QUINSTREET, INC
For the period ended Dec 31, 2025. Filed Feb 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Feb 6, 2026
QNST$20.66+1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001193125-25-272017
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-06.
0001193125-26-040809
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 101 previous paragraphs and 111 current paragraphs.
69 unchanged; 29 reworded; 10 added; 3 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Product development expenses decreased by $0.9 million, or 5%, for the six months ended December 31, 2025 compared to the six months ended December 31, 2024, primarily due to decreased personnel cost.
Current report
General and administrative expenses decreased by $1.1 million, or 8%, for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, primarily due to the difference in the increase in the fair value of contingent consideration of $2.2 million, offset by an increase in professional fees of $1.9 million primarily related to our acquisition of Homebuddy.
Current report
General and administrative expenses decreased by $8.7 million, or 28%, for the six months ended December 31, 2025 compared to the six months ended December 31, 2024, primarily due to the difference in the increase in the fair value of contingent consideration of $8.5 million and bad debt expense of $1.3 million, offset by an increase in professional fees of $2.5 million primarily related to our acquisition of Homebuddy.
Current report
As of December 31, 2025, we determined that sufficient positive evidence existed to conclude that substantially all of our valuation allowance was no longer needed and that it is more likely than not that we would be able to utilize the majority of the deferred tax assets. Accordingly, we recorded a net benefit from income taxes of $48.9 million and $48.7 million for the three and six months ended December 31, 2025 primarily related to the release of the valuation allowance for the majority of our federal and state deferred tax assets of $61.8 million.
Current report
Credit Facility
Current report
In January 2026, we entered into the Financing Agreement with MUFG Bank, LTD., as administrative agent for the lenders and certain other parties signatory thereto. The Financing Agreement provides for a new $150 million revolving credit facility.
Current report
Interest on the borrowings under the Revolving Credit Facility are payable at interest rates equal to, at our option, either: (a) a SOFR-based rate (subject to a 0.00% per annum floor), plus an applicable margin of up to 2.75% per annum depending on the Consolidated Total Net Leverage Ratio (as defined in the Financing Agreement), or (b) a base rate (subject to a 0.00% per annum floor), plus an applicable margin up to 1.75% per annum depending on the Consolidated Total Net Leverage Ratio (as defined in the Financing Agreement). The Financing Agreement requires us to pay the lenders with commitments under the Revolving Credit Facility an unused commitment fee of up to 0.40% per annum depending on the Consolidated Total Net Leverage Ratio (as defined in the Financing Agreement) on the unused portion of the Revolving Credit Facility.
Current report
The Financing Agreement contains restrictions and covenants applicable to us and our subsidiaries. Among other requirements, we may not permit (i) the Consolidated Total Net Leverage Ratio (as defined in the Financing Agreement) to be greater than a certain specified ratio for any date of determination during the term of the Financing Agreement or (ii) the Consolidated Interest Coverage Ratio (as defined in the Financing Agreement) to be less than a certain specified ratio for any date of determination during the term of the Financing Agreement.
Current report
The Financing Agreement also contains customary covenants that limit, among other things, the ability of us and our subsidiaries to (i) incur indebtedness, (ii) incur liens on their property, (iii) pay dividends or make certain other distributions, (iv) sell their assets, (v) make certain loans or investments, (vi) merge or consolidate), (vii) voluntarily repay or prepay certain indebtedness and (viii) enter into transactions with affiliates, in each case subject to certain exceptions. The Financing Agreement contains customary representations and warranties and events of default.
Current report
The proceeds of the loans drawn under the Revolving Credit Facility are being used to partially fund our acquisition of HomeBuddy and may be used to fund our general working capital needs and general corporate purposes. As of January 31, 2026, we had borrowings under our revolving credit facility of $70.0 million.
Removed paragraphs (3)
Previous report
Beginning in calendar 2024, the auto insurance industry began to benefit from rate increases and product optimizations which allowed increased advertising spending which in turn resulted in increases in our revenues and quarterly net profits.
