Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on NRDS

Negative drivers behind NerdWallet's recent performance include declining monthly unique users, reduced margin profile, and increased competition from social media and AI. The company's insurance products, which have driven outsized growth, may face challenges in the future. Additionally, the recent departure of a key executive, as seen with the appointment of John Caine as Chief Operating Officer at The Zebra, may indicate a brain drain at NerdWallet. Furthermore, the company's reliance on a few key products and services may make it vulnerable to disruptions in the market.

1.c. Company Highlights

2. NerdWallet's Q3 2025 Earnings: A Strong Beat on Revenue and Operating Income

NerdWallet reported a robust Q3 2025, with total revenue reaching $215 million, a 12% year-over-year increase, driven primarily by a 96% surge in banking revenue and a 91% rise in personal loans, while insurance revenue grew 3%. Non-GAAP operating income was $41 million, significantly above the guidance range of $23 million to $27 million. The company's actual EPS came out at $0.34, beating estimates of $0.2. The strong financial performance was attributed to the company's long-term initiatives, including expanding its reach with consumers and improving operational efficiency.

Publication Date: Dec -02

📋 Highlights
  • Revenue and non-GAAP income exceeded guidance: Total revenue was $215M (up 12% YoY) and non-GAAP operating income was $41M (above guidance of $23M–$27M).
  • Banking and personal loans drove revenue growth: Banking revenue up 96%, personal loans up 91%, and insurance up 3% YoY.
  • Non-GAAP operating income beat guidance range: $41M, significantly above the projected $23M–$27M.
  • CEO emphasized LLMs as a key growth channel: NerdWallet is the most cited source for LLMs, with higher consumer conversion rates than traditional traffic.
  • Generated $85M adjusted free cash flow and held $121M cash balance: Strong financial position with robust cash generation and liquidity.
  • Revenue and non-GAAP income exceeded guidance: Total revenue was $215M (up 12% YoY) and non-GAAP operating income was $41M (above guidance of $23M–$27M).
  • Banking and personal loans drove revenue growth: Banking revenue up 96%, personal loans up 91%, and insurance up 3% YoY.
  • Non-GAAP operating income beat guidance range: $41M, significantly above the projected $23M–$27M.
  • CEO emphasized LLMs as a key growth channel: NerdWallet is the most cited source for LLMs, with higher consumer conversion rates than traditional organic traffic.
  • Generated $85M adjusted free cash flow and held $121M cash balance: Strong financial position with robust cash generation and liquidity.

Operational Highlights

The company has made significant strides in extending its shopping experiences to below-prime consumers, scaling its performance marketing capabilities, and leveraging referrals from large language models, which have shown considerable momentum. As noted by CEO Tim Chen, NerdWallet's trusted brand has made it the most cited source in its competitive set for large language models, with consumers converting at a higher rate than traditional organic traffic.

Guidance and Outlook

For Q4 2025, NerdWallet expects revenue in the range of $207 million to $215 million, representing a 15% year-over-year increase, and non-GAAP operating income between $20 million and $24 million. The company anticipates full-year 2025 non-GAAP operating income of $91 million to $95 million. Looking ahead, analysts estimate revenue growth of 7.9% for the next year, indicating a continued upward trajectory.

Valuation and Capital Allocation

NerdWallet's current valuation metrics, including a P/S Ratio of 1.45 and an EV/EBITDA of 12.08, suggest a reasonable valuation given its growth prospects. The company generated over $85 million of adjusted free cash flow over the last four quarters and ended Q3 with a cash balance of $121 million, providing a solid foundation for future investments and shareholder returns. The company completed $19 million of share repurchases in Q3, reflecting its confidence in long-term prospects and commitment to creating shareholder value through disciplined capital allocation.

3. NewsRoom

Card image cap

NerdWallet Is Giving Away $2.5 Million This December

Nov -25

Source: businesswire.com

Card image cap

Can NerdWallet, Inc. (NRDS) Run Higher on Rising Earnings Estimates?

