NerdWallet (NASDAQ: NRDS ) has struggled in 2025 as the stock is down nearly 19% YTD while the S&P 500 is up over 13%.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned i ...

Group 1 - The individual has nearly two decades of experience in the logistics sector and a decade in stock investing and macroeconomic analysis, focusing on ASEAN and NYSE/NASDAQ stocks, particularly in banks, telecommunications, logistics, and hotels [1] - Since 2014, the individual has been trading in the Philippine stock market, concentrating on banking, telecommunications, and retail sectors, and has diversified investments across various industries and market capitalizations [1] - The individual entered the US market in 2020, gaining awareness through a relative's trading account before opening their own, and has holdings in US banks, hotels, shipping, and logistics companies [1] Group 2 - The individual began investing in popular blue-chip companies and has since developed a portfolio that includes stocks for retirement and others aimed at trading profits [1] - The individual discovered Seeking Alpha in 2018 and has been using its analyses to compare with their own in the Philippine market [1]

Financial Performance - NerdWallet, Inc. reported quarterly earnings of $0.11 per share, matching the Zacks Consensus Estimate, compared to a loss of $0.12 per share a year ago [1] - The company posted revenues of $186.9 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 4.24%, but showing an increase from $150.6 million year-over-year [2] - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $199.32 million, and for the current fiscal year, it is $0.38 on revenues of $797.62 million [7] Market Performance - NerdWallet, Inc. shares have declined approximately 16.8% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The company has surpassed consensus revenue estimates three times over the last four quarters [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] - The estimate revisions trend for NerdWallet, Inc. was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - Miscellaneous Services industry, to which NerdWallet belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - The company reported revenue of $187 million for Q2 2025, representing a 24% year-over-year increase, but below the guidance range of $192 million to $200 million due to a temporary disruption in the insurance shopping funnel [3][4][10] - Non-GAAP operating income was $21 million, exceeding the guidance of $14 million to $18 million, and showing a significant year-over-year improvement of $24 million [4][11] - GAAP operating income for Q2 was $11 million, with adjusted free cash flow over the last four quarters totaling $71 million and a cash balance of $105 million at the end of Q2 [11][12] Business Line Data and Key Metrics Changes - Insurance revenue reached $55 million, growing 86% year-over-year but declining 26% quarter-over-quarter due to the transition to a new platform partner [10][11] - The company has seen a rebound in insurance revenue post-transition, returning to levels similar to the previous year [10] Market Data and Key Metrics Changes - The company is experiencing organic search headwinds, which have impacted monthly active users (MAUs) more than revenue, with AI developments affecting search behavior [18][19] - There are early signs that large language models (LLMs) may become a new organic channel, with users coming from LLMs showing higher intent to transact compared to traditional search engine users [19][34] Company Strategy and Development Direction - The company is focused on vertical integration, enhancing its brand and shopping experiences, and has made strategic investments such as acquiring Nextdoor Lending [5][6] - The management emphasizes the importance of operational efficiency and capital allocation, with plans for M&A and share buybacks as attractive options for deploying free cash flow [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges from organic search but remains optimistic about the potential of LLMs as a new growth channel [18][34] - For Q3, the company expects revenue in the range of $189 million to $197 million, with a slight decline in insurance year-over-year and continued headwinds in the credit card business [13][14] Other Important Information - The company has improved its efficiency and operational performance, allowing for more flexibility in investments and returning value to shareholders [5][6] - The transition to a new insurance platform was necessary for better economics and features suited to the company's needs [30] Q&A Session Summary Question: Trends in organic search headwinds - Management noted that organic search remains challenged, with AI developments affecting user behavior, but they are seeing early signs of LLMs as a new growth channel [18][19] Question: Registered user engagement trends - Management confirmed that registered users continue to show five times better lifetime value (LTV), with increased usage of newer features [28] Question: Rationale for insurance platform transition - The transition was warranted for better economics and features, with the timing occurring in early Q2 and concluding in July [30] Question: Monetization opportunities from LLMs - Management indicated that users coming through LLMs show higher intent to transact, although monetization is still in early stages [34]

