EverQuote, Inc. (EVER) Q2 2026 Earnings Report, Transcript and Summary

Hello everyone. Thank you for joining us and welcome to the EverQuote Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to [ Sara Buda ], Vice President of Investor Relations. Please go ahead.

Thank you. Good afternoon, and welcome to EverQuote's Second Quarter 2026 Earnings Call. We will be discussing the results announced in our press release issued today after market close. With me on the call this afternoon are Jayme Mendal, EverQuote's CEO; and Joseph Sanborn, EverQuote's CFO and Chief Administrative Officer. During this call, we may make statements related to our business that may be considered forward-looking statements under federal securities laws, including statements considering our financial guidance for the third quarter of 2026. Forward-looking statements may be identified with words and phrases such as aim, expect, believe, intend, anticipate, plan, will, may, continue, upcoming, and similar words and phrases. These statements reflect our views only as of today and should not be considered our views as of any subsequent date. We specifically disclaim any obligation to update or revise these forward-looking statements except as required by law. Forward-looking statements are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. For a discussion of those risks and uncertainties, please refer to our SEC filings including our annual report on 10-K and our quarterly reports on 10-Q on file with the Securities and Exchange Commission and available on the Investor Relations section of our website. Finally, during the course of today's call, we will refer to certain non-GAAP financial measures, which include adjusted EBITDA and adjusted EBITDA margin, variable marketing dollars and variable marketing margin, which we believe are helpful to investors. A reconciliation of GAAP to non-GAAP measures was included in the press release we issued after the close of market today, which is available on the Investor Relations section of our website. And with that, I'll now turn the call over to Jayme.

Thank you, Sara, and thank you all for joining us today. We continue to execute well and deliver strong results. In Q2, we grew revenue 25% year-over-year to $195.1 million and grew adjusted EBITDA 37% year-over-year to a record $30.1 million. Importantly, we achieved these results while continuing to advance our strategy, unlock new growth levers and extend our market leadership position. We continue to experience a healthy market backdrop for both auto and homeowners insurance, as carriers remain profitable and hungry for growth. Against this backdrop, carriers are turning to EverQuote as a trusted partner to help them grow policies in force. In Q2, we further broadened carrier demand, including a ramp with 1 major carrier that returned to the marketplace as expected. We also grew local agent demand for referrals to record high levels while increasing the number of products per agent as we advance our 1-stop growth partner strategy with local agents. Both carrier and agent revenue reached record high levels in the quarter. Additionally, our home vertical continues to perform well, growing 35% year-over-year in Q2, also to record levels. While we execute on behalf of customers, we are also investing to extend our AI leadership position in the market. Our Smart Campaigns AI bidding solution continues to scale, supporting customers' aggressive customer acquisition goals by helping them deploy marketing budgets more effectively and efficiently. Seven of our top 10 carriers now use Smart Campaigns, and in Q2, the amount of revenue flowing through the product increased by over 100% versus the same period last year. Also in Q2, we released our agent-facing version of Smart Campaigns to the first cohort of local agents. As Smart Campaigns becomes our customers' dominant bidding approach, we are strengthening these relationships by embedding our technology into their core workflows and achieving deeper data integrations all while helping customers achieve their growth goals. Within our walls, use of AI for everything from coding to automating operational tasks to prototyping products has reached an inflection point as our teams integrate AI into their daily workflows to drive greater productivity and velocity. We are seeing daily active use pervasive across our corporate staff, and within engineering, we are exceeding industry benchmarks with a 25% measured increase in efficiency. On a daily basis, I am impressed by yet another creative, high-value AI-derived output from an EverQuote team member. To name just a few, recent examples include AI agents designed to emulate human shopper personas and identify friction points in our web experiences, as well as upgrades to our AI traffic bidding platform, which put us on a path to increasingly agentic traffic operations. This trend of delivering innovative products at a faster pace will only increase from here. As evidenced by our financial results, our consistent, strong execution on behalf of customers has made us a trusted growth partner of choice for the largest carriers and thousands of local agents. We continue to integrate AI across our operations and our products, and are emerging as an AI leader within our industry. From this position of strength, we see an opportunity to do more to support customers while unlocking new growth vectors for the business. Initially, we will focus on 2 areas: 1, amplifying visibility with consumers through new products that are purpose-built for AI search and agentic commerce. And 2, building AI native growth solutions for carriers and agents, which allow them to derive benefits of AI without having to build and manage as much of the technology in-house. With our rich AI heritage and deep customer relationships, we are uniquely positioned to lead the P&C distribution sector through its transition into the AI era. We look forward to sharing more details of these newer developments in the coming months. I have never been more excited about where we are and where we are going. We have a unique blend of talent, market leadership, ability to innovate, trusted customer relationships, and financial strength. This positions us to build on recent progress, expand our competitive moat, and create a multi-billion dollar market leader with durable long-term growth. I will now turn the call over to Joseph, who will discuss our financial results and outlook.

