NerdWallet (NASDAQ:NRDS) Releases Earnings Results

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

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 mid-day trading on Friday, reaching $9.91. 1,903,130 shares of the company were exchanged, compared to its average volume of 568,331. The stock has a market cap of $652.08 million, a PE ratio of 11.13 and a beta of 1.23. NerdWallet has a 12 month low of $7.33 and a 12 month high of $16.24. The company has a fifty day moving average of $8.94 and a 200 day moving average of $9.85.

Insider Activity at NerdWallet

In other NerdWallet news, major shareholder Topline Capital Partners, Lp sold 454,872 shares of the company’s stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $9.27, for a total transaction of $4,216,663.44. Following the transaction, the insider owned 3,289,285 shares of the company’s stock, valued at approximately $30,491,671.95. This represents a 12.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders have sold 1,961,860 shares of company stock worth $17,862,921 over the last quarter. 52.75% of the stock is owned by corporate insiders.

Institutional Trading of NerdWallet

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Tower Research Capital LLC TRC increased its position in shares of NerdWallet by 37.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,893 shares of the company’s stock valued at $43,000 after buying an additional 1,054 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in NerdWallet by 9.3% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,659 shares of the company’s stock worth $249,000 after acquiring an additional 1,934 shares in the last quarter. JPMorgan Chase & Co. grew its stake in NerdWallet by 12.4% in the second quarter. JPMorgan Chase & Co. now owns 19,576 shares of the company’s stock valued at $215,000 after acquiring an additional 2,161 shares during the period. AQR Capital Management LLC grew its stake in NerdWallet by 1.3% in the fourth quarter. AQR Capital Management LLC now owns 184,082 shares of the company’s stock valued at $2,494,000 after acquiring an additional 2,316 shares during the period. Finally, Price T Rowe Associates Inc. MD increased its holdings in shares of NerdWallet by 7.4% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 35,545 shares of the company’s stock worth $482,000 after acquiring an additional 2,447 shares in the last quarter. 38.81% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on NRDS shares. Truist Financial lowered their target price on shares of NerdWallet from $18.00 to $15.00 and set a “buy” rating on the stock in a research note on Monday, May 11th. KeyCorp decreased their price objective on NerdWallet from $15.00 to $13.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. Zacks Research upgraded NerdWallet from a “strong sell” rating to a “hold” rating in a research note on Tuesday, June 2nd. Citigroup dropped their target price on NerdWallet from $13.00 to $11.00 and set a “neutral” rating for the company in a report on Monday, May 11th. Finally, Wall Street Zen downgraded NerdWallet from a “buy” rating to a “hold” rating in a research report on Saturday, May 16th. Four equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, NerdWallet has a consensus rating of “Hold” and an average target price of $12.83.

About NerdWallet

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.