[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].

Company Performance - NerdWallet, Inc. reported break-even quarterly earnings per share, surpassing the Zacks Consensus Estimate of a loss of $0.10, and compared to earnings of $0.01 per share a year ago, representing an earnings surprise of 100% [1] - The company posted revenues of $209.2 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 10.04%, and compared to year-ago revenues of $161.9 million [2] - Over the last four quarters, NerdWallet has surpassed consensus revenue estimates four times, but has only exceeded consensus EPS estimates once [2] Stock Performance - NerdWallet shares have declined approximately 36.2% since the beginning of the year, while the S&P 500 has decreased by 3.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $177.86 million, and for the current fiscal year, it is $0.31 on revenues of $749.91 million [7] Industry Outlook - The Financial - Miscellaneous Services industry, to which NerdWallet belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact stock performance [5][8]

Financial Data and Key Metrics Changes - In Q1 2025, NerdWallet reported revenue of $209 million, representing a 29% year-over-year increase, and achieved $9 million in non-GAAP operating income [6][14] - The company generated GAAP operating income of $700,000 and reported $58 million in adjusted free cash flow over the last four quarters, ending Q1 with $92 million in cash [17] Business Line Data and Key Metrics Changes - Credit card revenue declined 24% year-over-year to $38 million, while loans revenue grew 12% year-over-year to $24 million, driven by personal loans returning to growth and contributions from Nextdoor Lending [14][15] - SMB products revenue decreased 5% year-over-year to $29 million due to tight underwriting and trade policy uncertainty [15] - Insurance revenue surged 246% year-over-year to $74 million, reflecting strong market performance [15] - Emerging verticals generated $44 million in revenue, growing 15% year-over-year, primarily from banking [16] Market Data and Key Metrics Changes - The insurance market is expected to normalize growth rates in the second half of the year after a significant increase in Q1 [15][41] - The U.S. financial services digital ad spend market is projected to grow at a 16% CAGR over five years, while NerdWallet's market is expected to grow at a 25% CAGR [9] Company Strategy and Development Direction - The company is focused on enhancing its core business through vertical integration and improving user experiences, particularly in mortgage brokering and personal loans [10][11] - NerdWallet aims to build deeper relationships with consumers and small businesses, emphasizing quality over quantity in user engagement [8][58] - The company plans to continue investing in brand marketing while reducing overall brand expenses in the latter half of the year [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating potential economic uncertainties, including tariffs and inflation, while maintaining a focus on operational efficiency [7][18] - The company anticipates a return to growth in early 2026, contingent on the stability of the search landscape and improvements in user engagement [8][59] Other Important Information - The company retired its official Monthly Unique Users (MUU) disclosure, focusing instead on the quality of user relationships [8][58] - Management highlighted the importance of adapting to AI-driven search dynamics and the potential for improved user acquisition through enhanced experiences [60][61] Q&A Session Summary Question: Insights on AI enhanced search modules and traffic stability - Management noted that AI overviews and search ranking improvements contributed to recent traffic stability after previous declines [24][25] Question: Progress on integrating Nextdoor Lending and future vertical integration opportunities - Integration is progressing well, enhancing consumer relationships and unit economics, with future opportunities in complex decision-making areas like insurance and financial advising [27][32] Question: Outlook for the insurance vertical and growth expectations - Insurance revenue growth is expected to normalize, with premiums anticipated to grow faster than GDP, and a focus on expanding in auto and home insurance [41][43] Question: Performance marketing leverage as the insurance category matures - Management indicated that while performance marketing is a focus, significant impacts from maturing categories are not expected [48] Question: Progress in personal loans and travel rewards verticals - Personal loans are seeing success through improved funnel strategies, while travel rewards are being developed through content and audience building efforts [52][54]

