EverQuote Q2 2026 Earnings: Revenue Rises 25% as Adjusted EBITDA Hits a Record

EverQuote (NASDAQ: EVER) reported Q2 2026 revenue of $195.1 million, up 24.6% from $156.6 million, while diluted EPS rose to $0.53 from $0.39. GAAP operating income and non-GAAP adjusted EBITDA grew faster than revenue, although operating cash flow edged lower year over year.

Core earnings results

For the quarter ended June 30, revenue growth translated into operating leverage: operating income increased 65.8%, and the operating margin expanded by approximately 3.0 percentage points. Adjusted EBITDA reached a record $30.1 million, up 37.1%.

Net income increased 30.5%, while diluted EPS grew approximately 35.9%, helped by a lower diluted share count. Operating cash flow declined slightly despite the improvement in earnings.

Adjusted EBITDA is a non-GAAP measure that excludes stock-based compensation, depreciation and amortization, legal settlement expense, interest income, and income taxes.

Business and vertical performance

Both insurance verticals expanded, with home and renters growing faster from a smaller base. Automotive remained the primary business, generating approximately 88% of total quarterly revenue.

The results indicate that growth was not limited to the automotive business. However, EverQuote’s overall performance remains heavily dependent on automotive insurance demand because of that vertical’s much larger revenue contribution.

Operating leverage widened margins, while working capital limited cash flow

Cost of revenue declined to $4.4 million from $4.8 million, while sales and marketing, research and development, and general and administrative expenses all grew more slowly than revenue. That combination helped operating income rise substantially faster than the top line and lifted the operating margin to approximately 12.0%.

Net income did not grow as quickly as operating income, mainly because income tax expense increased to $5.3 million from $0.4 million. Diluted EPS nevertheless grew faster than net income because the diluted weighted-average share count declined to 36.2 million from 38.0 million.

Operating cash flow slipped to $24.3 million even as net income increased. The largest disclosed year-over-year working-capital swing came from accounts receivable, which used $4.2 million of cash in Q2 2026 after providing $6.8 million in the prior-year quarter. Prepaid expenses also used $2.6 million, compared with $1.5 million previously.

EverQuote ended the quarter with $192.3 million in cash and cash equivalents and no outstanding debt. The company also repurchased 578,000 shares for approximately $9.1 million during the quarter.

Q3 2026 guidance

Management said the outlook reflects healthy demand as insurance carriers continue targeting growth through digital channels. At the revenue guidance midpoint of $203.0 million, sales would increase approximately 4% sequentially, while the adjusted EBITDA midpoint of $29.5 million would be about 2% below the Q2 result.

EverQuote did not provide a reconciliation of projected adjusted EBITDA to GAAP net income because it does not guide several reconciling items consistently, including stock-based compensation, taxes, and interest income.

Management’s view

CEO Jayme Mendal said EverQuote plans to introduce additional solutions in the second half of 2026 that use data, intelligence, and AI to improve customer acquisition outcomes for insurers and consumers. CFO Joseph Sanborn connected the quarter’s momentum to the company’s previously stated path toward $1 billion in revenue, although no timeframe was provided, and said EverQuote would continue investing in AI and new product development.

Recent insider transactions

The supplied insider data classifies the past six months as 599,873 shares purchased across 16 transactions and 75,986 shares sold across 19 transactions, resulting in 523,887 net shares purchased. Transaction types matter when interpreting that aggregate because the latest records include stock awards and a derivative exercise as well as sales.

The reported data does not establish whether the sales were discretionary or conducted under predetermined trading arrangements, so the transactions alone do not indicate insiders’ views of EverQuote’s outlook.

Risks investors should monitor

• Automotive concentration: Automotive produced approximately 88% of quarterly revenue, leaving overall results closely tied to demand within that insurance vertical.
• Carrier and customer concentration: EverQuote depends on relationships with insurance providers that have no long-term minimum financial commitments, and a small number of providers account for a significant portion of revenue.
• Working-capital volatility: Operating cash flow declined despite higher net income, with accounts receivable creating the largest unfavorable year-over-year cash-flow swing.
• Traffic and data dependence: The company relies on third-party media sources to attract consumers, while changes affecting marketing, data collection, sharing, or privacy could influence marketplace activity.
• AI and product execution: Management plans further investment in AI and new products, making timely development and monetization important to the company’s longer-term growth plans.

Summary

EverQuote’s Q2 2026 results combined broad-based vertical growth with improved operating leverage, producing faster growth in operating income and adjusted EBITDA than in revenue. The main offsets were higher tax expense and a modest decline in operating cash flow caused by working-capital movements. Q3 guidance points to continued revenue demand, while future performance will depend on maintaining carrier spending, converting earnings into cash, and executing planned AI and product investments.