Previous report
General and administrative expenses decreased by $7.6 million, or 45%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to an adjustment to the fair value of contingent consideration of $6.3 million in the first quarter of fiscal year 2025 and decreased bad debt expense of $1.0 million.
Previous report
As of September 30, 2025, the Company has concluded that it is not more likely than not that the Company would be able to utilize the majority of the deferred tax assets based on available evidence primarily related to historic losses and projected income. However, if there are favorable changes to actual operating results or to projections of future income, the Company may determine that it is more likely than not that such deferred tax assets may be realizable and record a material non-cash income tax benefit.
Reworded paragraphs (29)
Previous wording
own or access targeted media through business arrangements (e.g., revenue sharing arrangements with online publisher partners, large and small) or by purchasing media (e.g., clicks from major search engines);
Current wording
own or access targeted media through business arrangements (e.g., revenue sharing arrangements with online publisher partners, large and small) or by purchasing media (e.g., clicks from major search engines, social media platforms and programmatic/display networks);
Previous wording
through technology and analytics, seek to optimize combination of objectives to satisfy the maximum number of shopping or researching visitors or consumers, deliver on client marketing objectives, effectively compete for online media, and generate a sound financial outcome for us.
Current wording
through technology and analytics, seek to optimize a combination of objectives to satisfy the maximum number of shopping or researching visitors or consumers, deliver on client marketing objectives, effectively compete for online media, and generate a sound financial outcome for us.
Previous wording
Our financial services client vertical represented 73% and 76% of net revenue for the three months ended September 30, 2025 and 2024. Our home services client vertical represented 27% and 24% of net revenue for the three months ended September 30, 2025 and 2024. We generated the majority of our revenue from sales to clients in the United States.
Current wording
Our financial services client vertical represented 75% and 74% of net revenue for the three and six months ended December 31, 2025, and 78% and 77% of net revenue for the three and six months ended December 31, 2024. Our home services client vertical represented 25% and 26% of net revenue for the three and six months ended December 31, 2025, and 22% and 23% for the three and six months ended December 31, 2024. We generated the majority of our revenue from sales to clients in the United States.
Previous wording
One client in our financial services client vertical accounted for 21% of net revenue for the three months ended September 30, 2025, and two clients accounted for 20% and 14% of net revenue for the three months ended September 30, 2024.
Current wording
One client in our financial services client vertical accounted for 22% of net revenue for the three months ended December 31, 2025, and 21% of net revenue for the six months ended December 31, 2025. Two clients in our financial services client vertical accounted for 23% and 18% of our net revenue for the three months ended December 31, 2024, and 21% and 16% of our net revenue for the six months ended December 31, 2024.
Previous wording
Acquisitions have historically been, and continue to be, an important element of our overall corporate strategy and use of capital. We have completed several strategic acquisitions in the past, including the acquisitions of BestCompany and AquaVida completed in fiscal year 2024, the acquisitions of Modernize, Mayo Labs, LLC ("Mayo Labs") and FC Ecosystem ("FCE") completed in fiscal year 2021, and the acquisitions of AmOne Corp. ("AmOne"), CloudControlMedia, LLC ("CCM"), and MyBankTracker.com, LLC ("MBT") completed in fiscal year 2019.
Current wording
Acquisitions have historically been, and continue to be, an important element of our overall corporate strategy and use of capital. We have completed several strategic acquisitions, including the acquisition of Homebuddy completed in January 2026, the acquisitions of BestCompany and AquaVida completed in fiscal year 2024, the acquisitions of Modernize, Mayo Labs, LLC ("Mayo Labs") and FC Ecosystem ("FCE") completed in fiscal year 2021, and the acquisitions of AmOne Corp. ("AmOne"), CloudControlMedia, LLC ("CCM"), and MyBankTracker.com, LLC ("MBT") completed in fiscal year 2019.
