QuinStreet Inc (QNST)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands 4,707 -663 -12,127 -22,132 -31,331 -85,058 -78,489 -74,914 -68,866 -17,917 -15,208 -12,857 -5,247 3,468 6,275 12,369 23,957 21,686 30,568 31,651
Total assets US$ in thousands 431,107 417,235 409,647 401,172 368,546 349,251 320,917 320,965 337,155 412,479 391,893 405,527 419,909 433,763 427,591 441,933 449,917 442,495 415,057 417,112
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%

June 30, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $4,707K ÷ $431,107K
= 1.09%

The analysis of QuinStreet Inc.'s return on assets (ROA) over the reported period reveals a significant deterioration in asset profitability beginning in late 2020 and continuing through mid-2025. Initially, the company exhibited a relatively healthy ROA, with values of 7.59% as of September 30, 2020, and 7.36% as of December 31, 2020, indicating efficient utilization of assets to generate earnings.

From March 31, 2021, onward, a downward trend is evident. The ROA declined to approximately 4.90% and 5.32% in the subsequent quarters, followed by a more pronounced decrease to 2.80% and 1.47% at the end of 2021. This pattern continued into 2022, with the figures approaching near-zero or negative territory, including a ROA of -1.25% on June 30, 2022, and -3.17% on September 30, 2022.

The decline persisted into 2023 and 2024, with the ROA reaching as low as -24.46% on December 31, 2023. During this period, the company's profitability relative to its assets deteriorated markedly, indicating increasing challenges in generating earnings from its asset base. The negative values reflect that the company was experiencing losses and ineffective asset utilization, with the trough occurring at -24.46% at the end of 2023.

However, the data from the first half of 2025 indicates a potential stabilization and recovery trend. The ROA improved from below zero, reaching -0.16% on March 31, 2025, and further turning positive at 1.09% as of June 30, 2025. This turnaround suggests an improvement in profitability efficiency and possibly the effectiveness of recent strategic or operational adjustments.

Overall, the ROA trend demonstrates a transition from initial robust asset profitability to a prolonged period of erosion into negative territory, followed by signs of recovery in early 2025. This pattern underscores a shift from profitable operations toward losses, with recent data indicating a potential move back toward positive performance.