Total Q1 2025 Revenue

+29% (from $161.9M in Q1 2024 to $209.2M in Q1 2025)

Revenue grew strongly driven by the debut of the Insurance segment at $74.0M, which more than offset declines in legacy segments such as Credit Cards and Emerging Verticals; previous periods had lower revenue in these categories, while new growth (e.g., auto insurance expansion) boosted overall performance. " "

Insurance Segment Revenue

Debut at $74.0M in Q1 2025

The Insurance segment’s strong performance is primarily due to robust auto insurance product growth as carriers expanded their budgets, marking a strategic shift from legacy revenue mix as Credit Cards and Emerging Verticals declined compared to Q1 2024. " " " "

Operating Income

Contracted from $3.7M in Q1 2024 to $0.7M in Q1 2025

Operating income fell sharply (around an 81% drop) as rising operating expenses—including significant increases in sales and marketing costs—eroded margins, despite the revenue boost; this compression contrasts with the healthier earnings in the prior period. " "

Net Income

Decreased from $1.1M in Q1 2024 to $0.2M in Q1 2025

Net income declined notably because increased costs and margin pressures outpaced revenue gains, leading to a sharper drop in profitability compared to the modest net income seen in Q1 2024. " "

Operating Cash Flow

Q1 2025 operating cash flow of $26.7M

Robust operating cash generation was achieved through favorable working capital changes (e.g., increases in accrued expenses and accounts payable), which offset lower net income; this marks an improvement relative to prior periods where such working capital enhancements were less pronounced. "

End-of-Period Cash & Equivalents

Increased from $66.3M at FY 2024 end to $92.2M in Q1 2025

The cash balance strengthened significantly due to higher operating cash inflows, lower investing outflows, and positive financing activities (including net borrowing on the warehouse line), which contrast with the heavy financing outflows that reduced cash at the end of FY 2024. " "

Revenue ($USD Millions)

Q1 2025

$187 million to $193 million "

no current guidance

no current guidance

Non-GAAP Operating Results

Q1 2025

$3 million loss to breakeven "

no current guidance

no current guidance

Revenue

Q2 2025

no prior guidance

$192 million to $200 million "

no prior guidance

Non-GAAP Operating Income

Q2 2025

no prior guidance

$14 million to $18 million "

no prior guidance

Non-GAAP Operating Income

FY 2025

$50 million to $60 million "

$55 million to $66 million "

raised

Revenue Growth

FY 2025

Expected to be maintained despite tough comparisons "

no current guidance

no current guidance

Vertical Integration

Emphasized across Q2–Q4 2024 as a key pillar to deepen user relationships through better shopping experiences, AI-enhanced tools, and concierge support " " "

Maintained as central in Q1 2025 with focus on pairing brand strength with improved down‐funnel unit economics and enhanced integration of services " "

Consistent emphasis with continued deepening of integration to drive monetization.

Next Door Lending Strategy

Integrated in Q2–Q4 2024 as a significant move to build mortgage capabilities and drive conversion through a “do it for me” model " "

In Q1 2025, its integration is deemed successful with improved unit economics and recurring consumer relationships " "

Evolving execution with proven success, reinforcing the vertical integration strategy.

Insurance Revenue Growth and Normalization Concerns

Q2–Q4 2024 discussions showcased explosive growth numbers (196%–821% YoY) driven by improved experiences and favorable market tailwinds, while noting normalization as markets stabilize " " " "

Q1 2025 highlighted strong insurance revenue growth (246% YoY) alongside expectations of normalization after prior high growth cycles " "

Ongoing strength with a tempered outlook as growth figures normalize.

Organic Search Trends and AI-Driven Search Enhancements

Across Q2–Q4 2024, organic search faced significant headwinds due to algorithm updates and AI overviews, leading to declining traffic (MUUs) especially for non-commercial content, with cautious recovery signs " " " "

In Q1 2025, stability in organic search is noted along with increased referral traffic from AI sources, while acknowledging near-term declines in MUUs " "

Shift from decline to stabilization as AI plays an increasingly positive role in search.

Performance Marketing Strategy and Variable Cost Risks

Prior calls (Q2–Q4 2024) stressed a disciplined, flexible approach to performance marketing with a focus on achieving profitability within the quarter; variable costs were managed by adjusting spend based on returns " " "

Q1 2025 continued to emphasize a profitable performance marketing approach; while explicit mention of variable cost risks was lessened, the focus remained on sustainable and disciplined spend " "

Consistent focus on disciplined performance marketing with maintained flexibility in spend management.

User Engagement Declines and Shifts in MUU Metrics

Q2–Q4 2024 revealed challenges in declining MUUs due to organic traffic issues; the importance of shifting focus from quantity to quality was underscored, even prompting a move away from MUU as a key performance indicator " " " "

In Q1 2025, NerdWallet officially retired MUU disclosure, emphasizing quality of relationships over sheer numbers despite continued near-term declines " "

A strategic pivot from volume metrics to qualitative engagement, reflecting long-term customer value focus.

Brand Effectiveness and Advertising ROI Challenges

Q2–Q4 2024 discussions focused on disciplined brand spend, evolving creative strategies, and the need to monitor ROI while managing cyclical shifts in branding investments " " " "

Q1 2025 reaffirmed the importance of brand as the company’s key asset, noting incremental improvements and a quantitative approach to spending, despite increased investments in high-profile events

Ongoing commitment to enhancing brand effectiveness with a data-driven, long-term perspective despite near-term ROI challenges.

Margin Pressure, Cost Reduction Initiatives, and Capital Allocation

Throughout Q2–Q4 2024, margin pressure was a recurring concern from organic search headwinds and rising paid marketing expenses; cost reduction via workforce cuts and other initiatives helped improve margins and disciplined capital allocation was maintained " " " "

Q1 2025 reported margin pressures in certain areas (e.g., credit cards and SMB products) due to increased brand investments and noted ongoing focus on sustainable growth and disciplined capital allocation, with improvements expected later in the year " "

Persistent margin pressures offset by ongoing cost reductions and a careful, sustainable approach to capital allocation.

Underwriting Challenges and Lending Vertical Performance

Q2–Q4 2024 highlighted tight underwriting across several lending products such as personal loans and SMB loans, with mixed performance: personal loans underperformed while mortgage capabilities expanded through strategic acquisitions " " " " "

Q1 2025 showed signs of recovery in personal loans and strong performance in mortgage revenue (boosted by Next Door Lending), despite continued challenges in SMB underwriting " " "

Gradual recovery in underwritten segments with strategic rebalancing across lending verticals, particularly via mortgage integration.

Emerging Growth Segments and Revenue Diversification Initiatives

In Q2–Q4 2024, emerging verticals (banking, insurance, investing, international) showed varied performance with strong insurance growth, international expansion, and new digital audience initiatives boosting diversification " " " " "

Q1 2025 continued to pursue diversification, showcasing strong performance in emerging segments like travel rewards and further vertical integration across insurance, personal loans, and memberships " "

Expanding and deepening diversified revenue streams through new channels and innovative consumer engagement initiatives.