Thank you, Jayme, and good afternoon, everyone. Q2 marked another positive quarter for EverQuote with strong revenue and adjusted EBITDA growth. We grew revenue 25% and adjusted EBITDA 37% year-over-year. We also drove record variable marketing dollars, or VMD, and record adjusted EBITDA, while at the same time generating strong cash flow. Now let's turn to the details of the second quarter. Total revenue grew 25% year-over-year to $195.1 million. Revenue from our auto insurance vertical increased to $172.1 million in Q2, up 23% year-over-year. We continue to benefit from our broad and differentiated distribution with growth across carriers and agents, including a large carrier ramping as Jayme mentioned. We also are delivering on the operational plan we've discussed to scale beyond the auto vertical. In Q2, revenue from our home insurance vertical grew 35% to a record $23 million, as we capitalized on strong monetization across high-quality traffic sources and secured increased budget from key carriers. VMD increased to $56.9 million in the second quarter, up 25% from the prior year period. Variable marketing margin, or VMM, was 29.2% for the quarter. Turning to operating expenses in the bottom line, in the second quarter, we grew GAAP net income to $19.2 million, up from $14.7 million in the prior year period. Q2 adjusted EBITDA increased 37% from the prior year period to $30.1 million, representing a 15.4% adjusted EBITDA margin. Cash operating expenses, which excludes advertising spend in certain non-cash and other charges, were $26.8 million in Q2, up slightly from Q1, as expected. We delivered strong operating cash flow of $24.3 million for the second quarter. In Q2, we repurchased 578,000 shares totaling approximately $9 million under our share repurchase program. In aggregate, under this program, we have repurchased 2.5 million shares totaling $50 million. We are pleased with the results and expect our Board will revisit authorizing a new program later this year as part of our ongoing review of capital allocation. We ended the period with no debt and cash and cash equivalents of $192 million. In summary, our Q2 results reflect continued strong execution. We diversified our revenue across additional carriers in the quarter, further scaled our home vertical, and expanded our AI capabilities to drive innovation for our customers and deliver efficiencies within our own operations. Turning to guidance for the third quarter of 2026. We expect revenue to be between $198 million and $208 million, representing 17% year-over-year growth at the midpoint. We expect VMD to be between $56 million and $59 million, representing 15% year-over-year growth at the midpoint. And we expect adjusted EBITDA to be between $28 million and $31 million, representing 18% year-over-year growth at the midpoint. Looking to the remainder of the year, we are seeing a healthy environment as carriers focus on growing policies in force, and as they choose EverQuote to achieve their goals. We are executing well and remain confident in our ability to achieve $1 billion in annual revenues on the timeline we initially communicated to investors last November, while also generating strong cash flow. We expect to reach this goal by first, driving better performance to gain share. Second, obtaining bigger scale as we bring more provider budget and traffic onto our platform. Third, delivering a broader portfolio of solutions to our clients. And finally, achieving greater operating efficiency through investments in AI automation. As Jayme mentioned, we are increasing our focus on how to build upon our existing success and pursue incremental opportunities to propel our business beyond our $1 billion revenue target by delivering new AI-first products that add incremental value to our customers. Consistent with our prior commentary, we are making targeted investments in the second half of this year to develop and bring these new solutions to market. Additionally, we are pursuing select strategic commercial partnerships with AI-first companies to complement our own internal product development and capabilities. We look forward to providing further updates as our initiatives progress throughout the year. In conclusion, it was a positive quarter underpinned by strong fundamentals and a focused strategy. The strength of our ongoing financial performance reflects that our strategy to be a trusted growth partner for P&C insurance providers is working. We are executing amidst a favorable market backdrop as carriers continue to shift spend to digital channels. We are well positioned as an AI beneficiary as we bring both new value to customers and drive incremental efficiencies throughout our business. We remain committed to our previously stated path to $1 billion in annual revenue with strong cash flow generation, and we have built a business with strong underlying fundamentals and a fortress balance sheet that allows us to invest for the long term and capture new growth opportunities while continuing to drive value for our customers and shareholders alike. Jayme and I will now take your questions.