[Part I: Financial Information](index=6&type=section&id=PART%20I%20Financial%20Information) The company's unaudited Q1 2025 financial statements and management's corresponding analysis are presented [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2025 financial statements show increased assets and liabilities but decreased year-over-year net income [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $475.0 million and total liabilities rose to $103.4 million as of March 31, 2025 Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $92.2 | $66.3 | | Accounts receivable—net | $120.3 | $102.2 | | Total current assets | $241.9 | $196.7 | | Total Assets | $475.0 | $437.6 | | **Liabilities & Equity** | | | | Total current liabilities | $90.4 | $60.1 | | Total liabilities | $103.4 | $73.4 | | Total stockholders' equity | $371.6 | $364.2 | | Total Liabilities and Stockholders' Equity | $475.0 | $437.6 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue grew to $209.2 million, but higher expenses reduced net income to $0.2 million Q1 2025 vs. Q1 2024 Statement of Operations (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $209.2 | $161.9 | | Total costs and expenses | $208.5 | $158.2 | | Income From Operations | $0.7 | $3.7 | | Net Income | $0.2 | $1.1 | | Diluted EPS | $0.00 | $0.01 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to $26.7 million, resulting in a period-end cash balance of $92.2 million Q1 2025 vs. Q1 2024 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $26.7 | $22.7 | | Net cash used in investing activities | $(4.6) | $(13.5) | | Net cash provided by financing activities | $3.8 | $1.3 | | **Net increase in cash and cash equivalents** | **$25.9** | **$10.5** | | **Cash and Cash Equivalents, End of period** | **$92.2** | **$110.9** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Disclosures highlight significant Insurance revenue growth, stock compensation details, and income tax positions Revenue by Product Category (in millions) | Product Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Insurance | $74.0 | $21.4 | | Credit cards | $38.0 | $50.0 | | SMB products | $28.9 | $30.4 | | Loans | $24.0 | $21.4 | | Emerging verticals | $44.3 | $38.7 | | **Total revenue** | **$209.2** | **$161.9** | - The company maintains a share repurchase program with a remaining authorization of **$25.0 million** as of March 31, 2025, with no shares repurchased in Q1 2025 or Q1 2024[35](index=35&type=chunk)[36](index=36&type=chunk) - Total stock-based compensation expense was **$6.7 million** in Q1 2025, down from $8.7 million in Q1 2024[43](index=43&type=chunk) - The company continues to maintain a **valuation allowance** on its California deferred tax assets as of March 31, 2025[45](index=45&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue grew 29% YoY to $209.2 million, but higher marketing costs reduced operating income and Adjusted EBITDA [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Q1 2025 revenue growth was driven by Insurance, but offset by lower Credit cards revenue and higher operating costs Revenue by Product Category - YoY Change (in millions) | Category | Q1 2025 | Q1 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Insurance | $74.0 | $21.4 | $52.6 | 246% | | Credit cards | $38.0 | $50.0 | $(12.0) | (24%) | | SMB products | $28.9 | $30.4 | $(1.5) | (5%) | | Loans | $24.0 | $21.4 | $2.6 | 12% | | Emerging verticals | $44.3 | $38.7 | $5.6 | 15% | | **Total revenue** | **$209.2** | **$161.9** | **$47.3** | **29%** | - Sales and marketing expenses increased by **$51.8 million (48%) YoY**, driven by a $43.0 million increase in performance marketing and a $10.4 million increase in brand marketing[77](index=77&type=chunk) - Research and development expenses decreased by **$3.9 million (19%) YoY** due to lower personnel-related costs[75](index=75&type=chunk) [Non-GAAP Financial Measures](index=26&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP operating income and Adjusted EBITDA decreased to $9.3 million and $21.1 million, respectively, in Q1 2025 Reconciliation of GAAP to Non-GAAP Measures (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Income from operations (GAAP) | $0.7 | $3.7 | | **Non-GAAP operating income** | **$9.3** | **$10.6** | | Net income (GAAP) | $0.2 | $1.1 | | **Adjusted EBITDA** | **$21.1** | **$25.5** | | Adjusted EBITDA margin | 10% | 16% | [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $92.2 million in cash and access to a $125.0 million credit facility - Cash and cash equivalents were **$92.2 million** as of March 31, 2025[90](index=90&type=chunk) - The company has a **$125.0 million** senior secured revolving credit facility, with no outstanding balance as of March 31, 2025[95](index=95&type=chunk) - A subsidiary maintains a **$15.0 million** warehouse line of credit for mortgage funding, with **$6.8 million outstanding** as of March 31, 2025[96](index=96&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk exposures related to interest and currency rates remain materially unchanged from year-end 2024 - There were **no material changes** from the market risk disclosures in the Annual Report on Form 10-K for the year ended December 31, 2024[106](index=106&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in Q1 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[107](index=107&type=chunk) - There were **no material changes** in the company's internal control over financial reporting during the quarter[108](index=108&type=chunk) [Part II: Other Information](index=31&type=section&id=PART%20II%20Other%20Information) Key disclosures on legal matters, risk factors, securities sales, and other corporate information are provided [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently party to any litigation expected to have a material adverse effect - The company is not presently a party to any litigation expected to have a **material adverse effect** on its business[109](index=109&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) Investors are referred to the risk factors detailed in the company's 2024 Annual Report on Form 10-K - Investors are directed to consider the risk factors set forth in the **Annual Report on Form 10-K** for the year ended December 31, 2024[110](index=110&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales or company purchases of equity securities occurred during the first quarter of 2025 - There were **no unregistered sales** of equity securities or purchases of equity securities by the issuer in Q1 2025[111](index=111&type=chunk)[112](index=112&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement in Q1 2025 - No directors or officers adopted, modified, or terminated a **Rule 10b5-1 trading plan** during the three months ended March 31, 2025[115](index=115&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data - Exhibits filed include the Form of 2025 Executive Bonus Program, **CEO/CFO certifications** (Sections 302 and 906), and Inline XBRL documents[119](index=119&type=chunk)

