EverQuote, Inc.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read together with our condensed consolidated financial statements and related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q and our consolidated financial statements and the related notes and other financial information included in our Annual Report on Form 10-K for the year ended December 31, 2025, on file with the Securities and Exchange Commission. The following discussion and analysis contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below, elsewhere in this Quarterly Report on Form 10-Q, particularly in Item 1A. Risk Factors, and in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read together with our condensed consolidated financial statements and related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q and our consolidated financial statements and the related notes and other financial information included in our Annual Report on Form 10-K for the year ended December 31, 2025, on file with the Securities and Exchange Commission. The following discussion and analysis contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below, elsewhere in this Quarterly Report on Form 10-Q and in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025.

Previous wording

We operate a marketplace to connect insurance providers to a large volume of high-intent, pre-validated consumer referrals that match the insurers’ specific underwriting and profitability requirements. The transparency of our marketplace, as well as the campaign management tools we offer, are designed to make it easy for insurance carriers and third-party agents to evaluate the performance of their marketing spend on our platform and manage their own return on investment. We present consumers with a single starting point for a comprehensive insurance shopping experience where consumers can engage with insurance carriers through multiple channels based on their preferences. Our marketplace enables consumers to choose to visit an insurance provider’s website to purchase a policy or engage with a carrier or agent by phone or submit their data to insurance providers to receive quotes. Our services are free for consumers, and we derive our revenue principally from consumer inquires sold as referrals to insurance providers.

Current wording

We operate a marketplace to connect insurance providers to a large volume of high-intent, pre-validated consumer referrals that match the insurers’ specific underwriting and profitability requirements. The transparency of our marketplace, as well as the campaign management tools we offer, are designed to make it easy for insurance carriers and third-party agents to evaluate the performance of their marketing spend on our platform and manage their own return on investment. We present consumers with a single starting point for a comprehensive insurance shopping experience where consumers can engage with insurance carriers through multiple channels based on their preferences. Our marketplace enables consumers to choose to visit an insurance provider’s website to purchase a policy or engage with a carrier or agent by phone or submit their data to insurance providers to receive quotes. Our services are free for consumers, and we derive our revenue principally from consumer inquiries sold as referrals to insurance providers.

Previous wording

In the three months ended March 31, 2026 and 2025, our total revenue was $190.9 million and $166.6 million, respectively, representing a year-over-year increase of 14.5%. We had net income of $18.7 million and $8.0 million for the three months ended March 31, 2026 and 2025, respectively, and had $29.3 million and $22.5 million in adjusted EBITDA for the three months ended March 31, 2026 and 2025, respectively. See the section titled “—Non-GAAP Financial Measure” for information regarding our use of adjusted EBITDA and its reconciliation to net income (loss) determined in accordance with generally accepted accounting principles in the United States, or GAAP.

Current wording

In the three months ended June 30, 2026 and 2025, our total revenue was $195.1 million and $156.6 million, respectively, representing a year-over-year increase of 24.6%. We had net income of $19.2 million and $14.7 million for the three months ended June 30, 2026 and 2025, respectively, and had $30.1 million and $22.0 million in Adjusted EBITDA for the three months ended June 30, 2026 and 2025, respectively. In the six months ended June 30, 2026 and 2025, our total revenue was $385.9 million and $323.3 million, respectively, representing a year-over-year increase of 19.4%. We had net income of $37.9 million and $22.7 million for the six months ended June 30, 2026 and 2025, respectively, and had $59.4 million and $44.5 million in Adjusted EBITDA for the six months ended June 30, 2026 and 2025, respectively. See the section titled “—Non-GAAP Financial Measure” for information regarding our use of Adjusted EBITDA and its reconciliation to net income (loss) determined in accordance with generally accepted accounting principles in the United States, or GAAP.

