Friday POW!

Pick of the Week!

“The cheapest thing to buy is a good business with an undeservedly bad reputation.” -Peter Lynch

---

Pick of the Week (POW) ↦ QUINSTREET INC. (QNST)

---

TLDR Summary:

• The Mispricing: Market prices QNST as cyclical lead-gen middleman at 0.76x sales; reality is proprietary insurance platform (QuinStreet Rating Platform) with 100+ carrier integrations that became mission-critical infrastructure during 2024-2025 insurance crisis

• The Turnaround: FY2025 revenue exploded 78% to $1.1B with Adjusted EBITDA (gross cash flow) up 299% to $81M; company went from multi-year losses to profitable, generated $74M free cash flow, and has zero debt with $107M cash relative to a market cap of just $600M (however, almost half of that will be deployed into a promising acquisition)

• Auto Insurance Dominance: Auto insurance revenue grew 615% YoY in FY Q2 2025 as carriers desperately needed qualified leads post-rate-hike cycle; QNST now has more carriers spending $1M+/month than any time in company history

• The Platform Moat: QuinStreet Rating Platform (QRP) is only comparative rater with end-to-end issuance capability across 100+ carriers and agents can’t replicate this; switching costs are real once integrated into agency workflows