PART I. FINANCIAL INFORMATION This section presents NerdWallet's unaudited condensed consolidated financial statements and detailed notes [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section provides NerdWallet's unaudited condensed consolidated financial statements and comprehensive notes [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and stockholders' equity | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :----------------------------- | :-------------------------- | :----------------------------- | | Cash and cash equivalents | $105.3 | $66.3 | | Total current assets | $238.7 | $196.7 | | Total Assets | $476.0 | $437.6 | | Total current liabilities | $69.3 | $60.1 | | Total liabilities | $86.0 | $73.4 | | Total stockholders' equity | $390.0 | $364.2 | - **Total assets** increased by **$38.4 million**, and **total stockholders' equity** increased by **$25.8 million** from December 31, 2024, to June 30, 2025[16](index=16&type=chunk) [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance, including revenue, expenses, and net income or loss | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $186.9 | $150.6 | $396.1 | $312.5 | | Income (Loss) From Operations | $10.7 | $(9.6) | $11.4 | $(5.9) | | Net Income (Loss) | $8.2 | $(9.4) | $8.4 | $(8.3) | | Basic EPS | $0.11 | $(0.12) | $0.11 | $(0.11) | | Diluted EPS | $0.11 | $(0.12) | $0.11 | $(0.11) | - The company reported a significant turnaround from **net losses** in Q2 2024 and YTD 2024 to **net income** in Q2 2025 and YTD 2025, driven by increased **revenue** and improved operational efficiency[17](index=17&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section reports the company's total comprehensive income or loss, including net income and other items | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income (Loss) | $8.2 | $(9.4) | $8.4 | $(8.3) | | Other Comprehensive Income (Change in foreign currency translation) | $0.2 | $0.1 | $0.4 | $0.0 | | Comprehensive Income (Loss) | $8.4 | $(9.3) | $8.8 | $(8.3) | - Comprehensive income for the three and six months ended June 30, 2025, turned positive, reflecting the **net income** and a positive impact from foreign currency translation[18](index=18&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's equity accounts, including capital contributions and net income | Metric (in millions) | Balance as of Dec 31, 2024 | Balance as of June 30, 2025 | | :------------------- | :------------------------- | :-------------------------- | | Additional Paid-in Capital | $530.9 | $547.9 | | Accumulated Other Comprehensive Income (Loss) | $(0.2) | $0.2 | | Accumulated Deficit | $(166.5) | $(158.1) | | Total Stockholders' Equity | $364.2 | $390.0 | - **Stockholders' equity** increased from **$364.2 million** at December 31, 2024, to **$390.0 million** at June 30, 2025, primarily due to **net income** and **stock-based compensation**[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes cash flows from operating, investing, and financing activities over specific periods | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $44.2 | $32.9 | | Net cash used in investing activities | $(14.0) | $(19.2) | | Net cash provided by (used in) financing activities | $8.9 | $(0.4) | | Net increase in cash and cash equivalents | $39.0 | $13.4 | | Cash and Cash Equivalents, End of period | $105.3 | $113.8 | - **Net cash provided by operating activities** increased by **$11.3 million** year-over-year, driven by a shift from **net loss** to **net income**. **Investing activities** saw a decrease in cash used, partly due to lower **capitalized software development costs** and the absence of a prior year investment purchase, despite a **$5.0 million** business acquisition[24](index=24&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the financial statements [1. The Company and Basis of Presentation](index=14&type=section&id=1.%20The%20Company%20and%20Basis%20of%20Presentation) This note describes NerdWallet's business, operational segment, and the basis for financial statement preparation - NerdWallet, Inc. provides consumer-driven advice on personal finance through its platform, connecting individuals and SMBs with financial product providers. The company operates as a single segment[26](index=26&type=chunk)[29](index=29&type=chunk) - On June 13, 2025, the Company acquired a privately-held financial services company for **$5.0 million** in cash, recording **$3.0 million** in goodwill. The acquisition's contribution to **revenue** and **operating income** was not material for the period[33](index=33&type=chunk)[34](index=34&type=chunk) - In April 2025, an operating lease for office space in Arizona was amended, resulting in a **$4.0 million** right-of-use asset and corresponding operating lease liabilities[35](index=35&type=chunk) [2. Revenue](index=15&type=section&id=2.%20Revenue) This note disaggregates revenue by product category and explains significant changes in revenue streams | Product Category (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Insurance | $54.7 | $29.5 | $128.7 | $50.9 | | Credit cards | $34.8 | $46.1 | $72.8 | $96.1 | | SMB products | $25.0 | $26.1 | $53.9 | $56.5 | | Loans | $27.5 | $21.7 | $51.5 | $43.1 | | Emerging verticals | $44.9 | $27.2 | $89.2 | $65.9 | | Total revenue | $186.9 | $150.6 | $396.1 | $312.5 | - **Total revenue** increased by **24%** for the three months and **27%** for the six months ended June 30, 2025, primarily driven by strong growth in **Insurance** (**86%** and **153%** respectively) and **Emerging verticals** (**64%** and **35%** respectively). **Credit cards** **revenue** decreased by **25%** and **24%** due to organic search traffic pressures[37](index=37&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk)[82](index=82&type=chunk) [3. Fair Value Measurements](index=16&type=section&id=3.