NerdWallet, Inc. Class A (NRDS)
NASDAQ:NRDS
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NerdWallet, Inc. Class A
(NASDAQ:NRDS)
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Rating:74Outperform
Price Target:
$9.00
▼(-17.81% Downside)
Action:Reiterated
Date:05/22/26
NRDS scores well on core fundamentals—profitability and cash flow improvement alongside an essentially debt-free balance sheet—while also looking inexpensive on earnings (low P/E). These positives are tempered by weak price/indicator trends (clear downtrend) and earnings-call risks around insurance monetization volatility, SMB weakness, and a softer near-term profit outlook due to planned investments.
Positive Factors
Debt-free balance sheet
NerdWallet's essentially zero debt and conservative leverage provide durable financial flexibility. With sizable equity ($336.2M TTM) and improved ROE (~18% TTM), the company can fund multi-quarter vertical investments, buybacks, or weather partner volatility without refinancing risk, supporting long-term execution.
Negative Factors
Insurance partner concentration
High revenue concentration in a few insurance carriers creates structural volatility: a single partner's pullback (as seen with the auto insurance monetization shortfall) materially impacts results. Diversifying carriers and channels is multi‑quarter work, leaving near‑term predictability exposed.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
NerdWallet's essentially zero debt and conservative leverage provide durable financial flexibility. With sizable equity ($336.2M TTM) and improved ROE (~18% TTM), the company can fund multi-quarter vertical investments, buybacks, or weather partner volatility without refinancing risk, supporting long-term execution.
Read all positive factors
NerdWallet, Inc. Class A Key Performance Indicators (KPIs)
NerdWallet, Inc. Class A (NRDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$539.55M
Dividend YieldN/A
Average Volume (3M)909.81K
Price to Earnings (P/E)8.7
Beta (1Y)0.97
Revenue Growth15.61%
EPS Growth133.31%
CountryUS
Employees650
SectorCommunication Services
Sector Strength97
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.95
Shares Outstanding34,113,132
10 Day Avg. Volume1,658,850
30 Day Avg. Volume909,814
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 Cap1.02
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit0.70
Enterprise Value/Ebitda3.96
Forecast
1Y Price Target
$12.80Price Target Upside16.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.93
Revenue Forecast (FY)$883.82M
NerdWallet, Inc. Class A Business Overview & Revenue Model
Company Description
NerdWallet, 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 cons...
How the Company Makes Money
NerdWallet primarily generates revenue through performance-based marketing and lead-generation arrangements with financial services providers. When users click through NerdWallet’s platform to a partner’s product and complete a qualifying action—s...
NerdWallet, Inc. Class A Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presents a largely positive underlying business momentum: revenue grew 6% year over year with strong consumer performance, substantial improvements in profitability (NGOI, GAAP operating income, and adjusted EBITDA all posted Q1 records), and marked free cash flow expansion (TTM FCF up ~125%). However, near-term headwinds — notably lower monetization from a large auto insurance partner, a 15% decline in SMB revenue, consumer credit card weakness, and a notable cash decline due to buybacks and an acquisition — introduce uncertainty and have prompted a more conservative low-end guidance. Management is balancing these near-term challenges by accelerating multi-quarter investments in vertical integration and diversification, which weigh on the short-term NGOI floor but are positioned to bolster long-term resiliency and growth.Positive Updates
Total Revenue Growth
Reported total revenue of $222 million, up 6% year over year, driven by strength in the consumer vertical.
Negative Updates
Auto Insurance Monetization Shortfall
Monetization from one large auto insurance partner ran below expectations beginning in March, negatively impacting Q1 results and expected to have a greater impact in Q2; this contributed to lowering the low end of full-year NGOI guidance.
Read all updates
Q1-2026 Updates
Positive
Negative
Total Revenue Growth
Reported total revenue of $222 million, up 6% year over year, driven by strength in the consumer vertical.