Previous wording

We believe that our performance and future growth depend on a number of factors that present opportunities for us but also pose risks and challenges, including those discussed below, elsewhere in this Quarterly Report on Form 10-Q, particularly in Item 1A. Risk Factors, and in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

We believe that our performance and future growth depend on a number of factors that present opportunities for us but also pose risks and challenges, including those discussed below, elsewhere in this Quarterly Report on Form 10-Q, and in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025.

Previous wording

For the three months ended March 31, 2026 and 2025, we derived 90% and 92%, respectively, of our revenue from auto insurance providers and our financial results depend on the performance of the auto insurance industry. Furthermore, total revenue from our largest auto insurance carrier customer was 40% of our revenue for the three months ended March 31, 2026 and total revenue from our two largest auto insurance carrier customers was 43% and 13% of our revenue, respectively, for the three months ended March 31, 2025. Business cycles within the auto insurance industry heavily impact our carrier customers’ advertising spend with us, such as in 2022 and 2023 when the auto insurance industry experienced deteriorated underwriting performance due to a rise in claims, inflation, and inadequate policy premiums, which had a negative impact on the pricing and demand for consumer referrals in our marketplace throughout 2023.

Current wording

For the six months ended June 30, 2026 and 2025, we derived 89% and 90%, respectively, of our revenue from auto insurance providers and our financial results depend on the performance of the auto insurance industry. Furthermore, total revenue from our two largest auto insurance carrier customers was 35% and 11% of our revenue, respectively, for the six months ended June 30, 2026 and total revenue from our two largest auto insurance carrier customers was 39% and 12% of our revenue, respectively, for the six months ended June 30, 2025. Business cycles within the auto insurance industry heavily impact our carrier customers’ advertising spend with us, such as in 2022 and 2023 when the auto insurance industry experienced deteriorated underwriting performance due to a rise in claims, inflation, and inadequate policy premiums, which had a negative impact on the pricing and demand for consumer referrals in our marketplace throughout 2023.

Previous wording

We define Adjusted EBITDA as net income (loss), adjusted to exclude: stock-based compensation expense, depreciation and amortization expense, legal settlement expense, interest income and income taxes. Adjusted EBITDA is a non-GAAP financial measure that we present in this Quarterly Report on Form 10-Q to supplement the financial information we present on a GAAP basis. We monitor and present Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. Adjusted EBITDA should not be considered in isolation from, or as an alternative to, measures prepared in accordance with GAAP. Adjusted EBITDA should be considered together with other operating and financial performance measures presented in accordance with GAAP. Also, Adjusted EBITDA may not necessarily be comparable to similarly titled measures presented by other companies. For further explanation of the uses and limitations of this measure and a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income (loss), please see “—Non-GAAP Financial Measure”.

Current wording

We define Adjusted EBITDA as net income (loss), adjusted to exclude: stock-based compensation expense, depreciation and amortization expense, legal settlement expense, interest income and income taxes. Adjusted EBITDA is a non-GAAP financial measure that we present in this Quarterly Report on Form 10-Q to supplement the financial information we present on a GAAP basis. We monitor and present Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. Adjusted EBITDA should not be considered in isolation from, or as an alternative to, measures prepared in accordance with GAAP. Adjusted EBITDA should be considered together with other operating and financial performance measures presented in accordance with GAAP. Also, our definition of Adjusted EBITDA may be different than similarly titled measures presented by other companies, including those in our industry, which may reduce its usefulness as a comparative measure. For further explanation of the uses and limitations of this measure and a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income (loss), please see “—Non-GAAP Financial Measure”.

Previous wording

In addition, other companies may use other measures to evaluate their performance, all of which could reduce the usefulness of adjusted EBITDA as a tool for comparison.

Current wording

In addition, other companies may use other measures to evaluate their performance, all of which could reduce the usefulness of our presentation of Adjusted EBITDA as a tool for comparison.

Previous wording

The following table reconciles adjusted EBITDA to net income (loss), the most directly comparable financial measures calculated and presented in accordance with GAAP.

Current wording

The following table reconciles Adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP.

