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

• Market Cap: $695.14M
• Dividend Yield: N/A
• Average Volume (3M): 895.03K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.04
• Revenue Growth: 24.71%
• EPS Growth: N/A
• Country: US
• Employees: 650
• Sector: Communication Services
• Sector Strength: 97
• Industry: Financial - Credit Services
• EPS (TTM): 0.19
• Shares Outstanding: 41,027,576
• 10 Day Avg. Volume: 1,022,495
• 30 Day Avg. Volume: 895,035
• PEG Ratio: 0.32
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 7.73
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 0.92
• Enterprise Value/Ebitda: 6.73
• 1Y Price Target: $16.33
• Price Target Upside: 47.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.93
• Revenue Forecast (FY): $888.20M

• Rating: 76 Outperform
• Price Target: $12.50 ▲(12.92% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong financial performance (profitability and cash flow improvement alongside near-zero leverage) and a supportive valuation multiple. These positives are tempered by weak technical momentum and ongoing organic search headwinds discussed on the earnings call, despite management outperforming guidance and emphasizing operational efficiency and buybacks.

Positive Factors

High Gross Margins

NerdWallet’s ~91–93% gross margins reflect a highly scalable, content-driven business with low incremental costs per user. That structural margin advantage supports durable operating leverage as revenue grows, enabling reinvestment in product, marketing, and shareholder returns without proportionate cost increases.

Strong Free Cash Flow

Free cash flow of roughly $130M in 2025, with FCF roughly matching net income in 2024–2025, demonstrates quality earnings and cash conversion. Persistent positive FCF provides capital for buybacks, product development, or M&A and increases resilience against cyclical ad or origination slowdowns.

Conservative Balance Sheet

Near-zero debt and growing equity (~$375M in 2025) give NerdWallet financial flexibility and reduce solvency risk. A conservative capital structure supports disciplined capital allocation, allows opportunistic buybacks or investments, and helps the firm weather demand fluctuations without refinancing pressure.

Negative Factors

Traffic/Vertical Concentration

Revenue concentration in search-driven categories (credit cards, SMB) magnifies exposure to traffic shifts; reported declines (-24% in credit cards, -12% in SMB) reflect durable structural risk as AI/LLMs and changing search patterns reduce organic referrals, pressuring revenue unless direct channels are scaled.

Margin Volatility

Net margin near 5.8% after prior losses highlights improvement but also shows margins remain moderate and historically volatile. Sustaining profitability depends on continued efficiency gains and stable partner demand; reversals in marketing or origination volumes could compress margins quickly.

Reliance on Performance Marketing

A business model largely tied to referral fees and partner marketing budgets creates cyclicality and sensitivity to financial-product origination cycles and partner spend decisions. Long-term durability requires diversifying revenue streams and strengthening direct, non-search referral channels to reduce partner concentration risk.

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

Strong recent financial inflection: high gross margins (~91–93%), a return to profitability in 2024–2025 (~5.8% net margin in 2025), very low leverage trending to near-zero debt, and standout recent cash generation (2025 FCF ~$130M) with good cash-to-earnings conversion. Main risk is historical volatility (losses and negative FCF in 2020–2022) and the need to prove margin durability.

Income Statement

Revenue has expanded strongly over the cycle (from $245M in 2020 to $837M in 2025), though growth has been uneven—very strong in 2021–2022, moderating in 2023–2024, then re-accelerating in 2025. Profitability has improved meaningfully: after losses in 2021–2023, the company returned to profitability in 2024–2025 with 2025 net margin around 5.8%. Gross margins are consistently very high (~91%–93%), supporting scalability, but overall net margins remain moderate and still appear sensitive to operating cost levels.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage trending to zero debt in 2025 (debt-to-equity near 0), reducing financial risk. Equity has steadily grown (to ~$375M in 2025) alongside rising assets, and returns on equity improved from negative in 2021–2023 to ~13% in 2025. The main weakness is that while leverage is minimal, returns are not yet consistently high across cycles, reflecting a business still proving durable profitability.

Cash Flow

Cash generation is a standout: operating cash flow and free cash flow are strongly positive in 2023–2025, with 2025 free cash flow of ~$130M and sharp growth versus 2024. Cash conversion is strong, with free cash flow roughly matching net income in 2024–2025, indicating earnings quality. The key risk is historical volatility—free cash flow was negative in 2020–2022—so investors should watch whether the recent step-up remains sustainable through weaker demand environments.

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	65.20M	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

• Technical Analysis Sentiment: Neutral
• Last Price: 11.07
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 11.07 is above the 20-day moving average (MA) of 10.47, below the 50-day MA of 12.28, and below the 200-day MA of 11.68, indicating a neutral trend. The MACD of -0.63 indicates Negative momentum. The RSI at 51.27 is Neutral, neither overbought nor oversold. The STOCH value of 71.42 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRDS	76 Outperform	$695.14M	10.72	13.19%	―	24.71%	―
WU	64 Neutral	$2.93B	6.14	51.86%	10.18%	-2.51%	17.47%
SOFI	63 Neutral	$23.80B	50.76	5.66%	―	22.40%	215.81%
LC	61 Neutral	$1.73B	13.94	9.55%	―	9.68%	94.85%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GDOT	56 Neutral	$644.92M	-13.96	-5.09%	―	23.12%	19.37%
LU	52 Neutral	$2.34B	-3.52	―	―	―	―

NerdWallet, Inc. Class A Corporate Events

NerdWallet Posts Strong Q4 2025 Revenue and Profitability

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 operations of $19.4 million and net income of $14.0 million, with full-year GAAP income from operations of $65.2 million and net income of $48.7 million, supported by non-GAAP operating income and adjusted EBITDA that underscored improved profitability.

Segment performance in Q4 2025 was mixed, with loans revenue surging 141% and emerging verticals, led by banking products, climbing 57%, while insurance rose 13% but credit cards and SMB products fell 24% and 12% respectively amid continued organic search headwinds. Management said strength in performance marketing, direct, and non-search referral channels helped offset traffic shifts as consumers increasingly use AI overviews and large language models, signaling an evolving customer acquisition landscape and a strategic focus on deepening direct consumer relationships despite pressures on traditional search-driven categories.

NerdWallet’s Q4 adjusted EBITDA reached $36.7 million and non-GAAP operating income was $24.7 million, reflecting year-over-year gains even as sequential net income and operating metrics softened from the prior quarter. Cash and cash equivalents stood at $98.3 million at year-end 2025, up 48% from a year earlier, positioning the company with greater financial flexibility as it navigates changing digital traffic patterns and works to solidify its role as a destination for financial product shopping.

The most recent analyst rating on (NRDS) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on NerdWallet, Inc. Class A stock, see the NRDS Stock Forecast page.

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.