%20Fair%20Value%20Measurements) This note provides information on assets and liabilities measured at fair value, categorized by valuation inputs | Asset (in millions) | June 30, 2025 (Total Carrying Value) | December 31, 2024 (Total Carrying Value) | | :------------------ | :----------------------------------- | :--------------------------------------- | | Cash and cash equivalents—money market funds | $55.0 | $36.8 | | Certificate of deposit | $2.2 | $2.2 | | Mortgage loans held for sale | $11.6 | $2.6 | | Total | $68.8 | $41.6 | - The total carrying value of assets measured at fair value increased from **$41.6 million** to **$68.8 million**, primarily due to an increase in **money market funds** and **mortgage loans held for sale**[39](index=39&type=chunk) [4. Significant Condensed Consolidated Balance Sheet Components](index=16&type=section&id=4.%20Significant%20Condensed%20Consolidated%20Balance%20Sheet%20Components) This note details key balance sheet components, including capitalized software and short-term borrowings - **Capitalized software development costs**, net, decreased from **$40.5 million** at December 31, 2024, to **$32.7 million** at June 30, 2025. The company capitalized **$9.8 million** in **software development costs** during the six months ended June 30, 2025, and recorded **$17.7 million** in amortization expense[40](index=40&type=chunk) - **Short-term borrowings** under a **warehouse line of credit** increased from **$2.5 million** at December 31, 2024, to **$11.3 million** at June 30, 2025[41](index=41&type=chunk) [5. Commitments and Contingencies](index=17&type=section&id=5.%20Commitments%20and%20Contingencies) This note discloses the company's contractual commitments and potential liabilities from legal matters - There were no other material changes to the Company's financial commitments and arrangements as of June 30, 2025, compared to the prior annual report[42](index=42&type=chunk) - Management is not aware of any legal matters expected to have a material effect on the Company's financial position, results of operations, or cash flows, and no material potential loss has been accrued[43](index=43&type=chunk) [6. Stockholders' Equity](index=17&type=section&id=6.%20Stockholders'%20Equity) This note details changes in stockholders' equity, including share repurchases and stock-based compensation - The Company did not repurchase any Class A common stock during the six months ended June 30, 2025, but paid **$0.3 million** in excise taxes related to previous repurchases. The remaining share repurchase authorization is **$25.0 million**[45](index=45&type=chunk)[104](index=104&type=chunk) - The number of shares reserved for issuance under the 2021 Equity Incentive Plan automatically increased by **3.7 million shares** effective January 1, 2025[47](index=47&type=chunk) | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :----------------------------- | :----------------------------- | | Total stock-based compensation | $14.9 | $19.0 | [7. Income Taxes](index=19&type=section&id=7.%20Income%20Taxes) This note explains the company's effective tax rates, deferred tax assets, and recent tax legislation impact - The **effective tax rate** for the three and six months ended June 30, 2025, was **28.9%** and **34.5%** respectively, differing from the U.S. federal statutory rate primarily due to discrete items related to **stock-based compensation** and uncertain tax positions, partially offset by R&D credits[56](index=56&type=chunk)[91](index=91&type=chunk) - A **valuation allowance release** for U.S. federal and most state deferred tax assets occurred in Q4 2024 due to improved profitability, though a valuation allowance remains on California deferred tax assets[56](index=56&type=chunk)[92](index=92&type=chunk) - The recently enacted 'One Big Beautiful Bill Act' on July 4, 2025, includes provisions for **immediate expensing** of domestic R&D and certain capital expenditures. The Company is currently evaluating its impact[57](index=57&type=chunk)[93](index=93&type=chunk) [8. Net Income (Loss) Per Basic and Diluted Share](index=20&type=section&id=8.%20Net%20Income%20(Loss)%20Per%20Basic%20and%20Diluted%20Share) This note presents the calculation of basic and diluted earnings per share, reflecting company profitability | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to common stockholders (in millions) | $8.2 | $(9.4) | $8.4 | $(8.3) | | Basic EPS | $0.11 | $(0.12) | $0.11 | $(0.11) | | Diluted EPS | $0.11 | $(0.12) | $0.11 | $(0.11) | | Weighted-average shares of common stock—basic (in millions) | 74.8 | 77.9 | 74.5 | 77.5 | | Weighted-average shares of common stock—diluted (in millions) | 76.6 | 77.9 | 76.3 | 77.5 | - **Basic and diluted EPS** turned positive to **$0.11** for both the three and six months ended June 30, 2025, compared to losses of **$(0.12)** and **$(0.11)** in the prior year periods, reflecting the return to profitability[59](index=59&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses NerdWallet's business, non-GAAP measures, operational results, liquidity, and capital resources [Overview](index=21&type=section&id=Overview) This section introduces NerdWallet's business model, platform offerings, and geographic presence - NerdWallet provides trustworthy financial guidance to consumers and small and mid-sized businesses (SMBs) through its platform, offering expert content, comparison shopping marketplaces, and a data-driven app in the U.S., UK, Canada, and Australia[61](index=61&type=chunk)[63](index=63&type=chunk) [Non-GAAP Financial Measures](index=22&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and explains the company's use of non-GAAP