Read all positive updates
Company Guidance
Management guided Q2 revenue to $186 million to an upper bound that was inaudible on the call (midpoint implies roughly 4% year‑over‑year growth) and Q2 non‑GAAP operating income (NGOI) of $6 million to $14 million, noting Q2 is seasonally soft; for full‑year 2026 they reiterated NGOI of $85 million to $110 million (reaffirming the high end while lowering the low end to reflect planned vertical‑integration investments and uncertainty from auto‑insurance monetization), expect revenue to grow in the mid‑ to high‑single digits year over year with quarter‑over‑quarter revenue growth in each remaining quarter, and said NGOI will be supported by ongoing corporate G&A discipline and performance‑marketing‑led growth in banking and personal loans—contextually coming after Q1 results of $222M total revenue (up 6% YoY), consumer revenue of $198M (up 10%), SMB revenue of $25M (down 15%), NGOI of $34M (15% margin), and adjusted EBITDA of $45M.NerdWallet, Inc. Class A Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 849.60M | 836.60M | 687.60M | 599.40M | 538.90M | 379.60M |
| Gross Profit | 790.50M | 772.90M | 624.10M | 545.40M | 499.10M | 351.10M |
| EBITDA | 139.40M | 116.00M | 54.10M | 55.30M | 19.50M | -1.40M |
| Net Income | 68.90M | 48.70M | 30.40M | -11.80M | -10.20M | -42.50M |
Balance Sheet | ||||||
| Total Assets | 432.00M | 461.10M | 437.60M | 418.60M | 425.70M | 364.10M |
| Cash, Cash Equivalents and Short-Term Investments | 56.30M | 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 | 95.80M | 86.60M | 73.40M | 51.70M | 84.00M | 106.50M |
| Stockholders Equity | 336.20M | 374.50M | 364.20M | 366.90M | 341.70M | 257.60M |
Cash Flow | ||||||
| Free Cash Flow | 130.90M | 130.30M | 71.20M | 42.60M | -7.20M | -15.80M |
| Operating Cash Flow | 140.60M | 131.60M | 71.80M | 72.10M | 25.00M | 7.20M |
| Investing Cash Flow | -48.40M | -33.30M | -29.70M | -29.50M | -100.30M | -23.00M |
| Financing Cash Flow | -127.80M | -66.10M | -76.50M | -26.20M | -8.40M | 100.20M |
NerdWallet, Inc. Class A Technical Analysis
Negative
10.95
Price Trends
10.02
Negative
10.83
Negative
11.46
Negative
Market Momentum
-0.69
Positive
35.36
Neutral
53.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRDS, the sentiment is Negative. The current price of 10.95 is above the 20-day moving average (MA) of 9.36, above the 50-day MA of 10.02, and below the 200-day MA of 11.46, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 35.36 is Neutral, neither overbought nor oversold. The STOCH value of 53.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NRDS.
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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $539.55M | 8.68 | 18.34% | ― | 15.61% | 133.31% | |
66 Neutral | $728.91M | 2.91 | -7.74% | ― | 18.96% | -1025.15% | |
65 Neutral | $1.82B | 8.01 | 11.92% | ― | 17.38% | 237.98% | |
62 Neutral | $2.66B | 10.62 | 47.95% | 10.18% | -2.34% | -49.33% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
| ― | $2.33B | ― | -2.37% | ― | ― | ― | |
60 Neutral | $20.07B | 30.39 | 6.25% | ― | 32.00% | 10.31% |
* Communication Services Sector Average
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NerdWallet, Inc. Class A Corporate Events
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 ...
Business Operations and StrategyFinancial Disclosures
NerdWallet Posts Strong Q1 Results and Profitability Gains
Positive
May 6, 2026
On May 6, 2026, NerdWallet reported first-quarter 2026 results showing revenue of $222.2 million, up 6% year over year, with GAAP income from operations of $27.2 million and net income of $20.4 million, or $0.29 per diluted share. Consumer revenue...
Business Operations and StrategyFinancial Disclosures
NerdWallet Posts Strong Q4 2025 Revenue and Profitability
Positive
Feb 25, 2026
On February 25, 2026, NerdWallet reported its fourth-quarter and full-year 2025 results, highlighting Q4 revenue of $225.4 million, up 23% year over year, and full-year revenue of $836.6 million, up 22%. The company posted Q4 GAAP income from oper...
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.