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

• Market Cap: $876.92M
• Dividend Yield: N/A
• Average Volume (3M): 631.42K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.95
• Revenue Growth: 24.71%
• EPS Growth: N/A
• Country: US
• Employees: 650
• Sector: Communication Services
• Sector Strength: 97
• Industry: Financial - Credit Services
• EPS (TTM): 0.34
• Shares Outstanding: 41,027,576
• 10 Day Avg. Volume: 660,838
• 30 Day Avg. Volume: 631,424
• PEG Ratio: -0.09
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 14.29
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 1.07
• Enterprise Value/Ebitda: 7.94
• 1Y Price Target: $17.00
• Price Target Upside: 40.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $14.50 ▲(20.23% Upside)

The score is driven primarily by strengthening financial performance (profitability and cash flow improving alongside a low-leverage balance sheet) and a solid earnings call with upside to guidance and disciplined capital allocation. These positives are tempered by weaker near-term technical momentum and the key fundamental risk of slowing revenue growth and search-related headwinds in certain verticals.

Positive Factors

Balance Sheet Strength

NerdWallet's minimal leverage and sizable equity base provide durable financial flexibility. Low debt reduces refinancing and interest risk, supports discretionary capital allocation (buybacks, product investment) and cushions downturns, making the company less vulnerable to macro shocks over months.

Improving Cash Generation

Strong, improving operating and free cash flow demonstrates the business now converts earnings into cash at a sustainable rate. Positive FCF supports reinvestment, marketing, and buybacks without relying on external financing, enhancing resilience and funding optionality over the medium term.

Growth in Lending & Banking Verticals

Rapid growth in banking and loans shows successful product mix diversification away from weaker segments. These higher-growth commercial verticals can sustainably increase revenue share, improve unit economics, and reduce dependence on any single category, supporting durable top-line recovery if maintained.

Negative Factors

Slowing Revenue Growth

Top-line deceleration reduces the margin of safety for earnings expansion and increases reliance on efficiency gains to sustain profits. If revenue growth remains muted, sustaining current profit trajectory will require continued cost discipline or new product-driven demand, constraining long-term upside.

Organic Search Headwinds

NerdWallet's traffic and lead volumes depend heavily on organic search; algorithm or ranking shifts can persistently reduce acquisition and conversion. Such headwinds erode core lead generation, directly hitting performance-based revenue and making growth and predictability vulnerable to external platform dynamics.

Concentration in Performance-Based Revenue

A business model centered on partner-paid leads concentrates exposure to partner marketing budgets, product origination cycles, interest-rate and regulatory trends. This dependency amplifies cyclicality and reduces revenue resilience unless the company further diversifies channels and partner mixes over time.

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 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 Money

NerdWallet 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 Financial Statement Overview

Summary

Fundamentals are improving materially: profitability swung to positive with stronger TTM earnings, the balance sheet is a major strength with minimal leverage, and cash generation is solid (operating cash flow and free cash flow both strong with good cash-to-earnings support). The main offset is decelerating TTM revenue growth, increasing reliance on margin/efficiency to sustain results.

Income Statement

NRDS shows strong profitability momentum, with TTM (Trailing-Twelve-Months) revenue of $795M and healthy margins (about 92% gross margin and ~9% net margin). Profitability has improved meaningfully from losses in 2021–2023 to positive net income in 2024 ($30M) and higher earnings in TTM ($73M), alongside stronger operating profitability (EBIT margin rising to ~6%). The main offset is the slowing growth trajectory: revenue growth decelerated from very high levels earlier in the period to low single-digits in TTM, which raises questions about how much incremental margin expansion can continue to drive results.

Balance Sheet

The balance sheet is a clear strength: leverage is minimal (TTM shows no debt and prior years show very low debt relative to equity), providing flexibility and lowering financial risk. Equity has remained solid (~$402M TTM) and returns improved sharply as profitability rebounded (return on equity ~19% in TTM versus negative in 2021–2023). The key watch item is that the company’s asset base is not large relative to equity, so sustained profitability is important to maintain this strong capital position.

Cash Flow

Cash generation is solid and improving. TTM (Trailing-Twelve-Months) operating cash flow is $102.6M and free cash flow is $92.3M, with strong free cash flow growth (~28%). Cash flow quality is generally good: operating cash flow exceeds net income (about 1.38x in TTM), indicating earnings are supported by cash. The main weakness is historical volatility—free cash flow was negative in 2020–2022 before stabilizing and strengthening in 2023–TTM.

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

• Technical Analysis Sentiment: Negative
• Last Price: 12.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 12.06 is below the 20-day moving average (MA) of 13.00, below the 50-day MA of 13.89, and above the 200-day MA of 11.58, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 14.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NRDS.

NerdWallet, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRDS	74 Outperform	$876.92M	12.83	20.23%	―	24.71%	―
WU	67 Neutral	$2.98B	4.07	97.70%	10.18%	-2.51%	17.47%
SOFI	67 Neutral	$28.75B	57.95	5.66%	―	22.40%	215.81%
LC	63 Neutral	$1.95B	14.60	9.55%	―	9.68%	94.85%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GDOT	56 Neutral	$676.58M	-14.41	-5.09%	―	23.12%	19.37%
LU	52 Neutral	$2.34B	-3.41	―	―	―	―

NerdWallet, Inc. Class A Corporate Events

NerdWallet Expands Share Repurchase Authorization to $125M

On December 16, 2025, NerdWallet, Inc.’s Board of Directors approved an amendment to the company’s share repurchase authorization, increasing the total amount authorized for repurchases from $75 million to $125 million. This move allows for flexibility in the timing and methods of repurchases, providing the company with an opportunity to enhance shareholder value while being influenced by business and market conditions, though it imposes no fixed obligations or requirements for repurchase amounts.

The most recent analyst rating on (NRDS) stock is a Buy with a $17.50 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 Q3 2025 Financial Results

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.

The most recent analyst rating on (NRDS) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on NerdWallet, Inc. Class A stock, see the NRDS Stock Forecast page.