Previous wording
Interest and other (expense) income, net, consists primarily of interest expense, interest income, and other income and expense. Interest expense is related to imputed interest on post-closing payments related to our acquisitions. We have no borrowing agreements outstanding as of September 30, 2025; however interest expense could increase if, among other things, we enter into a new borrowing agreement to manage liquidity or make additional acquisitions through debt financing. Interest income represents interest earned on our cash and cash equivalents, which may increase or decrease depending on market interest rates and the amounts invested. Other (expense) income, net includes gains and losses on foreign currency exchange, and other non-operating items.
Current wording
Interest and other (expense) income, net, consists primarily of interest expense, interest income, and other income and expense. Interest expense is related to imputed interest on post-closing payments related to our acquisitions. We have no borrowing agreements outstanding as of December 31, 2025. Borrowings under our new credit facility and related interest expense could increase (or decrease) as we continue to implement our acquisition strategy and draw down, or repay on the facility, or if our interest rates increase or decrease due to market factors or our operating performance. Interest income represents interest earned on our cash and cash equivalents, which may increase or decrease depending on market interest rates and the amounts invested. Other (expense) income, net includes gains and losses on foreign currency exchange, and other non-operating items.
Previous wording
Net revenue increased by $6.6 million, or 2%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Revenue from our home services client vertical increased by $10.1 million, or 15%, primarily as a result of increased client budgets and successful execution of growth initiatives. Revenue from our financial services client vertical decreased by $3.4 million, or 2%, primarily due to a decrease in revenue in credit cards business of $7.2 million, attributable to the timing of limited time offers with our credit card customers, offset by an increase in revenue in our banking business of $3.5 million, attributable to higher demand from a broad base of clients.
Current wording
Net revenue increased by $5.2 million, or 2%, for the three months ended December 31, 2025 compared to the three months ended December 31, 2024. Revenue from our home services client vertical increased by $8.4 million, or 13%, primarily as a result of increased client budgets and successful execution of growth initiatives. Revenue from our financial services client vertical decreased by $3.1 million, or 1%, primarily due to a decrease in revenue in our insurance business of $7.3 million, offset by an increase in revenue in our credit-driven businesses including credit cards and personal loans of $4.0 million.
Previous wording
Cost of revenue increased by $8.1 million, or 3%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by increased media and marketing costs of $8.6 million due to higher revenue volumes. Gross profit margin, which is the difference between net revenue and cost of revenue as a percentage of net revenue, was 9% and 10% for the three months ended September 30, 2025 and 2024. The decrease in gross profit margin was attributable to an increase in media and marketing fees as a percentage of net revenue.
Current wording
Cost of revenue increased by $4.3 million, or 2%, for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, primarily driven by increased media and marketing costs of $6.1 million due to higher revenue volumes and investments into new owned and operated media sources, offset by decreased amortization expense of $1.3 million. Gross profit margin, which is the difference between net revenue and cost of revenue as percentage of net revenue, was 10% and 9% for the three months ended December 31, 2025 and 2024.
Previous wording
Product development expenses decreased by $0.5 million, or 5%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to decreased personnel cost.
Current wording
Product development expenses decreased by $0.4 million, or 5%, for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, primarily due to decreased personnel cost.
Previous wording
Sales and marketing expenses increased by $0.6 million, or 14%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to increased personnel cost due to higher average headcount and increased stock-based compensation expense.
Current wording
Sales and marketing expenses increased by $0.4 million, or 5%, for the six months ended December 31, 2025 compared to the six months ended December 31, 2024, primarily due to increased personnel cost due to annual merit raises.
Previous wording
The Company recorded a provision for income taxes of $0.2 million and a benefit from income taxes of $49 thousand for the three months ended September 30, 2025 and 2024.
Current wording
We recorded a benefit from income taxes of $48.9 million and $48.7 million for the three and six months ended December 31, 2025, and a benefit from income taxes of $45 thousand and $94 thousand for the three and six months ended December 31, 2024.
