QuinStreet Inc (QNST)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,033 | 690 | -11,580 | -21,303 | -29,716 | -33,321 | -27,385 | -25,363 | -20,310 | -17,095 | -14,608 | -12,990 | -4,397 | 2,547 | 7,666 | 15,032 | 14,013 | 10,971 | 8,751 | 10,275 |
| Interest expense (ttm) | US$ in thousands | 400 | 481 | 708 | 693 | 680 | 679 | 573 | 675 | 790 | 884 | 974 | 1,028 | 1,075 | 1,166 | 1,190 | 1,230 | 1,296 | 1,077 | 953 | 823 |
| Interest coverage | 15.08 | 1.43 | -16.36 | -30.74 | -43.70 | -49.07 | -47.79 | -37.57 | -25.71 | -19.34 | -15.00 | -12.64 | -4.09 | 2.18 | 6.44 | 12.22 | 10.81 | 10.19 | 9.18 | 12.48 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $6,033K ÷ $400K
= 15.08
The analysis of QuinStreet Inc’s interest coverage ratio over the specified period reveals a significant deterioration followed by a partial recovery in recent quarters. Initially, during September 30, 2020, the company maintained a strong interest coverage ratio of 12.48, indicating that earnings before interest and taxes (EBIT) comfortably covered interest obligations approximately 12 times over. Throughout 2020 and into early 2021, this ratio demonstrated a steady decline—from 12.48 at September 2020 to 6.44 at December 2021—yet still remained positive, suggesting that the company's earnings generally exceeded its interest expenses during this period.
However, from March 2022 onward, there was a notable and persistent decline in the interest coverage metric. The ratio transitioned from marginal positive figures to negative territory, with the figures reaching -4.09 in June 2022, and further deteriorating through September 2023, where it recorded -37.57. This negative trend indicates that the company's EBIT was insufficient to cover interest expenses, pointing to significant operational challenges or increased interest burdens. The persistent negative ratios suggest that during this timeframe, the company relied on non-operating income sources or financing activities to meet interest obligations, or was increasingly unable to fulfill these obligations from core earnings.
Starting from March 2025, there is an observable turning point, with the interest coverage ratio rebounding to a positive value of 1.43 and further improving to 15.08 by June 2025. This upward trend signifies a substantial recovery in the company's ability to generate earnings capable of covering interest expenses, reflecting improved operational performance or a reduction in interest obligations.
In summary, QuinStreet Inc experienced a period of strong interest coverage until late 2021, followed by a pronounced decline into negative territory through 2022 and much of 2023, highlighting increasing financial stress and potential solvency concerns. The recent partial recovery in 2025 indicates a positive shift, suggesting that the company is regaining its capacity to support interest expenses through its operational earnings.
Peer comparison
Jun 30, 2025