EverQuote expects favorable demand to continue as property-and-casualty insurers shift from maximizing underwriting profits toward adding policies. The company reported 25% year-over-year revenue growth and 37% EBITDA growth in the second quarter. Management remains confident EverQuote can reach $1 billion in revenue within 15 to 27 months, primarily through organic growth.
Its longer-term targets include roughly 20% annual revenue growth and a 20% EBITDA margin, although increased AI investment may pressure margins in the near term. AI and home insurance are key growth opportunities: Smart Campaigns is used by seven of the company's top 10 carriers and can improve results by 10% to 20%, while home insurance revenue grew 35% year over year and represented about 12% of second-quarter revenue. 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. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be "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. 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. → Nebius' Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand 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. → On Holding's Price Stumble May Be an Opening for a Company Built to Run 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. 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.
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