Previous wording

Comparison of the Three Months Ended March 31, 2026 and 2025

Current wording

Comparison of the Three and Six Months Ended June 30, 2026 and 2025

Previous wording

Revenue increased by $24.2 million from $166.6 million for the three months ended March 31, 2025 to $190.9 million for the three months ended March 31, 2026. The increase in revenue was primarily due to an increase of $19.7 million in our automotive vertical, due to an increase in carrier spend for referrals. Revenue also increased in our home and renters vertical by $4.6 million due to an increase in carrier spend for referrals.

Current wording

Revenue increased by $38.5 million from $156.6 million for the three months ended June 30, 2025 to $195.1 million for the three months ended June 30, 2026. The increase in revenue was due to an increase of $32.5 million in our automotive vertical and an increase of $6.0 million in our home and renters vertical, due primarily to an increase in carrier spend for referrals.

Previous wording

Cost of revenue decreased by $1.1 million from $5.4 million for the three months ended March 31, 2025 to $4.3 million for the three months ended March 31, 2026. Cost of revenue decreased primarily due to a $0.4 million reduction in third-party call center costs and decreases of $0.2 million and $0.1 million in lead verification services and hosting costs, respectively. Amortization of internal-use software also decreased by $0.2 million.

Current wording

Cost of revenue decreased by $1.6 million from $10.2 million for the six months ended June 30, 2025 to $8.6 million for the six months ended June 30, 2026. Cost of revenue decreased primarily due to a decrease of $0.9 million in third-party call center costs and decreases of $0.3 million and $0.2 million in technology services and lead verification services, respectively.

Previous wording

Sales and marketing expense increased by $16.0 million from $129.4 million for the three months ended March 31, 2025 to $145.4 million for the three months ended March 31, 2026. The increase in sales and marketing expense was primarily due to an increase in advertising costs of $15.2 million due to an increase in carrier spend and an increase in personnel-related costs of $0.4 million.

Current wording

Sales and marketing expense increased by $26.6 million from $121.1 million for the three months ended June 30, 2025 to $147.6 million for the three months ended June 30, 2026. The increase in sales and marketing expense was primarily due to an increase in advertising costs of $27.1 million due to an increase in carrier spend, partially offset by a decrease in personnel-related costs of $0.5 million. Personnel-related costs included stock-based compensation expense of $1.1 million and $2.0 million for the three months ended June 30, 2026 and 2025, respectively.

Previous wording

Research and development expense increased by $1.1 million from $7.5 million for the three months ended March 31, 2025 to $8.5 million for the three months ended March 31, 2026. The increase in research and development expense was primarily due to an increase in personnel-related costs of $1.0 million due primarily to increased headcount.

Current wording

Research and development expense increased by $1.7 million from $7.8 million for the three months ended June 30, 2025 to $9.4 million for the three months ended June 30, 2026. The increase in research and development expense was primarily due to an increase in personnel-related costs of $1.4 million due primarily to increased headcount and overall compensation increases, and an increase in technology services costs of $0.3 million.

Previous wording

General and administrative expenses increased by $0.8 million from $8.4 million for the three months ended March 31, 2025 to $9.2 million for the three months ended March 31, 2026. The increase in general and administrative expenses was primarily due to an increase in personnel-related costs of $0.3 million and an increase in bank service fees of $0.2 million.

Current wording

General and administrative expenses increased by $1.7 million from $8.5 million for the three months ended June 30, 2025 to $10.2 million for the three months ended June 30, 2026. The increase in general and administrative expenses was primarily due to an increase in personnel-related costs of $0.9 million, an increase in legal fees of $0.7 million and an increase in bank service fees of $0.2 million.

Previous wording

Interest income increased from $0.7 million in the three months ended March 31, 2025 to $1.0 million in the three months ended March 31, 2026 due to an increase in interest earned on our cash balances. Other income (expense), net was not significant for any periods presented.

Current wording

Interest income increased by $0.1 million and $0.4 million in the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025, respectively, due to an increase in interest earned on our cash balances. Other income (expense), net was not significant for any periods presented.

