EverQuote NASDAQ: EVER CFO Joseph Sanborn said the insurance marketplace company expects a favorable operating environment to continue as property-and-casualty insurers shift from prioritizing underwriting profitability to growing their policy bases.
Speaking at a technology, media and telecommunications conference, Sanborn said EverQuote’s growth has been driven by its use of proprietary data and technology to match consumers with insurers and agents based on specific underwriting preferences. He said the company’s strategy centers on improving performance for providers, expanding marketplace scale, broadening its product offerings and increasing automation through artificial intelligence.
“The thing that has been our attribute of how we succeed is how we use technology and our proprietary data to continue to help drive performance for carriers and agents,” Sanborn said.
Carrier Demand and Growth Outlook
Sanborn described the current insurance-market backdrop as a “Goldilocks environment,” saying many carriers have regained rate adequacy and are operating with favorable combined ratios. He said carriers typically target combined ratios in the mid- to high-90s, while many are currently operating in the low- to mid-80s.
With profitability improving, carriers are increasingly focused on adding policies while maintaining underwriting discipline, according to Sanborn. He said EverQuote is positioned to benefit because its platform helps insurers target consumers that fit their desired risk profiles.
EverQuote reported 25% year-over-year revenue growth and 37% EBITDA growth in the second quarter, Sanborn said. The midpoint of the company’s third-quarter target implies 17% revenue growth from a year earlier.
Sanborn cautioned that comparisons in the fourth quarter could be affected by an unusually strong fourth quarter in 2025. During that period, he said two carriers with favorable combined ratios asked EverQuote to help deploy additional growth budgets before year-end, resulting in a 12% sequential revenue increase from the third quarter. Historically, the company’s third-to-fourth-quarter sequential growth has been closer to roughly 3%.
The outcome this year could depend partly on the severity of the catastrophe season, which runs from mid-August through mid-November, he said. A mild season could support increased spending from carriers, while a more typical season could result in a more normal seasonal growth pattern.
$1 Billion Revenue Target and Investment Plans
Sanborn reiterated EverQuote’s expectation that it can become a $1 billion revenue business within two to three years of its November 2025 target announcement. At that time, the company was tracking at about $675 million in revenue, he said.
After nine months, Sanborn said EverQuote remains confident it can reach the target within 15 to 27 months. The company expects to pursue that goal organically rather than relying on acquisitions.
Management expects to balance growth with profitability, he said. Sanborn said EverQuote’s longer-term objective is to reach a 20% EBITDA margin while maintaining average top-line growth of about 20% over time, though he said the company is unlikely to be at a 20% EBITDA margin when it first crosses the $1 billion revenue threshold.
The company is also increasing spending on AI-related product development and internal capabilities. Sanborn said quarterly EBITDA of just under $27 million in the second quarter could rise by roughly $1 million in the third quarter and another $500,000 in the fourth quarter as EverQuote invests in AI-first products, AI tokens and broader AI enablement. He said EBITDA margins could decline modestly in the second half, while the company remains on track to add roughly 100 basis points of margin for the full year from its 13.6% margin in the prior year.
Capital Allocation and M&A
Sanborn said EverQuote’s capital-allocation priorities are maintaining a strong balance sheet, repurchasing shares and evaluating acquisitions. He said financial strength is important both for establishing trust with carrier partners that share data with the company and for supporting multiyear investments.
EverQuote completed its first share-repurchase program in the second quarter. The board authorized the $50 million program in August of the prior year, and the company repurchased about 2.6 million shares, or approximately 7.25% of shares outstanding, Sanborn said.
The company expects its board to continue evaluating buybacks during the year. Sanborn also said EverQuote sees merger-and-acquisition opportunities in the P&C sector, including potential expansion into additional personal-lines categories, access to data and talent. However, he stressed that acquisitions are not required for the company’s $1 billion revenue plan.
AI, Smart Campaigns and Home Insurance
Sanborn pushed back on the view that AI-powered search could create a significant disruption risk for EverQuote. He said insurance differs from other online marketplaces because pricing data is not broadly available, insurance is regulated at the state level, and carriers seek to protect their pricing and brand strategies.
While AI search currently has little effect on insurance shopping, Sanborn said EverQuote views AI as a medium- and longer-term opportunity. He said carriers may prefer to access future AI-driven traffic through established partners rather than directly exposing pricing information to large language models or other digital channels.
One of EverQuote’s primary AI tools is Smart Campaigns, an AI bidding engine that helps carriers determine how to bid in the company’s marketplace. Sanborn said seven of EverQuote’s top 10 carriers use the platform, and that participating carriers often see results that are 10% to 20% better than those generated by their own teams.
The product requires carriers to share disposition and lifetime-value data, which Sanborn said helps EverQuote improve traffic allocation and deepen relationships with providers. The company is also beginning to roll out a version of Smart Campaigns for insurance agents.
In addition, Sanborn highlighted EverQuote’s home-insurance business, which represented about 12% of revenue in the second quarter and grew 35% year over year for the second consecutive quarter. He said EverQuote expects home insurance to grow faster than auto insurance in the medium term, supported by improving carrier economics, the size of the home-insurance market and investments in dedicated product and operational capabilities.
About EverQuote (NASDAQ:EVER)
EverQuote, Inc operates an online insurance marketplace that connects consumers with insurance providers across the United States. Founded in 2011 and headquartered in Cambridge, Massachusetts, the company leverages proprietary technology to match individuals seeking coverage with insurers offering competitive rates. Since its initial public offering in 2020, EverQuote has focused on expanding its digital platform and enhancing the efficiency of its lead-generation processes.
The company's core business centers on a quote-comparison engine for personal auto, home, and health insurance products.
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