NerdWallet(US:NRDS)2025-11-06 21:46Revenue 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]