Previous wording

For the three months ended March 31, 2026, we recorded income tax expense of $5.7 million related primarily to U.S. federal and state income taxes. Our effective tax rate for the three months ended March 31, 2026 varied from the U.S. federal statutory income tax rate primarily due to state income taxes, partially offset by U.S. federal research and development tax credits.

Current wording

For the three and six months ended June 30, 2026, we recorded income tax expense of $5.3 million and $11.0 million related primarily to U.S. federal and state income taxes. Our effective tax rate for the three and six months ended June 30, 2026 varied from the U.S. federal statutory income tax rate primarily due to state income taxes, partially offset by U.S. federal research and development tax credits.

Previous wording

For the three months ended March 31, 2025, we recorded income tax expense of $0.7 million, consisting primarily of state income taxes. Until the fourth quarter of 2025, we maintained a full valuation allowance against our deferred tax assets.

Current wording

For the three and six months ended June 30, 2025, we recorded income tax expense of $0.4 million and $1.0 million, consisting primarily of state income taxes. Until the fourth quarter of 2025, we maintained a full valuation allowance against our deferred tax assets.

Previous wording

The increase in variable marketing dollars in the three months ended March 31, 2026 was due primarily to increased carrier spend. The increase in variable marketing margin for the same period was due to better optimization of our traffic.

Current wording

The increase in variable marketing dollars in the three and six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025 was due primarily to increased carrier spend.

Previous wording

As of March 31, 2026, our principal sources of liquidity were cash and cash equivalents of $178.5 million and up to $60.0 million of availability under our revolving line of credit.

Current wording

As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents of $192.3 million and up to $60.0 million of availability under our revolving line of credit.

Previous wording

On August 1, 2025, we entered into a new senior secured revolving credit facility, or the Credit Agreement, with Western Alliance Bank, as administrative agent and collateral agent for the lenders, or the Agent, and as a lender itself, and the other lenders party thereto, or collectively, the Lenders. The Credit Agreement provides for a $60.0 million senior secured revolving line of credit. Subject to customary terms and conditions (including the absence of any default or event of default under the Credit Agreement), we shall have the right, from time to time, to request incremental revolving commitments in an aggregate amount not to exceed up to $25.0 million during the term of the Credit Agreement. Availability under the Credit Agreement will terminate on August 1, 2028, or the Revolving Commitment Period, and all outstanding revolving loans must be paid on or before such date. We will pay a commitment fee of 0.075% per annum on the average daily unused portion of commitments under the Credit Agreement during the Revolving Commitment Period.

Current wording

On August 1, 2025, we entered into a new senior secured revolving credit facility, or the Credit Agreement, with Western Alliance Bank, as administrative agent and collateral agent for the lenders, or the Agent, and as a lender itself, and the other lenders party thereto, or collectively, the Lenders. The Credit Agreement provides for a $60.0 million senior secured revolving line of credit. Subject to customary terms and conditions (including the absence of any default or event of default under the Credit Agreement), we have the right, from time to time, to request one or more increases to the revolving commitments in an aggregate amount not to exceed up to $25.0 million during the term of the Credit Agreement. Availability under the Credit Agreement will terminate on August 1, 2028, or the Revolving Commitment Period, and all outstanding revolving loans must be paid on or before such date. We will pay a commitment fee of 0.075% per annum on the average daily unused portion of commitments under the Credit Agreement during the Revolving Commitment Period.

Previous wording

On July 22, 2025, our board of directors authorized a share repurchase program for up to $50.0 million of our Class A common stock for one year from the board approval date. Share repurchases under the $50.0 million program may be made from time to time on the open market, pursuant to Rule 10b5-1 trading plans, or by other legally permissible means. The share repurchase program does not obligate us to acquire a specific number of shares, and may be suspended, modified, or terminated at any time, without prior notice. The number of shares to be repurchased will depend on market conditions and other factors. Repurchases under the program are expected to be funded from a combination of existing cash balances and future cash flow. During the three months ended March 31, 2026, we repurchased an additional $19.9 million of Class A common shares under the program. As of March 31, 2026, $9.1 million remained available for stock repurchases pursuant to the board authorization.

