Earnings call transcript: EverQuote tops Q3 2026 estimates, shares jump after hours

EverQuote exceeded Wall Street's expectations for the third quarter of 2026, reporting earnings of $0.49 per share on revenue of $218.1 million. Analysts had forecast earnings of $0.47 per share and revenue of $203.23 million. The insurance marketplace operator saw a 25% year-over-year revenue increase, driven by growth in both auto and home insurance sectors.

Home insurance revenue surged 70% compared to the previous year, indicating faster growth outside of the company's core auto business. Adjusted EBITDA climbed 41% to $35.5 million, showcasing robust operating leverage. The board authorized a $50 million share repurchase program. Management highlighted investments in AI-driven products and new traffic channels, including agentic commerce.

The company posted record results across key financial metrics in Q3, driven by strong carrier demand and continued shopping activity in insurance. EverQuote remains focused on auto insurance, which generated $190.4 million in revenue, up 21% from the prior year. However, the home insurance segment is emerging as a significant growth driver, with revenue rising 70% to $27.7 million.

Eight of the company's top 10 carriers increased their policies sequentially, reflecting broad-based demand. This quarter's performance supported both revenue growth and profitability, despite increased spending on new products and channels. EverQuote's stock saw a sharp after-hours gain, jumping 7.46% to $26.08. The company's strong profitability is evident in its low price-to-earnings ratio of 7.8, which is below industry averages. InvestingPro suggests the stock is undervalued at current levels, with a potential upside.