financial measures for performance assessment - The company uses **non-GAAP operating income (loss)** and **adjusted EBITDA** to assess performance, prepare budgets, and evaluate business strategies, excluding non-cash items and amounts not driven by core operating results[65](index=65&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) - **Non-GAAP operating income (loss)** excludes depreciation and amortization, impairment, asset disposals, contingent consideration changes, deferred compensation, acquisition-related costs, and restructuring charges, while deducting capitalized internally developed software costs[66](index=66&type=chunk) - **Adjusted EBITDA** further excludes interest income/expense, other gains/losses, and income taxes, in addition to the exclusions for **non-GAAP operating income (loss)**, and also excludes **stock-based compensation**[67](index=67&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenue, expenses, and profitability trends | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $186.9 | $150.6 | $396.1 | $312.5 | | Total costs and expenses | $176.2 | $160.2 | $384.7 | $318.4 | | Income (loss) from operations | $10.7 | $(9.6) | $11.4 | $(5.9) | | Net income (loss) | $8.2 | $(9.4) | $8.4 | $(8.3) | - **Revenue** increased by **24%** and **27%** for the three and six months ended June 30, 2025, respectively, primarily due to growth in **Insurance** and **Emerging verticals**, partially offset by a decline in **Credit cards** **revenue**[77](index=77&type=chunk) - **Income from operations** improved significantly to **$10.7 million** (Q2 2025) and **$11.4 million** (YTD 2025) from losses in the prior year, driven by **revenue** growth and decreased R&D and G&A expenses, despite increased sales and marketing[75](index=75&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=27&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles GAAP to non-GAAP financial measures, providing a clearer view of operational performance | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Non-GAAP operating income (loss) | $20.7 | $(2.7) | $30.0 | $7.9 | | Non-GAAP operating income (loss) margin | 11% | (2%) | 8% | 3% | | Adjusted EBITDA | $33.6 | $14.3 | $54.7 | $39.8 | | Adjusted EBITDA margin | 18% | 10% | 14% | 13% | - **Non-GAAP operating income** significantly improved to **$20.7 million** (Q2 2025) and **$30.0 million** (YTD 2025) from losses/lower income in the prior year, reflecting improved operational performance[97](index=97&type=chunk) - **Adjusted EBITDA** increased by **135%** for the three months and **37%** for the six months ended June 30, 2025, primarily due to the shift from **net losses** to **net income** and decreased **stock-based compensation**[98](index=98&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, credit facilities, and ability to meet obligations - **Cash and cash equivalents** increased to **$105.3 million** as of June 30, 2025, from **$66.3 million** at December 31, 2024, primarily from cash generated by operations[100](index=100&type=chunk) - The company has a **$125.0 million** senior secured **revolving credit facility** with **$123.9 million** available as of June 30, 2025, and a **$15.0 million** **warehouse line of credit** for mortgage loans, with **$11.3 million** outstanding[105](index=105&type=chunk)[106](index=106&type=chunk) - Management believes current cash, future cash flow from operations, and access to credit facilities will be sufficient to meet liquidity needs for the next twelve months and beyond[107](index=107&type=chunk) [Critical Accounting Policies and Estimates](index=30&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights accounting policies and estimates requiring significant management judgment - There have been no material changes in the Company's **critical accounting policies** during the six months ended June 30, 2025[115](index=115&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section addresses the company's market risk exposure from interest rates and foreign currency, with no material changes - The Company's primary market risk exposure is due to fluctuations in interest rates and foreign currency exchange rates[116](index=116&type=chunk) - There were no material changes to market risk disclosures during the six months ended June 30, 2025, compared to the Annual Report on Form 10-K for the year ended December 31, 2024[117](index=117&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms effective disclosure controls and reports no material changes in internal control - The Chief Executive Officer and Chief Financial Officer concluded that the Company's **disclosure controls and procedures** were effective as of June 30, 2025[118](index=118&type=chunk) - No changes in **internal control over financial reporting** occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the Company's **internal control over financial reporting**[119](index=119&type=chunk) PART II. OTHER INFORMATION This section provides additional information including legal proceedings, risk factors, equity sales, and other disclosures [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) This section states the company is involved in legal proceedings but anticipates no material adverse financial effect - The Company is not currently a party to any litigation that is expected to have a material adverse effect on its business, operating results, cash flows, or financial condition[121](index=121&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section highlights risks for investment advisory businesses, including regulatory scrutiny, fiduciary liability, and operational challenges - The Company's **investment advisory businesses** are subject to extensive regulation, with key risks including **regulatory scrutiny**, **fiduciary liability**, dependence on **third-party vendors**, **operational resilience** challenges, and evolving regulatory standards[123](index=123&type=chunk)[128](index=128&type=chunk) - Failure to comply with applicable laws and regulations could materially affect the company's reputation, revenues, results of operations, and financial condition[124](index=124&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports no unregistered sales or purchases of equity securities by the issuer during the period - There were no unregistered sales of equity securities or purchases of equity securities by the issuer during the period[125](index=125&type=chunk)[126](index=126&type=chunk) [Item 3. Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities during the reporting period[127](index=127&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company - Mine safety disclosures are not applicable to NerdWallet, Inc[129](index=129&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) This section details changes in Rule 10b5-1 trading arrangements for directors and executive officers - Jennifer Ceran, a Board member, adopted a **Rule 10b5-1 trading plan** for up to **40,000 shares**, expiring May 27, 2026[130](index=130&type=chunk) - Nicholas Tatum, Chief Accounting Officer, adopted a **Rule 10b5-1 trading plan** for up to **11,983 shares**, expiring July 10, 2026[131](index=131&type=chunk) - Samuel Yount, Chief Business Officer, terminated several **Rule 10b5-1 trading plans** associated with various trusts and entities on June 10, 2025[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including credit agreements and certifications - Exhibits include a Limited Consent, Waiver and Third Amendment to Credit Agreement, certifications from the Principal Executive Officer and Principal Financial Officer, and various Inline XBRL Taxonomy Extension Documents[137](index=137&type=chunk)

[Executive Summary & Q2 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Highlights) NerdWallet reported strong Q2 2025 results, with significant revenue growth and improved operational efficiencies across key verticals [Q2 2025 Financial Performance](index=1&type=section&id=Q2%202025%20Financial%20Performance) NerdWallet reported strong second quarter 2025 results, with revenue reaching $186.9 million, a 24% increase year-over-year. The company achieved GAAP income from operations of $10.7 million and non-GAAP operating income of $20.7 million, demonstrating improved operational efficiencies and bottom-line outperformance - Revenue of **$186.9 million**, up **24% Year-Over-Year**[1](index=1&type=chunk) - CEO Tim Chen highlighted focus on improving operational efficiencies, contributing to bottom-line outperformance[3](index=3&type=chunk) Q2 2025 Key Financial Metrics | Metric | Amount | | :--- | :--- | | Revenue | $186.9 million | | GAAP income from operations | $10.7 million | | GAAP net income | $8.2 million | | GAAP net income per diluted share | $0.11 | | Non-GAAP operating income | $20.7 million | | Adjusted EBITDA | $33.6 million | [Revenue Performance by Vertical](index=1&type=section&id=Revenue%20Performance%20by%20Vertical) Insurance revenue saw significant growth, increasing 86% year-over-year to $54.7 million, driven by strong performance in auto insurance products. Loans and Emerging verticals also showed robust growth, while Credit Cards and SMB products experienced declines primarily due to persistent headwinds in organic search traffic Q2 2025 Revenue by Product Category (YoY Change) | Product Category | Q2 2025 Revenue (in millions) | YoY Change (%) | | :--- | :--- | :--- | | Insurance | $54.7 | +86 | | Credit cards | $34.8 | -25 | | SMB products | $25.0 | -4 | | Loans | $27.5 | +27 | | Emerging verticals | $44.9 | +64 | - Insurance revenue growth was driven by strong growth in auto insurance products as carriers expanded budgets[7](index=7&type=chunk) - Credit cards and SMB products revenue decreased primarily due to continued headwinds in organic search traffic[7](index=7&type=chunk) [Summary Financial Results](index=2&type=section&id=SUMMARY%20FINANCIAL%20RESULTS) This section provides a comprehensive overview of NerdWallet's quarterly financial performance and key revenue category definitions [Quarterly Financial Overview](index=2&type=section&id=Quarterly%20Financial%20Overview) The detailed summary financial results table highlights a 24% YoY revenue increase for Q2 2025, reaching $186.9 million, though it saw an 11% QoQ decrease. Non-GAAP operating income and Adjusted EBITDA significantly improved both YoY and QoQ, indicating enhanced profitability and efficiency Summary Financial Results (Q2 2025 vs Q2 2024 vs Q1 2025) | Metric (in millions) | Jun 30, 2025 | Jun 30, 2024 | YoY Change (%) | Mar 31, 2025 | QoQ Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $186.9 | $150.6 | 24 | $209.2 | (11) | | Insurance Revenue | $54.7 | $29.5 | 86 | $74.0 | (26) | | Credit cards Revenue | $34.8 | $46.1 | (25) | $38.0 | (8) | | SMB products Revenue | $25.0 | $26.1 | (4) | $28.9 | (14) | | Loans Revenue | $27.5 | $21.7 | 27 | $24.0 | 15 | | Emerging verticals Revenue | $44.9 | $27.2 | 64 | $44.3 | 1 | | Income (loss) from operations | $10.7 | $(9.6) | NM | $0.7 | NM | | Net income (loss) | $8.2 | $(9.4) | NM | $0.2 | NM | | Non-GAAP operating income (loss) | $20.7 | $(2.7) | NM | $9.3 | 123 | | Adjusted EBITDA | $33.6 | $14.3 | 135 | $21.1 | 60 | | Cash and cash equivalents | $105.3 | $113.8 | (8) | $92.2 | 14 | [Revenue Category