Previous wording
On July 4, 2025, U.S. legislation formally titled "An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” (“The Act”) was signed into law. The Act, among other things, extended key provisions of the 2017 Tax Cuts and Jobs Act and introduced targeted changes to the U.S. federal income tax regime. Key provisions include permanently restoring bonus depreciation allowances, permanent changes in the limitations for deducting business interest expense and permanent reintroduction of expensing of US research and development costs. The impact on current and deferred taxes for tax law changes is reported in continuing operations in the interim period which includes the enactment date. The Company continues to evaluate the impact of The Act on its financial statements, including the related tax implications to the current and future fiscal years.
Current wording
On July 4, 2025, U.S. legislation formally titled "An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” (“The Act”) was signed into law. The Act, among other things, extended key provisions of the 2017 Tax Cuts and Jobs Act and introduced targeted changes to the U.S. federal income tax regime. Key provisions include permanently restoring bonus depreciation allowances, permanent changes in the limitations for deducting business interest expense and permanent reintroduction of expensing of US research and development costs. The impact on current and deferred taxes for tax law changes is reported in continuing operations in the interim period which includes the enactment date. We continue to evaluate the impact of The Act on our financial statements, including the related tax implications to the current and future fiscal years.
Previous wording
As of September 30, 2025, our principal sources of liquidity consisted of cash and cash equivalents of $101.3 million and cash we expect to generate from future operations. Our cash and cash equivalents are maintained in highly liquid investments with remaining maturities of 90 days or less at the time of purchase. We believe our cash equivalents are liquid and accessible.
Current wording
As of December 31, 2025, our principal sources of liquidity consisted of cash and cash equivalents of $107.0 million and cash we expect to generate from future operations. In January 2026, we also entered into a new Financing Agreement that provides for a $150 million revolving credit facility, from which we had drawn $70.0 million as of January 31, 2026. Our cash and cash equivalents are maintained in highly liquid investments with remaining maturities of 90 days or less at the time of purchase. We believe our cash equivalents are liquid and accessible.
Previous wording
Our short-term and long-term liquidity requirements primarily arise from our working capital requirements, capital expenditures, internal software development costs, repurchases of our common stock, and acquisitions from time to time. Our acquisitions also may have deferred purchase price components and contingent consideration which requires us to make a series of payments following the acquisition closing date. Our primary operating cash requirements include the payment of media costs, personnel costs, costs of information technology systems and office facilities. Our ability to fund these requirements will depend on our future cash flows, which are determined, in part, by future operating performance and are, therefore, subject to prevailing global macroeconomic conditions and financial, business and other factors, some of which are beyond our control. Even though we may not need additional funds to fund anticipated liquidity requirements, we may still elect to obtain debt financing or issue additional equity securities for other reasons.
Current wording
Our short-term and long-term liquidity requirements primarily arise from our working capital requirements, capital expenditures, internal software development costs, repurchases of our common stock, debt service and commitment fees on our $150 million revolving credit facility, and acquisitions from time to time. Our acquisitions also may have deferred purchase price components and contingent consideration which requires us to make a series of payments following the acquisition closing date. For example, on January 2, 2026, the Company completed the acquisition of HomeBuddy, pursuant to which the Company paid $115.0 million in cash (subject to customary adjustments, including adjustments for cash, debt, transaction expenses and net working capital) at closing and is obligated to pay $75.0 million in additional post-closing payments, payable in equal annual installments over a four-year period. Our primary operating cash requirements include the payment of media costs, personnel costs, costs of information technology systems and office facilities. Our ability to fund these requirements will depend on our future cash flows, which are determined, in part, by future operating performance and are, therefore, subject to prevailing global macroeconomic conditions and financial, business and other factors, some of which are beyond our control, and also our ability to access our revolving credit facility. Even though we may not need additional funds to fund anticipated liquidity requirements, we may still elect to obtain additional debt financing, issue additional equity securities or draw down on or increase our borrowing capacity under our current revolving credit facility for other reasons.
