Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $215 million, representing a 12% year-over-year increase, exceeding the guidance range of $189-$197 million [7] - Non-GAAP operating income for Q3 was $41 million, above the guidance range of $23 million-$27 million [8] - GAAP operating income for Q3 was $34 million, with trailing 12-month adjusted free cash flow increasing and a cash balance of $121 million at the end of Q3 [8][9] Business Line Data and Key Metrics Changes - Banking revenue increased by 96% year-over-year, while personal loans revenue rose by 91% year-over-year [7] - The insurance business saw a 3% year-over-year increase, slightly better than expected [7] - SMB products and credit cards experienced a decline year-over-year due to organic search headwinds [7] Market Data and Key Metrics Changes - The company is seeing momentum with referrals from large language models (LLMs), which convert at a higher rate than traditional organic traffic [5] - Traffic from LLMs is currently small but shows potential for growth, prompting continued investment in this channel [5] Company Strategy and Development Direction - The company aims to expand its reach to below-prime consumers, enhancing its product offerings and operational efficiency [4][6] - There is a focus on converting traffic into a loyal audience through personalized engagement strategies [6] - The company plans to return to typical levels of brand marketing spend in Q4 after reevaluating its brand strategy [8][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term prospects, emphasizing sustainable growth, strong free cash flow generation, and disciplined capital allocation [7] - For Q4, the company expects revenue in the range of $207 million-$250 million, with continued strength in banking and personal loans, but challenges in credit cards and SMB [9][10] - Non-GAAP operating income for Q4 is expected to be between $20 million and $24 million, reflecting improvements in shopping funnels and operational efficiency [10] Other Important Information - The company completed $19 million in share repurchases during the quarter, reflecting confidence in long-term prospects [9] - Management noted that the brand is a significant asset and is continuously looking for ways to enhance its impact [20] Q&A Session Summary Question: Insights on LLM traffic growth and investments - Management indicated that LLM traffic is converting at stronger rates and investments are similar to those made for organic search [12][14] Question: Drivers of banking category growth - The increase in banking demand is attributed to both consumer and partner demand, with improvements in product funnels to match user intent [16][18] Question: Reevaluation of brand spend - The company underspent on brand marketing by $8 million in Q3 due to a reevaluation of its brand strategy, with plans to return to typical spending levels in Q4 [19][20] Question: Content strategy for below-prime consumers - The company has historically had content for all consumers, and the focus is on filling out the marketplace to better serve unmet needs [21][22]

Revenue Growth - Revenue for the three months ended September 30, 2025, increased by $23.8 million, or 12%, to $215.1 million compared to the same period in 2024[78] - Revenue for the nine months ended September 30, 2025, increased by $107.4 million, or 21%, to $611.2 million compared to the same period in 2024[78] - Emerging verticals revenue increased significantly, contributing to overall revenue growth, with a 83% increase for the three months ended September 30, 2025[78] - Loans revenue increased by $15.8 million, or 66%, and $24.2 million, or 36%, for the three and nine months ended September 30, 2025, primarily due to increases of 91% in personal loans revenue[83] - Emerging verticals revenue rose by $21.2 million, or 83%, and $44.5 million, or 49%, for the three and nine months ended September 30, 2025, driven by a 96% increase in banking revenue[84] - Insurance revenue increased by $2.2 million, or 3%, for the three months ended September 30, 2025, and by $80.0 million, or 67%, for the nine months ended September 30, 2025[79] - Credit cards revenue decreased by $11.2 million, or 25%, for the three months ended September 30, 2025, and by $34.5 million, or 24%, for the nine months ended September 30, 2025[81] - SMB products revenue decreased by $4.2 million, or 15%, for the three months ended September 30, 2025, and by $6.8 million, or 8%, for the nine months ended September 30, 2025[82] Net Income and Operating Income - Net income for the three months ended September 30, 2025, was $26.3 million, compared to a net income of $0.1 million for the same period in 2024[77] - Net income for the nine months ended September 30, 2025, was $34.7 million, compared to a net loss of $8.2 million for the same period in 2024[77] - Non-GAAP operating income for the three months ended September 30, 2025, increased by $27.8 million, or 420%, compared to the same period in 2024[76] - Non-GAAP operating income for the nine months ended September 30, 2025, increased by $45.1 million compared to the same period in 2024[76] - Non-GAAP operating income increased by $18.4 million, or 81%, and $40.5 million, or 132%, for the three and nine months ended September 30, 2025, compared to the same periods in 2024[101] Expenses - Total costs and expenses decreased by $4.0 million, or 2%, for the three months ended September 30, 2025, but increased by $62.3 million, or 12%, for the nine months ended September 30, 2025[85] - Research and development expenses decreased by $7.3 million, or 31%, and $16.0 million, or 24%, for the three and nine months ended September 30, 2025, compared to the same periods in 2024[87] - Sales and marketing expenses increased by $7.2 million, or 6%, and $80.9 million, or 24%, for the three and nine months ended September 30, 2025, primarily due to increases in performance marketing expenses[89] - General and administrative expenses decreased by $1.5 million, or 10%, and $5.9 million, or 12%, for the three and nine months ended September 30, 2025, compared to the same periods in 2024[90] Tax and EBITDA - The effective tax rate was 25.8% and 28.1% for the three and nine months ended September 30, 2025, compared to 99.2% and 290.7% for the same periods in 2024[95] - Adjusted EBITDA for the three and nine months ended September 30, 2025, was $53.6 million and $108.3 million, respectively, with adjusted EBITDA margins of 25% and 18%[99] - Adjusted EBITDA increased by $16.3 million, or 44%, for the three months ended September 30, 2025, and by $31.2 million, or 41%, for the nine months ended September 30, 2025, compared to the same periods in 2024[103] Cash Flow and Liquidity - Cash and cash equivalents rose to $120.6 million as of September 30, 2025, up from $66.3 million as of December 31, 2024[105] - Net cash provided by operating activities increased by $30.8 million for the nine months ended September 30, 2025, driven by a net income of $34.7 million compared to a net loss of $8.2 million in the same period of 2024[115] - Net cash used in investing activities decreased by $4.0 million for the nine months ended September 30, 2025, primarily due to a reduction in purchases of investments and capitalized software development costs[116] - Net cash used in financing activities decreased by $48.6 million for the nine months ended September 30, 2025, mainly due to a $50.3 million decrease in repurchases of Class A common stock[117] - The company repurchased 1.8 million shares of Class A common stock for $19.2 million during the nine months ended September 30, 2025[109] - The company maintains a $125.0 million senior secured revolving credit facility, with no outstanding balance as of September 30, 2025[110] - The company expects to fund operations and capital expenditures primarily with cash flows from operations, supplemented by cash on hand if needed[108] - The company had $5.8 million outstanding under a $15.0 million warehouse line of credit as of September 30, 2025[111] - The company anticipates that its current cash and cash equivalents, along with future cash flow from operations, will be sufficient to meet ongoing liquidity requirements for the next twelve months and beyond[112]

