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EverQuote, Inc.

EVER
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Business Summary

EverQuote, Inc. operates a leading online marketplace for insurance shopping, connecting consumers with insurance provider customers, including both carriers and agents. The company's vision is to be the leading growth partner for property and casualty (P&C) insurance providers. The P&C insurance market in the United States is substantial, with over 2,500 insurance carriers and more than 100,000 insurance agencies, which collectively issued policies representing over $1 trillion in premiums in 2024 . U.S. P&C insurance carriers spent $129 billion in 2024 on marketing and distribution, with $8 billion of this allocated to digital advertising . The company aims to address market challenges such as misalignment of providers and consumers, a complex and fragmented market for consumers, and inefficient advertising channels for insurance providers.

The core business model revolves around a results-driven marketplace powered by proprietary data and technology. EverQuote generates revenue principally from consumer inquiries sold as referrals to insurance providers, with services being free for consumers. These referrals are provided in three secure formats: Clicks (online-to-online referral to a provider's website), Data (online-to-offline referral with quote request data transmitted to the provider), and Calls (online-to-offline for outbound calls and offline-to-offline for inbound calls, connecting consumer and provider by phone) . The company's customer base includes insurance carriers and third-party insurance agents, with an extensive network of national and regional carriers and approximately 6,000 enrolled insurance agencies as of December 31, 2025 .

For the year ended December 31, 2025, EverQuote's total revenue was $692.5 million , an increase of 38.5% from $500.2 million in 2024 . The company reported a net income of $99.3 million for 2025, a significant improvement from $32.2 million in 2024 and a net loss of $51.3 million in 2023 . Diluted EPS for 2025 was $2.63 , up from $0.88 in 2024 . Adjusted EBITDA for 2025 was $94.6 million , compared to $58.2 million in 2024 . Cash and cash equivalents stood at $171.4 million as of December 31, 2025 . The company had no outstanding borrowings under its credit facility as of December 31, 2025 .

Revenue growth was primarily driven by the automotive vertical, which increased by $183.7 million from 2024 to 2025, reaching $629.8 million and representing 91% of total revenue in 2025 . The home and renters vertical also saw an increase of $10.6 million , reaching $62.7 million in 2025. Revenue from other insurance verticals was $40 thousand in 2025, down from $2.1 million in 2024 , reflecting a strategic focus on the P&C market. Cost of revenue decreased by 7.4% to $19.4 million in 2025 from $20.9 million in 2024 , while sales and marketing expenses increased by 39.5% to $541.0 million from $387.7 million . Research and development expenses increased by $2.0 million to $31.5 million , and general and administrative expenses increased by $3.8 million to $34.1 million . The company's effective tax rate for 2025 was (60.6%) , primarily due to the release of a $48.5 million valuation allowance against net deferred tax assets .

During 2025, EverQuote settled litigation with the former owners of PolicyFuel, LLC, which involved the sale of customer relationships and developed technology intangible assets for cash consideration of $0.5 million . This settlement resulted in a legal settlement expense of $7.8 million and related legal expenses of $0.4 million . The company also repurchased 900,000 shares of Class A common stock for $21.0 million from Link Ventures and its affiliated entities in August 2025, as part of a $50.0 million share repurchase program authorized on July 22, 2025 .

Business Outlook

EverQuote anticipates an overall increase in revenue in 2026 compared to 2025, driven by expected increased spending from its carrier partners in the automotive and home and renters verticals . Revenue from other insurance verticals is expected to be insignificant in 2026 due to the company's strategic focus on the P&C market .

The company's growth strategies are centered on data-driven innovation and expanding its online insurance marketplace. A key growth vector is to add more insurance providers and increase revenue per provider by demonstrating the value proposition of its marketplace as an efficient, scalable customer acquisition channel . This includes adding new provider-facing features and aiming to increase the number of referrals per quote request while maintaining or increasing the bind rate, which is expected to allow for revenue growth at limited marginal cost . Additionally, EverQuote plans to expand revenue per provider by increasing consumer traffic and quote request volume, adding new verticals, and innovating advertiser products and services .

Another significant growth area is attracting more consumers to its marketplace. This will be achieved by leveraging the superior features and growing data assets of its platform through existing channels . The company may also launch new marketing channels to acquire consumers both online and offline, believing there is an opportunity to attract substantially more high-intent consumers to its existing insurance offerings and to expand into adjacent verticals .