Current wording

On July 22, 2025, our board of directors authorized a share repurchase program for up to $50.0 million of our Class A common stock for one year from the board approval date. Share repurchases under the $50.0 million program were authorized to be made from time to time on the open market, pursuant to Rule 10b5-1 trading plans, or by other legally permissible means. The share repurchase program did not obligate us to acquire a specific number of shares, and could have been suspended, modified, or terminated at any time, without prior notice. During the six months ended June 30, 2026, we repurchased $29.0 million of Class A common shares under the program and as of June 30, 2026, we completed the share repurchase program.

Previous wording

We believe our existing cash and cash equivalents will be sufficient to fund our operating expenses and capital expenditure requirements for at least the next 12 months from the issuance date of the consolidated financial statements, without considering the borrowing availability under the Credit Agreement. Our future capital requirements may vary materially from those currently planned and will depend on many factors, including our revenue, the timing and extent of spending on business initiatives, purchases of common stock under our share repurchase program, purchases of capital equipment to support our growth, sales and marketing activities, expansion of our business through acquisitions or our investments in complementary offerings, technologies or businesses, market acceptance of our platform and overall economic conditions. If we do not achieve our revenue goals as planned, we believe that we can reduce our operating costs. If we need additional funds and are unable to obtain funding on a timely basis, we may need to significantly curtail our operations in an effort to provide sufficient funds to continue our operations, which could adversely affect our business prospects.

Current wording

We believe our existing cash and cash equivalents will be sufficient to fund our operating expenses and capital expenditure requirements for at least 12 months from the issuance date of the consolidated financial statements, without considering the borrowing availability under the Credit Agreement. Our future capital requirements may vary materially from those currently planned and will depend on many factors, including our revenue, the timing and extent of spending on business initiatives, purchases of capital equipment to support our growth, sales and marketing activities, expansion of our business through acquisitions or our investments in complementary offerings, technologies or businesses, market acceptance of our platform and overall economic conditions. If we do not achieve our revenue goals as planned, we believe that we can reduce our operating costs. If we need additional funds and are unable to obtain funding on a timely basis, we may need to significantly curtail our operations in an effort to provide sufficient funds to continue our operations, which could adversely affect our business prospects.

Previous wording

In addition, we have an effective universal shelf registration statement on Form S-3 with the Securities and Exchange Commission that permits us to sell up to $150.0 million of any combination of our common stock, preferred stock, debt securities, warrants, rights or units from time to time and at prices and on terms that we may determine. The net proceeds of any securities we sell under this registration statement may be used for general corporate purposes, including among other possible uses, the acquisition of companies or businesses, repayment and refinancing of debt, working capital and capital expenditures. At this time, we have no plans to sell any such securities under this registration statement.

Current wording

In addition, we have an effective universal shelf registration statement on Form S-3 with the Securities and Exchange Commission that permits us to sell up to $150.0 million of any combination of our common stock, preferred stock, debt securities, warrants, rights or units from time to time and at prices and on terms that we may determine. The net proceeds of any securities we sell under this registration statement may be used for general corporate purposes, including among other possible uses, the acquisition of companies or businesses, repayment and refinancing of debt, working capital and capital expenditures. Any issuance of equity securities under this registration statement (or otherwise) may cause dilution to our stockholders. However, at this time, we have no plans to sell any securities under this registration statement.

Previous wording

The following table shows a summary of our cash flows for the three months ended March 31, 2026 and 2025:

Current wording

The following table shows a summary of our cash flows for the six months ended June 30, 2026 and 2025:

Previous wording

Operating activities provided $29.6 million in cash during the three months ended March 31, 2026, primarily resulting from our net income of $18.7 million, net non-cash charges of $10.0 million and net cash provided by changes in our operating assets and liabilities of $0.9 million. Net cash provided by changes in our operating assets and liabilities consisted primarily of a $3.4 million decrease in accounts receivable and a $3.0 million decrease in prepaid expenses and other current assets, partially offset by a net $5.5 million decrease in accounts payable and accrued expenses and other current liabilities.

