NerdWallet, Inc. Class A (NRDS) AI Stock Analysis

• Market Cap: $843.48M
• Dividend Yield: N/A
• Average Volume (3M): 393.15K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 1.27
• Revenue Growth: 24.20%
• EPS Growth: N/A
• Country: US
• Employees: 650
• Sector: Communication Services
• Sector Strength: 83
• Industry: Financial - Credit Services
• EPS (TTM): 0.00
• Shares Outstanding: 42,826,958
• 10 Day Avg. Volume: 467,537
• 30 Day Avg. Volume: 393,151
• PEG Ratio: 0.85
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -94.13
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 0.91
• Enterprise Value/Ebitda: 2.74
• 1Y Price Target: $15.40
• Price Target Upside: 36.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: $12.50 ▲(10.42%Upside)

NerdWallet's strong financial performance and positive earnings call are the most significant factors driving the score. Technical indicators and recent corporate events provide additional support but are less impactful. Valuation concerns slightly offset the positive outlook.

Positive Factors

Earnings

Shares were up 8% due to a significant earnings beat and a strong outlook, which may shift investor focus away from organic search traffic declines.

Insurance Sector Performance

Insurance revenue is growing significantly and now comprises a large portion of total revenue, positioning it as the primary driver of year-over-year revenue growth.

Revenue Growth

Revenue of $209 million increased 29% from the year-ago quarter and was above Street expectations.

Negative Factors

Organic Traffic Decline

NerdWallet continues to struggle to attract organic search traffic, leading to a shift towards lower-margin paid traffic.

Revenue Estimate Risks

There is concern about the company's reliance on the insurance segment, which could put revenue estimates at risk if other segments do not improve.

Traffic Concerns

Continued traffic deceleration is driving a strategy shift towards higher LTV customers versus incremental MUUs.

NerdWallet, Inc. Class A Business Overview & Revenue Model

Company Description

NerdWallet, Inc. Class A (NRDS) operates as a personal finance company, providing a platform that offers financial guidance to consumers and small and medium-sized businesses. The company is primarily focused on helping users make informed decisions about their finances through various tools, resources, and expert advice. NerdWallet covers multiple financial sectors, including banking, credit cards, loans, insurance, and investments, providing a comprehensive suite of solutions to its users.

How the Company Makes Money

NerdWallet makes money primarily through affiliate marketing and lead generation. The company partners with financial institutions and service providers, earning a commission or fee when users engage with these third-party partners through NerdWallet's platform. This includes actions such as signing up for credit cards, applying for loans, or purchasing insurance. Key revenue streams include commissions on credit card sign-ups, loan originations, and other financial products facilitated through NerdWallet's recommendations. The company also collaborates with advertisers who wish to reach NerdWallet's audience, generating additional advertising revenue. Significant partnerships with banks, credit card companies, and insurers are crucial for NerdWallet's earnings, as these relationships expand the range of options available to users and enhance the company's ability to monetize its platform.

NerdWallet, Inc. Class A Financial Statement Overview

Summary

NerdWallet, Inc. shows strong revenue growth and improving profitability, with a robust balance sheet featuring substantial equity and no debt, minimizing financial risks. Cash flow generation is solid, supporting operational and strategic flexibility. Continued focus on margin expansion and strategic use of leverage could enhance growth prospects further.

Income Statement

NerdWallet, Inc. has demonstrated impressive revenue growth over the years, with a notable increase of 14.71% from 2023 to 2024. The gross profit margin is robust at 90.74% for 2024, indicating efficient cost management. However, the net profit margin has only recently turned positive at 4.42%, reflecting improved profitability but suggesting room for further margin expansion. The EBIT margin remains modest at 1.37%, indicating operational efficiency improvements are still underway.

Balance Sheet

The balance sheet is solid with a strong equity base, evidenced by an equity ratio of 83.25%. The company operates with no debt, which eliminates financial leverage risks. Return on Equity (ROE) has improved to 8.34% in 2024, showcasing enhanced profitability. Nevertheless, the low debt-to-equity ratio of 0.00 suggests limited leverage, which could be a strategic area for growth financing.

