaign, your new ChatGPT app, and your AI initiatives, how we on the outside can reconcile all of these initiatives, which cost money and the fact that there's stories in the marketplace about how the cost of technology and the token usage, et cetera, is going up. So just trying to marry the two issues together in how it's flowing through your income statement. Joseph Sanborn: Sure. Thanks, Greg. It's Joseph here. Maybe I'd say is, we're giving you details on something we foreshadowed in the start of this year. So this is very much executing as we thought we would as the year progressed. We said that OpEx in the first half of the year will be relatively flat. Q1 was pretty flat to Q2. And you're seeing in our guidance for Q3, a step-up of roughly $1 million, $1.25 million in OpEx for Q3, and you'll probably inch from there, probably $0.5 million more in Q4. Again, very consistent we said at the start of the year. Assume OpEx is relatively flat and it'll be a step-up in the second half of the year. These investments, we're now sharing the details with you, we've been planning these and working on these for some time, and that's reflected in what we sort of have out there at this point. Jayme Mendal: And I guess the only thing I'd add is more broadly, we are also driving efficiency with a lot of the automation, a lot of the work that we're doing internally, right? And I think we talked about this last quarter, but we've doubled revenue over the last couple of years while keeping OpEx flat. It is coming up a bit, but we have religion around efficiency. And so we have good visibility on the token usage and the expenses associated with it. We have controls in place. And as that ramps, we are also able to automate and kind of manage expenses elsewhere. Joseph Sanborn: Maybe, Greg, the last thing I'll add to you is just as you think through what we said at the start of the year, we said, "Hey, assuming EBITDA margins will rise roughly 100 basis points this year." We are still saying they'll rise roughly 100 basis points this year, because the OpEx investment we're seeing in the second half is sort of as we expected as we started the year. Just to give you a little more context from a modeling perspective.. Charles Peters: Great. Just one other just follow-on question. I was going through your updated investor slide deck. And I was chuckling when I saw your slide on carrier commentary about how they're all excited to grow now and considering where they were just a couple of years ago. And as a backdrop, I'm just curious, are you seeing the fact that they're willing to grow? Are you seeing any more opportunities for -- are they willing to pay you more for helping them to grow? Or is it still -- you're still getting sort of the same amount on a per closed basis? Some detail around that would be helpful. Jayme Mendal: Yes. I think there's two noticeable differences. One is in their willingness to pay. And so there is higher willingness to pay this year than there has been in recent years. There are certain carriers that are really leaning in heavily, because they're feeling a tremendous amount of pressure to grow. So -- and that's reflected in the pricing within the marketplace. We've seen that come up quite a bit. The other place we see it, Greg, is in their willingness to try new things. So as an example, we are -- Smart Campaigns is a good example. I know it's one we often use, but there is a certain amount of data sharing and trust associated with a customer adopting Smart Campaigns. And we've been working for years to get our customers on that product. And this year, for the first time, because they are experiencing a lot of pressure to grow, they are, for the first time, willing to test it, willing to provide the data and the integrations that we need to make it work. And that's been the case with that product. It's been the case with a number of other products we've brought to market, but the carriers are just a lot more open and collaborative in working with us to help them grow than we certainly saw during the harder years in the market. Operator: Your next question comes from Mayank Tandon with Needham. Brandon Thomas Barron: This is Brandon on for Mayank. I'm just wondering if you can touch on any other VMM margin impacts in the quarter. Looks like it came in strong. Could you touch on what drove that on the ad spend side and what dynamics you guys are seeing on certain funnels? Joseph Sanborn: Maybe I'll start out, if you want to add on. So I guess I'd say is VMM for the quarter was in the high 20s. And maybe I'd even take a step back to say, on a day-to-day basis, we do not solve for VMM margin, we solve for VMD. What we've seen over time is what correlates with the highest VMD is actually a VMM in the high 20s. In any given quarter can be higher or lower based on things we control or things we don't control with the advertising environment. But generally, it's in the high 20s correlates with the highest VMD from our experience. One of the things that I would say that allows us to continue to do that, as we continue to get -- as Jayme talked about Smart Campaigns, that brings in more data into our marketplace. As we bring more data into the marketplace, it helps us be more efficient with traffic acquisition, that certainly feeds into that as well in our ability to maintain and drive those VMM margins in the high 20s and maintain them there. Any additional color? Jayme Mendal: No, I think that more or less covers it. It is certainly a competitive traffic landscape out there, but we've adapted to it. And we've been able to drive a good deal of efficiency through our bidding technology. And we're also expanding into other channels, as we mentioned earlier. And those channels are not industry-specific channels, so they're not subject to the same kind of competitive pressure as, say, insurance search or something like that. Brandon Thomas Barron: That's super helpful. I'm wondering if you can touch on capital allocation. Buybacks have been a big part of it recently, but wondering what you guys are seeing in the M&A environment and your thinking around capital allocation at this time? Joseph Sanborn: Sure. So thanks for the question. I guess when we think about capital allocation, there's sort of three things we've talked about, just to remind folks. One is obviously thinking this fortress balance sheet is critical for our business. We think long term and some of the investments we're making in the time horizons for return. Second is obviously buybacks. We've done about -- we've done $50 million of