EVER

EverQuote sells consumer insurance referrals to carriers and agents, and FY2025 was an exceptional year on a favorable auto-insurance ad-spend cycle: revenue $693M (+38.5%), net income $99.3M (+208.7%), diluted EPS $2.63 (+198.9%), and operating cash flow of $95.4M against just $5.06M of capex — roughly $90M of free cash. The balance sheet is pristine: $171M cash, stockholders' equity of $238M against only $88.9M of total liabilities (0.37x), and the only long-term debt on record is a stale $4.25M FY2017 figure. ROE of 41.7% on a debt-free, asset-light model is genuinely high-quality. Against that, the stock trades at 9.5x trailing EPS, 1.3x sales, and about a 10% free-cash-flow yield — with ~$171M of the $898M market cap sitting in cash. That is a discount valuation for a business growing revenue 38% and earnings triple-digits.

The reason the market pays so little is written in the revenue history, not the latest print. This is a cyclical business tethered to property-and-casualty carrier advertising budgets: revenue fell from $404M (FY2022) to $288M (FY2023) and net losses widened to -$51.3M when carriers pulled marketing spend during their underwriting-loss cycle. The V-shaped rebound to $500M then $693M rides carriers re-opening the spigot; a normalization or reversal of that cycle would compress both revenue and the currently fat margins fast. The MD&A also flags a five-year $18.5M advertising purchase commitment ($15.5M remaining) and the accumulated deficit is still -$81.9M, so this is a recently-turned-profitable name, not a decades-long compounder.