Short answer
QUINSTREET, INC (QNST) filed its fiscal 2026 10-K annual report with the SEC on Aug 26, 2026. It reported revenue of $1.3B (+18.3% year over year) and net income of $81M.
- Top risk flagged: Regulatory/legal risk: FCC TCPA rules effective March 26, 2024 and April 2025 may increase compliance costs and litigation exposure, impacting client participation and revenue
FY2026 key financial metrics · XBRL
- Revenue
- $1.3B
- +18.3% YoY
- Net income
- $81M
- +1625.8% YoY
- Operating margin
- 2.7%
- +2.2 pp YoY
- Gross margin
- 11.3%
- +1.1 pp YoY
- EPS (diluted)
- $1.40
- +1650.0% YoY
- ROE
- 25.1%
- +23.2 pp YoY
- Operating cash flow
- $131M
- +54.5% YoY
Source: XBRL data from the QUINSTREET, INC (QNST) FY2026 10-K on SEC EDGAR. USD.
QUINSTREET, INC FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Performance marketing marketplace connecting clients in financial and home services industries with high-intent digital media for customer acquisition
- New emphasis: Integration and increased investment in artificial intelligence and machine learning, including large language models, to enhance product offerings and platform capabilities
- Strategic shift: Expansion into new client verticals such as health insurance; greater focus on sustainable revenues and ethical operations amid evolving regulatory and technological landscape
- Quantitative highlight: Employee count at 1,074 as of June 30, 2026; R&D/product development spend increased to $37.3 million in FY 2026 from $33.9 million in FY 2025
- Noteworthy fact: One client accounted for 21% of net revenue in FY 2026, down from two clients accounting for 23% and 12% in FY 2025, indicating slight revenue concentration change
Management Discussion & Analysis
- Revenue $1.294B, up 18% YoY; home services segment best, $129M up 47%, financial services up $71M (9%)
- Gross margin 11.3% vs 10.1% YoY; operating margin 2.7% vs 0.5%; net income $81.2M vs $4.7M YoY
- Home services best segment: $389M revenue, +47%, driven by HomeBuddy acquisition; financial services worst: $893M, +9%
- Operating cash flow $131.3M up from $85M; $31.4M stock buybacks (2.31M shares); capex and software $14.3M; $70M drawn on $150M credit facility
- Management cautious on media source procurement and regulatory risks; expects growth via acquisitions and expanded media access
Risk Factors
- Regulatory/legal risk: FCC TCPA rules effective March 26, 2024 and April 2025 may increase compliance costs and litigation exposure, impacting client participation and revenue
- Macroeconomic/geopolitical threat: Russia-Ukraine conflict and Middle East instability risk client marketing spend reductions, with one client comprising 21% of 2026 net revenue
- Operational/supply chain vulnerability: Dependence on third-party publishers for significant visitor traffic; loss or price increase of media inventory could reduce revenue or increase costs
- Competitive/market disruption risk: Increased use of AIML by competitors may outpace QuinStreet’s capabilities, threatening market position and future growth
- Financial/structural risk: $70M drawn of $150M revolving credit facility secured by substantial assets, with leverage restricting financial flexibility and potentially increasing interest costs
Generated from the filing text; verify against the original. How to read a 10-K
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