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NERDWALLET, INC. (NRDS)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 revenue grew 29% YoY to $209.2M and 14% QoQ, driven by Insurance and banking; GAAP op inc was $0.7M, Non-GAAP op inc $9.3M, and Adjusted EBITDA $21.1M .
  • NerdWallet materially beat its prior Q1 revenue guidance of $187–$193M with $209.2M actual, and exceeded its non-GAAP profitability guide (prior: $(3)–$0M NGOI; actual: $9.3M); management cited stronger second-half-of-quarter seasonality and Insurance/banking strength as drivers .
  • Versus S&P Global consensus, revenue of $209.2M beat $189.9M estimate by ~$19.3M (≈10%), and Primary EPS of $0.02* beat $(0.11)* by ~$0.12*; Street FY25 revenue estimate is ~$823M* [GetEstimates].
  • FY25 profitability guidance was raised: GAAP OI to $25–$38M (from $21–$31M), non-GAAP OI to $55–$66M (from $50–$60M), and Adj. EBITDA to $108–$119M (from $106–$116M) .

What Went Well and What Went Wrong

  • What Went Well

    • Insurance revenue +246% YoY to $74.0M as carrier budgets expanded; management expects growth to normalize later in 2025 but remains positive on share gains and vertical integration strategy .
    • Banking remained strong; management highlighted durable demand for high-yield savings and robust partner appetite in Q1 .
    • Early traction in vertical integration: Next Door Lending integration and the NerdWallet Mortgage Expert “concierge” experience are improving unit economics; NDL added ~1 point to overall Q1 revenue growth .

  • What Went Wrong

    • Credit cards revenue fell 24% YoY to $38.0M due to ongoing organic search headwinds; MUUs continue to be pressured YoY despite improving stability in AI search overlays .
    • SMB products declined 5% YoY to $28.9M amid tight underwriting and trade policy uncertainty dampening demand .
    • Profitability mixed: GAAP income from operations dropped to $0.7M (from $3.7M YoY), and non-GAAP op income fell 12% YoY to $9.3M, reflecting higher brand spend (partly offset by Q3’24 restructuring savings) .

Financial Results

Consensus vs. Actual (S&P Global for estimates; oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Revenue Consensus Mean ($USD Millions)*168.34168.34189.92
Revenue Actual ($USD Millions)*191.30183.80209.20
Primary EPS Consensus Mean ($)*0.0330.011-0.108
Primary EPS Actual ($)*0.0440.5380.017

Values retrieved from S&P Global.*

Company-reported trends (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$191.3 $183.8 $209.2
GAAP Diluted EPS ($)$0.00 $0.51 $0.00
Income from Operations ($M)$6.6 $8.7 $0.7
Non-GAAP Operating Income ($M)$22.9 $16.8 $9.3
Adjusted EBITDA ($M)$37.3 $30.8 $21.1
Adjusted EBITDA Margin (%)19% 17% 10%
Non-GAAP Operating Margin (%)12% 9% 4%

Segment revenue ($USD Millions; oldest → newest)

SegmentQ3 2024Q4 2024Q1 2025
Insurance$68.7 $72.0 $74.0
Credit cards$45.3 $35.0 $38.0
SMB products$27.8 $25.5 $28.9
Loans$23.8 $17.6 $24.0
Emerging verticals$25.7 $33.7 $44.3

KPIs and Liquidity (oldest → newest)

KPIQ3 2024Q4 2024Q1 2025
Average MUUs (millions)22 19 N/A (Mgmt: +7% QoQ; -29% YoY)
Registered users (cumulative, millions)——26+
Cash & Cash Equivalents ($M)$71.7 $66.3 $92.2
Adjusted Free Cash Flow TTM ($M)$65.8 $48.5 $57.6

