Q2 2025 EverQuote Inc Earnings Call
Good afternoon and thank you for standing by. My name is John and I will be your conference operator. Today at this time, I would like to welcome everyone to the ever quote second quarter 2025 earnings. Call all lines have been placed on mute to prevent any background noise. After the speaker marks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad and to withdraw, your questions seem to press star 1. Again, I would now like to turn the conference over to Brittany Johnson with the blue shirt group. Please go ahead.
Thank you. Good afternoon, and welcome to ever quotes, second quarter 2025 earnings call. We'll be discussing the results. Announcing our press release issue today after the market closed.
With me on the call, this afternoon are Jamie Mendel ever quotes, chief executive officer and Joseph sambourne ever quotes Chief Financial Officer.
During the call, we will make statements related to our business. That may be considered for looking statements under Federal Securities laws including statements concerning our financial guidance. For the third quarter of 2025
We're looking at statements that may be identified with words and phrases such as "expect," "believe," "intend," "anticipate," "plan," "may," "upcoming," and similar words and phrases. These statements reflect our views only as of today and should not be considered our views as of any subsequent date. We specifically disclaim any obligation to update or revise these forward-looking statements except as required by law.
Forward-looking statements are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. For a discussion of those risks and uncertainties, please refer to our SEC filings, including our annual report on Form 10-K and our quarterly reports on Form 10-Q, on file with the Securities and Exchange Commission and available on the Investor Relations section of our website.
Finally, during the course of today's call, we will refer to certain non-gaap Financial measures which we believe are helpful to investors. A Reconciliation of gaap to non-gaap measures was included in the press release. We issued after the close of market today which is available on the investor relations section of our website.
And with that, I'll turn it over to Jamie.
Thank you, Brinley, and thank you all for joining us today.
We achieved strong results in Q2, growing 34% year-over-year and delivering record adjusted EBIT, dominant margin, and net income.
Against the backdrop of healthy carrier profitability. Our team remains focused on helping carriers and agents accelerate growth.
We continue to make progress toward our vision of becoming the number. 1 growth partner to PNC insurance providers by efficiently, delivering better performing referrals, bigger traffic, scale, and a broader Suite of products, and services.
In Q2, carrier demand remains stable.
Reflecting a carrier landscape. That is broadly healthy. Coupled with consumer shopping levels, that remain strong 1, large carrier grew spend to record levels, marking their full recovery. While another Titan budgets, seeking the optimal balance of growth and efficiency.
And a few remained laggers, sharing plans to reactivate in the second half of the year.
With the exception of certain challenge geographies, like California, we anticipate being back to what we would characterize as a full carrier panel, by historical standards, by the end of this year.
As carriers work to grow policies and force, we remain focused on differentiating our Marketplace through Superior performance. That is underpinned by our data advantage.
Our data scale enables us to deploy AI throughout our traffic and distribution bidding and routing systems.
For example, as another major carrier adopted our ML-driven Smart Campaigns product, it drove immediate improvement in their spend efficiency by about 20%.
Over time, greater adoption of smart campaigns propels our flywheel, as higher ad spend efficiency in our marketplace compels carriers to shift more budget to EverQuote relative to alternative advertising platforms.
And as we get more budget and outcome data, we feed this data to our AI-driven systems to enable further improvements to customer performance.
Agent and captive carrier demand also remains strong in Q2, with continued growth from our local agent base.
We are making progress in our transition from a leads vendor to a strategic growth partner for local agents by driving multi-product adoption.
We continue to build on our foundation in Leeds, by adding additional value, add products, and services broadening the ways. We help agents grow which in turn enables us to consolidate agent marketing budgets and positions us as the indispensable growth partner for these same agents.
Over the last 6 months, our paid products per agent, have increased by more than 15%. But over a third of our agent base now using multiple products.
Our consumer acquisition teams executed. Well in Q2 driving 25% year-over-year, vmd growth despite elevated competitive pressure in the broader advertising landscape as carriers step up their direct advertising efforts as well.
As monetization improves and in order to keep Pace with carrier, appetite for growth, we are making investments in scaling incremental, customer acquisition channels, including on several social and video platforms.
As we continue to grow, we remain laser focused on increasing operating, efficiency and productivity evidenced by our record adjusted, Evita margin and net income.
On top of the expense management discipline honed over the last couple of years, we are increasingly layering on AI-driven efficiency applications.
For example.
In our engineering organization co-pilots have gained rapid adoption.
We also have teams experimenting with rethinking how we can develop software more holistically using an AI-first approach to inference production. Ready, we code faster and more efficiently than can be done by humans, inclusive of our ability to integrate, release, test, and maintain production-quality code consistent with our performance requirements.
And our call center operations. We have introduced AI voice agents with the goal of reducing Reliance on human call centers over time.
Lastly, we are testing AI agents to help automate operational tasks.
We have stood up our first dedicated AI team, which will serve as our nucleus for building and supporting AI use cases across the business.
In May I shared our goal of exceeding, 1 billion dollars of annual revenue in the near future.
I'll now turn the call over to Joseph to discuss our financial results.
Thank you Jamie and thank you all for joining. I will start by discussing our financial results for the second quarter of 2025 before providing an update on our Capital allocation strategy and our guidance. For the third quarter of this year
We delivered a strong second quarter as we further enhance our operating performance and focused on driving expanding levels of profitability.
Total revenues in the second quarter grew 34% year-over-year to $156.6 million. Revenue growth was primarily driven by stronger Enterprise carriers. Spend shows up over 61% from the comparable period last year.
Revenue from our auto insurance protocol increased to 139.6 million in Q2 up 36% year-over-year.
Revenue from our home and renters insurance, political increased to 17 million in. Q2 up, 23%, both year-over-year and sequentially.
Variable marketing dollars or vmd increased to 45.5 million in the second quarter up. 25% from the prior year period.
Variable marketing margin or vmm which is vmd. As a percentage of Revenue was 29.1% for the quarter up from 28% in q1.
Turning to operating expenses in the bottom line. As we scale and drive Topline growth, we continue to expand operating leverage in our business through disciplined expense management and by utilizing Ai and other technology Investments to deliver incremental efficiency.
In the second quarter, we grew net income to a record $14.7 million, up from $6.4 million in the prior year period.
Q2 adjusted Eva increased to 22 million compared to 12.9 million in the prior year period.
Adjust Zita margin expanded to a record 14%.
We reported record operating cash flow of 25.3 million for the second quarter, ending the period with no debt and cash and cash equivalents of 148.2 million up from 125 million. At the end of q1.
Cash operating expenses, which excludes advertising spend in certain non-cash, and other 1-time chargers for 23.6 million in. Q2 operating expenses, were sequentially down in the quarter and lower than expected, reflecting some hiring and short-term projects, being deferred to the second half of the year.
Also announced today I wanted to highlight our inaugural share repurchase program. The board is authorized the company to purchase up to 50 million in shares of common stock over the next 12 months evidence of the continued confidence, we have in our business.
We will be opportunistic in repurchasing stock and believe this program is a prudent use of capital. It reflects our conviction in EverQuote's business market opportunity and cash flow.
Going forward, we expect our strong cash flow generation to position us to retain a fortress balance sheet, while continuing to invest in growth initiatives, including AI.
In addition, on August 1st, we entered into a new 3-year 60 million committed credit facility.
While our previous $25 million line of credit was never drawn upon, and we have no immediate plans to utilize the new facility, the arrangement provides us with additional financial flexibility.
Looking to the back half of 2025, as mentioned last quarter, we plan to increase investment in our AI capabilities, technology and data assets to drive continued, operational, efficiency, and strengthen ever quotes long-term competitive mode.
We are already seeing evidence of the benefits of our strategic investments, and we'll be disciplined in balancing incremental operating expenses to generate digestibility, but margins at near current levels.
Now, turning to guidance for the third quarter of 2025, we expect revenue to be between $163 million and $169 million, representing 15% year-over-year growth at the midpoint.
We expect VMD to be between $47 million and $50 million, representing 10% year-over-year growth at the midpoint.
And we expect adjusted EBITDA to be between $22 million and $24 million, representing 22% year-over-year growth at the midpoint.
In summary, our performance to date this year reflects our steadfast commitment to strong execution and a clear strategy.
Remains focused on delivering on our long-term, Target of approximately 20% annual revenue growth with 20% of its time margins.
Believe that the strength of our operating model and future growth initiatives will position. The ever quote to deliver continued growth profitability in 3, cash flow generation, Jamie and I will now take your questions.
Dialed in and would like to ask a question that is the press star 1 on your telephone keypad. And if you would like to withdraw your question, just press star 1 again,
Our first question comes from the line of Maria Ribs with Kor genuity. Please go ahead.
Uh, great thanks so much for taking my questions. Uh, first just just giving, uh, the uncertainty around tariffs and the the potential impact on Carrier profitability, in the back half of the Year, could you maybe give us a sense of how committed uh, your budgets are in the second half of this year based on your conversations with carers. I guess just just trying to get a sense of uh your level of visibility into the second half of the year.
Thanks Maria. Uh, well, we don't have a, a, a committed spend model. I think all signs point to a very healthy carrier landscape right now. Uh, carrier man has been stable, and, and building so far this year, and if you look at some of the latest prints from the carriers, you know, the big carriers are are showing 80s, combined ratio, so, extremely healthy. And then, you know, and every interaction that we have with carriers that I personally have with carriers over the last few months, the the dialogue has been entirely around growth and and US finding, you know, more ways to help them grow. So we don't anticipate encountering any budget, sort of constraints or, or pullback over the, the, the back part of these. The year, we do know that the carriers have been watching the tariffs, uh, but they're starting from a position of of significant strengths. And and so we think they'll be able to
To absorb whatever impact ends up flowing, through the system.
Got it. That's a that's very helpful. And then, can you really help us understand a little bit better? How to think about sort of the ongoing shift, sort of, in the AI powered, search, uh, impacting or sort of how it could impact your traffic acquisition strategy down the line.
Sure.
Yeah, I I think it's it's fairly evident that that search and and shopping for everything will evolve over time. Um, I you know, we we believe there, there are reasons to believe it could move a bit more slowly in Insurance. Um, there's it's an industry that is more opaque. So, you know, rates aren't readily available. Um you know on the open Internet it's a regulated industry. It's it's a relatively high value, high stakes purchase for the consumer. But over time, you know, clearly there more more search volume um and shopping will move over to these, you know, AI platforms and we think we're we're really well positioned to engage with that llm based traffic. Um, right now you know we we've started building llm based conversational workflows in our call center operations and you can sort of think about those as effectively taking the the top of the of the shopping funnel. Using agentic Ai and over time, we'll we'll be working our way down the funnel to facilitate more of that buying experience. So you know,
I think how and when these platforms open up to advertisers is still a bit of an open question, and how much of that is paid versus organic. But I'd say, given our monetization and our AI capabilities that are sort of fast developing, we're going to be really well positioned to acquire this traffic.
Got it. That's very helpful. Thank you.
Thanks Maria.
Your next question comes from the line of Cory Carpenter with J.P. Morgan. Please go ahead.
Hey, good afternoon, thanks for the questions. Um, maybe uh 2, another 1 on on tariffs, maybe you just ask. Ask more directly, do you? Do you think that impacted carrier budgets?
Into q and are you incorporating any potential impact on that in 3 q? And then maybe just that at a higher level?
The 2 key results and the 3 Q guide implied. You know, pretty typical seasonality that we would expect in the auto business. Um, you know, could you just kind of help us reconcile that with with the fact that it sounds like you're still bullish on the potential for a step, but at some point, as the recovery broadens to more carriers in the last remaining States open. Thank you.
Sure, thanks Corey. Um, I'll start on answering and Jamie can add on. When you look at Q2, let's say your question was, what was the impact of tariffs on Q2 our sense? Just just to remind folks, tariffs were announced on, on April 1st. And so, I think for carriers, like most of the business Community, you know, if I think the early part of Q2 was bit of uncertainty saying, let's figure out what's going to? What tariffs will mean to us.
Them in Q2 that being said, as we progress through the quarter, we've got to the larger part of the quarter. You actually saw the carrier step up as you got into in June and I think and that has continued into July and I think that, I mean part reflects getting greater Clarity on what's going on in the Tariff environment and that's obviously been reflected on the guy we gave for Q3.
And then, as in his recovery broadens to more States, I think, right now we generally have broad-based recovery in a lot of States, you know, there is still an outlier in California to, to some extent, as well as a handful of other states. You know, we as Jamie mentioned as prepared comments, we see by the end of the year having sort of a full carrier panel back in line within the marketplace and we think you'll start to see some of these lagard states come on in a more meaningful way in 2026 exact timing. And and you know, we can't give you specifics. But again you're starting to see some of these states. Start to come on, uh, just, it's happening, quite gradually in California. For example, you've seen the carrier's existing carriers, get rates, so they'll stay in the state. It hasn't translated into dramatic increases in trying to grow and bring in new concerns, but you're starting to see some signs. And so, we'll see how it plays out through the rest of this year into next.
That’s helpful. Thank you so much.
Thank you. Thanks Corey.
Your next question comes from the line of comments with the Riley Securities. Please go ahead.
Yep. Hi good afternoon. Thanks for taking my questions. Um, maybe just digging a little bit deeper into some of your carrier commentary here. In Q2 it sounded like, you had 1 major carrier that that really ramped up spend while another was,
More. So in a defensive mode here in Q2. So any additional context you can give around that and and kind of where you're at with with the rest of the carrier base. In terms of ramping up budgets here in the coming quarters.
yeah, so I you know, I I would say that most of the carriers are
Back in growth mode and and feel largely sort of stable Inn in their budget levels. There was 1 carrier, that was, you know, kind of fluctuating a bit over the first half of the Year and that was reflected in in the commentary, but even they are now, you know, um, sort of fluctuating back up from where they were in in Q2. So,
um, but on balance, I would say the carriers feel oriented towards growth and the demand feels stable. There were a couple of carriers that have really, not yet, reactivated in our Marketplace but we've gotten signal from them that they too. They do intend to reactivate in the second part of this year and so we expect to exit the year with, as Joseph said what what we would characterize as
A full panel of carriers.
Relative to to sort of historical participation in the marketplace.
Understood. That's that's helpful on that side and
Just given where the balance sheet is right now, nice to see the share purchase authorization. I'm just curious, on the flip side of that, if there's any interesting M&A that you're considering at this juncture and any sort of update on how you're thinking about potentially deploying that capital.
Uh so uh, thanks for the question. I guess this gives some context on, you know, the buyback. So so we're pleased to, uh, do our first buyback to $50 million up to $50 million over the next 12 months. But authorized by the board and I think it really reflects the confidence, we have in our business and really just the cash flow generation of the business.
Um, at the same time, obviously we will continue to look selectively in M&A, and we will, you know, M&A is something we will think about particularly as it accelerates what we're trying to do in our core markets of PNC and accelerates our long-term position to be the leader in that space. And so we'll continue to look at that and we'll, you know, update you as we have more to share. But something that will certainly be part of the things we're looking at is over the next several months.
Understood. Well, thanks for taking my questions and uh best of luck with the rest of the quarter.
Exactly. Next.
Your next question comes from the line of Jason Cryer with Craig-Hallum. Please go ahead.
Great. Thank you, guys. So, you talked about kind of a full panel of carriers and the full panel of states. I'm just curious, from a competition standpoint, if you've seen any greater competition for leads, and if you think that's creating any more volatility or any more pressure on VMS, either in Q2 or as the year progresses.
Yeah, thanks Jason.
That being said, I think we've continued to execute really well in a more, you know, competitive traffic environment. Uh, we're continuing to kind of build out our AI bidding Solutions. We drove 25% bmd growth year on year and we actually were able to to to achieve a step up in our vmm margin. Um from what it was. I think around 28% last quarter of 29 this quarter, so yes more competitive pressure but I think we're we're managing through it. Well and we're focused on maintaining margin and and and kind of uh
Finding, you know, finding the growth through incremental channels, as I mentioned earlier.
Great, thanks, Jamie. Um, so last year you saw a nice budget flush as we approached your end, you know, with the combined ratios of the carriers tracking so much below their targets right now. I'm just curious what your sense is for a similar budget flush as 2025 progresses.
Yeah. Uh, you know, I'm just curious about this as you are. I I would say intuition would suggest that, you know, the carriers will have quite a bit of room going into the back part of the year in terms of their combined, ratios, particularly for those that managed to to kind of a calendar year outcome.
So, you know, we've received no indication from any carriers that. There's, there's some end of year, budget flush coming. But in in the past when we've entered the end of the year, and we've seen both pressure for growth and and margin in profitability. We have seen some carriers deploy excess budget into the market at the end of the year. Yeah.
Maybe I just add to that, that tends to be a phenomenon you see more with.
Public companies than you do with some of the mutual companies, just have a different sort of mentality about managing annual budgets. So it just something to be cognizant of. And as in terms of, we've seen it in the past,
All fingers crossed. We see something like that again. Thank you guys.
Thank you.
Your next question comes from the line of help. Check out with William player. Please go ahead.
Uh, good afternoon. Thanks for taking my question. Just on the, uh, some of the pressures you're seeing in the, um, in the search engine, uh, marketing channels from the carriers coming back online. Would you sort of categorize this as typical, um, I guess pressures you've seen before and would have, uh, you know, have to build workarounds for? Or is there something different or more pronounced, uh, from what you see today? And maybe just a follow-up question there is, um, maybe if you could provide some perspective on what you're seeing and some of the incremental channels that you've been testing, uh, that also would be helpful. Thank you.
Yeah, so thanks Ralph.
The I would say, there's nothing out of the ordinary in terms of the competitive pressure. We're seeing, uh, you know, it's it's, it's most acute as you'd expect and some of the industry specific channels like search. Um, you know, we're seeing more stability and
And and more generalized channels like like social and video. And so these are that's that's where some of our dollars are are um you know being directed in order to to kind of offset some of the competitive pressure in search. So
Nothing really out of the ordinary. Um, what was the—remind me of the second part of the question?
Yeah, just in the sort of update, you can provide or metrics around, um, you know, social of the video channels, uh, and just hitting uh, far so that you're making there.
Yeah, got it. So, you know, these were channels that we were, we were fairly active in, um, before the downturn. And then as the, you know, Auto monetization kind of fell out, uh, we pulled back a bit in these channels and so there's a part of this that's just kind of reactivating the engine and rescaling the engine. Um, and we're seeing some some some traction, right? So these are some of these channels are are beginning to scale. And then you know, there's some incremental platforms, which we've we've not been as active in in the past which now with, with monetization where it is, we believe we should be able to compete as well.
Okay, great. Thanks Jamie.
Thanks Rob.
Your next question comes from the line of mayank tendon which lead him. Please go ahead.
Thank you. Uh, good evening. Uh, Jamie and Joseph uh even though you didn't provide specific guidance for the fourth quarter, could you just remind us of the seasonality just so that we get our model straight go and get over our skis. Any thoughts around how we should think about the top line vmd and uh just the leverage of the model on the uh, ebita front.
20s is is where we're targeting as we run the business. Um, and then lastly, an ebit. Uh, as I said in our, my prepared remarks, sort of add a new current levels. Q1 was 13, and a half percent Q2 was 14% adjusted, but done margins, Q3 guide implies us. Basically in that same ballpark as well, you know, the midpoint is, is just shy of 14. So, I think we're sort of planning, to sort of maintain those levels through is our goal and the, and that means that we'll modulate expenses. We've been doing what you're seeing in implied in Q3 as a step up and expenses, you know, and some of that will continue obviously in the Q4 and again, very much in line with what we said at the start of the year, we expected the back half of the year to add incremental Investments and especially around our technology areas in Ai and other areas.
Right. Oh, that's helpful. And then uh, going from a short-term question to a long-term question, you know, Jamie you talked about the billion dollar you know, road map to get there. Could you maybe just give us a little bit more on? You know, how you think about the growth coming organically, are you, including m&a opportunities to get to that type of um, Revenue growth Target. And then also, just I would add that is this uh contingent on adding you know, larger carriers that aren't clients today, or do you feel like you have enough Headroom to grow within the account base, to really get to that type of level?
Yeah, so hopefully it's not a, you know,
not a long-term question. Um, we hope to get there relatively soon and we think we can do so organically and, and with our existing customer base for so
The, the plan that, you know, we've we've got really relies on, on the distribution side. It's about continuing to improve performance for carriers and agents through AI products like, like smart campaigns. Um, you know, we've got a reliable pattern established now, where when we deploy these products, they improve performance. We get more budget, we get more pricing.
And so that's a part of it. With agents, we're expanding products to get more share of their wallet.
And then on the traffic side of the marketplace, we think, you know, we can sort of size the opportunity and and under and unpen it channels that we're beginning to sort of expand into and scale up.
And then, you know, outside of Auto I think that the homeowners vertical and other non-auto verticals could could sort of round it out. So our plan to get to a billion of Revenue. Does not rely on m&a but as as Joseph mentioned and feel free to to layer on Joseph. Um, you know that's a potential accelerant
And maybe what what I'd add mic is just you know just remind folks of our long-term model we've said for some time we're going to average 20% Topline growth and we're going to get to adjust to the time margins of 20% in the long term. If you look at what we've done in Evita margins last year was 11.6% for the year. If you look at where we're you know the messaging we've given today and where we've done through the first half of the year, we'll add at least a couple hundred basis points to that for this year. And as soon as you think about the path to getting to 20%, what we had 200 base points a year, you know, we're not saying we're going to do that every year but you know, I expect this to be at, you know, you know, 100 basis points on average would be probably expected and we'll see in some years it may be more. So I think and I think I think that is the the recipe, we see we see a real growth opportunity but also continue to drive profitability at the same time as we do that Topline growth.
That's great to hear. Thank you so much.
Thank you. Thanks mayor.
Your next question comes from the line of Jed Kelly with Open Himer. Please go ahead.
Hey great. Uh, thanks. Thanks for taking my question. Um, just just looking at the guidance, in, in, in the vmm margins. You know, would you expect is, is the market sort of normalizes and we, we, we, we return to a steady state growth. That you would expect your vmm margins, to go back into the low 30s, or, or how should we just think about the level of, uh, vmm margin predictability or VM dollars?
Predictability over the next, you know.
Call it 18 to 24 months.
I think the way we think about vmm is we've been talking about since the start of the year we see this sort of in the high 20s. Sometimes it may go into low 30s, you know, but given the I think on average is going to be in the high 20s, that's sort of our view on how things will shake out. Um, in any it's I think it's important to note Jed as as we've talked about in the past is, we don't run the business on a day-to-day basis. The traffic teams do not sort of try to solve for for vmm. They really are driving vmd. Now, of course, we look at it regularly throughout throughout uh, each month. And of course, there's a correlation between the maximum vmd point and also, the vmm margin nicely overlap with where that sort of high 20s level right now. So we feel good about that as the right way to manage the business.
Just just the cash balance, it's a great job. It looks like, you know, X to buy back, could be approaching 200 million end of the year. Do you ever think about Acquisitions in terms of
You know, helping you get some leverage over some larger carriers and reduce competitive spending on what you have to pay for traffic. Can you just talk about m&a and how you kind of think about using your your cash balance to um, you know, to fund additional growth.
yeah, I guess when we think about m&a,
You know, it's focus on the current strategy so we believe we want to be the leading growth partner to PNC, carers and agents. So it's not about getting leverage over time as agents, but how we help them be successful, how can we help them be more successful? How can we get more share of their wallet to help them grow their business? And that's how we think about the opportunity and I think m&a could there are some m&a opportunities that could fit within that strategy. Yeah.
But again, I think our desire and our belief is that we win by our customers winning. And if we take the results they give us and we manage that business well, we'll get great results from shareholders, and that in turn helps our flywheel keep going to build shareholder value.
Thank you.
Thanks.
Ed your next question comes from the line of Mitchell. Reuben. With Raymond James, please go ahead.
Hey, thank you guys for taking my call. Uh, this is Nick John by happy Greg Peters. So, on slide 12, you guys have a table where you're breaking out the auto versus, uh, home Revenue quarterly. It looks like it's sequentially increased each quarter since uh, 1 224 and it came down a bit in the second quarter of 25 relative to the first quarter. So I was wondering if you could provide some color on this dynamic.
I think what I'd say in the home business the way to think about home. So I think this page is obviously a visual. We we give page 12 of the investor deck. Tell people see the breakouts of Auto versus home revenues. I think, looking at them, you know, the relative proportionally given quarter. I'm not sure. Quite looked at it that way, it's generally been around 10% give or take. Um, I'd say with the home vertical specifically, maybe I could give you some context around that, that's a vertical that had nice performance in Q2, we had 23% growth here and here and also sequentially as well. So in really nice quarter, I think that reflected the broader landscape of home having strong underwriting uh pickup improvements relative to q1, as you may recall in q1. We had an environment where the home environment broadly for carers, have some pressure with cat losses and you're looking at Q2, I think it's become, you know, much more stable under writing environment, so we feel good about home. Well then
Continue to be an opportunity for us to grow the grow for us over time. So I think it's probably the Colorado I gave you. It's probably the most important and then individuals I think in the page look at the relative proportion, I think it just really reflects the the how fast Autos grown during this this period of growth given that it was coming out of a relative trough um, in 23 with the downturn.
Thank you for the call on that. Uh, my next question is on the inaugural shared purchase program. How are you guys thinking about the quarterly cadence with that going forward? Is there going to be any seasonality, or will it be relatively consistent from quarter to quarter?
You know, the way we're thinking the program now, it's going to be opportunistic. You know, just sort of based on market conditions, we don't have a, a pre-arranged plan to do certain things within a in a given quarter. Um, but again, it's 1 where we view it as very much a, you know, why do we do this? We we feel it's a good way to reflect the confidence. We have in our business and the strong cash flow generation. I think it's also a way to give, you know, that value back to our shareholders in a way that you know it's we've talked about in the past is 1 of the things we consider. And so we're pleased to be able to do it um but it's the opportunity to and how we execute it for our first program.
Thank you for the answers.
Thank you. Thank you.
And you see that we have no further questions for today that concludes yesterday, the answer session, I would not like to turn the call back over to management for closing remarks.
Thank you all for joining. Uh look, we continue to make great progress. This quarter was punctuated by a number of Records particularly as it relates to, to our operating efficiency. As we introduce more ML and AI more broadly across the business. Uh, we got to record levels of net income. Operating cash flow. Cash balance, you know, adjusted, EBA margin and we're, uh, we're really energized right now. We're energized to continue growing efficiently towards that billion dollar Revenue goal. As we build our code into the unambiguous leading growth partner for PNC insurance providers.
Thanks all.
Today's conference, we would like to thank everyone for participating participating, you may. Now disconnect your lives have a pleasant day.