buybacks since we did it last August. And the third is on M&A. When we look at M&A, I'd say maybe I'd start with two things. One is we don't see a need for M&A to achieve our path to $1 billion in revenue that we talked about in our November call. As we talked about in our prepared remarks, we're still on a path to achieve that in 2 to 3 years from now, 15 to 27 months, 9 months into making the commitments. But we see potentially an opportunity with M&A to accelerate our opportunities in the P&C landscape. As we look across the market, we think there's a real opportunity for us, and it falls in a couple -- a few areas I touch on. We touch on -- we talked about new products for carriers and agents to help grow their business. M&A could certainly be part of that, how do we bring new areas to help carriers and agents to grow? And that could be part of an M&A strategy. We also look at -- we've had really good success with our non-auto vertical of home. How do we continue to keep growing the non-auto verticals could be another area for M&A. And the third could be around data. How do we leverage data within our marketplace and find new insights that overlay with the data we already have? So those could be some of the areas we'd look at. What I would say more broad, as a sort of stepping back a little bit further is, we think it's a market landscape. We are really coming out as a leader in this space, pulling away from the pack. And as we do that, we're seeing more opportunities. Why are we seeing more opportunities? Because a lot of the private company insurtechs that are out there, you have management teams who are passionate about being in the space, and they want to see an opportunity to be part of someone who's doing that. And we're having more and more of those conversations. So as we look at using our capital for M&A, obviously, a key part of it is talent as well. And so we'll see how this unfolds over the coming quarters, but we certainly see it as another growth lever for us to consider. Operator: Your next question comes from Jason Kreyer with Craig-Hallum. Jason Kreyer: I want to go back to VMM. It looks like that's pretty stable for you guys. You called out the new channels that you've been investing in over the last couple of quarters. Can you just give any updates on how those are progressing? And are they already building tailwinds to VMM? Or do you expect that to take a couple more quarters of testing and refining before that starts to drive more tailwinds? Jayme Mendal: They're progressing as planned. They don't -- I think we've said before, we don't expect the new channels to kind of materially impact one way or the other, the kind of medium-term VMM operating point. As Joseph referenced, it's really not actually even a metric that we manage to. It's kind of an output metric. We're trying to maximize the variable marketing dollars. But the channels are, they're progressing as planned. And our prime objective right now is keeping our carriers and agents fed, right? So growth is really the name of the game. And in those new channels, we're able to access some volume that's contributing to growth. And I don't think we would look to trade off growth for that -- for any kind of margin at this point. We're just continuing to look for maximum variable marketing dollars and serving the customer need to grow. Jason Kreyer: Appreciate that. I wanted to pivot to the home side of things. I mean, it seems like that, that remains a really robust growth opportunity in the market. So maybe a little bit more on just what your aspirations are for growing home? And then, how well are you able to leverage the product and the tech that you've created on the auto side and deploy that to further scale opportunities in home? Jayme Mendal: Yes. So yes, we see a really nice opportunity in home. The vertical has been performing very well. It grew, I think, 35% this quarter, year-on-year to record levels. We've long said that we expect home growth to outpace auto growth, just given where it started and given how it's sort of a little bit behind auto in terms of its maturity and its digital evolution. But a lot of the growth to date has been driven by applying a lot of our best practices and our technology and our traffic operations from auto to home. So a lot of that does translate. That being said, I think there are some things we can continue to do to customize that homeowners buying experience to make it more tailored to the vertical and improve performance in doing so. But if you take a step back, I mean, the vertical -- the market right now is very healthy. The carriers are quite profitable. And we've now got some big carriers paying attention to home, it seems, more than they have in the past, particularly as the auto market gets quite competitive. So all signs right now point to continued growth in that home vertical. Joseph Sanborn: And maybe, Jason, just one other sort of perspective to give in terms of the size of the home opportunity. So roughly, it's 10%, perhaps 10%, 11% right now, the rest being auto for us. If you look at the broader P&C landscape, it's roughly for every $2 of auto, there's $1 of home. So between 50% and where we are today, we think there's 10%, we think there's a lot of growth opportunity more broadly in the market. Not all home will be home opportunities will be relevant to digital, but we see significant upside in that market opportunity, which allows us to feel very bullish about the investments we're making here and how it will impact us in the medium and longer term to becoming a real growth driver for the business. Operator: The last question comes from Jed Kelly with Oppenheimer & Co. Jed Kelly: Good quarter. Quick question. A couple of other digital insurance marketplaces have talked about carriers doing some tests with them that could have depressed their variable marketing margins. Judging by your performance, you didn't see that. But are you seeing the carriers do any testing that could temporarily depress your margins? Jayme Mendal: No. Jed Kelly: No? All right. Jayme Mendal: No. I don't know what more to say. There's nothing. We don't see anything that would have that impact. Jed Kelly: Okay. No, that's great. And then just another question for you. Google arbitration or the Google settlement. Are you thinking about joining any arbitration for some of the search advertising you've done on Google over the past 10 years? Joseph Sanborn: So we are aware of the Google arbitration. I think every law firm in the country has probably reached out to us, as well as every investment