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NerdWallet, Inc. Class A (NRDS)
NASDAQ:NRDS
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NerdWallet, Inc. Class A
(NASDAQ:NRDS)
Select Model
Select Model
Rating:80Outperform
Price Target:
$17.50
▲(21.19% Upside)
NerdWallet, Inc. demonstrates strong financial performance with robust revenue growth and profitability, supported by positive technical indicators. The recent earnings call provided a positive outlook with revenue and income exceeding expectations. However, valuation concerns and challenges in certain business segments slightly temper the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.
Operational Efficiency
Enhanced operational efficiency leads to better margins and profitability, ensuring sustainable competitive advantage.
Cash Flow Generation
Strong cash flow generation enhances financial flexibility, enabling strategic investments and resilience against market fluctuations.
Negative Factors
Decline in SMB and Credit Cards Verticals
Declines in key verticals due to organic search headwinds may impact revenue diversification and growth potential.
Organic Search Challenges
Reduced organic search traffic can limit customer acquisition and engagement, affecting long-term revenue growth.
Low EBIT and EBITDA Margins
Low EBIT and EBITDA margins suggest limited operational leverage, potentially hindering profitability improvements.
NerdWallet, Inc. Class A (NRDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.05B
Dividend YieldN/A
Average Volume (3M)853.35K
Price to Earnings (P/E)15.0
Beta (1Y)1.02
Revenue Growth24.71%
EPS GrowthN/A
CountryUS
Employees650
SectorCommunication Services
Sector Strength97
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.34
Shares Outstanding41,027,576
10 Day Avg. Volume987,945
30 Day Avg. Volume853,353
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)2.79
Price to Sales (P/S)1.48
P/FCF Ratio14.29
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit0.99
Enterprise Value/Ebitda7.36
Forecast
1Y Price Target
$17.00Price Target Upside17.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.6
Revenue Forecast (FY)$816.02M
NerdWallet, Inc. Class A Business Overview & Revenue Model
Company DescriptionNerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers. The company's platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. It serves customers in the United States, the United Kingdom, and Canada. The company was founded in 2009 and is based in San Francisco, California.
How the Company Makes MoneyNerdWallet generates revenue primarily through affiliate marketing, where it earns commissions by referring users to financial products such as credit cards, mortgages, and insurance policies. When users apply for and are approved for these products through NerdWallet's platform, the company receives a fee from the financial institutions. Additionally, NerdWallet offers premium services and tools for consumers and financial advisors, further enhancing its revenue. The company also partners with various banks and lenders to provide tailored financial solutions and has developed a strong brand presence in the personal finance domain, contributing to its ability to attract users and drive revenue.
NerdWallet, Inc. Class A Key Performance Indicators (KPIs)
NerdWallet, Inc. Class A Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong quarter with revenue and income exceeding expectations, driven by significant growth in banking and personal loans. Operational efficiency improvements also contributed positively. However, challenges were noted in the SMB and credit cards verticals due to organic search headwinds, and there was a temporary reduction in brand marketing spend.Q3-2025 Updates
Positive Updates
Revenue and Income Exceed Expectations
Total revenue for Q3 was $215 million, up 12% year-over-year, exceeding the guidance range of $189 million to $197 million. Non-GAAP operating income was $41 million, above the $23 million to $27 million guidance range.
Strong Performance in Banking and Personal Loans
Banking revenues were up 96% year-over-year, and personal loans increased by 91% year-over-year, contributing significantly to overall revenue growth.
Operational Efficiency and Free Cash Flow
Improvements in operational efficiency resulted in margin expansion, with trailing 12-month adjusted free cash flow increasing to over $85 million.
Share Repurchases
Completed $19 million of share repurchases during the quarter, reflecting confidence in long-term prospects.
Negative Updates
Decline in SMB and Credit Cards Verticals
SMB product and credit cards verticals experienced a year-over-year decline due to organic search headwinds.
Temporary Reduction in Brand Marketing Spend
Underspent on brand marketing by $8 million as the brand strategy was reevaluated.