Previous wording
In April 2022, our Board of Directors authorized a new stock repurchase program allowing the repurchase of up to $40.0 million worth of common stock. During the three months ended September 30, 2025, the Company repurchased and retired 462,440 shares of its common stock at an average price of $15.41 per share, at a total cost of $7.1 million (including a broker commission of $0.03 per share). Repurchases under this program took place in the open market and were made under a Rule 10b5-1 plan. The repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. There were no repurchases made during the fiscal year 2025. As of September 30, 2025, approximately $9.7 million remained available for stock repurchases pursuant to the board authorization.
Current wording
In April 2022, our Board of Directors authorized the 2022 Stock Repurchase Program allowing the repurchase of up to $40.0 million worth of common stock. During the six months ended December 31, 2025, the Company repurchased and retired 1,121,745 shares of its common stock at an average price of $14.94 per share, at a total cost of $16.8 million (including a broker commission of $0.03 per share). Repurchases under this program took place in the open market and were made under a Rule 10b5-1 plan. The repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. There were no repurchases made during the fiscal year 2025. As of December 31, 2025, the $40.0 million authorized for repurchase under the 2022 Stock Repurchase Program was fully utilized.
Previous wording
On October 30, 2025, the Board of Directors authorized a new stock repurchase program allowing the Company to repurchase up to $40.0 million of its outstanding shares of common stock. Repurchases under this program may take place in the open market or in privately negotiated transactions and may be made under a Rule 10b5-1 plan.
Current wording
In October 2025, the Board of Directors authorized the 2025 Stock Repurchase Program allowing the Company to repurchase up to $40.0 million of its outstanding shares of common stock. Repurchases under this program may take place in the open market or in privately negotiated transactions and may be made under a Rule 10b5-1 plan. As of December 31, 2025, no repurchases have been made under this program.
Previous wording
We believe that our principal sources of liquidity will be sufficient to satisfy our currently anticipated cash requirements through at least the next 12 months and thereafter for the foreseeable future.
Current wording
We believe that our existing cash, cash equivalents, cash we expect to generate from future operations, and our available borrowings under our revolving credit facility will be sufficient to satisfy our currently anticipated cash requirements through at least the next 12 months and thereafter for the foreseeable future.
Previous wording
Net Cash Provided by (Used in) Operating Activities
Current wording
Net Cash Provided by Operating Activities
Previous wording
Cash flows from operating activities are primarily the result of our net income (loss) adjusted for depreciation and amortization, change in the fair value of contingent consideration, provision for sales returns and doubtful accounts receivable, stock-based compensation expense, non-cash lease expense, deferred income taxes, and changes in working capital components. Cash provided by operating activities was $19.6 million for the three months ended September 30, 2025, compared to cash used in operating activities of $13.7 million for the three months ended September 30, 2024.
Current wording
Cash flows from operating activities are primarily the result of our net income (loss) adjusted for depreciation and amortization, change in the fair value of contingent consideration, provision for sales returns and doubtful accounts receivable, stock-based compensation expense, non-cash lease expense, deferred income taxes, and changes in working capital components. Cash provided by operating activities was $41.2 million for the six months ended December 31, 2025, compared to cash provided by operating activities of $25.0 million for the six months ended December 31, 2024.
Previous wording
Cash provided by operating activities for the three months ended September 30, 2025 primarily consisted of a net income of $4.5 million and non-cash adjustments of $15.1 million. The non-cash adjustments primarily consisted of stock-based compensation expense of $9.2 million and depreciation and amortization expense of $5.8 million. The changes in working capital accounts were primarily attributable to an increase in accounts receivable of $14.8 million, offset by an increase in accrued liabilities and accounts payable of $14.5 million. The increases in accounts receivable, and accrued liabilities and accounts payable were primarily due to higher revenue for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, and timing of receipts and payments.
