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

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

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%

NASDAQ:NRDS traded up $1.07 during trading hours on Friday, hitting $9.91. 1,903,130 shares of the company’s stock traded hands, 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 business’s fifty day simple moving average is $8.94 and its two-hundred day simple moving average is $9.85. The firm has a market cap of $652.08 million, a P/E ratio of 11.13 and a beta of 1.23.

Wall Street Analyst Weigh In

A number of research firms have weighed in on NRDS. Truist Financial reduced their target price on NerdWallet from $18.00 to $15.00 and set a “buy” rating for the company in a report on Monday, May 11th. Citigroup lowered their price target on shares of NerdWallet from $13.00 to $11.00 and set a “neutral” rating on the stock in a report on Monday, May 11th. Weiss Ratings lowered shares of NerdWallet from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, May 21st. Oppenheimer reduced their price objective on shares of NerdWallet from $15.00 to $12.00 and set an “outperform” rating for the company in a research note on Monday, May 11th. Finally, Wall Street Zen lowered shares of NerdWallet from a “buy” rating to a “hold” rating in a report on Saturday, May 16th. Four 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 data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $12.83.

Insiders Place Their Bets

In other NerdWallet news, major shareholder Topline Capital Partners, Lp sold 919,153 shares of the company’s stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $8.95, for a total value of $8,226,419.35. Following the transaction, the insider directly owned 4,331,992 shares in the company, valued at $38,771,328.40. This represents a 17.50% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In the last 90 days, insiders sold 1,961,860 shares of company stock valued at $17,862,921. 52.75% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its stake in NerdWallet by 1.2% in the third quarter. Vanguard Group Inc. now owns 3,994,180 shares of the company’s stock valued at $42,977,000 after purchasing an additional 48,205 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in NerdWallet by 4.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,169,058 shares of the company’s stock worth $15,842,000 after buying an additional 55,003 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in NerdWallet by 26.1% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,133,790 shares of the company’s stock worth $12,200,000 after buying an additional 234,691 shares in the last quarter. State Street Corp increased its holdings in shares of NerdWallet by 3.2% in the 4th quarter. State Street Corp now owns 922,142 shares of the company’s stock worth $12,495,000 after buying an additional 28,844 shares during the last quarter. Finally, Millennium Management LLC increased its holdings in shares of NerdWallet by 23.9% in the 1st quarter. Millennium Management LLC now owns 867,113 shares of the company’s stock worth $7,847,000 after buying an additional 166,984 shares during the last quarter. Hedge funds and other institutional investors own 38.81% of the company’s stock.

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.