bank who's trying to do products in the area. So we're aware of it. We'll evaluate as we do other things as well. So really nothing to comment on it, but we're well aware of what's going on out there. Jed Kelly: All right. And I guess I'm the last one. Just with the guidance, can you just talk about how we should think about measuring VMM margin versus measuring variable marketing dollars? Obviously, high 20s is a good place to be, but do you think there'll be opportunities maybe to get more marketing dollars at a lower margin? Just some thought on that. Joseph Sanborn: I keep coming back to, Jed, for us as we solve for maximizing VMD dollars. And right now, with what we're seeing, we sort of see high 20s as sort of place it'll normalize for VMM margin. There'll be variability quarter-to-quarter certainly. We had Q4 of last year, we made a conscious choice after 3 quarters in a row of really strong start. We made investments in Q4 last year, we consciously brought it down as we tested a lot of new channels. But for us, we view it as we sort of see in the high 20s, is where it will be. But again, I come back to -- we don't -- it's an output metric. It's not the way we run the business. We run the business to drive VMD dollars in a sustainable and durable way. So what we don't do is we -- we do not go and chase the VMD dollar. We don't feel is sustainable. Everything is thought through in terms of let's just not make the quarter. Let's think about how we're building durability in the model over time. Operator: That is the end of the Q&A. I will now pass it back to management for closing remarks. Jayme Mendal: Thank you, and thanks, everyone, for joining us today. To close out, I just want to thank the EverQuote team for delivering yet another excellent quarter with strong growth, record adjusted EBITDA. We're continuing to execute well against the backdrop of healthy customer demand as we build momentum in both home and in auto. We're making great progress across a number of goals as we deliver superior performance for our carriers and agents, as we get more value from AI in our operations and in our products and as we diversify our customer base and deepen our customer relationships. Looking forward to sharing further updates with you in the coming months as we build on this momentum. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. EverQuote (EVER) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $195.1 million, up 25% year over year. Auto Insurance Vertical Revenue: $172.1 million, up 23% year over year. Home Insurance Vertical Revenue: $23 million, up 35% year over year to a record level. Variable Marketing Dollars (VMD): $56.9 million, up 25% year over year. Variable Marketing Margin (VMM): 29.2% for the quarter. GAAP Net Income: $19.2 million, up from $14.7 million in the prior year period. Adjusted EBITDA: $30.1 million, up 37% year over year, representing a 15.4% margin. Cash Operating Expenses: $26.8 million in Q2, up slightly from Q1. Operating Cash Flow: $24.3 million for the quarter. Share Repurchases: 578,000 shares repurchased for approximately $9 million in Q2; 2.5 million shares totaling $50 million repurchased in aggregate. Cash Position: No debt and cash and cash equivalents of $192 million at period end. Q3 2026 Guidance: Revenue expected between $198 million and $208 million; VMD between $56 million and $59 million; adjusted EBITDA between $28 million and $31 million. Warning! GuruFocus has detected 5 Warning Sign with EVER. Is EVER fairly valued? Test your thesis with our free DCF calculator. Release Date: August 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. EverQuote Inc (NASDAQ:EVER) delivered strong Q2 2026 results with revenue up 25% year-over-year to $195.1 million and record adjusted EBITDA of $30.1 million, up 37%. The company saw record revenue from both carrier and local agent demand, with a major carrier returning to the marketplace and ramping as expected. Home insurance vertical grew 35% year-over-year to a record $23 million, driven by strong monetization and increased carrier budgets. Smart Campaigns AI bidding solution is scaling rapidly, with revenue flowing through the product increasing over 100% year-over-year and adoption by seven of the top 10 carriers. EverQuote Inc (NASDAQ:EVER) is making strategic investments in AI, including agentic traffic operations and new AI-first products, positioning itself as a leader in the P&C distribution sector's AI transition. The company maintains a fortress balance sheet with $192 million in cash and no debt, and has repurchased $50 million in shares, with plans for a new buyback program. Q3 2026 guidance implies a slowdown in revenue growth to 17% year-over-year at the midpoint, down from 25% in Q2. The company expects a step-up in operating expenses in the second half of 2026 due to targeted investments in new AI products and strategic partnerships, which could pressure margins. Variable marketing margin (VMM) is expected to remain in the high 20s, with no significant improvement anticipated, as the company prioritizes growth over margin expansion. New AI-driven products and initiatives are not expected to contribute material revenue in 2026, with near-term impact limited to testing and innovation. The company faces a competitive traffic landscape, and while it has adapted, there is no guarantee that new channels will provide sustainable tailwinds to VMD growth. Management noted that carriers are more willing to pay and collaborate, but this could lead to increased competition and pricing pressure in the marketplace. Q: Can you provide an update on the current market backdrop for carriers versus last quarter, and elaborate on the agentic traffic operations within your AI bidding platform and its potential impact on VMD? A: Jayme Mendal (CEO): The carrier market remains healthy with combined ratios in the 80s for major carriers across both auto and homeowners. We are seeing an equal appetite for homeowners' growth as we saw for auto earlier in the year, which is reflected in the strength of our home vertical. Regarding AI bidding, we are overlaying more agentic action on top of our existing ML bidding. This deeper automation improves bidding effectiveness, which flows through to VMD, and increases efficiency by allowing us to manage a larger traffic portfolio with less human intervention. Q: How is the adoption and performance of Smart Campaigns going, particularly with the new agent-facing version, and have there been any significant changes to your marketing channel mix? A: Jayme Mendal (CEO): On