Current wording
Cash provided by operating activities for the six months ended December 31, 2025 consisted of a net income of $54.8 million and a net increase in cash from changes in working capital of $1.9 million, offset by non-cash adjustments of $15.4 million. The changes in working capital accounts were primarily attributable to an increase in accrued liabilities and accounts payable of $19.7 million, offset by an increase in accounts receivable of $18.3 million. The increases in accrued liabilities, accounts payable, and accounts receivable were primarily due to higher revenue for the six months ended December 31, 2025 as compared to the six months ended December 31, 2024, and timing of receipts and payments. The non-cash adjustments primarily consisted of a one-time non-cash benefit of $48.3 million related to our release of the valuation allowance for the majority of our federal and certain state deferred tax assets, offset by stock-based compensation expense of $18.8 million, and depreciation and amortization expense of $10.7 million.
Previous wording
Cash used in operating activities for the three months ended September 30, 2024 consisted of a net loss of $1.4 million and a net decrease in cash from changes in working capital of $34.3 million, offset by non-cash adjustments of $22.0 million. The non-cash adjustments primarily consisted of stock-based compensation expense of $8.4 million, depreciation and amortization expense of $6.4 million, and provision for sales return and doubtful accounts receivable of $1.5 million. The changes in working capital accounts were primarily attributable to an increase in accounts receivable of $63.6 million and an increase in prepaid expenses and other assets of $0.8 million, offset by an increase in accrued liabilities of $17.6 million and an increase in accounts payable of $12.3 million. The increases in accounts receivable, and accrued liabilities and accounts payable were primarily due to higher revenue for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023, and timing of receipts and payments.
Current wording
Cash provided by operating activities for the six months ended December 31, 2024 consisted of a net loss of $2.9 million and a net decrease in cash from changes in working capital of $14.9 million, offset by non-cash adjustments of $42.8 million. The non-cash adjustments primarily consisted of stock-based compensation expense of $17.5 million, depreciation and amortization expense of $12.7 million, change in the fair value of contingent consideration of $11.2 million, and provision for sales return and doubtful accounts receivable of $1.8 million. The changes in working capital accounts were primarily attributable to an increase in accounts receivable of $40.4 million and an increase in prepaid expenses and other assets of $4.3 million, offset by an increase in accrued liabilities of $22.5 million and an increase in accounts payable of $7.2 million. The increases in accounts receivable, and accrued liabilities and accounts payable were primarily due to higher revenue levels for the six months ended December 31, 2024 as compared to the six months ended December 31, 2023, and timing of receipts and payments.
Previous wording
Cash flows from investing activities generally include capital expenditures, capitalized internal software development costs, and acquisitions from time to time. Cash used in investing activities was $4.1 million for the three months ended September 30, 2025, compared to $2.6 million for the three months ended September 30, 2024.
Current wording
Cash flows from investing activities generally include capital expenditures, capitalized internal software development costs, and acquisitions from time to time. Cash used in investing activities was $7.6 million for the six months ended December 31, 2025, compared to $5.4 million for the six months ended December 31, 2024.
Previous wording
Cash used in investing activities in the three months ended September 30, 2025 was primarily due to internal software development costs of $2.9 million and capital expenditures of $1.2 million.
Current wording
Cash used in investing activities in the six months ended December 31, 2025 was primarily due to internal software development costs of $5.5 million and capital expenditures of $2.1 million.
Previous wording
Cash used in investing activities in the three months ended September 30, 2024 was primarily due to internal software development costs of $2.2 million and capital expenditures of $0.4 million.
Current wording
Cash used in investing activities in the six months ended December 31, 2024 was primarily due to internal software development costs and capital expenditures of $5.4 million.
Previous wording
Cash flows from financing activities generally include post-closing payments related to business acquisitions, payment of withholding taxes related to the release of restricted stock, net of share settlement, repurchases of common stock, proceeds from issuance of common stock under employee stock purchase plan and exercise of stock options. Cash used in financing activities was $15.3 million for the three months ended September 30, 2025, compared to $9.2 million for the three months ended September 30, 2024.
