Needham has lowered its price target on EverQuote (NASDAQ:EVER) to $25 from $40 but left its Buy rating intact after the company released fourth-quarter results and first-quarter guidance that came in under consensus.
EverQuote reported a record fourth quarter characterized by a 32.5% year-over-year increase in revenue, reflecting higher spending from insurance carriers amid a profitable industry backdrop. The company’s trailing twelve-month revenue sits at $644.66 million. Despite those gains, EverQuote shares trade at $15.32, representing a 43% decline year-to-date and remaining well below a 52-week high of $30.03.
Management offered first-quarter guidance that was below market expectations, attributing the moderation to carriers adopting a more disciplined approach to spending after the robust fourth quarter. Management reiterated the company’s longer-term target of achieving $1 billion in revenue within the next two to three years. In addition, company guidance calls for EBITDA margin expansion of roughly 100 basis points in fiscal 2026 alongside at least 20% growth in EBITDA dollars.
Analyst commentary included a note from Needham that, while lowering the price target, emphasized potential upside tied to favorable carrier profitability and an expanding product suite. Needham maintained its Buy rating based on the view that those factors could lift results as the year progresses.
Separate analyses referenced by market research tools suggest the stock appears undervalued at current levels, and analysts expect continued sales growth. Those tools also offer a detailed Pro Research Report that consolidates the company’s financial metrics and outlook for investors evaluating the investment case.
Additional broker moves followed the company’s quarterly release. EverQuote’s fourth-quarter 2025 earnings greatly outpaced expectations, posting earnings per share of $1.54 versus a forecast of $0.36, and generating revenue of $195.3 million compared with a $176.82 million estimate. These results translated to a 327.78% EPS surprise and a 10.45% revenue surprise.
In the wake of the results and the conservative near-term guidance, Canaccord Genuity trimmed its price target on EverQuote to $28 from $33 while keeping a Buy rating. The firm cited the company’s below-expectations first-quarter guidance as the reason for the adjustment. EverQuote also reported that its top four carriers by spend remained unchanged from the third quarter, and the company achieved a 12% sequential revenue increase, setting a fourth-quarter record.
The juxtaposition of a standout fourth quarter and cautious near-term guidance has prompted some price-target reductions even as analysts leave ratings unchanged, leaving investors to weigh strong recent execution against more conservative short-term carrier spending assumptions.
Summary
Needham cut its EverQuote price target to $25 from $40 but upheld a Buy rating after the company delivered record fourth-quarter results and issued first-quarter guidance below consensus. EverQuote reaffirmed a plan to reach $1 billion in revenue within two to three years and outlined expectations for margin and EBITDA dollar growth in fiscal 2026.