We will now begin the question and answer session. [Operator Instructions] Your first question comes from Ralph Schackart with William Blair.

Jayme, you talked about the healthy market backdrop in prepared remarks. Maybe just sort of give us an update what you're seeing with the market today versus maybe last quarter or since the business has progressed through 2026. And then also, as you were going through sort of the AI products, you mentioned in the AI bidding part of the prepared remarks that you are sort of leaning in, I guess, with the agentic traffic operations or maybe some automation there. Maybe if you could provide a little bit more color on that and the potential impact to the business or VMD, it'd be great.

Sure. Thanks, Ralph. So as it relates to the carrier market, the market remains healthy as it has been throughout the year so far. Carrier combined ratios in the 80s for the most part among the major carriers, and that's true across auto and now the homeowner segment, too. So I would say that the carriers remain very hungry for growth. If there's 1 thing that we're starting to feel a bit more as the year progresses is kind of equal appetite for homeowners growth as there was for auto growth coming into the year. And you see that starting to be reflected in some of the strength in our home vertical this quarter, and we expect that to persist into the back part of the year. Then to your second question, as it relates to our AI bidding platform, we have automated a lot of our traffic bidding over the years. We've talked about it many times before. A lot of that was done through the application of machine learning to automate decisions as it relates to bidding for traffic. And now what we're beginning to do is overlay more sort of agentic action on top of the ML bidding that has been occurring for a long time. And so this is now getting into like deeper automation of a lot of the operations, which will -- has historically every time we do something like this, we see the benefit both in the effectiveness of the bidding, which would flow through in VMD, but also in the efficiency, because we can sort of manage a larger traffic portfolio with less human intervention needed.

Your next question comes from Naved Khan with B. Riley Securities.

Great. A couple of questions from me. Maybe first on the Smart Campaigns 3.0. I think you were rolling out a beta with the agents, and I'm wondering how that adoption is going and what the performance is for the Smart Campaigns with the agents? That's one. And then the second question I have is just around your marketing channel mix in the last quarter. Have you kind of made any changes or anything that might have contributed to this trend during the quarter as a result of your marketing changes, if there were any?

Sure. So as it relates to Smart Campaigns, there have been a number of developments over the last quarter. On the carrier side, we're continuing to, sort of, evolve to our Smart Campaigns 3.0, which has more features built into it to improve the efficiency of the model. But probably the bigger change this past quarter was introducing Smart Campaigns to agents for the first time. So agents are now able to bid more dynamically than they have been able to in the past. It's early days, but the early data that we're getting would suggest significant conversion rate improvements for the agents who have opted into that product. So good progress on that front. With respect to the marketing mix, I guess the change that we've been talking about since the beginning of the year is the ramp of new traffic programs and traffic channels, particularly into some of the more higher funnel areas. So that continues. I wouldn't say there's been any change that is material or noteworthy over the last quarter, but we continue to work to broaden and expand that traffic portfolio, particularly into these higher funnel channels.

