QuinStreet Inc (QNST)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.14% | 7.54% | 8.36% | 9.23% | 12.19% |
| Operating profit margin | 0.57% | -4.57% | -3.59% | -0.81% | 5.31% |
| Pretax margin | 0.52% | -4.95% | -3.68% | -0.99% | 5.09% |
| Net profit margin | 0.43% | -5.11% | -11.86% | -0.90% | 4.07% |
The profitability ratios of QuinStreet Inc over the specified periods reflect a trend of declining profitability followed by a recent modest improvement.
The gross profit margin experienced a decline from 12.19% on June 30, 2021, to 9.23% on June 30, 2022, and further decreased to 8.36% by June 30, 2023. It continued to decline slightly to 7.54% on June 30, 2024, before experiencing a notable recovery to 10.14% on June 30, 2025. This pattern indicates a shrinking of the core profit after direct costs until the recent uptick, suggesting some improvement in the efficiency of cost management or revenue generation relative to direct costs in the latest period.
The operating profit margin followed a more pronounced decline, transitioning from 5.31% on June 30, 2021, to negative margins of -0.81% in 2022 and -3.59% in 2023. It further worsened to -4.57% in 2024 before rebounding slightly to 0.57% in 2025. This indicates persistent operational challenges that led to losses over multiple periods, with a marginal turnaround in the most recent year.
Similarly, the pretax margin mirrored this downward trend, falling from 5.09% in 2021 to negative values reaching -3.68% in 2023 and -4.95% in 2024. A slight positive reprieve is observed in 2025, with a pretax margin of 0.52%, corresponding to the improvement seen in the net profit margin.
The net profit margin shows a consistent pattern of decline from 4.07% in 2021 to a significant loss of -11.86% in 2023. It improved somewhat to -5.11% in 2024 and nearly recovered to a positive figure of 0.43% on June 30, 2025. This indicates that despite ongoing challenges, the company has recently been able to generate a small net profit, which may suggest enhancements in operational efficiency, cost controls, or other factors contributing to improved bottom-line performance.
Overall, QuinStreet Inc’s profitability ratios exhibit a period of deterioration, especially between 2021 and 2024, characterized by negative margins. The recent data reflects a modest but noteworthy recovery in 2025, signaling potential stabilization or initial signs of profitability returning to the company.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.44% | -7.62% | -6.17% | -1.12% | 6.83% |
| Return on assets (ROA) | 1.09% | -8.50% | -20.43% | -1.25% | 5.24% |
| Return on total capital | 2.47% | -13.71% | -8.95% | -1.64% | 10.36% |
| Return on equity (ROE) | 1.93% | -14.45% | -29.97% | -1.83% | 7.97% |
The analysis of QuinStreet Inc.'s profitability ratios over the period from June 30, 2021, to June 30, 2025, indicates considerable fluctuations and a general trend of diminished profitability followed by signs of recovery.
The Operating Return on Assets (Operating ROA) shows a decline from 6.83% in June 2021 to negative values in subsequent years, hitting -6.17% by June 2023, and further decreasing to -7.62% in June 2024. However, a notable improvement is observed in June 2025, with Operating ROA rebounding to 1.44%, signaling a potential return to profitability on operating assets.
Similarly, the Return on Assets (ROA) mirrors this downward trend, declining from 5.24% in June 2021 to a trough of -20.43% in June 2023. The negative ROA persists through June 2024 at -8.50% before improving to 1.09% in June 2025, indicating a recovery in the efficiency of asset utilization in generating net income.
The Return on Total Capital has experienced a similar pattern, starting at 10.36% in June 2021, then falling into negative territory at -8.95% by June 2023. The negative trend extends through June 2024, with the ratio reaching -13.71%, but a positive shift appears in June 2025 with a return to 2.47%, suggesting some recuperation in capital efficiency.
Return on Equity (ROE) follows an even more pronounced negative trajectory, from 7.97% in June 2021 to a significant decline of -29.97% in June 2023. The ratio continues to be negative in June 2024 at -14.45%, but shows signs of recovery in June 2025 with a slight positive figure of 1.93%. This shift indicates a potential improvement in the company's ability to generate profit for shareholders after a period of substantial losses.
Overall, the profitability ratios depict a period of substantial operational and net income difficulties for QuinStreet Inc., characterized by negative ratios that persisted through 2023 and 2024. The data suggests an inflection point in 2025, where ratios turn positive, implying a possible resurgence in profitability. This pattern underscores prior challenges but also hints at potential improvements in operational efficiency and shareholder returns.