Online insurance comparison site EverQuote (NASDAQ:EVER) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 32.5% year on year to $195.3 million. On the other hand, next quarter’s revenue guidance of $180 million was less impressive, coming in 7% below analysts’ estimates. Its GAAP profit of $1.54 per share was significantly above analysts’ consensus estimates.

Is now the time to buy EverQuote? Find out in our full research report.

Revenue: $195.3 million vs analyst estimates of $176.9 million (32.5% year-on-year growth, 10.4% beat)

EPS (GAAP): $1.54 vs analyst estimates of $0.36 (significant beat)

Adjusted EBITDA: $25.06 million vs analyst estimates of $21.92 million (12.8% margin, 14.4% beat)

Revenue Guidance for Q1 CY2026 is $180 million at the midpoint, below analyst estimates of $193.6 million

EBITDA guidance for Q1 CY2026 is $25 million at the midpoint, below analyst estimates of $26.87 million

Operating Margin: 9.5%, up from 8.2% in the same quarter last year

Free Cash Flow Margin: 13.2%, up from 10.6% in the previous quarter

Market Capitalization: $557 million

“2025 was a record year for EverQuote defined by significant success scaling our marketplace, further integrating AI into our operations, and accelerating our evolution to a growth solutions partner to our customers,” said Jayme Mendal, CEO of EverQuote.

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

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, EverQuote’s sales grew at an impressive 19.7% compounded annual growth rate over the last three years. Its growth beat the average consumer internet company and shows its offerings resonate with customers.

This quarter, EverQuote reported wonderful year-on-year revenue growth of 32.5%, and its $195.3 million of revenue exceeded Wall Street’s estimates by 10.4%. Company management is currently guiding for a 8% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 10.8% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is above the sector average and implies the market is baking in some success for its newer products and services.

The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

EverQuote has shown impressive cash profitability, driven by its attractive business model that gives it the option to reinvest or return capital to investors. The company’s free cash flow margin averaged 12.8% over the last two years, better than the broader consumer internet sector.

Taking a step back, we can see that EverQuote’s margin expanded by 18 percentage points over the last few years. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability.

EverQuote’s free cash flow clocked in at $25.85 million in Q4, equivalent to a 13.2% margin. This cash profitability was in line with the comparable period last year and its two-year average.

We were impressed by how significantly EverQuote blew past analysts’ EBITDA expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. On the other hand, its revenue guidance for next quarter missed and its EBITDA guidance for next quarter fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 10% to $13.78 immediately following the results.

Is EverQuote an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.