EverQuote, Inc. (EVER) Cash Flow Statement

The ratio of operating cash flow to net income exceeding 1.0 in most recent quarters suggests non-cash charges such as stock-based compensation and depreciation are contributing materially to cash generation. However, the 2025Q4 ratio of 0.47, driven by net income of $57.8M that appears inflated relative to operating income, implies that reported net income in that quarter may include non-operating items that did not translate into cash. Investors should monitor whether cash conversion holds once one-time or non-operating gains are excluded.

Free cash flow has risen from $11.5M to $38.7M over the period, growing faster than revenue in aggregate and indicating meaningful operating leverage on the cash side. The quarterly volatility, including a $12.0% margin in 2026Q2 following 17.7% in the next period, suggests working capital timing is adding noise to the underlying trend. The trajectory is encouraging, but the sustainability of margins above 15% depends on whether traffic acquisition costs remain stable as carrier demand fluctuates.

Capex at this scale is consistent with a platform business whose primary investment is in software and data infrastructure rather than physical assets. Depreciation and amortization of roughly $0.8M to $1.6M per quarter remains above capex in most periods, implying the asset base is being slowly consumed without material reinvestment. This low intensity supports high free cash flow conversion, though it may also indicate that growth is being pursued without significant incremental capacity investment.

The shifts between working capital inflows and outflows, such as the $9.8M contribution in 2026Q3 versus the $4.8M drag in 2026Q2, suggest collection timing and payables settlement are material drivers of reported cash flow. Because these swings account for a meaningful share of quarterly free cash flow, the underlying cash generation may be less stable than the headline quarterly figures imply. Investors should monitor whether the working capital tailwind in the latest quarter reverses in subsequent periods.

The absence of dividends alongside episodic buybacks suggests management is prioritizing flexibility over regular cash returns to shareholders. Repurchases appear concentrated in specific periods rather than steady, which may indicate opportunistic rather than programmatic capital return. The sustainability of buybacks depends on whether free cash flow remains consistently above the amounts repurchased, which warrants further investigation as cash generation becomes more volatile.