NerdWallet (NASDAQ:NRDS) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS
by Amy Steele · The Cerbat GemNerdWallet (NASDAQ:NRDS – Get Free Report) announced its earnings results on Wednesday. The company reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.25 by $0.04, FiscalAI reports. The company had revenue of $222.20 million during the quarter, compared to the consensus estimate of $227.63 million. NerdWallet had a return on equity of 12.66% and a net margin of 5.82%.
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
NASDAQ:NRDS traded up $0.31 during mid-day trading on Wednesday, reaching $11.20. The stock had a trading volume of 831,533 shares, compared to its average volume of 876,809. The company has a market capitalization of $748.05 million, a price-to-earnings ratio of 17.50 and a beta of 1.34. NerdWallet has a 1-year low of $8.42 and a 1-year high of $16.24. The stock’s 50 day simple moving average is $10.60 and its two-hundred day simple moving average is $12.10.
Insider Transactions at NerdWallet
In related news, insider Samuel Yount sold 71,988 shares of NerdWallet stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $10.32, for a total value of $742,916.16. Following the completion of the transaction, the insider directly owned 173,973 shares in the company, valued at approximately $1,795,401.36. This trade represents a 29.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Nicholas Tatum sold 10,151 shares of NerdWallet stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $11.45, for a total value of $116,228.95. Following the completion of the transaction, the chief accounting officer owned 47,202 shares of the company’s stock, valued at $540,462.90. This trade represents a 17.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 86,043 shares of company stock valued at $901,317 over the last quarter. Insiders own 52.75% of the company’s stock.
Hedge Funds Weigh In On NerdWallet
A number of large investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its holdings in NerdWallet by 1.2% in the third quarter. Vanguard Group Inc. now owns 3,994,180 shares of the company’s stock worth $42,977,000 after acquiring an additional 48,205 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in NerdWallet by 4.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,169,058 shares of the company’s stock worth $15,842,000 after acquiring an additional 55,003 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in NerdWallet by 26.1% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,133,790 shares of the company’s stock worth $12,200,000 after acquiring an additional 234,691 shares during the last quarter. State Street Corp lifted its holdings in NerdWallet by 3.2% in the fourth quarter. State Street Corp now owns 922,142 shares of the company’s stock worth $12,495,000 after acquiring an additional 28,844 shares during the last quarter. Finally, Millennium Management LLC lifted its holdings in NerdWallet by 23.9% in the first quarter. Millennium Management LLC now owns 867,113 shares of the company’s stock worth $7,847,000 after acquiring an additional 166,984 shares during the last quarter. Institutional investors own 38.81% of the company’s stock.
Wall Street Analysts Forecast Growth
Several analysts have recently weighed in on the company. Truist Financial lowered their target price on NerdWallet from $19.00 to $18.00 and set a “buy” rating for the company in a research note on Thursday, February 26th. Wall Street Zen downgraded NerdWallet from a “strong-buy” rating to a “buy” rating in a research note on Saturday. Oppenheimer lowered their target price on NerdWallet from $18.00 to $15.00 and set an “outperform” rating for the company in a research note on Wednesday, March 4th. Zacks Research downgraded NerdWallet from a “hold” rating to a “strong sell” rating in a research note on Monday. Finally, Morgan Stanley downgraded NerdWallet from an “equal weight” rating to an “underweight” rating and lowered their target price for the company from $14.00 to $9.00 in a research note on Friday, March 13th. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $15.00.
Check Out Our Latest Stock Analysis on NerdWallet
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.