Okay. Maybe just on the channel, sort of, topic. Maybe just -- maybe talk about AI overviews, if that has had any effect, positive or negative, or maybe none in the quarter?

Yes, sure. So we have not experienced any direct effect to our paid search results. And what we -- but you've got this large source of traffic growing in the LLMs, which to us represents incremental opportunity because we have never historically invested in or had a significant amount of organic traffic to begin with. So our paid traffic remains healthy and strong. And now we've been making investments over the last year or so to really begin to access the AI search traffic more systematically. And there's a number of ways that you can do that. One is through more of a traditional, sort of, content strategy, so developing answers to the questions that people may pose through the LLMs. The second is through paid advertising, and you have platforms like OpenAI now opening up to paid advertising. And the third is through technical integrations. So we just -- we launched our ChatGPT app last quarter, and it's getting some traffic. But it's the combination of those things and how they work together to meet the needs of the LLMs that ultimately is going to allow us to start to tap into that traffic in a more material way and could become material over time, particularly as those platforms continue to grow.

Your next question comes from Maria Ripps with Canaccord Genuity.

Great. So you talked about introducing new solutions in the back half of the year, both on the consumer side and carrier side. Can you maybe help us understand some of the opportunities here? And is it largely around, sort of, conversion and, sort of, improving solutions, sort of, within your existing models? And then secondly, maybe is there anything you can share in terms of contribution, in terms of incremental revenue opportunity here? And, sort of, how should we think about that, whether that should start contributing later this year or next? Sort of how are you thinking about that?

Sure. So, there's sort of two sides of this. One is more on the consumer or shopper side. One is more on the provider side. I started to get at the consumer side with my response to Naved, but we see an opportunity to really amplify our visibility with consumers through new products that are really purpose-built for AI search and agentic commerce. And so, as that begins to grow, obviously, a large pool of insurance intent exists there. There's a number of ways to access that traffic, which I just referenced, but they all require the build of certain assets that meet the specific needs of the LLMs. And we're making investments in these assets to become a distribution point of choice for the LLMs within our vertical market. So that's the high level on that one, and we will have more specifics to share in the coming months. But then to go to the other side of the marketplace, as you look at the provider landscape, we operate in a market that is -- it's regulated, it's opaque, it's nuanced in many respects. And so horizontal solutions often don't work well for the insurance market. And we would -- we believe that within our market, we are really leading the charge with respect to the adoption of AI and understanding of how to deploy it, how to build with it. And with that, we see an opportunity to do more to support our customers. I think we're developing a suite of offerings, which will allow them to drive benefits of AI without having to build and manage as much of the technology in-house. And so the basic idea is roll out products like Smart Campaigns, which are consistent with our vision of helping carriers and agents grow, but really with a heightened focus on applying AI to the most relevant and impactful distribution use cases of our customers. And so that could range from marketing. You mentioned conversion. That would be in scope. Basically, anything within that distribution chain where we feel we can help our customers be more effective.

Then Maria, maybe to address your point with regards to how do you think about revenues for these areas? We're very excited about both these areas, right? We think they're going to provide new opportunities to bring consumers in as the traffic landscapes evolve increasingly to working with large language models. Even in insurance, we think we're very well positioned for that. That happens over time. And we think the providers are really looking for us and are turning to actually coming to us saying, "Hey, how can you help us grow with new products?" So we're excited by these things. In terms of near-term impact, we don't view the revenue as material for this year in these new offerings. We think it's a period of really testing and innovation and bringing these things to market. And really going -- and particularly on the new products for providers, there's a period where we're really trying to invest in spending time with them as we bring these products for, say, "How do these work for you?" Doing the innovation, just similar -- the same way we rolled out Smart Campaigns. We did that with carriers and agents. You'll see a similar profile use here as well as we go to market.