the carrier side, we are evolving to Smart Campaigns 3.0 with improved model efficiency. The bigger change was introducing Smart Campaigns to agents for the first time, allowing them to bid more dynamically. While early, the data shows significant conversion rate improvements for agents who opted in. Regarding marketing mix, we continue to ramp new traffic programs, especially in higher-funnel channels, but there were no material changes in the last quarter. Q: Can you help us understand the opportunities for the new solutions you plan to introduce in the back half of the year, and what the incremental revenue contribution might look like? A: Jayme Mendal (CEO) & Joseph Sanborn (CFO): We are focusing on two areas: amplifying consumer visibility through products built for AI search and agentic commerce, and building AI-native growth solutions for carriers and agents. We are investing in assets to become a distribution point of choice for LLMs. For providers, we are developing offerings that allow them to benefit from AI without building the tech in-house. Joseph Sanborn added that revenue from these new offerings is not expected to be material this year, as it is a period of testing and innovation, similar to the initial rollout of Smart Campaigns. Q: How should we reconcile the costs of your AI initiatives with your financial guidance, and how are these costs flowing through the income statement? A: Joseph Sanborn (CFO) & Jayme Mendal (CEO): This is executing as we foreshadowed at the start of the year. OpEx was relatively flat in the first half, and we are guiding to a step-up of roughly $1 million per quarter in Q3 and possibly $0.5 million more in Q4. Jayme Mendal added that while OpEx is coming up, they are driving efficiency through automation, having doubled revenue over the last two years while keeping OpEx flat. They have controls in place for token usage and are able to automate and manage expenses elsewhere. The company still expects EBITDA margins to rise roughly 100 basis points this year. Q: Given carriers' willingness to grow, are they willing to pay more for your services, and are you seeing more opportunities for collaboration? A: Jayme Mendal (CEO): Yes, there are two noticeable differences. First, there is a higher willingness to pay this year, with some carriers leaning in heavily due to pressure to grow, which is reflected in marketplace pricing. Second, carriers are more willing to try new things, such as Smart Campaigns, which requires significant data sharing and trust. Because they are under pressure to grow, they are now willing to provide the data and integrations needed to make these products work, making them more open and collaborative than in recent years. Q: What drove the strong VMM margin in the quarter, and what dynamics are you seeing on the ad spend side? A: Joseph Sanborn (CFO) & Jayme Mendal (CEO): VMM was in the high 20s for the quarter. We do not solve for VMM margin on a daily basis; we solve for VMD. Historically, a VMM in the high 20s correlates with the highest VMD. The continued adoption of Smart Campaigns brings more data into the marketplace, which helps us be more efficient with traffic acquisition. Jayme Mendal added that while the traffic landscape is competitive, their bidding technology drives efficiency, and they are expanding into non-industry-specific channels that are not subject to the same competitive pressure. Q: Can you touch on your capital allocation strategy, including buybacks and your thoughts on the M&A environment? A: Joseph Sanborn (CFO): Our capital allocation focuses on three things: maintaining a fortress balance sheet for long-term investments, buybacks (we've done about $50 million since last August), and M&A. We don't need M&A to achieve our $1 billion revenue target, but we see opportunities to accelerate our position in the P&C landscape. Potential M&A areas include new products for carriers and agents, growing non-auto verticals like home, and leveraging data for new insights. As we pull away as a market leader, we are seeing more opportunities and having more conversations with private insurtechs. Q: How are the new channels you've been investing in progressing, and are they already building tailwinds to VMM? A: Jayme Mendal (CEO): The new channels are progressing as planned. We don't expect them to materially impact the medium-term VMM operating point, as VMM is an output metric, not one we manage to. Our primary objective is keeping carriers and agents fed, so growth is the name of the game. We are accessing volume from these channels that contributes to growth and would not trade off growth for margin at this point. Q: What are your aspirations for growing the home vertical, and how well are you able to leverage your auto-side technology to scale it? A: Jayme Mendal (CEO) & Joseph Sanborn (CFO): We see a significant opportunity in home, which grew 35% year-over-year to record levels. Much of the growth has been driven by applying best practices and technology from auto. The market is very healthy, with carriers profitable and paying more attention to home. Joseph Sanborn added that home is currently 10-11% of our revenue, but in the broader P&C landscape, there is roughly $1 of home for every $2 of auto, indicating significant upside and making it a real growth driver for the medium and long term. Q: Are you seeing carriers do any testing that could temporarily depress your variable marketing margins, For the complete transcript of the earnings call, please refer to the full earnings call transcript.

EverQuote, Inc. EVER reported second-quarter 2026 operating net income per share of 65 cents, significantly exceeding the Zacks Consensus Estimate by 6.6%. The bottom line increased 66.7% from the prior-year period level. Total revenues rose 24.6% year over year to $195 million. The top line exceeded the Zacks Consensus Estimate by 2.6%. The quarterly results benefited from continued strength in the Automotive and Home & Renters insurance verticals, supported by higher variable marketing dollars and record adjusted EBITDA. EverQuote, Inc. price-consensus-eps-surprise-chart | EverQuote, Inc. Quote Revenues in the Automotive insurance vertical grew 23.3% year over year to $172.1 million, surpassing the Zacks Consensus Estimate of $170.4 million. Our estimate was $170.5 million. Revenues in the Home and Renters insurance vertical increased 35.2% year over year to $23 million, exceeding the Zacks Consensus Estimate of $19.4 million. Our estimate was $19 million. Revenues in the Other insurance vertical declined 100% year over