Canaccord Genuity reduced its 12-month price target on EverQuote (ticker: EVER) to $28 from $33 but left its Buy recommendation intact, pointing to weaker-than-expected guidance for the first quarter as the primary reason for the move.
EverQuote closed out the year with fourth-quarter revenue and profitability that topped estimates and the companys own guidance. Management noted that the top four carriers by spend were unchanged from the third quarter, and that sequential revenue rose 12% - a record increase for the fourth quarter.
Despite that quarterly strength, the companys outlook for the first quarter disappointed. According to Canaccord, carriers began the year with a more disciplined approach to spending than is typical for the season, which weighed on EverQuotes guidance for both revenue and profitability. The firm highlighted that variable marketing costs were under pressure in the fourth quarter as EverQuote continued to invest in upper-funnel channels and platforms.
Management reaffirmed its plan to reach $1 billion in revenue over the next two to three years, a target that implies at least low-teens growth in fiscal 2026. The company also disclosed work underway to integrate with large language model chatbots and said it expects these platforms to drive meaningful traffic in 2026 through a mix of content programs, technical integrations, and paid advertising.
Market reaction to the mixed messages has been severe. EverQuote shares are down more than 40% year-to-date, with a 43% decline in 2026 and a 34% slide over the past six months. The stock was trading at $15.32, close to a 52-week low of $13.93.
Despite the selloff, data from InvestingPro suggests the shares may be undervalued, listing a Fair Value of $19.68. The company also presents a strong balance sheet profile in that dataset, with more cash than debt and a current ratio of 2.82, according to InvestingPro Tips.
Valuation multiples cited by Canaccord show the stock trading at 0.5 times 2026 revenue and 3.5 times adjusted EBITDA, while a price-to-earnings multiple of 10.75 signals the markets cautious stance on near-term prospects.
EverQuotes most recent results emphasized the contrast between current execution and near-term visibility. The company reported fourth-quarter 2025 earnings per share of $1.54, compared with a forecast of $0.36, representing a 327.78% EPS surprise. Revenue for the quarter came in at $195.3 million versus expected revenue of $176.82 million, a 10.45% surprise. These outcomes underpinned the quarters strong performance but did not prevent the more conservative short-term guidance that prompted Canaccords reassessment.
Analysts and investors face a mixed signal set: a clear beat on the latest quarter, a reiterated long-term revenue target, ongoing investments in customer acquisition channels that pressured variable marketing costs, and guidance that reflects carrier spending discipline at the start of the year. How these elements balance out will be central to future evaluations of growth trajectory and margin recovery.
Key points
- Canaccord Genuity lowered its price target on EverQuote to $28 from $33 but maintained a Buy rating, citing weak first-quarter guidance.
- EverQuote reported a strong fourth quarter: revenue and profitability beat estimates, top four carriers by spend remained unchanged, and sequential revenue rose 12% — a fourth-quarter record.
- Management reiterated a $1 billion revenue target over the next two to three years and plans to pursue traffic from large language model chatbots in 2026 through content, integrations, and paid advertising.
Sectors impacted
- Insurtech and insurance distribution — carrier spend patterns and lead generation are central to revenue.
- Digital advertising and online customer acquisition — upper-funnel investments and variable marketing cost pressure affect unit economics.
- Public markets and small-to-mid cap tech valuations — investor sentiment and multiples have shifted amid mixed guidance.
Risks and uncertainties
- Carrier spending discipline - The companys near-term revenue depends on carriers willingness to increase marketing spend; a restrained approach can compress top-line growth and is explicitly cited as the reason for weaker first-quarter guidance. This risk affects insurtech firms and advertising-dependent marketplaces.
- Variable marketing cost pressure - Continued investment in upper-funnel channels strained variable marketing costs in the fourth quarter, presenting a margin risk if those investments do not convert at expected rates. This impacts the digital advertising and customer-acquisition economics for consumer-facing platforms.
- Market valuation and sentiment - A stock that has fallen sharply and trades at low revenue and EBITDA multiples may face further downside if guidance continues to disappoint, influencing investor confidence in similar growth-stage tech names.
Note: The article reflects the companys reported results and the analyst actions described above. Where certain datasets are referenced, they are presented as reported by the respective services.