Your next question comes from Gregory Peters with Raymond James.

I was curious listening to your comments about the Smart Campaign, your new ChatGPT app, and your AI initiatives, how we on the outside can reconcile all of these initiatives, which cost money and the fact that there's stories in the marketplace about how the cost of technology and the token usage, et cetera, is going up. So just trying to marry the two issues together in how it's flowing through your income statement.

Sure. Thanks, Greg. It's Joseph here. Maybe I'd say is, we're giving you details on something we foreshadowed in the start of this year. So this is very much executing as we thought we would as the year progressed. We said that OpEx in the first half of the year will be relatively flat. Q1 was pretty flat to Q2. And you're seeing in our guidance for Q3, a step-up of roughly $1 million, $1.25 million in OpEx for Q3, and you'll probably inch from there, probably $0.5 million more in Q4. Again, very consistent we said at the start of the year. Assume OpEx is relatively flat and it'll be a step-up in the second half of the year. These investments, we're now sharing the details with you, we've been planning these and working on these for some time, and that's reflected in what we sort of have out there at this point.

And I guess the only thing I'd add is more broadly, we are also driving efficiency with a lot of the automation, a lot of the work that we're doing internally, right? And I think we talked about this last quarter, but we've doubled revenue over the last couple of years while keeping OpEx flat. It is coming up a bit, but we have religion around efficiency. And so we have good visibility on the token usage and the expenses associated with it. We have controls in place. And as that ramps, we are also able to automate and kind of manage expenses elsewhere.

Maybe, Greg, the last thing I'll add to you is just as you think through what we said at the start of the year, we said, "Hey, assuming EBITDA margins will rise roughly 100 basis points this year." We are still saying they'll rise roughly 100 basis points this year, because the OpEx investment we're seeing in the second half is sort of as we expected as we started the year. Just to give you a little more context from a modeling perspective..

Great. Just one other just follow-on question. I was going through your updated investor slide deck. And I was chuckling when I saw your slide on carrier commentary about how they're all excited to grow now and considering where they were just a couple of years ago. And as a backdrop, I'm just curious, are you seeing the fact that they're willing to grow? Are you seeing any more opportunities for -- are they willing to pay you more for helping them to grow? Or is it still -- you're still getting sort of the same amount on a per closed basis? Some detail around that would be helpful.

Yes. I think there's two noticeable differences. One is in their willingness to pay. And so there is higher willingness to pay this year than there has been in recent years. There are certain carriers that are really leaning in heavily, because they're feeling a tremendous amount of pressure to grow. So -- and that's reflected in the pricing within the marketplace. We've seen that come up quite a bit. The other place we see it, Greg, is in their willingness to try new things. So as an example, we are -- Smart Campaigns is a good example. I know it's one we often use, but there is a certain amount of data sharing and trust associated with a customer adopting Smart Campaigns. And we've been working for years to get our customers on that product. And this year, for the first time, because they are experiencing a lot of pressure to grow, they are, for the first time, willing to test it, willing to provide the data and the integrations that we need to make it work. And that's been the case with that product. It's been the case with a number of other products we've brought to market, but the carriers are just a lot more open and collaborative in working with us to help them grow than we certainly saw during the harder years in the market.

Your next question comes from Mayank Tandon with Needham.

This is Brandon on for Mayank. I'm just wondering if you can touch on any other VMM margin impacts in the quarter. Looks like it came in strong. Could you touch on what drove that on the ad spend side and what dynamics you guys are seeing on certain funnels?

Maybe I'll start out, if you want to add on. So I guess I'd say is VMM for the quarter was in the high 20s. And maybe I'd even take a step back to say, on a day-to-day basis, we do not solve for VMM margin, we solve for VMD. What we've seen over time is what correlates with the highest VMD is actually a VMM in the high 20s. In any given quarter can be higher or lower based on things we control or things we don't control with the advertising environment. But generally, it's in the high 20s correlates with the highest VMD from our experience. One of the things that I would say that allows us to continue to do that, as we continue to get -- as Jayme talked about Smart Campaigns, that brings in more data into our marketplace. As we bring more data into the marketplace, it helps us be more efficient with traffic acquisition, that certainly feeds into that as well in our ability to maintain and drive those VMM margins in the high 20s and maintain them there. Any additional color?

