NerdWallet (NASDAQ:NRDS) Issues Earnings Results

NerdWallet (NASDAQ:NRDS) released its earnings results on Thursday. The company reported $0.07 earnings per share 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 company had revenue of $197.30 million during the quarter, compared to analysts’ expectations of $195.30 million. During the same quarter in the previous year, the firm earned $0.11 earnings per share. The firm’s revenue 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%

NRDS traded up $1.07 on Friday, hitting $9.91. The company’s stock had a trading volume of 1,903,130 shares, compared to its average volume of 568,331. The company’s 50 day simple moving average is $8.94 and its 200-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. NerdWallet has a 12 month low of $7.33 and a 12 month high of $16.24.

Analysts Set New Price Targets

A number of equities research analysts recently commented on NRDS shares. Wall Street Zen cut shares of NerdWallet from a “buy” rating to a “hold” rating in a report on Saturday, May 16th. KeyCorp reduced their price objective on NerdWallet from $15.00 to $13.00 and set an “overweight” rating for the company in a report on Friday, May 8th. Oppenheimer decreased their target price on NerdWallet from $15.00 to $12.00 and set an “outperform” rating for the company in a research 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. Finally, Weiss Ratings cut NerdWallet from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, May 21st. 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 MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $12.83.

Insider Transactions at NerdWallet

In other NerdWallet news, major shareholder Topline Capital Partners, Lp sold 454,872 shares of the business’s stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $9.27, for a total transaction of $4,216,663.44. Following the sale, the insider owned 3,289,285 shares of the company’s stock, valued at $30,491,671.95. The trade was a 12.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Over the last quarter, insiders have sold 1,961,860 shares of company stock worth $17,862,921. Insiders own 52.75% of the company’s stock.

Hedge Funds Weigh In On NerdWallet

Several hedge funds have recently made changes to their positions in the stock. Invesco Ltd. raised its stake in shares of NerdWallet by 27.7% during the 4th quarter. Invesco Ltd. now owns 103,226 shares of the company’s stock valued at $1,399,000 after purchasing an additional 22,406 shares during the period. Mackenzie Financial Corp bought a new position in NerdWallet in the 4th quarter worth about $310,000. XTX Topco Ltd grew its holdings in NerdWallet by 141.3% during the 4th quarter. XTX Topco Ltd now owns 74,784 shares of the company’s stock valued at $1,013,000 after buying an additional 43,794 shares in the last quarter. Numerai GP LLC purchased a new position in NerdWallet during the 4th quarter valued at about $423,000. Finally, Millennium Management LLC increased its position in shares of NerdWallet by 1,231.3% during the fourth quarter. Millennium Management LLC now owns 538,421 shares of the company’s stock valued at $7,296,000 after buying an additional 497,978 shares during the period. 38.81% of the stock is currently owned by hedge funds and other institutional investors.

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.