Company Guidance
During the Q3 2025 earnings call, NerdWallet provided robust guidance, surpassing its expectations for both revenue and non-GAAP operating income. The company reported a total revenue of $215 million, exceeding the guidance range of $189 million to $197 million, with significant contributions from the banking and personal loans sectors, which grew by 96% and 91% year-over-year, respectively. Additionally, NerdWallet achieved a non-GAAP operating income of $41 million, surpassing the guidance range of $23 million to $27 million, partly due to an $8 million underspend on brand marketing. Looking ahead, NerdWallet projects Q4 2025 revenue between $207 million and $215 million and anticipates non-GAAP operating income ranging from $20 million to $24 million, while projecting a full-year non-GAAP operating income between $91 million and $95 million. The company also highlighted its focus on capital allocation, completing $19 million in share repurchases during the quarter.NerdWallet, Inc. Class A Financial Statement Overview
Summary
NerdWallet, Inc. presents a solid financial profile with strong revenue growth, high profitability margins, and a stable balance sheet. The company has effectively managed its leverage and demonstrated significant improvements in cash flow generation. While operational efficiency could be enhanced, the overall financial health is commendable, positioning the company well for future growth.Income Statement
NerdWallet, Inc. has demonstrated strong revenue growth with a TTM revenue increase of 4.94%. The company maintains a high gross profit margin of over 91%, indicating efficient cost management. Net profit margin has improved significantly to 6.11% in the TTM, reflecting enhanced profitability. However, EBIT and EBITDA margins remain relatively low, suggesting room for operational efficiency improvements.78
Positive
Balance Sheet
The balance sheet is robust with a low debt-to-equity ratio of 0.05, indicating conservative leverage. Return on equity has improved to 13.01%, showcasing effective use of equity to generate profits. The equity ratio stands at a healthy level, reflecting a strong capital structure. Overall, the company exhibits financial stability with minimal leverage risks.82
Very Positive
Cash Flow
NerdWallet, Inc. has shown impressive free cash flow growth of 30.20% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is favorable at 1.20, suggesting efficient cash conversion. However, the free cash flow to net income ratio of 0.87 indicates potential for further improvement in cash flow relative to earnings.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 795.00M | 687.60M | 599.40M | 538.90M | 379.60M | 245.30M |
| Gross Profit | 728.20M | 624.10M | 545.40M | 499.10M | 351.10M | 224.00M |
| EBITDA | 98.00M | 54.10M | 55.30M | 19.50M | -1.40M | 17.10M |
| Net Income | 73.30M | 30.40M | -11.80M | -10.20M | -42.50M | 5.30M |
Balance Sheet | ||||||
| Total Assets | 492.80M | 437.60M | 418.60M | 425.70M | 364.10M | 255.20M |
| Cash, Cash Equivalents and Short-Term Investments | 120.60M | 68.50M | 102.50M | 85.90M | 169.80M | 85.40M |
| Total Debt | 0.00 | 8.90M | 9.60M | 12.70M | 15.10M | 45.10M |
| Total Liabilities | 90.40M | 73.40M | 51.70M | 84.00M | 106.50M | 172.50M |
| Stockholders Equity | 402.40M | 364.20M | 366.90M | 341.70M | 257.60M | 82.70M |
Cash Flow | ||||||
| Free Cash Flow | 92.30M | 71.20M | 42.60M | -7.20M | -15.80M | -3.30M |
| Operating Cash Flow | 102.60M | 71.80M | 72.10M | 25.00M | 7.20M | 15.40M |
| Investing Cash Flow | -25.70M | -29.70M | -29.50M | -100.30M | -23.00M | -55.40M |
| Financing Cash Flow | -27.90M | -76.50M | -26.20M | -8.40M | 100.20M | 55.70M |
NerdWallet, Inc. Class A Technical Analysis
Positive
14.44
Price Trends
12.93
Positive
11.76
Positive
10.88
Positive
Market Momentum
0.54
Positive
52.92
Neutral
7.54
Positive
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 14.44 is below the 20-day moving average (MA) of 14.65, above the 50-day MA of 12.93, and above the 200-day MA of 10.88, indicating a neutral trend. The MACD of 0.54 indicates Positive momentum. The RSI at 52.92 is Neutral, neither overbought nor oversold. The STOCH value of 7.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NRDS.
NerdWallet, Inc. Class A Risk Analysis
NerdWallet, Inc. Class A disclosed 61 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.05B | 15.01 | 20.23% | ― | 24.71% | ― | |
70 Outperform | $2.29B | 22.39 | 7.40% | ― | 9.68% | 94.85% | |
69 Neutral | $3.12B | 4.26 | 97.70% | 9.58% | -2.51% | 17.47% | |
68 Neutral | $34.39B | 49.47 | 8.59% | ― | 22.40% | 215.81% | |
61 Neutral | $739.35M | ― | -5.09% | ― | 23.12% | 19.37% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $2.43B | ― | ― | ― | ― | ― |
* Communication Services Sector Average
NRDS
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0.97
7.20%
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NerdWallet, Inc. Class A Corporate Events
Business Operations and StrategyFinancial Disclosures
NerdWallet Reports Strong Q3 2025 Financial Results
Positive
Nov 6, 2025
On November 6, 2025, NerdWallet, Inc. announced its financial results for the third quarter ending September 30, 2025, reporting a 12% year-over-year increase in revenue to $215.1 million. Despite challenges in organic search traffic affecting credit card and SMB products revenue, the company saw significant growth in loans and emerging verticals, with loans revenue up 66% and emerging verticals up 83%. The company also reported a GAAP net income of $26.3 million, reflecting strong operational efficiency and strategic marketing efforts, positioning NerdWallet for long-term growth.
Stock Buyback
NerdWallet Expands Share Repurchase Authorization to $75M
Positive
Sep 15, 2025
On September 13, 2025, NerdWallet, Inc. announced an amendment to its share repurchase authorization, increasing the total amount from $25 million to $75 million. This move allows the company flexibility in repurchasing shares, potentially enhancing shareholder value, and reflects its confidence in its financial position amidst varying market conditions.
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.