Definitions](index=2&type=section&id=Revenue%20Category%20Definitions) This section clarifies the composition of NerdWallet's revenue streams, detailing the types of products and services included within the Insurance, Credit cards, SMB products, Loans, and Emerging verticals categories - Insurance revenue consists of revenue from consumer insurance products, including auto, life, and pet insurance[8](index=8&type=chunk) - SMB products revenue includes revenue from loans, credit cards, and other financial products and services intended for small and mid-sized businesses[9](index=9&type=chunk) - Emerging verticals revenue includes revenue from other product sources, including banking, investing, and international[9](index=9&type=chunk) [Investor Communications](index=2&type=section&id=Investor%20Communications) NerdWallet announced a live webcast for its second quarter 2025 financial results and made a shareholder letter available on its investor relations website, providing additional information and analysis - A conference call to discuss NerdWallet's second quarter 2025 financial results was webcast live on August 7, 2025[11](index=11&type=chunk) - A shareholder letter providing additional information and analysis is available on NerdWallet's investor relations website[12](index=12&type=chunk) [About NerdWallet](index=3&type=section&id=ABOUT%20NERDWALLET) This section provides an overview of NerdWallet's mission, platform offerings, and global operational presence [Company Overview](index=3&type=section&id=Company%20Overview) NerdWallet is a personal finance website and app dedicated to providing trustworthy financial guidance to consumers globally. It offers expert content, comparison shopping marketplaces, and a data-driven app to help users make informed financial decisions across various life stages, operating in the U.S., United Kingdom, Canada, and Australia - NerdWallet's mission is to provide clarity for all of life's financial decisions[14](index=14&type=chunk) - The platform offers expert content, comparison shopping marketplaces, and a data-driven app to help consumers manage finances and save time/money[14](index=14&type=chunk) - NerdWallet is available for consumers in the U.S., United Kingdom, Canada, and Australia[14](index=14&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents NerdWallet's condensed consolidated statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended June 30, 2025, NerdWallet reported revenue of $186.9 million, a 24% increase YoY, and a net income of $8.2 million, a significant improvement from a net loss of $9.4 million in the prior year period. Total costs and expenses increased by 10% YoY, while for the six months, revenue grew 27% YoY to $396.1 million Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric (in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $186.9 | $150.6 | 24 | | Total costs and expenses | $176.2 | $160.2 | 10 | | Income (Loss) From Operations | $10.7 | $(9.6) | NM | | Net Income (Loss) | $8.2 | $(9.4) | NM | | Diluted Net Income (Loss) Per Share | $0.11 | $(0.12) | NM | Condensed Consolidated Statements of Operations (Six Months Ended June 30) | Metric (in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $396.1 | $312.5 | 27 | | Total costs and expenses | $384.7 | $318.4 | 21 | | Income (Loss) From Operations | $11.4 | $(5.9) | NM | | Net Income (Loss) | $8.4 | $(8.3) | NM | | Diluted Net Income (Loss) Per Share | $0.11 | $(0.11) | NM | [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets increased to $476.0 million from $437.6 million at December 31, 2024. This increase was primarily driven by a rise in cash and cash equivalents to $105.3 million from $66.3 million, alongside growth in total current assets and stockholders' equity Condensed Consolidated Balance Sheets (Selected Items) | Metric (in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $105.3 | $66.3 | | Total current assets | $238.7 | $196.7 | | Total Assets | $476.0 | $437.6 | | Total current liabilities | $69.3 | $60.1 | | Total liabilities | $86.0 | $73.4 | | Stockholders' equity | $390.0 | $364.2 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash provided by operating activities increased to $44.2 million from $32.9 million in the prior year. Net cash used in investing activities decreased, while financing activities provided cash, leading to a net increase in cash and cash equivalents of $39.0 million Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric (in millions) | 2025 | 2024 | | :--- | :--- | | Net cash provided by operating activities | $44.2 | $32.9 | | Net cash used in investing activities | $(14.0) | $(19.2) | | Net cash provided by (used in) financing activities | $8.9 | $(0.4) | | Net increase in cash and cash equivalents | $39.0 | $13.4 | | Cash and Cash Equivalents, End of period | $105.3 | $113.8 | [Non-GAAP Financial Measures](index=6&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section defines and reconciles non-GAAP financial measures used by NerdWallet to assess its operational performance [Definitions and Rationale](index=6&type=section&id=Definitions%20and%20Rationale) NerdWallet utilizes non-GAAP operating income (loss), adjusted EBITDA, and adjusted free cash flow to assess performance, evaluate strategies, and communicate financial results. These measures exclude non-cash items and amounts not driven by core operating results to provide a clearer view of underlying business performance, though they have limitations and should be considered alongside GAAP measures - Non-GAAP operating income (loss) excludes depreciation and amortization, impairment, acquisition-related