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

• Market Cap: $811.68M
• Dividend Yield: N/A
• Average Volume (3M): 536.21K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.08
• Revenue Growth: 28.75%
• EPS Growth: N/A
• Country: US
• Employees: 650
• Sector: Communication Services
• Sector Strength: 96
• Industry: Financial - Credit Services
• EPS (TTM): 0.11
• Shares Outstanding: 44,314,453
• 10 Day Avg. Volume: 407,345
• 30 Day Avg. Volume: 536,207
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 1.08
• Enterprise Value/Ebitda: 10.56
• 1Y Price Target: $14.75
• Price Target Upside: 31.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $12.00 ▲(7.24% Upside)

NerdWallet, Inc. demonstrates strong financial performance with robust revenue growth and profitability, supported by a stable balance sheet. The technical analysis shows mixed signals, with short-term bullish momentum but limited overall trend direction. Valuation is fair, reflecting growth prospects. The earnings call provided positive guidance despite some challenges, indicating potential for future growth. These factors collectively contribute to a solid overall stock score.

Positive Factors

Financial Performance

NerdWallet generated non-GAAP operating income of $9.3 million, and adjusted EBITDA totaled $21.1 million, which came in well above the high end of management’s first-quarter guidance range.

Revenue Growth

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

User Growth

The company ended the quarter with over 28 million registered users, up 26% year-over-year.

Negative Factors

Growth Estimates

The target price for NerdWallet has been lowered from $14 to $11 due to revised growth estimates.

Insurance Revenue Impact

The transition impacted revenue for the second quarter, specifically in the insurance vertical, and management still expects a small decline year-over-year in the insurance vertical.

Revenue Expectations

Revenue of $187 million increased 24% from the year-ago quarter and was below Street expectations and the company’s guide.

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

NerdWallet, Inc. shows strong revenue growth and improving profitability. The balance sheet is robust with 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	771.20M	687.60M	599.40M	538.90M	379.60M	245.30M
Gross Profit	702.00M	624.10M	545.40M	499.10M	351.10M	224.00M
EBITDA	71.50M	54.10M	55.30M	19.50M	-1.40M	23.90M
Net Income	47.10M	30.40M	-11.80M	-10.20M	-42.50M	5.30M
Balance Sheet
Total Assets	476.00M	437.60M	418.60M	425.70M	364.10M	255.20M
Cash, Cash Equivalents and Short-Term Investments	105.30M	68.50M	102.50M	85.90M	169.80M	85.40M
Total Debt	20.10M	8.90M	9.60M	12.70M	15.10M	45.10M
Total Liabilities	86.00M	73.40M	51.70M	84.00M	106.50M	172.50M
Stockholders Equity	390.00M	364.20M	366.90M	341.70M	257.60M	82.70M
Cash Flow
Free Cash Flow	72.00M	71.20M	42.60M	-7.20M	-15.80M	-3.30M
Operating Cash Flow	83.10M	71.80M	72.10M	25.00M	7.20M	15.40M
Investing Cash Flow	-24.50M	-29.70M	-29.50M	-100.30M	-23.00M	-55.40M
Financing Cash Flow	-67.20M	-76.50M	-26.20M	-8.40M	100.20M	55.70M

NerdWallet, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 11.19 is above the 20-day moving average (MA) of 10.16, above the 50-day MA of 10.58, and below the 200-day MA of 11.29, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 58.82 is Neutral, 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	$3.01B	12.76	21.56%	―	23.42%	59.17%
OMF	76 Outperform	$7.31B	11.12	20.47%	6.81%	9.41%	13.98%
SOFI	75 Outperform	$30.35B	51.63	8.80%	―	22.60%	―
NRDS	73 Outperform	$811.68M	18.00	12.24%	―	28.75%	―
Sector *	60 Neutral	$46.60B	4.08	-11.40%	4.13%	1.85%	-42.71%
LU	52 Neutral	$2.43B	―	-3.79%	4.57%	-38.81%	-425.73%
UPST	51 Neutral	$6.44B	―	-0.96%	―	60.62%	96.91%

NerdWallet, Inc. Class A Corporate Events

NerdWallet Reports Strong Q2 2025 Financial Results

On August 7, 2025, NerdWallet, Inc. announced its financial results for the second quarter ended June 30, 2025, reporting a revenue of $186.9 million, a 24% increase year-over-year. The company highlighted significant growth in its insurance and loans segments, with insurance revenue up 86% and loans revenue up 27% compared to the previous year. However, credit card revenue decreased by 25% due to ongoing challenges with organic search traffic. The company emphasized its focus on operational efficiencies to drive long-term growth, contributing to a GAAP income from operations of $10.7 million and a non-GAAP operating income of $20.7 million.

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.

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.