Why Is EverQuote (EVER) Up 4.1% Since Last Earnings Report?

It has been about a month since the last earnings report for EverQuote (EVER). Shares have added about 4.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is EverQuote due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

EVER Q2 Beat Earnings Estimates on Auto, Home Insurance Growth

EverQuote, Inc. reported second-quarter 2026 operating net income per share of 65 cents, significantly exceeding the Zacks Consensus Estimate by 6.6%. The bottom line increased 66.7% from the prior-year period level. Total revenues rose 24.6% year over year to $195 million. The top line exceeded the Zacks Consensus Estimate by 2.6%. The quarterly results benefited from continued strength in the Automotive and Home & Renters insurance verticals, supported by higher variable marketing dollars and record adjusted EBITDA

EVER’s Q2 Results in Detail

Revenues in the Automotive insurance vertical grew 23.3% year over year to $172.1 million, surpassing the Zacks Consensus Estimate of $170.4 million. Our estimate was $170.5 million. Revenues in the Home and Renters insurance vertical increased 35.2% year over year to $23 million, exceeding the Zacks Consensus Estimate of $19.4 million. Our estimate was $19 million. 

Revenues in the Other insurance vertical declined 100% year over year. Total costs and operating expenses rose 20.5% year over year to $171.6 million, mainly due to higher sales and marketing, research and development costs and general and administrative expenses. Our estimate was $164 million.

EverQuote’s variable marketing dollars increased 25% year over year to $56.9 million, which beat the Zacks Consensus Estimate of $56.4 million. Adjusted EBITDA rose 37.1% year over year to $30.1 million, which outpaced our estimate of $29.6 million.

EVER’s Financial Update

EverQuote exited the second quarter of 2026 with cash and cash equivalents of $192.3 million, up 12.3% from the 2025-end level. Total assets increased 4.3% from the 2025-end level to $341 million, while total stockholders' equity rose 7.9% from the 2025-end level to $256.8 million. Cash from operations was $24.3 million, compared with $25.3 million in the prior-year quarter. During the second quarter, EVER repurchased 0.578 million shares of its common stock for approximately $9.1 million.

EVER Offers Q3 2026 Guidance

For the third quarter of 2026, EverQuote guided revenues in the range of $198-$208 million. Management expects variable marketing dollars in the $56-$59 million range, suggesting 23% year-over-year growth. Adjusted EBITDA is projected in the range of  $28-$31 million

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted 12.79% due to these changes.

VGM Scores

At this time, EverQuote has a great Growth Score of A, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. It's no surprise EverQuote has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

EverQuote belongs to the Zacks Internet - Software industry. Another stock from the same industry, AppFolio (APPF), has gained 12.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

AppFolio reported revenues of $281.12 million in the last reported quarter, representing a year-over-year change of +19.3%. EPS of $1.71 for the same period compares with $1.38 a year ago.

AppFolio is expected to post earnings of $1.78 per share for the current quarter, representing a year-over-year change of +35.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.5%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for AppFolio. Also, the stock has a VGM Score of B.

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This article originally published on Zacks Investment Research (zacks.com).

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