NerdWallet (NASDAQ:NRDS) Announces Earnings Results

by · The Cerbat Gem

NerdWallet (NASDAQ:NRDS – Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.19 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.02, FiscalAI reports. The firm had revenue of $225.40 million during the quarter, compared to analyst estimates of $211.37 million. NerdWallet had a return on equity of 9.27% and a net margin of 9.22%.

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

  • NerdWallet beat guidance with Q4 revenue of $225M (+23% YoY) and non-GAAP operating income of $25M (+47% YoY); full-year revenue was $837M (+22%) with NGOI of $96M (over 100% YoY).
  • Management said persistent organic search declines driven by AI/LLMs pressured SMB and credit card revenue, with SMB down 12% and credit cards down 24% in Q4.
  • Performance marketing, direct and non-search referral growth more than offset organic losses, highlighted by lending revenue up 141% YoY and personal loans up 264% YoY.
  • Q1 guidance is $224M–$232M revenue (≈+9% YoY midpoint) and NGOI $28M–$32M, with full-year NGOI expected $95M–$110M while management cautions banking momentum may cool if rates decline.
  • Capital allocation progress includes $51M of Q4 share repurchases, $118M trailing twelve-month adjusted free cash flow and a $98M year-end cash balance, with continued focus on opportunistic buybacks and bolt-on M&A.

NerdWallet Stock Performance

Shares of NerdWallet stock traded up $0.76 during trading hours on Wednesday, reaching $10.32. The company’s stock had a trading volume of 1,969,138 shares, compared to its average volume of 942,791. The company has a market capitalization of $750.37 million, a P/E ratio of 10.75 and a beta of 1.43. The stock’s fifty day simple moving average is $12.31 and its two-hundred day simple moving average is $12.09. NerdWallet has a one year low of $7.55 and a one year high of $16.24.

Analyst Upgrades and Downgrades

NRDS has been the topic of several recent analyst reports. Zacks Research lowered NerdWallet from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 9th. Morgan Stanley boosted their target price on shares of NerdWallet from $12.00 to $14.00 and gave the company an “equal weight” rating in a research report on Monday, November 10th. Truist Financial raised their price target on shares of NerdWallet from $17.00 to $19.00 and gave the stock a “buy” rating in a report on Monday, November 10th. KeyCorp lifted their price target on shares of NerdWallet from $15.00 to $16.00 and gave the company an “overweight” rating in a research note on Friday, November 7th. Finally, Barclays upped their price objective on shares of NerdWallet from $14.00 to $17.00 and gave the company an “overweight” rating in a report on Friday, November 7th. Three investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, NerdWallet has an average rating of “Hold” and a consensus target price of $15.40.

Read Our Latest Research Report on NerdWallet

NerdWallet declared that its board has authorized a stock buyback program on Tuesday, December 16th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Insider Activity at NerdWallet

In related news, insider Samuel Yount sold 15,945 shares of the firm’s stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $16.04, for a total value of $255,757.80. Following the transaction, the insider owned 358,116 shares of the company’s stock, valued at approximately $5,744,180.64. This trade represents a 4.26% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 45.93% of the stock is currently owned by insiders.

Institutional Trading of NerdWallet

Several institutional investors and hedge funds have recently modified their holdings of the stock. Millennium Management LLC grew its stake in shares of NerdWallet by 1,231.3% in the 4th quarter. Millennium Management LLC now owns 538,421 shares of the company’s stock worth $7,296,000 after acquiring an additional 497,978 shares in the last quarter. Nuveen LLC lifted its position in shares of NerdWallet by 296.1% during the fourth quarter. Nuveen LLC now owns 330,631 shares of the company’s stock valued at $4,480,000 after purchasing an additional 247,157 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in NerdWallet by 26.1% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,133,790 shares of the company’s stock worth $12,200,000 after purchasing an additional 234,691 shares during the last quarter. UBS Group AG grew its position in NerdWallet by 91.9% in the 3rd quarter. UBS Group AG now owns 321,637 shares of the company’s stock worth $3,461,000 after purchasing an additional 154,055 shares in the last quarter. Finally, Kent Lake PR LLC increased its stake in NerdWallet by 115.6% in the 2nd quarter. Kent Lake PR LLC now owns 275,000 shares of the company’s stock valued at $3,017,000 after buying an additional 147,466 shares during the last quarter. 38.81% of the stock is owned by hedge funds and other institutional investors.

About NerdWallet

(Get Free Report)

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.

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