year. Total costs and operating expenses rose 20.5% year over year to $171.6 million, mainly due to higher sales and marketing, research and development costs and general and administrative expenses. Our estimate was $164 million. EverQuote’s variable marketing dollars increased 25% year over year to $56.9 million, which beat the Zacks Consensus Estimate of $56.4 million. Adjusted EBITDA rose 37.1% year over year to $30.1 million, which outpaced our estimate of $29.6 million. EverQuote exited the second quarter of 2026 with cash and cash equivalents of $192.3 million, up 12.3% from the 2025-end level. Total assets increased 4.3% from the 2025-end level to $341 million, while total stockholders' equity rose 7.9% from the 2025-end level to $256.8 million. Cash from operations was $24.3 million, compared with $25.3 million in the prior-year quarter. During the second quarter, EVER repurchased 0.578 million shares of its common stock for approximately $9.1 million. For the third quarter of 2026, EverQuote guided revenues in the range of $198-$208 million. Management expects variable marketing dollars in the $56-$59 million range, suggesting 23% year-over-year growth. Adjusted EBITDA is projected in the range of  $28-$31 million EVER currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. MGIC Investment Corporation MTG reported second-quarter 2026 operating net income per share of 87 cents, which beat the Zacks Consensus Estimate by 17.6%. The bottom line also improved 6.1% year over year. Total operating revenues declined 2.6% year over year to $298 million, primarily due to lower net premiums earned and net investment income. The top line missed the Zacks Consensus Estimate by 0.3%. Net premiums earned declined 2.6% year over year to $238.1 million, missing our estimate of $239 million. Meanwhile, net investment income decreased 2.5% year over year to $59.5 million. The figure was in line with our estimate of $59.3 million. AXIS Capital Holdings Limited AXS reported second-quarter 2026 operating income of $2.84 per share, which missed the Zacks Consensus Estimate of $3.23 and fell 12.1% year over year. Total operating revenues of $1.7 billion marginally missed the Zacks Consensus Estimate by 1%. The top line rose nearly 7.4% year over year on higher premiums earned. Net premiums written decreased 1.8% to $1.6 billion, reflecting lower premiums in the Reinsurance segment, partially offset by growth in the Insurance segment. AXIS Capital’s underwriting income of $142.9 million decreased 24.5% year over year. The combined ratio deteriorated to 93.1 in the quarter from 88.9 a year ago, reflecting higher catastrophe and weather-related losses. The Zacks Consensus Estimate was pegged at 93.2. Our estimate was 93.8. NMI Holdings, Inc. NMIH reported second-quarter 2026 adjusted earnings of $1.38 per share, which rose 13.1% year over year. The bottom line beat the Zacks Consensus Estimate of $1.28 by 7.81%. Revenues rose 8.1% year over year to $188 million and surpassed the consensus mark of $185 million by 1.73%. Primary insurance in force increased 5.8% to $227.1 billion. Net premiums earned increased 5.7% year over year to $157.5 million, reflecting continued expansion in the insured portfolio. Our estimate was $157 million. Net investment income climbed 21.6% to $30.3 million, providing another meaningful lift to the top line. Our estimate was $27 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EverQuote, Inc. (EVER) : Free Stock Analysis Report MGIC Investment Corporation (MTG) : Free Stock Analysis Report Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report NMI Holdings Inc (NMIH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a healthy market backdrop where carriers remained profitable and focused on growing policies in force across both auto and home segments. The company achieved record carrier and agent revenue, supported by the expected return of a major carrier to the marketplace and record-high local agent demand. The home insurance vertical grew 35% year-over-year, benefiting from strong monetization of high-quality traffic and increased budget allocations from key carriers. Smart Campaigns AI bidding solution saw revenue growth of over 100% year-over-year, with 7 of the top 10 carriers now utilizing the platform to optimize marketing spend. Internal AI integration has reached an inflection point, with engineering efficiency increasing by 25% and the deployment of AI agents to identify friction in consumer web experiences. Management is pivoting toward 'agentic traffic operations,' overlaying autonomous action on top of existing machine learning models to manage larger traffic portfolios with less human intervention. Management reaffirmed its commitment to achieving $1 billion in annual revenue within the next 15 to 27 months, driven by share gains and broader solution portfolios. Q3 guidance assumes a step-up in operating expenses of approximately $1 million to $1.25 million to fund targeted investments in AI-first products and strategic partnerships. The company is developing new products purpose-built for AI search and agentic commerce to capture emerging traffic from large language models (LLMs). Strategic focus for the second half of 2026 includes building AI-native growth solutions that allow carriers and agents to benefit from AI without building internal technology. Adjusted EBITDA margins are expected to expand by approximately 100 basis points for the full year, despite planned increases in second-half operational spending. The company repurchased 578,000 shares for approximately $9 million in Q2, with the Board expected to review a new authorization program later this year. Management noted that while horizontal AI solutions often fail in the regulated insurance market, EverQuote's vertical-specific AI heritage provides a competitive moat. The company maintains a 'fortress balance sheet' with $192 million in cash and no debt, providing flexibility for potential M&A to accelerate non-auto vertical growth or data acquisition. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Carrier combined ratios in the 80s are driving high demand for growth, with a notable increase in appetite for homeowners insurance matching auto levels. Agentic action on top of machine learning bidding is expected to improve both the effectiveness of traffic acquisition and operational efficiency. Management reported no direct negative effect on paid search results from AI overviews and views LLMs as an incremental opportunity for organic traffic. Strategy involves developing content for LLM queries, pursuing paid advertising on platforms like OpenAI, and technical integrations like the ChatGPT app. Carriers are showing a higher willingness to pay and a greater openness to try new products due to intense pressure to grow policies. This pressure has led to increased collaboration, with carriers now willing to provide the data integrations required for Smart Campaigns that they previously resisted. Management clarified that they do not solve for VMM percentage but rather maximize Variable Marketing Dollars (VMD). VMM in the high 20s is viewed as the optimal output for maximizing total dollar growth, and management will not trade off growth for higher margins in the current environment.