Nov -12

Source: zacks.com

Card image cap

NerdWallet, Inc. (NRDS) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

Card image cap

Compared to Estimates, NerdWallet, Inc. (NRDS) Q3 Earnings: A Look at Key Metrics

Nov -07

Source: zacks.com

Card image cap

NerdWallet, Inc. (NRDS) Q3 Earnings and Revenues Surpass Estimates

Nov -07

Source: zacks.com

Card image cap

NerdWallet Reports Third Quarter 2025 Results

Nov -06

Source: businesswire.com

Card image cap

Y Intercept Hong Kong Ltd Increases Position in NerdWallet, Inc. $NRDS

Nov -03

Source: defenseworld.net

Card image cap

Contrasting Roma Green Finance (NASDAQ:ROMA) & NerdWallet (NASDAQ:NRDS)

Nov -03

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.92%)

6. Segments

Credit Cards

Expected Growth: 8%

NerdWallet's Credit Cards segment growth is driven by increasing online financial literacy, rising demand for cashback and rewards, and strategic partnerships with major banks. Additionally, the company's user-friendly platform and personalized recommendations have contributed to its 8% growth rate.

Emerging Verticals

Expected Growth: 12%

Emerging verticals from NerdWallet, Inc. with 12% growth driven by increasing demand for personalized finance, expansion into new markets, and strategic partnerships. Additionally, growing adoption of digital payment systems, rising fintech investments, and government initiatives promoting financial inclusion also contribute to this growth.

Loans

Expected Growth: 9%

NerdWallet's 9% loan growth driven by increasing online lending demand, strategic partnerships, and expansion into new markets. Additionally, rising consumer credit scores, low interest rates, and growing fintech adoption contribute to the growth. Furthermore, NerdWallet's user-friendly platform, competitive rates, and personalized loan recommendations enhance customer experience, driving business expansion.

Small and Mid-sized Businesses

Expected Growth: 11%

Small and Mid-sized Businesses from NerdWallet, Inc. with 11% growth driven by increasing adoption of digital payment solutions, rising demand for financial management tools, and growing need for business loan and credit options. Additionally, expansion into new markets, strategic partnerships, and innovative product offerings contribute to this growth.

7. Detailed Products

NerdWallet Investing

A platform that provides investment tracking, analysis, and advice to help users make informed investment decisions.

NerdWallet Credit Cards

A credit card comparison tool that helps users find and apply for credit cards that best fit their needs.

NerdWallet Mortgages

A mortgage comparison tool that helps users find and compare mortgage rates, lenders, and loan options.

NerdWallet Personal Loans

A personal loan comparison tool that helps users find and compare loan options from various lenders.

NerdWallet Banking

A banking comparison tool that helps users find and compare high-yield savings accounts, CDs, and other banking products.

NerdWallet Insurance

An insurance comparison tool that helps users find and compare insurance quotes from various providers.

NerdWallet Retirement

A retirement planning tool that helps users plan, invest, and optimize their retirement savings.

8. NerdWallet, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

NerdWallet's financial tools and resources are highly specialized, making it difficult for substitutes to emerge. However, the rise of fintech companies and digital banking platforms poses a moderate threat.

Bargaining Power Of Customers

NerdWallet's customers have limited bargaining power due to the company's strong brand reputation and lack of direct competition. Customers are also highly fragmented, reducing their bargaining power.

Bargaining Power Of Suppliers

NerdWallet's suppliers, primarily financial institutions and data providers, have limited bargaining power due to the company's strong market position and ability to negotiate favorable terms.

Threat Of New Entrants

The fintech industry is rapidly evolving, and new entrants with innovative products and services pose a significant threat to NerdWallet's market share.

Intensity Of Rivalry

The personal finance and fintech industries are highly competitive, with numerous established players and new entrants vying for market share, resulting in a high level of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.55%
Debt Cost 3.95%
Equity Weight 97.45%
Equity Cost 11.14%
WACC 10.96%
Leverage 2.62%

11. Quality Control: NerdWallet, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Atlanticus

A-Score: 5.7/10

Value: 7.5

Growth: 8.6

Quality: 5.8

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
World Acceptance

A-Score: 5.3/10

Value: 7.6

Growth: 5.3

Quality: 6.7

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
NerdWallet

A-Score: 4.5/10

Value: 5.2

Growth: 7.1

Quality: 7.6

Yield: 0.0

Momentum: 3.5

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
LendingClub

A-Score: 4.4/10

Value: 6.6

Growth: 3.9

Quality: 6.6

Yield: 0.0

Momentum: 6.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
CPI Card Group

A-Score: 3.8/10

Value: 8.4

Growth: 6.4

Quality: 4.7

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Nicholas Financial

A-Score: 3.3/10

Value: 8.2

Growth: 0.3

Quality: 4.6

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.43$

Current Price

15.43$

Potential

-0.00%

Expected Cash-Flows