EverQuote (EVER)

Generated: April 19, 2026

Red Dot

Statistics

Metric	Value
Last Close	$16.18
Blended Price Target	20.57
Blended Margin of Safety	27.2% Undervalued
Rule of 40 (Next)	50.7%
Rule of 40 (Current)	51.2%
FCF-ROIC	39.2%
Sales Growth Next Year	11.6%
Sales Growth Current Year	12.0%
Sales 3-Year Avg	19.8%
Industry	Internet Content & Information

Analysis

EverQuote stands as a resilient online insurance marketplace with a proven capacity to deliver robust revenue growth amid industry headwinds, underpinned by an asset-light model that has recently achieved profitability. Its revenue, while transactional and tied to consumer demand cycles, shows predictability through established carrier relationships and data-driven matching, allowing sustained expansion even as marketing costs remain high. The business lacks a deep economic moat, facing fierce rivalry from branded players, yet its leadership has adeptly steered toward cash flow positivity, signaling durability for individual investors seeking growth-oriented durability.^[1]^[5]

This combination positions EverQuote as a high-quality operator capable of above-market growth for years, provided it penetrates deeper into underserved insurance verticals. Leadership's focus on efficiency has widened gross margins to elite levels, fostering reinvestment potential without debt burdens. Though moat pressures persist, the model's scalability and recent profitability inflection point to a business built for long-term endurance in digital insurance.^[1]^[4]

What the Company Does

EverQuote runs an online insurance marketplace that matches consumers seeking quotes with carriers and agents using data, technology, and AI. Consumers visit its platforms to compare options in auto, home, health, and life insurance, generating leads through clicks, calls, or referrals sold to providers. This asset-light model recognizes revenue upon delivery, keeping costs low with a gross margin near 97%.^[1]^[4]^[5]

Revenue stems almost entirely from these consumer referrals, with no significant subscription or diversified streams disclosed. Auto insurance dominates as the core segment, though the company expands into adjacent lines like home and health to broaden its appeal. Recent quarters show balanced contributions across verticals, fueling overall growth.^[1]^[2]

Revenue Recurrence & Predictability

EverQuote's revenue is primarily transactional, earned from one-off referrals rather than subscriptions or long-term contracts. It scores moderately on predictability, as carrier partnerships provide steady demand, but volumes fluctuate with consumer shopping cycles and economic conditions. No specific percentage of recurring revenue is publicly detailed, though the model relies on repeat platform traffic.^[1]^[2]

This setup yields lower recurrence than subscription peers, exposing results to seasonal and macro swings, as seen in past TTM declines before recent rebounds. Still, AI enhancements and user data improve matching efficiency, boosting reliability over pure project-based alternatives.^[1]^[4]

Revenue Growth Durability

EverQuote can sustain above-market growth for 3-5 years by deepening penetration in a vast U.S. insurance TAM, where digital quoting remains underpenetrated at under 20%. Key levers include AI-driven personalization and expansion into health and life segments, with Q4 2025 revenue up 32% year-over-year to $195.3 million, outpacing sector averages.^[1]^[5]

Structural tailwinds like rising online insurance adoption support this, though headwinds from maturing auto markets and paid acquisition costs cap indefinite hypergrowth. Management guides modest near-term increases, with analysts projecting 10.8% over the next year, indicating durable but decelerating expansion.^[1]

Economic Moat

EverQuote's moat is narrow, centered on a high gross margin from its asset-light structure and data accumulation for better consumer-carrier matching, but it lacks strong network effects or brand loyalty. Low switching costs let users and carriers shift to rivals like The Zebra easily, forcing heavy marketing spend—around 80% of gross profit historically—to maintain traffic.^[1]^[2]

Cost advantages from scale help, yet no pricing power or intangible assets like patents protect it in a crowded field. The moat shows no clear widening, as TTM revenue pressures highlight vulnerability to larger, branded competitors, underscoring a competitive landscape without durable edges.^[2]

Management & Leadership

EverQuote is not founder-led; CEO Jayme Mendler Hawkins assumed the role in 2021, bringing digital media expertise from prior stints at Hulu and others. Her tenure coincides with a pivot to profitability, including Q4 2025 GAAP net income of $57.8 million, demonstrating effective execution amid challenges.^[1]^[5]

Insider ownership remains meaningful, aligning interests, while capital allocation prioritizes marketing efficiency and debt-free balance sheet strength over aggressive buybacks. No major missteps noted, with focus on AI investments signaling prudent stewardship.^[4]

Key Risks

Intense competition from entrenched players like QuinStreet and The Zebra erodes market share, as EverQuote's weak brand demands outsized marketing—79% of revenue in recent periods—squeezing margins without proven differentiation.^[2]

Customer concentration in auto insurance exposes it to vertical-specific downturns, like reduced quoting during low economic mobility, amplifying cyclicality beyond broader macro pressures.^[1]^[2]

Regulatory scrutiny on data privacy and lead quality in insurance marketplaces poses operational hurdles, potentially raising compliance costs or disrupting carrier ties in an evolving AI-driven environment.^[4]

Sources

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