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
RevenueQ1 2025$187–$193M $209.2M actual Beat prior guide
RevenueQ2 2025—$192–$200M New
GAAP Operating IncomeQ2 2025—$6–$10M New
Non-GAAP Operating IncomeQ2 2025—$14–$18M New
Adjusted EBITDAQ2 2025—$29–$33M New
GAAP Operating IncomeFY 2025$21–$31M $25–$38M Raised
Non-GAAP Operating IncomeFY 2025$50–$60M $55–$66M Raised
Adjusted EBITDAFY 2025$106–$116M $108–$119M Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3’24, Q4’24)Current Period (Q1’25)Trend
AI/search traffic & MUUsQ3: Organic traffic pressure ; Q4: MUUs -20% YoY; expected near-term worsening in Q1 Stability emerging in AI-enhanced search; MUUs +7% QoQ, -29% YoY; potential return to MUU growth in early 2026 if stability holds Stabilizing
InsuranceQ3: Strength within Emerging verticals ; Q4: Insurance +821% YoY to $72M +246% YoY to $74M; expect normalization in H2 as comps toughen Decelerating growth into tougher comps
Mortgages/Vertical integration (NDL)Q3: Acquired Next Door Lending ; Q4: Loans aided by NDL Mortgage Expert concierge launched; NDL added ~1 pt to total growth; improved unit economics (2x upfront) Building
Personal loansQ3: -28% YoY ; Q4: -26% YoY Return to growth with funnel/panel improvements Improving
SMB/macro/tariffsQ3: SMB +12% YoY ; Q4: -7% YoY -5% YoY; underwriting tight; policy uncertainty dampened demand; tariffs seen as minimal direct impact Mixed/pressured
Brand & CRM—Brand spend to decline in Q2 YoY/QoQ; 2024 brand -19% YoY; CRM channel 2x YoY growth Optimizing mix

Management Commentary

  • “In Q1, we grew revenue 29% year-over-year to $209 million, led by the strength in our Insurance and banking businesses.” – Tim Chen, CEO .
  • “We made further progress integrating Next Door Lending… our NerdWallet Mortgage Expert experience… concierge level experience… we’re already seeing it drive the bulk of our mortgage growth… with the 2x upfront unit economics.” – Tim Chen .
  • “We exceeded the high end of both our revenue and profitability guidance ranges… driven by continued strength in our Insurance and banking businesses.” – Jun Lee, CFO .
  • “MUUs were up 7% versus Q4 levels, but down 29% year-over-year… we anticipate… return to growth in early 2026, if [search] stability holds.” – Jun Lee .
  • “We are increasing the full year 2025 targets… non-GAAP operating income of approximately $55 million to $66 million.” – Jun Lee .

Q&A Highlights

  • AI search modules: Management sees stabilization after a challenging 2024; confidence in re-baselining and potential MUU growth in early 2026 if stability holds .
  • Vertical integration priorities: Mortgage brokering shows stronger unit economics; future opportunities likely where complex, advisor-led decisions (e.g., Insurance, financial advisers) can enhance user experience and monetization .
  • Insurance outlook: Exceptional growth in Q1 expected to normalize; auto dominates mix; opportunity in home as mortgage funnel scales .
  • Marketing efficiency: Performance marketing generally profitable in-quarter; as Insurance growth decelerates on tougher comps, some leverage possible but not material to the outlook .
  • Brand ROI: Brand spend is managed quantitatively; 2024 brand down 19% YoY with improving brand health; Q2 brand to decline YoY/QoQ as H1 campaign winds down .

Estimates Context

  • Q1 revenue beat: $209.2M actual vs $189.9M consensus (+10%); Primary EPS beat: $0.017 vs $(0.108) consensus ($0.125 beat)* [GetEstimates].
  • Recent beats: Q4’24 revenue $183.8M vs $168.3M est; Primary EPS $0.538 vs $0.011 est* [GetEstimates].
  • FY25 setup: Street revenue ~$822.9M*; company raised FY25 profit targets (GAAP OI, NGOI, Adj. EBITDA) .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Revenue and EPS substantially exceeded Street and prior guidance, led by Insurance and banking; results reflect stronger-than-seasonal second-half-of-quarter performance .
  • Insurance remains the principal growth engine but should decelerate in H2 as comps tighten; expect narrative to shift toward sustaining share gains and leveraging vertical integration economics .
  • Early vertical integration traction (NDL, Mortgage Expert) is improving unit economics and should support loan category resilience despite elevated rates .
  • Near-term caution points: ongoing SEO headwinds in credit cards, SMB demand softness from underwriting/policy uncertainty, and lower non-GAAP margins amid brand investments .
  • MUU pressure persists YoY, but search stability suggests a re-baseline and potential MUU growth in early 2026; CRM channel strength and registered user base (26M+) support re-engagement strategy .
  • Guidance momentum is positive: Q2 guides to ~$192–$200M revenue and higher FY25 profitability targets; watch for Insurance normalization, Q2 seasonality, and brand spend downshift driving margin recovery .

Supporting detail and source documents:

  • Q1’25 press release: revenue/segment detail, P&L, cash flow, guidance, non-GAAP reconciliations .
  • 8-K (Item 2.02) including Exhibit 99.1 press release and financial statements .
  • Q1’25 earnings call transcript: prepared remarks and Q&A themes .
  • Q4’24 and Q3’24 press releases (for trend comparisons and historical segment restatement) .