NerdWallet (NASDAQ:NRDS) Releases Quarterly Earnings Results

NerdWallet (NASDAQ:NRDS) announced its earnings results on Wednesday. The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.25 by $0.04, FiscalAI reports. The business had revenue of $222.20 million during the quarter, compared to analyst estimates of $227.63 million. NerdWallet had a return on equity of 17.71% and a net margin of 8.11%.The business’s revenue for the quarter was up 6.2% compared to the same quarter last year.

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

• Q1 results beat expectations with $222 million revenue (+6% YoY), NGOI $34 million (15% margin) and $45 million adjusted EBITDA, supported by strong adjusted free cash flow (TTM $131 million).
• Monetization from one large auto insurance partner ran below expectations in March, which pressured Q1 results and is expected to have a larger impact in Q2, prompting caution in near-term guidance.
• Management is accelerating investments in vertical integration — including deeper carrier tech integrations, phone-based agent referrals and a branded agency (“NerdWallet Insurance Experts“) — aiming to diversify revenue and capture long-term returns.
• Capital allocation remains active: the company repurchased $66 million of stock in Q1 (share count down 9% YoY) with $90 million remaining authorization, while continuing to evaluate buybacks alongside other uses of capital.
• NerdWallet reports strong LLM search share for finance queries with high conversion rates, but LLM-driven revenue is currently a small portion of total revenue.

NerdWallet Price Performance

NerdWallet stock traded down $0.52 during trading hours on Friday, reaching $9.25. The stock had a trading volume of 644,544 shares, compared to its average volume of 891,607. NerdWallet has a 52 week low of $8.42 and a 52 week high of $16.24. The company has a market cap of $617.87 million, a price-to-earnings ratio of 9.95 and a beta of 1.34. The business’s 50 day moving average price is $10.61 and its 200-day moving average price is $12.09.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. Weiss Ratings reissued a “hold (c)” rating on shares of NerdWallet in a research note on Monday. Oppenheimer cut their price target on NerdWallet from $18.00 to $15.00 and set an “outperform” rating on the stock in a research note on Wednesday, March 4th. Zacks Research lowered shares of NerdWallet from a “hold” rating to a “strong sell” rating in a research note on Monday. Truist Financial dropped their target price on shares of NerdWallet from $19.00 to $18.00 and set a “buy” rating on the stock in a report on Thursday, February 26th. Finally, Wall Street Zen downgraded shares of NerdWallet from a “strong-buy” rating to a “buy” rating in a research report on Saturday, May 2nd. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, NerdWallet has an average rating of “Hold” and a consensus price target of $14.40.

Insider Activity at NerdWallet

In related news, CAO Nicholas Tatum sold 10,151 shares of the stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $11.45, for a total transaction of $116,228.95. Following the completion of the sale, the chief accounting officer owned 47,202 shares of the company’s stock, valued at $540,462.90. This represents a 17.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Samuel Yount sold 71,988 shares of NerdWallet stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $10.32, for a total transaction of $742,916.16. Following the completion of the transaction, the insider directly owned 173,973 shares in the company, valued at $1,795,401.36. This represents a 29.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 86,043 shares of company stock valued at $901,317. 52.75% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NerdWallet

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

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.