Online insurance comparison site EverQuote (NASDAQ: EVER) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 20.3% year on year to $173.9 million. On top of that, next quarter’s revenue guidance ($177 million at the midpoint) was surprisingly good and 9.9% above what analysts were expecting. Its GAAP profit of $0.50 per share was 30.6% above analysts’ consensus estimates.

Is now the time to buy EVER? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

EverQuote’s third quarter delivered results that surpassed Wall Street’s expectations, with management highlighting strong carrier spending and notable progress with its AI-powered Smart Campaigns platform. CEO Jayme Mendal credited the company’s product evolution—particularly the launch of Smart Campaigns 3.0 and increased adoption of multiproduct solutions by local agents—as driving both revenue growth and expanding operating leverage. Mendal emphasized that EverQuote has become the top customer acquisition partner for a major national carrier, underscoring the effectiveness of its technology and marketplace differentiation.

Looking forward, EverQuote’s guidance reflects management’s confidence in sustained carrier demand and the scaling of new AI-powered traffic channels. Mendal pointed to continued investments in AI bidding, conversational voice products, and broader channel diversification as key to meeting ambitious long-term goals. CFO Joseph Sanborn noted that while near-term investments in new channels could pressure margins, the company expects these efforts to deliver improved efficiency and performance over time, stating, “We are playing investments to win… setting us up to really succeed in this market long term.”

Key Insights from Management’s Remarks

Management attributed EverQuote’s Q3 results to expanded partnerships with enterprise carriers, successful rollout of new AI features, and disciplined operating expense management.

• Enterprise carrier spend surge: EverQuote saw increased marketing budgets from large insurance carriers, driven by healthy underwriting margins and a focus on customer growth. Management noted that 80% of their top 25 carrier partners remain below historic spend levels, suggesting further upside.
• Smart Campaigns 3.0 launch: The company introduced its latest AI-powered bidding model, Smart Campaigns 3.0, which improved ad spend efficiency by 7% for early adopters. This upgrade has encouraged carriers to allocate larger budgets to EverQuote’s marketplace.
• Multiproduct agent adoption: Over 35% of local agent customers now use more than one EverQuote agent product, signaling traction for the company’s strategy to become a one-stop growth platform for agents and diversify revenue beyond lead generation.
• AI-driven operational efficiency: EverQuote reported that automation and AI have reduced manual workload in both traffic operations and engineering, leading to improved operating leverage and productivity without substantial increases in headcount.
• Share repurchase from founder affiliate: The company repurchased 900,000 Class A shares from Link Ventures, an affiliate of its co-founder, as part of its buyback program, demonstrating a commitment to capital return without impacting liquidity.

Drivers of Future Performance

EverQuote’s management expects forward momentum to come from AI-driven product innovation, expansion into new traffic channels, and ongoing carrier demand for customer acquisition.

• AI and product innovation: The company plans to extend its Smart Campaigns AI bidding tools to more customers, including local agents, and further develop conversational AI for call workflows. Management believes these tools will increase client spending and marketplace performance over time.
• Traffic channel investment: EverQuote is investing in scaling social, video, display, and connected TV channels, as well as building a presence in AI search. While these efforts may temporarily reduce marketing margins, management expects them to generate higher volumes and efficiency as campaigns mature.
• Carrier market tailwinds: Management sees a multi-year favorable cycle for insurance carrier profitability, which typically results in increased advertising spend. They view EverQuote as well-positioned to benefit as carriers reactivate and ramp budgets, particularly in large states like California.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will watch (1) the pace of adoption and performance gains from Smart Campaigns 3.0 and other AI-powered products, (2) the impact of new traffic channel investments on both volume and marketing margins as campaigns mature, and (3) whether carrier advertising budgets continue to rise, especially in key markets like California. Progress toward EverQuote’s $1 billion revenue target and the ability to sustain margin expansion will also be critical metrics.

EverQuote currently trades at $23.80, up from $22.42 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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