No, I think that more or less covers it. It is certainly a competitive traffic landscape out there, but we've adapted to it. And we've been able to drive a good deal of efficiency through our bidding technology. And we're also expanding into other channels, as we mentioned earlier. And those channels are not industry-specific channels, so they're not subject to the same kind of competitive pressure as, say, insurance search or something like that.

That's super helpful. I'm wondering if you can touch on capital allocation. Buybacks have been a big part of it recently, but wondering what you guys are seeing in the M&A environment and your thinking around capital allocation at this time?

Sure. So thanks for the question. I guess when we think about capital allocation, there's sort of three things we've talked about, just to remind folks. One is obviously thinking this fortress balance sheet is critical for our business. We think long term and some of the investments we're making in the time horizons for return. Second is obviously buybacks. We've done about -- we've done $50 million of buybacks since we did it last August. And the third is on M&A. When we look at M&A, I'd say maybe I'd start with two things. One is we don't see a need for M&A to achieve our path to $1 billion in revenue that we talked about in our November call. As we talked about in our prepared remarks, we're still on a path to achieve that in 2 to 3 years from now, 15 to 27 months, 9 months into making the commitments. But we see potentially an opportunity with M&A to accelerate our opportunities in the P&C landscape. As we look across the market, we think there's a real opportunity for us, and it falls in a couple -- a few areas I touch on. We touch on -- we talked about new products for carriers and agents to help grow their business. M&A could certainly be part of that, how do we bring new areas to help carriers and agents to grow? And that could be part of an M&A strategy. We also look at -- we've had really good success with our non-auto vertical of home. How do we continue to keep growing the non-auto verticals could be another area for M&A. And the third could be around data. How do we leverage data within our marketplace and find new insights that overlay with the data we already have? So those could be some of the areas we'd look at. What I would say more broad, as a sort of stepping back a little bit further is, we think it's a market landscape. We are really coming out as a leader in this space, pulling away from the pack. And as we do that, we're seeing more opportunities. Why are we seeing more opportunities? Because a lot of the private company insurtechs that are out there, you have management teams who are passionate about being in the space, and they want to see an opportunity to be part of someone who's doing that. And we're having more and more of those conversations. So as we look at using our capital for M&A, obviously, a key part of it is talent as well. And so we'll see how this unfolds over the coming quarters, but we certainly see it as another growth lever for us to consider.

Your next question comes from Jason Kreyer with Craig-Hallum.

I want to go back to VMM. It looks like that's pretty stable for you guys. You called out the new channels that you've been investing in over the last couple of quarters. Can you just give any updates on how those are progressing? And are they already building tailwinds to VMM? Or do you expect that to take a couple more quarters of testing and refining before that starts to drive more tailwinds?

They're progressing as planned. They don't -- I think we've said before, we don't expect the new channels to kind of materially impact one way or the other, the kind of medium-term VMM operating point. As Joseph referenced, it's really not actually even a metric that we manage to. It's kind of an output metric. We're trying to maximize the variable marketing dollars. But the channels are, they're progressing as planned. And our prime objective right now is keeping our carriers and agents fed, right? So growth is really the name of the game. And in those new channels, we're able to access some volume that's contributing to growth. And I don't think we would look to trade off growth for that -- for any kind of margin at this point. We're just continuing to look for maximum variable marketing dollars and serving the customer need to grow.

Appreciate that. I wanted to pivot to the home side of things. I mean, it seems like that, that remains a really robust growth opportunity in the market. So maybe a little bit more on just what your aspirations are for growing home? And then, how well are you able to leverage the product and the tech that you've created on the auto side and deploy that to further scale opportunities in home?

