QuinStreet Inc (QNST)

The interest coverage ratios for QuinStreet Inc over the specified periods exhibit a notable decline, transitioning from a strong coverage to significant negative figures. As of June 30, 2021, the company's interest coverage ratio stood at 23.63, indicating a robust ability to meet interest obligations from operating earnings at that time. However, by June 30, 2022, the ratio dramatically declined to -4.36, signaling that the company's earnings before interest and taxes (EBIT) were insufficient to cover interest expenses, likely reflecting deteriorated operational performance or increased interest burdens.

This negative trend persisted and intensified through June 30, 2023, with the ratio deteriorating further to -26.04, and continuing into June 30, 2024, reaching -43.70. Such persistent negative ratios imply that the company's EBIT was significantly below interest expenses, heightening concerns regarding its financial stability and increasing the risk of insolvency or matter requiring refinancing.

Remarkably, a potential recovery is indicated in the data for June 30, 2025, with the interest coverage ratio improving markedly to 15.08. This suggests a substantial rebound in earnings relative to interest expenses, restoring the company's capacity to service its debt obligations effectively.

Overall, the trend reflects a period of substantial financial stress following 2021, with a significant negative impact on the company's ability to cover interest costs. The apparent recovery in 2025 could signify improved operational performance or restructuring efforts. Nonetheless, the preceding negative ratios underscore the importance of monitoring the company's ongoing profitability and debt management strategies.

Peer comparison

Jun 30, 2025