NerdWallet (NASDAQ:NRDS) Announces Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• NerdWallet reported quarterly EPS of $0.07, missing analysts’ $0.09 consensus by $0.02, while revenue rose 5.6% year over year to $197.3 million and exceeded expectations.
• Management raised its Q3 growth outlook, projecting revenue of $244 million to $260 million, supported by student-loan regulatory changes and the College Finance acquisition. The company also plans to increase customer-acquisition spending fivefold in 2026.
• Trailing 12-month adjusted free cash flow doubled to a record $141 million, but organic-search disruption continued to pressure credit-card and SMB revenue, with SMB revenue down 11% year over year.

NerdWallet (NASDAQ:NRDS - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.07 EPS for the quarter, missing analysts' consensus estimates of $0.09 by ($0.02), FiscalAI reports. NerdWallet had a net margin of 7.56% and a return on equity of 17.52%. The business had revenue of $197.30 million for the quarter, compared to the consensus estimate of $195.30 million. During the same quarter last year, the firm posted $0.11 EPS. The business's revenue for the quarter was up 5.6% compared to the same quarter last year.

Here are the key takeaways from NerdWallet's conference call:

• Q2 revenue rose 6% year over year to $197 million, while non-GAAP operating income of $12 million exceeded the midpoint of guidance. Consumer revenue increased 8%, led by personal loans and deposit accounts.
• Management raised its growth outlook for Q3, guiding to revenue of $244 million-$260 million, up 17% year over year at the midpoint, supported by student-loan regulatory changes and the College Finance acquisition.
• NerdWallet plans to increase customer-acquisition investment fivefold in 2026, targeting longer-term returns from higher-retention, recurring-revenue audiences created through vertical integration. Management said these investments are expected to generate attractive internal rates of return despite payback periods extending beyond 2026.
• Trailing 12-month adjusted free cash flow doubled year over year to a record $141 million, while the company repurchased $23 million of stock during the quarter and reduced its diluted share count 14% year over year.
• Organic-search disruption continues to pressure credit-card and SMB revenue, with SMB revenue down 11% year over year; the largest auto-insurance relationship has stabilized but has not recovered to earlier-year levels. Management also acknowledged that AI-driven changes to search and content distribution remain an ongoing risk.

NerdWallet Stock Up 12.1%

NerdWallet stock traded up $1.07 during midday trading on Friday, hitting $9.91. 1,903,130 shares of the stock were exchanged, compared to its average volume of 568,331. NerdWallet has a 52-week low of $7.33 and a 52-week high of $16.24. The stock has a market capitalization of $652.08 million, a price-to-earnings ratio of 11.13 and a beta of 1.23. The business's 50-day moving average price is $8.94 and its 200-day moving average price is $9.85.

Insider Buying and Selling

In other NerdWallet news, major shareholder Topline Capital Partners, Lp sold 454,872 shares of the stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $9.27, for a total value of $4,216,663.44. Following the completion of the sale, the insider owned 3,289,285 shares in the company, valued at approximately $30,491,671.95. This trade represents a 12.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. In the last ninety days, insiders have sold 1,961,860 shares of company stock valued at $17,862,921. Company insiders own 52.75% of the company's stock.

Institutional Trading of NerdWallet

A number of hedge funds have recently bought and sold shares of NRDS. Tower Research Capital LLC TRC boosted its position in NerdWallet by 37.1% in the second quarter. Tower Research Capital LLC TRC now owns 3,893 shares of the company's stock worth $43,000 after purchasing an additional 1,054 shares during the last quarter. Polymer Capital Management US LLC purchased a new stake in shares of NerdWallet during the 3rd quarter valued at $111,000. Prelude Capital Management LLC purchased a new stake in shares of NerdWallet during the 3rd quarter valued at $119,000. Lazard Asset Management LLC bought a new stake in shares of NerdWallet during the 2nd quarter worth $129,000. Finally, Brevan Howard Capital Management LP bought a new stake in shares of NerdWallet during the 3rd quarter worth $131,000. 38.81% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. Truist Financial reduced their price objective on shares of NerdWallet from $18.00 to $15.00 and set a "buy" rating for the company in a report on Monday, May 11th. Zacks Research upgraded NerdWallet from a "strong sell" rating to a "hold" rating in a research note on Tuesday, June 2nd. Weiss Ratings lowered NerdWallet from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, May 21st. Citigroup lowered their price objective on NerdWallet from $13.00 to $11.00 and set a "neutral" rating for the company in a research note on Monday, May 11th. Finally, KeyCorp dropped their target price on NerdWallet from $15.00 to $13.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $12.83.

NerdWallet Company Profile

NerdWallet NASDAQ: NRDS is a personal finance company that offers independent guidance and comparison tools to help consumers make informed financial decisions. Through its website and mobile application, NerdWallet provides a wide range of content, including articles, calculators and reviews covering credit cards, mortgages, personal loans, banking products, investing, insurance and taxes. The platform aggregates partner offers to enable side-by-side comparisons, while editorially maintaining objectivity to support users in identifying the products that best suit their individual needs.

Founded in 2009 by Tim Chen and Jacob Gibson, NerdWallet is headquartered in San Francisco and serves consumers primarily in the United States, with additional localized offerings in Canada and the United Kingdom.

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