EverQuote (EVER) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.56%. A quarter ago, it was expected that this company would post earnings of $0.43 per share when it actually produced earnings of $0.51, delivering a surprise of +18.6%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. EverQuote, which belongs to the Zacks Internet - Software industry, posted revenues of $195.09 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.56%. This compares to year-ago revenues of $156.63 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. EverQuote shares have lost about 6.6% since the beginning of the year versus the S&P 500's gain of 9.4%. While EverQuote has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for EverQuote was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $201.41 million in revenues for the coming quarter and $2.41 on $794.23 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. zSpace, Inc (ZSPC), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents a year-over-year change of +98.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. zSpace, Inc's revenues are expected to be $7.9 million, up 5.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EverQuote, Inc. (EVER) : Free Stock Analysis Report zSpace, Inc (ZSPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in EverQuote, Inc.? Here are five stocks we like better. Strong Q2 performance: EverQuote’s revenue rose 25% year over year to $195.1 million, while adjusted EBITDA increased 37% to a record $30.1 million. The company ended the quarter with $192 million in cash and no debt. Auto and home insurance growth remained robust: Auto revenue climbed 23% to $172.1 million, and home insurance revenue surged 35% to a record $23 million, supported by strong carrier demand and higher budgets. AI investment is expanding: Smart Campaigns revenue more than doubled year over year, with seven of EverQuote’s top 10 carriers using the product. The company plans additional AI-focused products, though management does not expect them to generate material revenue in 2026. EverQuote (NASDAQ:EVER) reported second-quarter 2026 revenue growth of 25% year over year to $195.1 million, while adjusted EBITDA rose 37% to a record $30.1 million. The company said demand from both insurance carriers and local agents remained strong as carriers focused on expanding policies in force. GAAP net income increased to $19.2 million from $14.7 million in the prior-year period. Operating cash flow was $24.3 million, and the company ended the quarter with $192 million in cash and cash equivalents and no debt. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now Auto insurance revenue increased 23% year over year to $172.1 million. Chief Executive Officer Jayme Mendal said the company benefited from broad demand across carriers and agents, including the expected ramp of a major carrier returning to its marketplace. Revenue from local agents and carriers both reached record levels during the quarter, according to Mendal. He said EverQuote continued to increase the number of products used by each agent as it pursues a strategy to serve as a one-stop growth partner for local insurance agents. → MarketBeat Week in Review – 07/27- 07/31 The company’s home insurance vertical grew 35% year over year to a record $23 million. Chief Financial Officer and Chief Administrative Officer Joseph Sanborn said the growth reflected strong monetization of high-quality traffic sources and increased budgets from key carriers. Mendal said insurers’ appetite for homeowners policy growth has increased as the year has progressed, approaching the level of demand previously seen in auto insurance. He said major carriers’ combined ratios were generally in the 80s across auto and home, contributing to what management described as a healthy market environment. → GE HealthCare Stock Climbs on Vital Diagnostics Demand Sanborn noted that home insurance represented about 10% to 11% of EverQuote’s current business. He said the broader property-and-casualty market has roughly $1 of home insurance for every $2 of auto insurance, leaving room for expansion even though not all home insurance opportunities are relevant to digital distribution. Variable marketing dollars, or VMD, increased 25% to $56.9 million in the second quarter. Variable marketing margin was 29.2%. Management told analysts that it does not operate the business to target a specific variable marketing margin. Instead, it seeks to maximize VMD in a sustainable manner, with margins in the high 20% range historically correlating with higher VMD levels. Sanborn said broader use of Smart Campaigns, EverQuote’s AI-enabled bidding offering, provides more data to the marketplace and can improve traffic-acquisition efficiency. Mendal added that the company is also expanding into higher-funnel traffic channels that are not specific to the insurance industry and therefore may face different competitive pressures than insurance search advertising. When asked whether carrier testing had pressured margins, Mendal said EverQuote had not seen activity that would have that effect. EverQuote continued to expand Smart Campaigns during the quarter. Seven of its top 10 carriers now use the product, and revenue flowing through Smart Campaigns increased more than 100% from the prior-year period, Mendal said. The company also introduced an agent-facing version of Smart Campaigns to an initial group of local agents. Mendal said early data indicated “significant conversion rate improvements” among agents that opted into the offering, though he characterized the rollout as early stage. Management said it is applying AI internally across coding, operational automation and product prototyping. Mendal said EverQuote measured a 25% increase in engineering efficiency and has developed AI agents intended to emulate shopper personas and identify friction