Current wording

Operating activities provided $53.9 million in cash during the six months ended June 30, 2026, primarily resulting from our net income of $37.9 million and adjusting for net non-cash charges of $20.6 million, partially offset by net cash used by changes in our operating assets and liabilities of $4.5 million. Net cash used by changes in our operating assets and liabilities consisted primarily of a net $4.2 million decrease in accounts payable and accrued expenses and other current liabilities and a $0.9 million increase in accounts receivable.

Previous wording

Operating activities provided $23.3 million in cash during the three months ended March 31, 2025, primarily resulting from our net income of $8.0 million, net non-cash charges of $6.7 million and net cash provided by changes in our operating assets and liabilities of $8.6 million. Net cash provided by changes in our operating assets and liabilities consisted primarily of a $7.3 million net increase in accounts payable and accrued expenses and other current liabilities, due primarily to the accrual of legal settlement expense of $7.9 million, and a $1.0 million decrease in commissions receivable.

Current wording

Operating activities provided $48.6 million in cash during the six months ended June 30, 2025, primarily resulting from our net income of $22.7 million and adjusting for net non-cash charges of $22.1 million, including a litigation accrual of $7.8 million, and net cash provided by changes in our operating assets and liabilities of $3.8 million. Net cash provided by changes in our operating assets and liabilities consisted primarily of a $6.4 million decrease in accounts receivable and a $1.9 million decrease in commissions receivable, partially offset by a $3.3 million decrease in accounts payable and accrued expenses and other current liabilities and an increase of $1.0 million in prepaid expenses and other current assets.

Previous wording

Net cash used in investing activities of $1.5 million and $1.1 million for the three months ended March 31, 2026 and 2025, respectively, was attributable to the acquisition of property and equipment, which included the capitalization of certain software development costs. During the three months ended March 31, 2026 and 2025, we capitalized $1.3 million and $1.0 million, respectively, of software development costs.

Current wording

Net cash used in investing activities of $3.1 million and $2.6 million for the six months ended June 30, 2026 and 2025, respectively, was attributable to the acquisition of property and equipment, which included the capitalization of certain software development costs. During the six months ended June 30, 2026 and 2025, we capitalized $2.7 million and $2.3 million, respectively, of software development costs.

Previous wording

During the three months ended March 31, 2026, net cash used in financing activities was $20.9 million, primarily due to $19.9 million used to repurchase common stock under our share repurchase program and $1.1 million used for tax withholding payments relating to net share settlements.

Current wording

During the six months ended June 30, 2026, net cash used in financing activities was $29.9 million, primarily due to $29.0 million used to repurchase common stock under our share repurchase program and $1.9 million used for tax withholding payments relating to net share settlements, partially offset by $1.0 million in proceeds received from the exercise of common stock options.

Previous wording

During the three months ended March 31, 2025, net cash provided by financing activities was $0.7 million, consisting of proceeds received from the exercise of common stock options of $2.0 million, partially offset by tax withholding payments of $1.3 million relating to net share settlements.

Current wording

During the six months ended June 30, 2025, net cash provided by financing activities was $0.1 million, consisting of proceeds received from the exercise of common stock options, partially offset by tax withholding payments relating to net share settlements.

Previous wording

Our cash flows are dependent on a number of factors in addition to our operational expenditures, including our share repurchase program and our contractual and other obligations. As a result, our liquidity and capital resources in future periods should be analyzed in conjunction with such factors.

Current wording

Our cash flows are dependent on a number of factors in addition to our operational expenditures, including our contractual and other obligations. As a result, our liquidity and capital resources in future periods should be analyzed in conjunction with such factors.