Financial Performance - Revenue for Q3 2025 was $215.1 million, representing a 12% increase year-over-year[5] - GAAP net income for Q3 2025 was $26.3 million, or $0.34 per diluted share, compared to $0.1 million in Q3 2024[5] - Non-GAAP operating income increased by 81% year-over-year to $41.3 million in Q3 2025[5] - Loans revenue surged by 66% year-over-year to $39.6 million, driven by growth in personal and mortgage loans[6] - Emerging verticals revenue grew by 83% year-over-year to $46.9 million, primarily due to banking product growth[6] - Insurance revenue increased by 3% year-over-year to $70.9 million[6] - Credit cards revenue decreased by 25% year-over-year to $34.1 million, impacted by headwinds in organic search traffic[6] - Net income for the nine months ended September 30, 2025, was $34.7 million, compared to a net loss of $8.2 million in the same period of 2024[17] - Non-GAAP operating income for the nine months ended September 30, 2025, was $71.3 million, representing a 132% increase compared to $30.8 million in 2024[26] - Adjusted EBITDA for the nine months ended September 30, 2025, was $108.3 million, a 41% increase from $77.1 million in 2024[26] - The company reported a significant increase in income from operations, reaching $45.8 million for the nine months ended September 30, 2025, compared to $0.7 million in 2024[26] Cash and Assets - Cash and cash equivalents rose by 68% year-over-year to $120.6 million[7] - Total assets increased to $492.8 million as of September 30, 2025, up from $437.6 million at the end of 2024[16] - Cash and cash equivalents at the end of the period increased to $120.6 million from $71.7 million in the previous year[17] Forecasts and Projections - The forecasted 2025 annual GAAP operating income is projected to be in the range of $59-$63 million, with non-GAAP operating income expected to be between $91-$95 million[29] - The forecasted adjusted EBITDA for 2025 is expected to be in the range of $141-$145 million[29] - Revenue is expected to be in the range of $207-$215 million, representing a 15% year-over-year increase at the midpoint[32] - GAAP operating income is projected to be between $13 million and $17 million for Q4 2025[31] - Non-GAAP operating income is anticipated to be in the range of $20 million to $24 million for Q4 2025[31] - Adjusted EBITDA is expected to be between $33 million and $37 million[32] - Full year 2025 GAAP operating income is forecasted to be between $59 million and $63 million[31] - Full year 2025 non-GAAP operating income is projected to be in the range of $91 million to $95 million[31] Marketing and Spending - The company underspent on brand marketing by $8 million in Q3 2025, with plans to return to typical spending levels in Q4[6] - Stock-based compensation decreased to $21.6 million for the nine months ended September 30, 2025, down 22% from $27.7 million in 2024[26] Risks and Strategic Focus - The company faces significant risks and uncertainties that may affect actual results compared to forward-looking statements[34] - The company aims to grow traffic, engagement, and monetization on its platform while expanding within existing and new verticals[37] - The company is focused on developing scalable technology and enhancing user engagement through personalized guidance[37]

Core Viewpoint - NerdWallet has announced a conference call to review its financial results for the third quarter of 2025, indicating a focus on transparency and communication with stakeholders [1] Financial Results - The conference call will provide insights into the company's financial performance for the third quarter of 2025, which is crucial for investors and analysts to assess the company's growth and profitability [1]

Group 1 - The stock market is experiencing volatility at all-time highs, suggesting a need for portfolio rotation strategies ahead of 2026 [1] - A recommendation is made to shift portfolios into reasonably priced technology companies, reflecting the analyst's extensive experience in the sector [1] Group 2 - The analyst, Gary Alexander, has a background in covering technology companies on Wall Street and has worked in Silicon Valley, providing insights into current industry trends [1] - Alexander has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, indicating a strong presence in the investment community [1]

Core Insights - NerdWallet (NASDAQ: NRDS) has faced significant challenges in 2025, with its stock price declining nearly 19% year-to-date, contrasting sharply with the S&P 500's increase of over 13% [1] Company Performance - The stock performance of NerdWallet indicates a notable underperformance compared to the broader market, highlighting potential issues within the company or its market positioning [1] Market Context - The S&P 500's positive performance suggests a favorable market environment for many companies, raising questions about the specific factors contributing to NerdWallet's struggles [1]

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)