in web experiences. The company is also exploring what it described as more agentic traffic operations, adding deeper automation to machine-learning-based traffic bidding. Mendal said the company has historically seen benefits from such automation in bidding effectiveness and in its ability to manage a larger traffic portfolio with less human intervention. EverQuote plans to focus on two additional AI-related opportunities: products designed for AI search and agentic commerce, and AI-native growth tools for carriers and agents. Mendal said the consumer-facing effort could include content designed to answer questions posed through large language models, paid advertising opportunities and technical integrations. The company launched a ChatGPT app during the prior quarter and said it has begun receiving traffic through that channel. Sanborn said the new offerings are not expected to contribute material revenue in 2026. He described the current period as one of testing, innovation and customer engagement, similar to the company’s earlier Smart Campaigns rollout. For the third quarter, EverQuote expects revenue of $198 million to $208 million, representing 17% year-over-year growth at the midpoint. It forecast VMD of $56 million to $59 million and adjusted EBITDA of $28 million to $31 million, representing midpoint growth of 15% and 18%, respectively. The company said it expects targeted investment in the second half of 2026 to develop and launch new AI-focused products. Sanborn said operating expenses were relatively flat between the first and second quarters, while third-quarter operating expenses were expected to rise by roughly $1 million sequentially, followed by a smaller increase in the fourth quarter. Management maintained its expectation for adjusted EBITDA margin to increase by roughly 100 basis points for the full year. During the quarter, EverQuote repurchased 578,000 shares for approximately $9 million. Since launching its buyback program, the company has repurchased 2.5 million shares totaling $50 million. Sanborn said the board is expected to revisit authorizing a new repurchase program later this year as part of its capital-allocation review. Management said acquisitions are not necessary to reach its previously stated goal of $1 billion in annual revenue, which it said remains achievable within two to three years of its November 2025 target announcement. However, Sanborn said potential acquisition opportunities could help accelerate expansion in carrier and agent products, non-auto insurance verticals and data capabilities. EverQuote, Inc operates an online insurance marketplace that connects consumers with insurance providers across the United States. Founded in 2011 and headquartered in Cambridge, Massachusetts, the company leverages proprietary technology to match individuals seeking coverage with insurers offering competitive rates. Since its initial public offering in 2020, EverQuote has focused on expanding its digital platform and enhancing the efficiency of its lead-generation processes. The company's core business centers on a quote-comparison engine for personal auto, home, and health insurance products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "EverQuote Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Grows revenue 25% year-over-year to $195.1 million Delivers net income of $19.2 million Reports record Adjusted EBITDA of $30.1 million, increasing 37% year-over-year Q3 outlook indicates healthy demand as carriers continue to target growth across digital channels CAMBRIDGE, Mass., Aug. 03, 2026 (GLOBE NEWSWIRE) -- EverQuote, Inc. (Nasdaq: EVER), a leading provider of growth solutions for property and casualty, or P&C, insurance providers, today announced financial results for the second quarter ended June 30, 2026. “Our second quarter results mark another quarter of strong execution as we build on our commitment to helping P&C insurance providers maximize customer acquisition across digital channels to grow market share,” said Jayme Mendal, CEO of EverQuote. “We continue to innovate and execute to establish EverQuote as the trusted partner for P&C providers. Looking to the back half of the year, we will build on our leadership position and expand our market opportunities by introducing new solutions that harness the power of data, intelligence, and AI to deliver better outcomes at scale for both insurers and the consumers they are trying to reach.” Second Quarter 2026 Highlights:(Unless otherwise noted, all comparisons are relative to the second quarter of 2025). Total revenue grew 25% to $195.1 million. Revenue from the Company’s automotive insurance vertical was $172.1 million and revenue from the home and renters insurance vertical was $23.0 million, marking growth of 23% and 35%, respectively. Variable Marketing Dollars increased to $56.9 million, compared to $45.5 million. GAAP net income increased to $19.2 million, compared to $14.7 million. Adjusted EBITDA grew 37% to $30.1 million, compared to $22.0 million. Operating cash flow was $24.3 million, compared to $25.3 million. The Company ended the second quarter of 2026 with $192.3 million in cash and cash equivalents and no outstanding debt. During the quarter, the Company repurchased 578 thousand shares of its common stock for approximately $9.1 million. “Our positive results demonstrate our strong market position, a healthy demand environment and the depth and breadth of our relationships with carriers and agents seeking to grow their business,” said Joseph Sanborn, CFO and Chief Administrative Officer of EverQuote. “Ongoing momentum across the business reinforces our confidence in achieving our previously stated path to $1 billion in revenue and allows us to continue to invest in AI innovation and new product development to propel our growth long-term.” Third Quarter 2026 Outlook: Revenue of $198.0 – $208.0 million. Variable Marketing Dollars of $56.0 – $59.0 million. Adjusted EBITDA of $28.0 – $31.0 million. Adjusted EBITDA is a non-GAAP financial measure. Please see “Non-GAAP Financial Measures” below for more information. With respect to the Company’s expectations under “Third Quarter 2026 Outlook” above, the Company has not reconciled Adjusted EBITDA to the most directly comparable GAAP measure, net income (loss), in this press release because the Company does not provide guidance for stock-based compensation expense, depreciation and amortization expense, legal settlement expense, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income (loss). In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors. Conference