QuinStreet Inc (QNST)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 10.14% | 9.75% | 9.36% | 8.72% | 7.54% | 7.22% | 7.67% | 7.81% | 8.36% | 8.32% | 8.13% | 8.48% | 9.23% | 10.32% | 11.34% | 11.96% | 12.19% | 11.72% | 11.13% | 11.15% |
| Operating profit margin | 0.57% | 0.09% | -1.01% | -2.52% | -4.57% | -5.86% | -5.10% | -4.60% | -3.58% | -2.95% | -2.64% | -2.40% | -0.81% | 0.43% | 1.31% | 2.51% | 2.42% | 1.50% | 1.14% | 1.48% |
| Pretax margin | 0.52% | 0.02% | -1.32% | -2.86% | -4.95% | -6.23% | -5.09% | -4.64% | -3.68% | -3.10% | -2.81% | -2.57% | -0.99% | 0.24% | 1.10% | 2.30% | 5.09% | 4.89% | 6.74% | 7.30% |
| Net profit margin | 0.43% | -0.06% | -1.31% | -2.88% | -5.11% | -15.59% | -14.28% | -13.35% | -11.86% | -3.00% | -2.65% | -2.27% | -0.90% | 0.59% | 1.07% | 2.07% | 4.14% | 3.98% | 5.88% | 6.29% |
The financial ratios of QuinStreet Inc. reveal a profile of variable profitability over the reported periods, with notable trends and fluctuations across key margins.
Gross Profit Margin:
The gross profit margin has exhibited a gradual decline over the analyzed timeframe, beginning at approximately 11.15% in September 2020 and decreasing to 7.67% by December 2023. A modest recovery is observed afterward, reaching 10.14% as of June 2025. This downward trend suggests increasing cost pressures or pricing challenges affecting the core profitability of the company's sales before operating expenses. The recent uptick in gross margin indicates some potential improvements in cost management or product pricing strategies.
Operating Profit Margin:
The operating profit margin shows a consistent deterioration from modest positive values in 2020 and early 2021, peaking around 2.51% in September 2021. From late 2021 onward, the margin turns negative and continues to decline sharply, reaching lows of nearly -5.86% in March 2024. There is a marginal recovery starting in the latter part of 2024, approaching zero and turning positive by June 2025. The persistent negative operating margins highlight ongoing operational challenges, with the company struggling to cover operating expenses efficiently, though recent improvements suggest a possible stabilization or turnaround phase.
Pre-tax Margin:
Following a similar pattern, pre-tax margins have declined markedly from around 7.30% in September 2020 to negative territory by mid-2022, reaching approximately -6.23% in March 2024. The recent trend shows signs of marginal improvement, moving toward break-even territory, with a slight turn positive in early 2025. This indicates that the company's earnings before taxes have been under considerable pressure, but the recent trajectory points to potential recovery in pre-tax profitability.
Net Profit Margin:
Net profit margins mirror operational and pre-tax declines, with a steep descent from 6.29% in September 2020 to negative margins in subsequent periods, hitting around -15.59% in March 2024. Although negative, the net margin has shown some narrowing in recent periods, approaching zero again in mid-2025, at approximately 0.43%. These figures suggest significant profitability challenges, with the company increasingly operating at or below break-even levels, but with a tentative signs of improvement in the latest periods.
Overall Magnitude of Ratios:
The progression of all profitability ratios indicates a period of financial stress, characterized by declining margins and negative values in the latter part of the observed period. The reduction in margins across gross, operating, pre-tax, and net measures points to a challenging environment, possibly driven by cost increases, competitive pressures, or strategic shifts. However, the recent upward revision in margins, particularly from mid-2024 onward, indicates potential operational stabilization and a possible turn towards profitability in the future.
In summary, QuinStreet Inc. experienced a significant erosion of profitability over the analyzed period, with margins deteriorating substantially from 2021 through early 2024. Nevertheless, recent improvements suggest that the company may be on a path to recovery, contingent on further operational efficiencies or strategic adjustments to sustain profitability going forward.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.44% | 0.21% | -2.29% | -4.83% | -7.62% | -9.15% | -8.73% | -8.03% | -6.16% | -4.27% | -3.88% | -3.35% | -1.13% | 0.58% | 1.81% | 3.40% | 3.12% | 1.85% | 1.43% | 1.79% |
| Return on assets (ROA) | 1.09% | -0.16% | -2.96% | -5.52% | -8.50% | -24.35% | -24.46% | -23.34% | -20.43% | -4.34% | -3.88% | -3.17% | -1.25% | 0.80% | 1.47% | 2.80% | 5.32% | 4.90% | 7.36% | 7.59% |
| Return on total capital | 2.47% | 0.29% | -5.16% | -9.69% | -13.71% | -15.50% | -12.72% | -11.41% | -8.84% | -6.01% | -5.22% | -4.59% | -1.54% | 0.84% | 2.57% | 5.02% | 4.74% | 3.80% | 3.13% | 3.76% |
| Return on equity (ROE) | 1.93% | -0.28% | -5.41% | -10.07% | -14.45% | -39.57% | -36.46% | -33.69% | -29.97% | -6.30% | -5.44% | -4.54% | -1.83% | 1.15% | 2.10% | 4.13% | 8.11% | 7.52% | 10.94% | 11.58% |
The analysis of QuinStreet Inc.'s profitability ratios over the specified period reveals a significant decline followed by a gradual recovery trajectory. Starting from relatively robust levels in September 2020, the company's Operating Return on Assets (Operating ROA) was 1.79%, indicating operational efficiency in generating profits solely from operating assets. Concurrently, the Return on Assets (ROA) stood at 7.59%, reflecting overall profitability including non-operating items.
However, during the subsequent periods, both ratios exhibited a downward trend. By June 2022, the Operating ROA turned negative at -1.13%, while the ROA also fell below zero at -1.25%, signaling a deterioration in operational and overall profitability. The decline intensified in the following quarters, with Operating ROA reaching as low as -8.73% by December 2023, and ROA declining to -24.46% in the same period, illustrating the company's challenges in sustaining profitable asset utilization and overall profitability amidst adverse conditions.
Return on Total Capital (ROTC) followed a similar pattern, starting at 3.76% in September 2020 and trending downward to -15.50% by March 2024, indicating erosion in the returns generated on the total capital invested, including debts and equity. The Return on Equity (ROE), a measure of profitability attributable to shareholders, demonstrated a pronounced decline, from 11.58% in September 2020 to a nadir of -39.57% in March 2024. This decline underscores the company's diminishing ability to generate profits for its shareholders.
The trend of negatively impacted profitability ratios persisted into late 2023 and mid-2024, with some signs of slight recovery in late 2024 and early 2025. Specifically, by March 2025, Operating ROA and ROA improved to 0.21% and -0.16%, respectively, while ROTC moved to positive territory at 0.29%. Conversely, ROE approached zero but remained slightly positive at 1.93% by June 2025, indicating a potential stabilization or turnaround phase.
Overall, the profitability ratios objectively depict a period of severe profitability decline for QuinStreet, transitioning from profitable operations to significant losses. The data suggests that recent quarters have shown some emerging signs of improvement, which might indicate the early stages of a recovery, contingent upon the company's ability to address underlying operational challenges.