Current wording
Cash flows from financing activities generally include post-closing payments related to business acquisitions, payment of withholding taxes related to the release of restricted stock, net of share settlement, repurchases of common stock, proceeds from issuance of common stock under employee stock purchase plan and exercise of stock options. Cash used in financing activities was $27.7 million for the six months ended December 31, 2025, compared to $12.3 million for the six months ended December 31, 2024.
Previous wording
Cash used in financing activities in the three months ended September 30, 2025 was due to repurchase of common stock of $6.7 million, payment of withholding taxes related to the release of restricted stock, net of share settlement of $5.3 million and payment of post-closing payments and contingent consideration related to acquisitions of $4.6 million, offset by proceeds from the issuance of common stock under the employee stock purchase plan of $1.3 million.
Current wording
Cash used in financing activities in the six months ended December 31, 2025 was due to repurchase of common stock of $16.8 million, payment of withholding taxes related to the release of restricted stock, net of share settlement of $7.7 million and payment of post-closing payments and contingent consideration related to acquisitions of $4.6 million, offset by proceeds from the issuance of common stock under the employee stock purchase plan of $1.3 million.
Previous wording
Cash used in financing activities in the three months ended September 30, 2024 was due to payment of withholding taxes related to the release of restricted stock, net of share settlement of $5.4 million and payment of post-closing payments and contingent consideration related to acquisitions of $5.1 million, offset by proceeds from the exercise of stock options and issuance of common stock under the employee stock purchase plan of $1.4 million.
Current wording
Cash used in financing activities in the six months ended December 31, 2024 was due to payment of withholding taxes related to the release of restricted stock, net of share settlement of $8.5 million and payment of post-closing payments and contingent consideration related to acquisitions of $5.1 million, offset by proceeds from the issuance of common stock under the employee stock purchase plan of $1.2 million.
Previous wording
Our contractual obligations primarily consist of operating leases, post-closing payments and contingent consideration payments recognized from our acquisitions. These contractual obligations impact our short-term and long-term liquidity and capital resource needs.
Current wording
Our contractual obligations primarily consist of operating leases, post-closing payments and contingent consideration payments recognized from our acquisitions, and borrowings under our revolving credit facility. These contractual obligations impact our short-term and long-term liquidity and capital resource needs.
Previous wording
There have been no material changes in our contractual obligations as presented in Part II, Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for our fiscal year ended June 30, 2025.
Current wording
As of December 31, 2025, there were no material changes in our contractual obligations as presented in Part II, Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for our fiscal year ended June 30, 2025. In January 2026, the Company completed its acquisition of HomeBuddy,which was financed in part with borrowings under our revolving credit facility. No obligations under our revolving credit facility were outstanding as of December 31, 2025.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Net revenue increased by $11.9 million, or 2%, for the six months ended December 31, 2025 compared to the six months ended December 31, 2024. Revenue from our home services client vertical increased by $18.4 million, or 14%, primarily as a result of increased client budgets and successful execution of growth initiatives. Revenue from our financial services client vertical decreased by $6.6 million, or 2%, primarily due to a decrease in revenue in our insurance business of $5.5 million and credit-driven businesses including credit cards and personal loans of $4.8 million, offset by our banking business of $3.8 million.
Current report — wording carried from elsewhere
Cost of revenue increased by $12.4 million, or 2%, for the six months ended December 31, 2025 compared to the six months ended December 31, 2024, primarily driven by increased media and marketing costs of $14.7 million due to higher revenue volumes and investments into new owned and operated media sources, offset by decreased amortization expense of $1.9 million. Gross profit margin, which is the difference between net revenue and cost of revenue as a percentage of net revenue, was 10% for both the six months ended December 31, 2025 and 2024.
Current report — wording carried from elsewhere
Sales and marketing expenses decreased by $0.1 million, or 3%, for the three months ended December 31, 2025 compared to the three months ended December 31, 2024.