QNST

QuinStreet is a performance-marketing middleman in financial services (75% of FY2025 revenue per the MD&A, up from 64% in FY2024) and home services (24%, down from 35%). The top line is finally moving again — FY2024 revenue of $614M grew 5.7% YoY after three years of stagnation around $578–582M — and the disclosed mix shift toward auto insurance suggests the cyclical recovery in that vertical is doing real work. But the P&L tells a harder story: gross profit was just $46.2M on $614M of revenue (7.5% gross margin) and fell 4.7% YoY even as revenue grew, meaning incremental dollars are coming in at very thin marginal economics. Operating income was -$28.1M and net income -$31.3M — the fourth consecutive year of losses, with cumulative retained-earnings deficit now -$130M.

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