costs, restructuring charges, and capitalizes internally developed software costs[20](index=20&type=chunk)[22](index=22&type=chunk) - Adjusted EBITDA excludes depreciation and amortization, interest, taxes, stock-based compensation, acquisition-related costs, and restructuring charges[21](index=21&type=chunk)[23](index=23&type=chunk) - Adjusted free cash flow is defined as net cash provided by operating activities less capitalized software development costs and purchases of property and equipment, further adjusted for net borrowing or repayment on warehouse lines of credit[24](index=24&type=chunk) - These non-GAAP measures are used for internal decision-making, budgeting, and evaluating performance, but have limitations and are not substitutes for GAAP results[23](index=23&type=chunk)[25](index=25&type=chunk) [Reconciliation to GAAP](index=8&type=section&id=Reconciliation%20to%20GAAP) The company provides detailed reconciliations of non-GAAP operating income (loss) to GAAP income (loss) from operations, and Adjusted EBITDA to net income (loss) for both the three and six months ended June 30, 2025 and 2024, demonstrating the specific adjustments made from GAAP figures Non-GAAP Operating Income (Loss) Reconciliation (Three Months Ended June 30) | Metric (in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Income (loss) from operations (GAAP) | $10.7 | $(9.6) | NM | | Depreciation and amortization | $12.7 | $12.2 | 4 | | Capitalized internally developed software costs | $(4.7) | $(6.7) | (30) | | Non-GAAP operating income (loss) | $20.7 | $(2.7) | NM | | Non-GAAP operating income (loss) margin | 11% | (2%) | | Adjusted EBITDA Reconciliation (Three Months Ended June 30) | Metric (in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Net income (loss) (GAAP) | $8.2 | $(9.4) | NM | | Depreciation and amortization | $12.7 | $12.2 | 4 | | Stock-based compensation | $8.2 | $10.3 | (21) | | Income tax provision | $3.3 | $1.1 | 196 | | Adjusted EBITDA | $33.6 | $14.3 | 135 | | Adjusted EBITDA margin | 18% | 10% | | [Adjusted Free Cash Flow](index=9&type=section&id=Adjusted%20Free%20Cash%20Flow) Adjusted free cash flow for the twelve months ended June 30, 2025, was $70.6 million, compared to $73.3 million in the prior year period. This metric includes adjustments for net borrowing/repayment on warehouse lines of credit, reflecting the company's liquidity and cash available for investment Adjusted Free Cash Flow (Twelve Months Ended) | Metric (in millions) | Jun 30, 2025 | Jun 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $83.1 | $98.6 | | Capitalized software development costs | $(18.0) | $(24.7) | | Purchase of property and equipment | $(1.2) | $(0.6) | | Net borrowing (repayment) on warehouse line of credit | $6.7 | $0.0 | | Adjusted free cash flow | $70.6 | $73.3 | [Financial Outlook](index=9&type=section&id=FINANCIAL%20OUTLOOK) This section provides NerdWallet's financial guidance for Q3 and the full year 2025, including revenue and profitability projections [Q3 2025 Guidance](index=9&type=section&id=Q3%202025%20Guidance) For the third quarter of 2025, NerdWallet expects revenue between $189-$197 million, representing a 1% year-over-year increase at the midpoint. GAAP operating income is projected to be $17-$21 million, non-GAAP operating income $23-$27 million, and Adjusted EBITDA $36-$40 million Forecasted Q3 2025 Financial Guidance | Metric | Range (in millions) | | :--- | :--- | | Revenue | $189 - $197 | | GAAP operating income | $17 - $21 | | Non-GAAP operating income | $23 - $27 | | Adjusted EBITDA | $36 - $40 | - Revenue is expected to be up **1% year-over-year** at the midpoint for Q3 2025[33](index=33&type=chunk) [Full Year 2025 Guidance](index=9&type=section&id=Full%20Year%202025%20Guidance) NerdWallet has increased its full-year 2025 guidance, forecasting GAAP operating income in the range of $38-$48 million, non-GAAP operating income $71-$79 million, and Adjusted EBITDA $120-$128 million. The company notes it cannot provide a quantitative reconciliation for forecasted GAAP net income to Adjusted EBITDA due to unpredictable fluctuations Forecasted Full Year 2025 Financial Guidance | Metric | Range (in millions) | | :--- | :--- | | GAAP operating income | $38 - $48 | | Non-GAAP operating income | $71 - $79 | | Adjusted EBITDA | $120 - $128 | - The company is increasing its forecasted 2025 annual GAAP operating income, non-GAAP operating income, and adjusted EBITDA[30](index=30&type=chunk) - A quantitative reconciliation of forecasted GAAP net income (loss) to forecasted adjusted EBITDA is not provided due to the inability to confidently calculate certain reconciling items, such as income taxes, which are impacted by unpredictable market fluctuations[31](index=31&type=chunk) [Forward-Looking Statements](index=10&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section outlines the nature and inherent risks of forward-looking statements, emphasizing potential material differences from actual results [Nature and Risks](index=10&type=section&id=Nature%20and%20Risks) This section clarifies that the press release contains forward-looking statements based on current expectations, estimates, and projections, which are subject to significant risks, uncertainties, and assumptions. Actual results may differ materially due to industry competitiveness, rapid evolution, and unforeseen risks, and these statements should not be relied upon as predictions or guarantees - The press release contains forward-looking statements, including those in the 'Financial Outlook' section, which are not guarantees of future events[34](index=34&type=chunk)[35](index=35&type=chunk) - These