Yes. So yes, we see a really nice opportunity in home. The vertical has been performing very well. It grew, I think, 35% this quarter, year-on-year to record levels. We've long said that we expect home growth to outpace auto growth, just given where it started and given how it's sort of a little bit behind auto in terms of its maturity and its digital evolution. But a lot of the growth to date has been driven by applying a lot of our best practices and our technology and our traffic operations from auto to home. So a lot of that does translate. That being said, I think there are some things we can continue to do to customize that homeowners buying experience to make it more tailored to the vertical and improve performance in doing so. But if you take a step back, I mean, the vertical -- the market right now is very healthy. The carriers are quite profitable. And we've now got some big carriers paying attention to home, it seems, more than they have in the past, particularly as the auto market gets quite competitive. So all signs right now point to continued growth in that home vertical.

And maybe, Jason, just one other sort of perspective to give in terms of the size of the home opportunity. So roughly, it's 10%, perhaps 10%, 11% right now, the rest being auto for us. If you look at the broader P&C landscape, it's roughly for every $2 of auto, there's $1 of home. So between 50% and where we are today, we think there's 10%, we think there's a lot of growth opportunity more broadly in the market. Not all home will be home opportunities will be relevant to digital, but we see significant upside in that market opportunity, which allows us to feel very bullish about the investments we're making here and how it will impact us in the medium and longer term to becoming a real growth driver for the business.

The last question comes from Jed Kelly with Oppenheimer & Co.

Good quarter. Quick question. A couple of other digital insurance marketplaces have talked about carriers doing some tests with them that could have depressed their variable marketing margins. Judging by your performance, you didn't see that. But are you seeing the carriers do any testing that could temporarily depress your margins?

No.

No? All right.

No. I don't know what more to say. There's nothing. We don't see anything that would have that impact.

Okay. No, that's great. And then just another question for you. Google arbitration or the Google settlement. Are you thinking about joining any arbitration for some of the search advertising you've done on Google over the past 10 years?

So we are aware of the Google arbitration. I think every law firm in the country has probably reached out to us, as well as every investment bank who's trying to do products in the area. So we're aware of it. We'll evaluate as we do other things as well. So really nothing to comment on it, but we're well aware of what's going on out there.

All right. And I guess I'm the last one. Just with the guidance, can you just talk about how we should think about measuring VMM margin versus measuring variable marketing dollars? Obviously, high 20s is a good place to be, but do you think there'll be opportunities maybe to get more marketing dollars at a lower margin? Just some thought on that.

I keep coming back to, Jed, for us as we solve for maximizing VMD dollars. And right now, with what we're seeing, we sort of see high 20s as sort of place it'll normalize for VMM margin. There'll be variability quarter-to-quarter certainly. We had Q4 of last year, we made a conscious choice after 3 quarters in a row of really strong start. We made investments in Q4 last year, we consciously brought it down as we tested a lot of new channels. But for us, we view it as we sort of see in the high 20s, is where it will be. But again, I come back to -- we don't -- it's an output metric. It's not the way we run the business. We run the business to drive VMD dollars in a sustainable and durable way. So what we don't do is we -- we do not go and chase the VMD dollar. We don't feel is sustainable. Everything is thought through in terms of let's just not make the quarter. Let's think about how we're building durability in the model over time.

That is the end of the Q&A. I will now pass it back to management for closing remarks.

Thank you, and thanks, everyone, for joining us today. To close out, I just want to thank the EverQuote team for delivering yet another excellent quarter with strong growth, record adjusted EBITDA. We're continuing to execute well against the backdrop of healthy customer demand as we build momentum in both home and in auto. We're making great progress across a number of goals as we deliver superior performance for our carriers and agents, as we get more value from AI in our operations and in our products and as we diversify our customer base and deepen our customer relationships. Looking forward to sharing further updates with you in the coming months as we build on this momentum.

This concludes today's call. Thank you for attending. You may now disconnect.