Cash Flow

Cash flows have improved significantly, with free cash flow growing by 67.14% from 2023 to 2024. The operating cash flow to net income ratio of 2.36 indicates strong cash generation relative to net income. The company maintains a healthy cash position with a free cash flow to net income ratio of 2.34, reflecting efficient cash utilization. However, the substantial negative financing cash flow in 2024 may indicate a strategic shift or repayment of obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	734.90M	687.60M	599.40M	538.90M	379.60M	245.30M
Gross Profit	667.40M	624.10M	545.40M	499.10M	351.10M	224.00M
EBITDA	51.20M	54.10M	55.30M	19.50M	-9.30M	16.30M
Net Income	29.50M	30.40M	-11.80M	-10.20M	-42.50M	5.30M
Balance Sheet
Total Assets	475.00M	437.60M	418.60M	425.70M	364.10M	255.20M
Cash, Cash Equivalents and Short-Term Investments	92.20M	68.50M	102.50M	83.90M	167.80M	85.40M
Total Debt	0.00	8.90M	9.60M	12.70M	15.10M	45.10M
Total Liabilities	103.40M	73.40M	51.70M	84.00M	106.50M	172.50M
Stockholders Equity	371.60M	364.20M	366.90M	341.70M	257.60M	82.70M
Cash Flow
Free Cash Flow	55.30M	71.20M	42.60M	-7.20M	-15.80M	-3.30M
Operating Cash Flow	75.80M	71.80M	72.10M	25.00M	7.20M	15.40M
Investing Cash Flow	-20.80M	-29.70M	-29.50M	-100.30M	-23.00M	-55.40M
Financing Cash Flow	-74.00M	-76.50M	-26.20M	-8.40M	100.20M	55.70M

NerdWallet, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRDS, the sentiment is Positive. The current price of 11.32 is above the 20-day moving average (MA) of 10.98, above the 50-day MA of 10.57, and below the 200-day MA of 11.85, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 61.78 is Neutral, neither overbought nor oversold. The STOCH value of 87.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NRDS.

NerdWallet, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENVA	78 Outperform	$2.94B	13.65	19.94%	―	24.47%	54.18%
NRDS	69 Neutral	$843.48M	28.75	7.86%	―	24.20%	―
OMF	68 Neutral	$7.11B	12.65	17.46%	6.96%	9.07%	―
SOFI	67 Neutral	$20.53B	44.13	7.51%	―	21.24%	―
SOFI	67 Neutral	$20.53B	44.13	7.51%	―	21.24%	―
Sector *	61 Neutral	$41.26B	-0.79	-14.19%	3.78%	2.39%	-73.52%
UPST	55 Neutral	$7.02B	―	-10.30%	―	34.69%	63.65%
UPST	55 Neutral	$7.02B	―	-10.30%	―	34.69%	63.65%
LU	52 Neutral	$2.41B	―	-3.79%	4.57%	-38.81%	-425.73%

NerdWallet, Inc. Class A Corporate Events

NerdWallet Amends Credit Agreement for Flexibility

On June 13, 2025, NerdWallet, Inc. amended its Credit Agreement with JPMorgan Chase Bank and a syndicate of lenders. The amendment allows certain subsidiaries to make acquisitions and permits the company to invest up to $20 million in unrestricted subsidiaries annually, enhancing operational flexibility.

The most recent analyst rating on (NRDS) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on NerdWallet, Inc. Class A stock, see the NRDS Stock Forecast page.

NerdWallet Approves Equity Awards for Chief Business Officer

On June 3, 2025, NerdWallet’s Board of Directors’ Compensation Committee approved equity awards for Sam Yount, the Chief Business Officer, under the company’s 2021 Equity Incentive Plan. The awards include restricted stock units and options to purchase shares, with vesting schedules contingent on Mr. Yount’s continued service. Additionally, Mr. Yount was approved for participation in the company’s Change of Control and Severance Policy, indicating a strategic move to retain key leadership and align incentives with company performance.

The most recent analyst rating on (NRDS) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on NerdWallet, Inc. Class A stock, see the NRDS Stock Forecast page.

NerdWallet Appoints New Directors and Holds Annual Meeting

On May 19, 2025, NerdWallet, Inc. appointed Anthony Ling as an independent director to its Board, effective May 22, 2025, filling the vacancy left by Maurice Taylor. Ling will also join the Audit Committee and receive compensation in line with the company’s updated non-employee director compensation policy. Additionally, Kenneth T. McBride was appointed as Lead Independent Director, effective May 22, 2025. The company held its 2025 Annual Meeting of Stockholders on May 21, 2025, where all director nominees were elected, and Deloitte & Touche LLP was ratified as the independent accounting firm for 2025. Amendments to the Non-Employee Director Compensation Policy were approved to align with market practices.

The most recent analyst rating on (NRDS) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on NerdWallet, Inc. Class A stock, see the NRDS Stock Forecast page.

NerdWallet Reports Strong Q1 2025 Revenue Growth

On May 6, 2025, NerdWallet, Inc. reported its financial results for the first quarter ending March 31, 2025, with a revenue of $209.2 million, marking a 29% increase year-over-year. The growth was primarily driven by the insurance and banking sectors, with insurance revenue seeing a 246% rise due to increased auto insurance budgets. However, credit card revenue decreased by 24% due to ongoing challenges in organic search traffic. The company is focusing on long-term growth through operational efficiency and investments in vertical integration and user engagement.