statements are based on current expectations and projections but are subject to various risks, uncertainties, and assumptions, including those described in SEC filings[35](index=35&type=chunk) - The industry is highly competitive and rapidly evolving, meaning actual results, events, or circumstances may differ materially from forward-looking statements[36](index=36&type=chunk) [Specific Risk Factors](index=10&type=section&id=Specific%20Risk%20Factors) Key risk factors include the impact of macroeconomic developments, the company's ability to grow traffic and user engagement, consumer demand, expansion into new verticals, maintaining partner relationships, developing efficient technological capabilities, enhancing brand awareness, and complying with evolving regulations - Risks include the impact of macroeconomic developments, such as inflation, interest rates, and overall economic uncertainty, on the business and stock price[38](index=38&type=chunk) - The ability to grow traffic and user engagement on the platform, and convert consumers into matches with financial services partners, is a significant factor[38](index=38&type=chunk) - Challenges include expanding within existing and new verticals, maintaining and expanding relationships with financial services partners, developing efficient and scalable technical capabilities, and complying with evolving laws and regulations[38](index=38&type=chunk) [Contact Information](index=11&type=section&id=Contact%20Information) This section provides contact details for NerdWallet's investor and media relations departments [Investor and Media Relations](index=11&type=section&id=Investor%20and%20Media%20Relations) Contact details for NerdWallet's Investor Relations and Media Relations are provided for inquiries - Investor Relations contact: Sara Colvin, ir@nerdwallet.com[39](index=39&type=chunk) - Media Relations contact: Maitri Jani, press@nerdwallet.com[39](index=39&type=chunk)

Core Viewpoint - The article highlights that despite the downturn in the fintech sector post-2021, investors still perceive NerdWallet (NRDS) primarily as an affiliate network that leverages SEO and content marketing for generating clicks and revenue [1] Company Analysis - NerdWallet is viewed as a company that relies heavily on digital marketing strategies to drive its business model, particularly through search engine optimization and content marketing [1] Industry Context - The fintech industry has experienced a significant decline since 2021, impacting investor perceptions and strategies within the sector [1]

Group 1 - A surprising macro trend is the sharp increase in appetite from auto insurers to acquire new policyholders, driven by approved rate increases that have significantly improved insurance carriers' profitability [1] Group 2 - The article highlights the combined experience of covering technology companies on Wall Street and working in Silicon Valley, indicating a strong understanding of industry themes [2] Group 3 - There is a disclosure regarding a beneficial long position in the shares of NRDS, emphasizing the author's personal opinions and lack of compensation from mentioned companies [3] Group 4 - Seeking Alpha's disclosure notes that past performance does not guarantee future results and that no investment recommendations are being made [4]

Core Viewpoint - NerdWallet (NASDAQ: NRDS) is recognized as a "Buy" due to its founder-led growth and diverse revenue streams [1] Company Summary - The company continues to grow overall revenue while expanding its revenue sources [1]

Core Viewpoint - The emergence of fintech tools has provided individuals with lower credit scores or limited credit history better access to credit, but these tools face scrutiny from regulatory bodies and some lawmakers who claim they may lead consumers to predatory lending options [1][5]. Group 1: Fintech Tools and Comparison Shopping - Fintech tools, including comparison-shopping platforms like Credit Karma, NerdWallet, WalletHub, and LendingTree, enhance the chances of loan or credit card approval for consumers [2]. - Credit agencies, such as Experian, offer options like "no-ding decline," allowing consumers to apply without affecting their credit score unless approved [4]. Group 2: Regulatory Scrutiny and Consumer Protection - Some lawmakers, including Sen. Dick Durbin and Sen. Elizabeth Warren, argue that fintech platforms use deceptive practices to direct consumers toward predatory lending [5]. - The Consumer Financial Protection Bureau (CFPB) has attempted to regulate these practices, despite fintech platforms disclosing how advertiser compensation may influence product offerings [5]. Group 3: Research Findings on Consumer Access - Research from the Southwest Public Policy Institute (SPPI) indicates that comparison-shopping tools empower consumers to make informed choices, suggesting that government intervention could hinder access to credit for those in need [6]. - The SPPI report highlights the inefficiencies of government tools compared to sophisticated fintech systems, emphasizing the need for a dynamic marketplace that allows consumer choice [10][13]. Group 4: Case Study and User Experience - The SPPI report includes a case study of its founder, Patrick Brenner, who struggled to obtain credit through traditional means but successfully secured a credit card offer through Credit Karma, illustrating the effectiveness of these tools [8]. - The CFPB's tool for searching credit cards lacks the user-friendly features of comparison-shopping tools, requiring consumers to apply directly to banks without guidance on approval chances [9].