QuinStreet’s first quarter results reflected robust revenue growth, with management attributing performance to strong expansion in its financial services and home services verticals, particularly auto insurance. However, the market’s negative reaction centered on caution around future client spending and potential impacts from tariffs. CEO Doug Valenti noted, “The continued strong results are due to the combination of our big market opportunities, exceptional value proposition, and strong competitive advantages,” but also acknowledged that client ramp-ups have been more measured than anticipated, partly due to external uncertainties. Management’s remarks highlighted both the company’s operational progress and the external pressures shaping its outlook.

Is now the time to buy QNST? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are 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.

Our Top 5 Analyst Questions QuinStreet’s Q1 Earnings Call

• Cal (Craig-Hallum): asked about the ability of auto insurance carriers to absorb tariff-related cost pressures. CEO Doug Valenti explained that while tariffs could impact claim costs, most carriers remain financially strong, but are hesitant to ramp spending until tariff policies are clarified.
• Patrick Sholl (Barrington Research): questioned the impact of tariffs on home services. Valenti said no clients have reduced spend yet, but some are concerned about cost increases; QuinStreet is shifting focus to less-exposed areas to mitigate risk.
• Oscar Nieves (Stephens Inc.): inquired about potential share buybacks. CFO Greg Wong stated that the company’s capital allocation priority remains business growth and maintaining a strong balance sheet, rather than near-term repurchases.
• Zach Cummins (B. Riley Securities): sought details on sequential performance and evolving margin strategy in auto insurance. Valenti and Wong explained the sequential dip followed an unusually strong prior quarter and described how the company is balancing growth with prudent margin management.
• Chris Sakai (Singular Research): asked about early success in new verticals. Valenti highlighted growth in agency-focused insurance and expanded offerings in home services and financial products as promising areas for future revenue.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the evolution of tariff-related policies and their impact on client marketing budgets, (2) the pace of proprietary media adoption and margin expansion, and (3) continued growth in agency-focused insurance products and new trades within home services. Success in scaling new products and maintaining operational flexibility will also be key signposts for sustained performance.

QuinStreet currently trades at $16.54, down from $18.30 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

The Best Stocks for High-Quality Investors

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.