Operationally, EverQuote expects research and development expense to increase in 2026 compared to 2025 , as it focuses on improving ease of use and functionality of its existing marketplace platform and developing new offerings and internal tools. General and administrative expense is also expected to increase in 2026 compared to 2025, primarily due to personnel-related costs . The company's cost structure, particularly advertising spend, is flexible and can be adjusted rapidly to market conditions, allowing for increased spending during economic expansion and reductions during downturns or when revenue does not result in incremental profit .

Regarding capital allocation, the board of directors authorized a share repurchase program for up to $50.0 million of Class A common stock on July 22, 2025, for one year from the approval date . As of December 31, 2025, $29.0 million remained available under this authorization . The company subsequently repurchased an additional $8.7 million of Class A common shares in January and February 2026 . EverQuote has never declared or paid cash dividends and anticipates retaining all future earnings to finance business operations . The company has a $60.0 million senior secured revolving credit facility, with the right to request incremental revolving commitments up to $25.0 million . As of December 31, 2025, there were no outstanding borrowings under this facility . The company believes its existing cash and cash equivalents will be sufficient to fund 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 .

Risk Factors

EverQuote faces several material risks, including its high dependence on the business cycles and conditions of the property and casualty insurance industries, particularly automotive insurance, which accounted for 91% of total revenue in 2025 . Adverse conditions, such as deteriorating underwriting performance, rising claims, inflation, and inadequate policy premiums, have previously led to decreased carrier spending, as observed in 2022 and 2023, and could reoccur . The company relies on relationships with insurance provider customers who have no long-term minimum financial commitments and can reduce or terminate their marketing spend at any time without notice . A significant portion of revenue, 38% and 11% respectively for 2025, came from its two largest customers, and a reduction in their purchasing levels could materially harm results . Dependence on third-party media sources for visitor traffic, including third-party publishers, exposes the company to risks of declining media supply or increased prices, which could reduce revenue or increase visitor acquisition costs . Changes in internet search engine algorithms, browser companies' treatment of third-party cookies, or increased use of ad-blocking software could reduce website traffic . Limitations on marketing to users or collecting and using data due to consumer-adopted technologies, service provider decisions, or government regulation could diminish the value of services and harm revenue . Cybersecurity breaches, attacks, failures, or interruptions involving computer systems or third-party service providers pose risks of operational disruptions, data loss, litigation, fines, and reputational damage . The use of AI and machine learning in the business introduces risks of reputational harm, competitive harm, and legal liability if applications are deficient, inaccurate, biased, or lead to cybersecurity incidents . Failure to continually enhance and adapt products and services to rapidly changing technologies and industry standards could lead to a loss of customers or traffic . The insurance industry is heavily regulated, and changing federal, state, and industry-based laws and regulations, particularly concerning data privacy and security (e.g., CCPA, UK GDPR) and telemarketing (e.g., TCPA), could impose significant compliance costs, affect revenue, and lead to legal and monetary liability . The company may also be subject to litigation, audits, or investigations, which could result in financial liability, fines, and restrictions on operations . Intellectual property rights may not be adequately protected, and the company may face costly intellectual property disputes . Taxing authorities may assert that the company should have collected sales, use, value-added, or similar taxes, leading to potential liabilities .

