NerdWallet (NASDAQ:NRDS) Releases Earnings Results, Beats Expectations By $0.02 EPS

NerdWallet (NASDAQ:NRDS) issued its quarterly earnings results on Wednesday. The company reported $0.19 EPS for the quarter, topping analysts’ consensus estimates of $0.17 by $0.02, FiscalAI reports. NerdWallet had a return on equity of 9.27% and a net margin of 9.22%.The business had revenue of $225.40 million for the quarter, compared to analyst estimates of $211.37 million.

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

NerdWallet stock traded up $0.76 during mid-day trading 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 firm’s fifty day moving average price is $12.31 and its two-hundred day moving average price is $12.09. NerdWallet has a 12-month low of $7.55 and a 12-month high of $16.24. The company has a market capitalization of $750.37 million, a P/E ratio of 10.75 and a beta of 1.43.

Insider Activity at NerdWallet

In other news, insider Samuel Yount sold 15,945 shares of NerdWallet stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $16.04, for a total value of $255,757.80. Following the completion of the transaction, the insider directly owned 358,116 shares in the company, valued at approximately $5,744,180.64. The trade was a 4.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 45.93% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Tower Research Capital LLC TRC increased its position in shares of NerdWallet by 37.1% during the second quarter. Tower Research Capital LLC TRC now owns 3,893 shares of the company’s stock valued at $43,000 after buying an additional 1,054 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in NerdWallet by 9.3% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,659 shares of the company’s stock worth $249,000 after acquiring an additional 1,934 shares during the period. JPMorgan Chase & Co. lifted its stake in NerdWallet by 12.4% in the 2nd quarter. JPMorgan Chase & Co. now owns 19,576 shares of the company’s stock worth $215,000 after purchasing an additional 2,161 shares in the last quarter. AQR Capital Management LLC boosted its holdings in NerdWallet by 1.3% in the 4th quarter. AQR Capital Management LLC now owns 184,082 shares of the company’s stock valued at $2,494,000 after purchasing an additional 2,316 shares during the period. Finally, Price T Rowe Associates Inc. MD grew its position in shares of NerdWallet by 7.4% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 35,545 shares of the company’s stock valued at $482,000 after purchasing an additional 2,447 shares in the last quarter. Institutional investors own 38.81% of the company’s stock.

Wall Street Analysts Forecast Growth

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

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

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.