NerdWallet, Inc. Class A (NRDS)
NASDAQ:NRDS
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NerdWallet, Inc. Class A
(NASDAQ:NRDS)
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Rating:75Outperform
Price Target:
$11.50
▲(6.48% Upside)
Action:ReiteratedDate:04/01/26
The score is driven primarily by strong financial performance (profitability recovery, high margins, robust recent free cash flow, and near-zero leverage). Offsetting this are weaker technical signals (below key moving averages and negative MACD) and earnings-call risks around ongoing organic search declines and mix-related margin pressure, despite solid profitability guidance and continued capital returns.
Positive Factors
Free cash flow generation
NerdWallet’s recent FCF surge and strong cash conversion (FCF roughly matching net income in 2024–2025) provide durable internal funding for buybacks, product investment, and balance sheet flexibility. If sustained, this reduces financing risk and supports strategic optionality across cycles.
Negative Factors
Persistent organic search declines
Declining organic search is a structural demand-channel shift that reduces high-margin, low-acquisition-cost traffic. Over months, this forces sustained spend on paid channels or product changes to recover conversions, pressuring durable revenue mix and unit economics absent a clear traffic substitute.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
NerdWallet’s recent FCF surge and strong cash conversion (FCF roughly matching net income in 2024–2025) provide durable internal funding for buybacks, product investment, and balance sheet flexibility. If sustained, this reduces financing risk and supports strategic optionality across cycles.
Read all positive factors
NerdWallet, Inc. Class A (NRDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$700.58M
Dividend YieldN/A
Average Volume (3M)818.72K
Price to Earnings (P/E)20.7
Beta (1Y)1.00
Revenue Growth24.71%
EPS GrowthN/A
CountryUS
Employees650
SectorCommunication Services
Sector Strength97
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.19
Shares Outstanding35,100,147
10 Day Avg. Volume433,677
30 Day Avg. Volume818,722
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 Cap1.04
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit0.94
Enterprise Value/Ebitda6.33
Forecast
1Y Price Target
$14.75Price Target Upside36.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1
Revenue Forecast (FY)$899.36M
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 makes money by monetizing consumer traffic and leads generated on its platform for financial services providers. Its core revenue model is performance-based marketing/lead generation: when users click through to a partner, app...
NerdWallet, Inc. Class A Key Performance Indicators (KPIs)
NerdWallet, Inc. Class A Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented a largely positive near-term picture driven by strong revenue growth, substantial improvement in non-GAAP operating income, meaningful free cash flow generation, and opportunistic capital returns (share repurchases). These positives were tempered by material and persistent organic search headwinds that drove declines in credit card and SMB revenues, increased reliance on performance marketing (and related margin pressure), and caution around the sustainability of banking growth as interest rates fall. Management emphasized NGOI dollar growth and strategic investments (including AI and vertical integration) while acknowledging channel mix risks and regulatory constraints related to LLM integration.Positive Updates
Quarterly Revenue Beat
Q4 revenue of $225 million, up 23% year-over-year, exceeded guidance.
Negative Updates
Steep Organic Search Declines
Management cited steep organic search declines driven by increased use of AI/LLMs and overviews, creating a sustained headwind to organic traffic.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Beat
Q4 revenue of $225 million, up 23% year-over-year, exceeded guidance.
Read all positive updates
Company Guidance
For Q1 2026 NerdWallet guided revenue of $224 million to $232 million (midpoint up ~9% year‑over‑year) and non‑GAAP operating income (NGOI) of $28 million to $32 million, noting that guidance assumes similar trends to Q4—performance‑marketing growth offsetting continuing organic search headwinds—and that margin compression from the revenue mix will be largely offset by year‑over‑year declines in brand marketing (Q1 2025 included a Super Bowl ad). For the full year they expect NGOI of $95 million to $110 million, expect Q1 and Q3 to be the strongest quarters, and warned that recent banking strength may cool as short‑term interest rates fall; the company also said it will simplify reporting to two revenue categories (consumer and SMB) beginning in Q1.NerdWallet, Inc. Class A Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
88
Very Positive
Cash Flow
90
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 836.60M | 687.60M | 599.40M | 538.90M | 379.60M |
| Gross Profit | 772.90M | 624.10M | 545.40M | 499.10M | 351.10M |
| EBITDA | 116.00M | 54.10M | 55.30M | 19.50M | -1.40M |
| Net Income | 48.70M | 30.40M | -11.80M | -10.20M | -42.50M |
Balance Sheet | |||||
| Total Assets | 461.10M | 437.60M | 418.60M | 425.70M | 364.10M |
| Cash, Cash Equivalents and Short-Term Investments | 98.30M | 68.50M | 102.50M | 85.90M | 169.80M |
| Total Debt | 0.00 | 8.90M | 9.60M | 12.70M | 15.10M |
| Total Liabilities | 86.60M | 73.40M | 51.70M | 84.00M | 106.50M |
| Stockholders Equity | 374.50M | 364.20M | 366.90M | 341.70M | 257.60M |
Cash Flow | |||||
| Free Cash Flow | 130.30M | 71.20M | 42.60M | -7.20M | -15.80M |
| Operating Cash Flow | 131.60M | 71.80M | 72.10M | 25.00M | 7.20M |
| Investing Cash Flow | -33.30M | -29.70M | -29.50M | -100.30M | -23.00M |
| Financing Cash Flow | -66.10M | -76.50M | -26.20M | -8.40M | 100.20M |
NerdWallet, Inc. Class A Technical Analysis
Neutral
10.80
Price Trends
10.38
Positive
12.10
Negative
11.61
Negative
Market Momentum
0.03
Negative
54.98
Neutral
68.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRDS, the sentiment is Neutral. The current price of 10.8 is above the 20-day moving average (MA) of 10.41, above the 50-day MA of 10.38, and below the 200-day MA of 11.61, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.98 is Neutral, neither overbought nor oversold. The STOCH value of 68.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $700.58M | 20.67 | 12.66% | ― | 24.71% | ― | |
68 Neutral | $2.87B | 6.46 | 53.92% | 10.18% | -2.51% | 17.47% | |
63 Neutral | $23.96B | 62.56 | 5.87% | ― | 22.40% | 215.81% | |
61 Neutral | $1.91B | 16.10 | 9.47% | ― | 9.68% | 94.85% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | $669.03M | ― | -10.77% | ― | 23.12% | 19.37% | |
| ― | $2.33B | -2.49 | 0.96% | ― | ― | ― |
* Communication Services Sector Average
NRDS
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NerdWallet, Inc. Class A Corporate Events
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.