10-Q - QUINSTREET, INC (0001117297) (Filer)

Fri, Nov 8, 8:16 PM (65 days ago)

QuinStreet, Inc. (QNST) reported significant growth in Q1 FY2025, with net revenue soaring to $279,219,000, a 125% increase from $123,923,000 in Q1 FY2024. The financial services vertical was the primary driver, contributing 76% of revenue, up from 58% year-over-year, while home services declined to 23%. Gross profit also improved markedly to $28,405,000, reflecting a gross margin of 10.2%, up from 6.2%. Operating expenses rose 69% to $29,612,000, largely due to increased stock-based compensation and adjustments in contingent liabilities. The net loss narrowed to $1,366,000 from $10,565,000 a year prior. Cash flow from operations showed a notable outflow of $13,706,000, primarily due to a $63,594,000 increase in accounts receivable. The company ended the quarter with $24,982,000 in cash, down from $50,488,000 at the previous quarter's close. Future operations may be impacted by regulatory changes affecting marketing practices, particularly in telemarketing and data privacy. The company continues to focus on enhancing its technology and acquiring strategic media sources to sustain growth amidst these challenges.