Management Priorities

Management's overall tone emphasizes a results-driven marketplace powered by proprietary data and technology, aiming to be the leading growth partner for P&C insurance providers. They acknowledge the volatility in the auto insurance market, noting that while spending patterns have significantly improved since 2023, some top carrier customers remain below their peak historical spend. Management's strategic priorities for the period ahead include adding more insurance providers and increasing revenue per provider by demonstrating value, adding new provider-facing features, and increasing referrals per quote request at limited marginal cost. A second key priority is to attract more consumers to the marketplace by leveraging platform features and data assets, and potentially launching new marketing channels. Finally, management intends to expand the platform by deepening relationships with insurance provider customers through additional products and services, and selectively exploring expansion into new verticals through organic development or acquisition. The board of directors authorized a $50.0 million share repurchase program on July 22, 2025 , with $29.0 million remaining available as of December 31, 2025 , and an additional $8.7 million of Class A common shares repurchased in January and February 2026 .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Market Opportunity
  2. [2] Item 1, Business — Market Opportunity
  3. [3] Item 7, MD&A — Key Components of Our Results of Operations — Revenue
  4. [4] Item 1, Business — Our Customers
  5. [5] Item 7, MD&A — Overview
  6. [6] Item 7, MD&A — Overview
  7. [7] Item 7, MD&A — Overview
  8. [8] Item 7, MD&A — Overview
  9. [9] Item 7, MD&A — Overview
  10. [10] Item 8, Consolidated Statements of Operations and Comprehensive Income (Loss)
  11. [11] Item 8, Consolidated Statements of Operations and Comprehensive Income (Loss)
  12. [12] Item 7, MD&A — Overview
  13. [13] Item 7, MD&A — Overview
  14. [14] Item 7, MD&A — Liquidity and Capital Resources
  15. [15] Item 6, Loan and Security Agreement
  16. [16] Item 7, MD&A — Comparison of the Years Ended December 31, 2025 and 2024 — Revenue
  17. [17] Item 7, MD&A — Key Components of Our Results of Operations — Revenue
  18. [18] Item 7, MD&A — Factors Affecting Our Performance
  19. [19] Item 7, MD&A — Comparison of the Years Ended December 31, 2025 and 2024 — Revenue
  20. [20] Item 7, MD&A — Key Components of Our Results of Operations — Revenue
  21. [21] Item 7, MD&A — Key Components of Our Results of Operations — Revenue
  22. [22] Item 7, MD&A — Key Components of Our Results of Operations — Revenue
  23. [23] Item 7, MD&A — Comparison of the Years Ended December 31, 2025 and 2024 — Cost of Revenue
  24. [24] Item 7, MD&A — Comparison of the Years Ended December 31, 2025 and 2024 — Cost of Revenue
  25. [25] Item 7, MD&A — Comparison of the Years Ended December 31, 2025 and 2024 — Sales and Marketing
  26. [26] Item 7, MD&A — Comparison of the Years Ended December 31, 2025 and 2024 — Sales and Marketing
  27. [27] Item 7, MD&A — Comparison of the Years Ended December 31, 2025 and 2024 — Research and Development
  28. [28] Item 7, MD&A — Comparison of the Years Ended December 31, 2025 and 2024 — General and Administrative
  29. [29] Item 7, MD&A — Comparison of the Years Ended December 31, 2025 and 2024 — Income Taxes
  30. [30] Item 7, MD&A — Comparison of the Years Ended December 31, 2025 and 2024 — Income Taxes
  31. [31] Item 3, Goodwill and Acquired Intangible Assets
  32. [32] Item 7, MD&A — Comparison of the Years Ended December 31, 2025 and 2024 — Legal Settlement
  33. [33] Item 3, Goodwill and Acquired Intangible Assets
  34. [34] Item 7, MD&A — Liquidity and Capital Resources
  35. [35] Item 7, MD&A — Liquidity and Capital Resources
  36. [36] Item 7, MD&A — Key Components of Our Results of Operations — Revenue
  37. [37] Item 7, MD&A — Key Components of Our Results of Operations — Revenue
  38. [38] Item 1, Business — Our Growth Strategies
  39. [39] Item 1, Business — Our Growth Strategies
  40. [40] Item 1, Business — Our Growth Strategies
  41. [41] Item 1, Business — Our Growth Strategies
  42. [42] Item 1, Business — Our Growth Strategies
  43. [43] Item 7, MD&A — Cost and Operating Expenses — Research and Development
  44. [44] Item 7, MD&A — Cost and Operating Expenses — General and Administrative
  45. [45] Item 1, Business — Our Strengths
  46. [46] Item 7, MD&A — Liquidity and Capital Resources
  47. [47] Item 7, MD&A — Liquidity and Capital Resources
  48. [48] Item 7, MD&A — Liquidity and Capital Resources
  49. [49] Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities — Dividends
  50. [50] Item 7, MD&A — Liquidity and Capital Resources
  51. [51] Item 6, Loan and Security Agreement
  52. [52] Item 7, MD&A — Liquidity and Capital Resources
  53. [53] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  54. [54] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  55. [55] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  56. [56] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  57. [57] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  58. [58] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  59. [59] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  60. [60] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  61. [61] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  62. [62] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  63. [63] Item 1A, Risk Factors — Risks Related to Laws and Regulations
  64. [64] Item 1A, Risk Factors — Risks Related to Laws and Regulations
  65. [65] Item 1A, Risk Factors — Risks Related to Our Intellectual Property
  66. [66] Item 1A, Risk Factors — Taxing authorities may assert that we should have collected or in the future should collect sales, use, value added or similar taxes, and we could be subject to liability with respect to past or future sales, which could adversely affect our operating results.
  67. [67] Item 7, MD&A — Liquidity and Capital Resources
  68. [68] Item 7, MD&A — Liquidity and Capital Resources
  69. [69] Item 7, MD&A — Liquidity and Capital Resources

Analysis on 5/21/2026