Financial Data and Key Metrics Changes - In Q1 2025, NerdWallet reported revenue of $209 million, representing a 29% year-over-year increase, and achieved $9 million in non-GAAP operating income [5][13] - The company generated GAAP operating income of $700,000 and ended the quarter with $92 million in cash on hand [16][19] Business Line Data and Key Metrics Changes - Credit cards revenue declined 24% year-over-year to $38 million, while loans revenue grew 12% year-over-year to $24 million, driven by personal loans and mortgages [13][14] - Insurance revenue surged 246% year-over-year to $74 million, reflecting strong market performance [14] - SMB products revenue decreased 5% year-over-year to $29 million due to tight underwriting and trade policy uncertainty [14] Market Data and Key Metrics Changes - The insurance market is expected to normalize growth rates in the second half of the year after a significant increase in Q1 [14][40] - The overall financial services digital ad spend market is projected to grow at a 16% CAGR, while NerdWallet's market is expected to grow at a 25% CAGR over five years [8] Company Strategy and Development Direction - The company is focusing on vertical integration to enhance consumer experiences and improve monetization, particularly through the integration of Nextdoor Lending [10][26] - NerdWallet aims to improve operational efficiency while investing in growth opportunities, particularly in travel rewards and personalized user experiences [9][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating potential economic uncertainties, including tariffs and inflation, while maintaining a focus on long-term growth [6][17] - The company anticipates a return to growth in early 2026, contingent on the stability of the search landscape and improvements in user engagement [7][56] Other Important Information - The company has retired its official Monthly Unique Users (MUU) disclosure, focusing instead on the quality of user relationships [7] - NerdWallet plans to provide quarterly revenue and non-GAAP profit guidance, with an updated full-year 2025 non-GAAP operating income target of $55 million to $66 million [19] Q&A Session Summary Question: Insights on AI enhanced search modules and traffic stability - Management noted that AI overviews and search ranking improvements have contributed to recent traffic stability, following a challenging period [21][23] Question: Progress on integrating Nextdoor Lending and future vertical integration opportunities - The integration is progressing well, enhancing consumer relationships and unit economics, with future opportunities in complex decision-making areas like insurance and financial advising [25][30] Question: Brand campaign effectiveness and ROI - Management indicated that brand advertising remains a key asset, with ongoing improvements in brand health metrics despite previous declines [32][34] Question: Future growth in the insurance vertical - Insurance revenue growth is expected to normalize, with auto insurance currently dominating the segment, and opportunities in home insurance being explored [39][40] Question: Performance marketing leverage as the insurance category matures - While performance marketing may improve as the category matures, management does not expect a material impact from this change [44][45] Question: Outlook for personal loans and travel rewards - Personal loans are showing signs of growth due to improved funnel personalization, while travel rewards are being developed through content and audience building efforts [48][50]

Revenue Performance - Revenue for Q1 2025 was $209.2 million, representing a 29% increase year-over-year[1] - Insurance revenue reached $74.0 million, up 246% year-over-year, driven by strong growth in auto insurance products[6] - Credit card revenue decreased by 24% year-over-year to $38.0 million, primarily due to ongoing challenges in organic search traffic[6] - SMB products revenue was $28.9 million, down 5% year-over-year, mainly due to a decline in business loan originations[6] - Loans revenue increased by 12% year-over-year to $24.0 million, supported by growth in mortgage loans from the acquisition of Next Door Lending[6] Income and Profitability - Non-GAAP operating income was $9.3 million, a decrease of 12% compared to the previous year[7] - Adjusted EBITDA for the quarter was $21.1 million, down 17% year-over-year[7] - GAAP net income was $0.2 million, an 86% decrease from the previous year[5] - The adjusted EBITDA margin for Q1 2025 was 10%, down from 16% in Q1 2024[26] Cash Flow and Financial Position - Cash and cash equivalents at the end of the quarter were $92.2 million, down 17% from the previous quarter[7] - Adjusted free cash flow for the twelve months ended March 31, 2025, was $57.6 million, compared to $48.5 million for the twelve months ended December 31, 2024[28] - The company reported net cash provided by operating activities of $75.8 million for the twelve months ended March 31, 2025, an increase from $71.8 million for the twelve months ended December 31, 2024[28] Future Outlook - The company expects revenue for Q2 2025 to be in the range of $192-$200 million, representing a 30% year-over-year increase at the midpoint[32] - The forecasted GAAP operating income for the full year 2025 is projected to be between $25-$38 million, with non-GAAP operating income expected to range from $55-$66 million[29] - The company plans to increase its investment in strategic opportunities and stock repurchases, supported by its adjusted free cash flow[23] Strategic Focus and Challenges - The company remains focused on long-term growth through operational efficiency and investments in vertical integration and user engagement[3] - The company anticipates challenges in maintaining user engagement and expanding its market presence due to competitive pressures and macroeconomic factors[37] - The company is unable to provide a quantitative reconciliation of forecasted GAAP net income to forecasted adjusted EBITDA due to uncertainties in certain reconciling items[30]