QuinStreet (QNST) has just posted Q2 2026 results with revenue of US$287.8 million and basic EPS of US$0.88, putting a spotlight on how its top and bottom lines are tracking after a year of swinging into profitability on a trailing basis. The company has seen quarterly revenue move from US$282.6 million in Q2 2025 to US$287.8 million in Q2 2026, while basic EPS has shifted from a US$0.03 loss to US$0.88 over the same period, giving investors a clearer view of how margins are now flowing through the income statement.

See our full analysis for QuinStreet.

With the latest numbers on the table, the next step is to see how this earnings profile lines up with widely held narratives around growth potential, profitability quality, and where expectations may need a reset.

TTM profit climbs to US$62.4 million

• On a trailing twelve month basis, QuinStreet booked US$62.4 million of net income on US$1.1b of revenue, with Q2 2026 alone contributing US$50.2 million of that profit.
• What stands out for a bullish take is how the company moved from a trailing twelve month loss of US$22.1 million in early 2025 to positive US$62.4 million, even though a one off US$17.1 million loss still sits in the historical numbers.
  • This shift into profit aligns with the idea that the model can earn money at current scale. At the same time, that one off item shows recent earnings are not a clean run rate.
  • Bulls pointing to the company having only just crossed into profitability need to keep in mind that trailing figures still include the impact of that loss and do not represent a smooth trend.

Revenue growth meets earnings softness risk

• Forecasts call for revenue to grow about 15.5% per year while earnings are expected to decline about 2% per year over the next three years, so top line and bottom line are not projected to move in the same direction.
• Bears focus on that projected 2% annual earnings decline, and the recent numbers give them support because the trailing twelve month EPS of US$1.09 includes both the benefit of turning profitable and the drag from a US$17.1 million one off loss.
  • Critics highlight that if earnings slip from this base while revenue keeps growing, margins could move the wrong way from here even though they were strong in Q2 2026 with US$50.2 million of net income.
  • For a cautious view, the key question is whether the recent EPS jump from roughly US$0.08 in Q1 2026 to about US$0.88 in Q2 2026 is repeatable or whether it sits above what those earnings forecasts imply.

On a quarter where EPS spiked and forecasts still point to mild earnings erosion, some investors will want a deeper breakdown of the cautious arguments before deciding how much weight to put on this risk story. 🐻 QuinStreet Bear Case

P/E of 11.1x with DCF fair value far above price

• QuinStreet trades on a P/E of 11.1x versus a peer average of 21.6x and industry level of 12.7x, and the US$12.24 share price sits well below a stated DCF fair value of US$51.11.
• Supporters of a bullish view see that valuation gap as important, and the current profitability backdrop adds context because trailing twelve month net income of US$62.4 million and EPS of US$1.09 are being priced at a lower multiple than peers.
  • What is striking is that the P/E discount exists even after the business has moved from a trailing twelve month loss of US$22.1 million in early 2025 to positive earnings. This suggests the market is not paying up for that shift.
  • At the same time, analysts are not projecting strong earnings growth, so the contrast between the DCF fair value of US$51.11 and the US$12.24 market price sits against a backdrop of only modestly positive profit expectations.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on QuinStreet's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

QuinStreet's forecasts suggest revenue growth alongside a projected 2% annual earnings decline, which raises questions about how durable current profit margins really are.

If that mix of top line momentum and fragile earnings makes you uneasy, check out our 86 resilient stocks with low risk scores to quickly spot companies where profit stability is front and center.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.