Call and Webcast Information EverQuote will host a conference call and live webcast to discuss its second quarter 2026 financial results and other matters at 4:30 p.m. Eastern Time today, August 3, 2026 and supporting slides will be available at https://investors.everquote.com. To access the conference call, dial Toll Free: +1 (833) 461-5787 for the US, or +1 (585) 542-9983 for international callers, and provide conference ID 679163094. The live webcast and replay will be available on the Investors section of the Company’s website at https://investors.everquote.com. Safe Harbor Statement This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements regarding our future results of operations, financial position, liquidity and capital resources; our business strategy and plans, including our development, deployment and monetization of new and enhanced products and services; expectations regarding the timing of introducing new products and services; trends in consumer traffic and demand for our products and services; our relationships with, and spending by, carriers and agents, including future carrier demand and growth; our use of and expected further investments in artificial intelligence (AI) and the anticipated benefits thereof; objectives of management for future operations; and our capital allocation priorities, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “should,” “expects,” “might,” “plans,” “anticipates,” “could,” “intends,” “goals,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “seek,” “will,” “would” or “continues,” or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, liquidity and results of operations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements speak only as of the date of this press release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ include, without limitation, the following: our dependence on revenue from the property and casualty, or P&C, insurance industries, and specifically automotive insurance, and exposure to risks related to those industries; our dependence on our relationships with insurance providers with no long-term minimum financial commitments and furthermore, our reliance on a small number of insurance providers for a significant portion of our revenue; adverse conditions in the insurance markets, as well as the general economy; our dependence on third-party media sources for a significant portion of visitors to our websites and marketplace; our ability to attract consumers to our websites and marketplace; our ability to market to consumers or collect, share and use data derived from consumer activities; risks related to cybersecurity incidents or other network disruptions; risks related to achieving the anticipated benefits associated with our further investment in and increased use of AI; our ability to develop new and enhanced products and services and to successfully monetize them on a timely basis; the impact of competition in our industry and innovation by our competitors; our ability to stay abreast of and comply with new or modified laws and regulations that currently apply or become applicable to our business, including with respect to the insurance industry, telemarketing restrictions and data privacy requirements; and our ability to protect our intellectual property rights and maintain and build our brand. A further list and description of risks, uncertainties and assumptions that could cause or contribute to differences in our future results include the cautionary statements described in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025 and in our subsequent periodic filings with the Securities and Exchange Commission. We qualify all of our forward-looking statements by these cautionary statements. About EverQuote EverQuote (Nasdaq: EVER) is a leading AI-powered growth solutions partner for regulated property and casualty insurance entities, enabling the largest insurance carriers and thousands of agents to maximize customer acquisition across digital channels. Fueled by our proprietary data assets and our AI traffic engine, EverQuote is transforming the way providers attract and engage consumers to grow market share. To learn more visit investors.everquote.com. Investor Relations Contact Sara [email protected] Other financial and non-financial metrics: (1) Adjusted EBITDA is a non-GAAP measure. Please see “Non-GAAP Financial Measures” below for more information. Non-GAAP Financial Measures To supplement the Company’s financial statements presented in accordance with GAAP and to provide investors with additional information regarding EverQuote’s financial results, the Company has presented Adjusted EBITDA as a non-GAAP financial measure. Adjusted EBITDA is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies. The Company defines Adjusted EBITDA as net income (loss), excluding the impact of stock-based compensation expense; depreciation and amortization expense; legal settlement expense; interest income; and income taxes. The most directly comparable GAAP financial measure is net income (loss). The Company monitors and presents Adjusted EBITDA because it is a key measure used by management and the board of directors to understand and evaluate operating performance, to establish budgets and to develop operational goals for managing EverQuote’s business. In particular, the Company believes that excluding the impact of these items in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of EverQuote’s core operating performance. The Company uses Adjusted EBITDA to evaluate EverQuote’s operating performance and trends and make planning decisions. The Company believes that this non-GAAP financial measure helps identify underlying trends in EverQuote’s business that could otherwise be masked by the effect of the items that the Company excludes in the calculations of Adjusted EBITDA. Accordingly, the Company believes that this financial measure provides useful information to investors and others in understanding and evaluating EverQuote’s operating results, enhancing the overall understanding of the Company’s past performance and future prospects. Adjusted EBITDA is not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), which is the most directly comparable financial measure calculated and presented in accordance with GAAP. In addition, other companies may use other measures to evaluate their performance, which may reduce the usefulness of the Company’s non-GAAP financial measures as tools for comparison. The following table reconciles Adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP: