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NerdWallet, Inc. Class A
(NASDAQ:NRDS)
Select Model
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Rating:78Outperform
Price Target:
$10.00
▲(12.61% Upside)
Action:Reiterated
Date:08/07/26
The score is led by strong financial performance (profitability inflection, high margins, and standout cash generation) and supportive valuation (low P/E). Earnings call takeaways are net positive with accelerating Q3 revenue guidance and continued buybacks, but tempered by SEO-driven headwinds and planned near-term margin pressure from higher acquisition spend. Technicals are the main drag, with the stock trading below key moving averages and muted momentum indicators.
Positive Factors
Strong free cash flow
Sustained, materially positive operating and free cash flow gives the company durable financial flexibility. This funds strategic reinvestment, share repurchases, and cushions against cyclical ad/partner budget swings, reducing refinancing and liquidity risk over the next 2–6 months.
Negative Factors
Organic search dependence
Heavy reliance on organic search makes revenue vulnerable to algorithm changes and shifting distribution. Persistent SEO headwinds already produced an SMB revenue decline and weaker credit-card traffic; rebuilding direct or owned channels takes many months and creates durable top-line risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Sustained, materially positive operating and free cash flow gives the company durable financial flexibility. This funds strategic reinvestment, share repurchases, and cushions against cyclical ad/partner budget swings, reducing refinancing and liquidity risk over the next 2–6 months.
Read all positive factors
NerdWallet, Inc. Class A Key Performance Indicators (KPIs)
Any
Revenue by Category
Breaks down revenue streams across different business segments, highlighting areas of strength and potential growth opportunities within the company's diverse offerings.
Breaks down revenue streams across different business segments, highlighting areas of strength and potential growth opportunities within the company's diverse offerings.
Data provided by:
The Fly
The FlyNerdWallet, Inc. Class A (NRDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$592.19M
Dividend YieldN/A
Average Volume (3M)640.08K
Price to Earnings (P/E)9.5
Beta (1Y)1.03
Revenue Growth15.61%
EPS Growth133.31%
CountryUS
Employees650
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.91
Shares Outstanding34,113,132
10 Day Avg. Volume537,967
30 Day Avg. Volume640,075
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)2.69
Price to Sales (P/S)1.20
P/FCF Ratio7.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$11.50Price Target Upside29.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.91
Revenue Forecast (FY)$883.81M
NerdWallet, Inc. Class A Business Overview & Revenue Model
Company Description
NerdWallet, Inc. operates an online platform dedicated to providing tailored financial advice for both individual consumers and small to medium-sized businesses. The company facilitates connections between these users and various financial product...
How the Company Makes Money
NerdWallet primarily makes money by monetizing user traffic and intent on its personal finance platform through performance-based marketing and lead-generation relationships with financial services providers. When users compare products and then t...
NerdWallet, Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call shows a predominately positive operational and financial picture: revenue and consumer revenue grew, profitability beat midpoint guidance, adjusted EBITDA was in range, and trailing 12-month free cash flow doubled to a record $141M. Management is proactively reallocating capital toward IRR-driven, longer-payback investments in vertical integration and owned audiences, expecting a fivefold increase in incremental investment versus 2025 and a Q3 revenue acceleration (guidance midpoint up ~17% YoY). Key challenges include persistent organic search headwinds that caused an 11% decline in SMB revenue and declines in credit card-related traffic, an auto insurance partner that has not fully recovered, and a near-term NGOI hit ($15M–$20M) from acquisition spend with payback beyond the year. On balance, the strengths (growth, record cash flow, beat on NGOI, strong guidance and capital returns) outweigh the near-term headwinds and strategic reinvestments.Positive Updates
Revenue Growth
Total Q2 revenue of $197 million, up 6% year-over-year, with Q3 revenue guidance of $244M–$260M (midpoint up ~17% YoY).
Negative Updates
SMB Revenue Decline
SMB revenue declined 11% year-over-year to $22 million, primarily due to organic search headwinds in non-loan SMB products (partially offset by business loan originations growth).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total Q2 revenue of $197 million, up 6% year-over-year, with Q3 revenue guidance of $244M–$260M (midpoint up ~17% YoY).
Read all positive updates
Company Guidance
Management guided Q3 revenue of $244 million to $260 million (about +17% year‑over‑year at the midpoint) and non‑GAAP operating income (NGOI) of $29 million to $37 million, saying annual profitability will be more concentrated in Q3 due to student‑loan regulatory tailwinds and the February College Finance acquisition; for full‑year 2026 they narrowed NGOI to $90 million to $105 million (midpoint unchanged), which incorporates a $15 million to $20 million NGOI impact from customer‑acquisition spend with paybacks beyond the current year (the midpoint implies roughly a 5× increase in that spend year‑over‑year); the company also reiterated it expects to continue generating meaningful adjusted free cash flow while balancing organic and inorganic investments and share repurchases.NerdWallet, Inc. Class A Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 860.00M | 836.60M | 687.60M | 599.40M | 538.90M | 379.60M |
| Gross Profit | 804.10M | 772.90M | 624.10M | 545.40M | 499.10M | 351.10M |
| EBITDA | 141.40M | 116.00M | 54.10M | 55.30M | 19.50M | -1.40M |
| Net Income | 65.00M | 48.70M | 30.40M | -11.80M | -10.20M | -42.50M |
Balance Sheet | ||||||
| Total Assets | 418.00M | 461.10M | 437.60M | 418.60M | 425.70M | 364.10M |
| Cash, Cash Equivalents and Short-Term Investments | 62.00M | 98.30M | 68.50M | 102.50M | 85.90M | 169.80M |
| Total Debt | 0.00 | 0.00 | 8.90M | 9.60M | 12.70M | 15.10M |
| Total Liabilities | 92.20M | 86.60M | 73.40M | 51.70M | 84.00M | 106.50M |
| Stockholders Equity | 325.80M | 374.50M | 364.20M | 366.90M | 341.70M | 257.60M |
Cash Flow | ||||||
| Free Cash Flow | 178.70M | 130.30M | 71.20M | 42.60M | -7.20M | -15.80M |
| Operating Cash Flow | 200.00M | 131.60M | 71.80M | 72.10M | 25.00M | 7.20M |
| Investing Cash Flow | -62.70M | -33.30M | -29.70M | -29.50M | -100.30M | -23.00M |
| Financing Cash Flow | -222.30M | -66.10M | -76.50M | -26.20M | -8.40M | 100.20M |
NerdWallet, Inc. Class A Risk Analysis
NerdWallet, Inc. Class A disclosed 57 risk factors in its most recent earnings report. NerdWallet, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NerdWallet, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $592.19M | 9.47 | 18.07% | ― | 15.61% | 133.31% | |
65 Neutral | $20.92B | 31.98 | 6.18% | ― | 34.08% | -0.29% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $743.08M | -10.16 | -7.74% | ― | 18.96% | -1025.15% | |
57 Neutral | $1.98B | 5.13 | 47.95% | 11.44% | -1.65% | -53.21% | |
52 Neutral | $2.33B | -3.42 | -1.66% | ― | ― | ― |
* Communication Services Sector Average
NRDS
NerdWallet, Inc. Class A
9.91
0.44
4.65%
GDOT
Green Dot
13.15
3.22
32.43%
WU
Western Union
7.08
-0.31
-4.17%
LU
Lufax Holding
1.50
-1.29
-46.24%
SOFI
SoFi
18.38
-4.04
-18.02%
NerdWallet, Inc. Class A Corporate Events
Business Operations and StrategyFinancial Disclosures
NerdWallet Reports Q2 Revenue Growth Amid Margin Pressure
Negative
Aug 6, 2026
On August 6, 2026, NerdWallet reported second-quarter 2026 results showing revenue of $197.3 million, a 6% year-on-year increase, with GAAP income from operations of $7.0 million and GAAP net income of $4.3 million, or $0.07 per diluted share. Con...
Executive/Board ChangesShareholder Meetings
NerdWallet Appoints Teresa Chia to Board, Audit Committee
Positive
May 22, 2026
On May 21, 2026, NerdWallet’s board appointed Teresa Chia as an independent director effective May 22, 2026, filling the vacancy left by director Jennifer Ceran’s decision not to stand for re-election. Chia was also named to the audit ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.