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NERDWALLET, INC. (NRDS)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $186.9M (+24% YoY) and GAAP diluted EPS was $0.11; revenue missed S&P Global consensus while EPS beat. Management raised full‑year guidance across GAAP operating income, non‑GAAP operating income, and adjusted EBITDA, citing efficiency gains and vertical integration benefits .
  • Versus consensus: Revenue of $186.9M missed the $195.3M estimate, while Primary EPS of $0.133 exceeded the $0.103 estimate; management noted a temporary insurance funnel disruption and ongoing organic search headwinds as drivers of the revenue shortfall .
  • Q3 2025 guidance: Revenue $189–$197M, GAAP operating income $17–$21M, non‑GAAP operating income $23–$27M, adjusted EBITDA $36–$40M; FY 2025 guidance raised to GAAP operating income $38–$48M, NGOI $71–$79M, adj. EBITDA $120–$128M .
  • Stock reaction: Post‑earnings, shares fell sharply after the revenue miss and below‑guide print, adding urgency to delivery on improved profitability and Insurance momentum in 2H25 .

What Went Well and What Went Wrong

What Went Well

  • Efficiency and profitability: Non‑GAAP operating income rose to $20.7M (11% margin) and adjusted EBITDA to $33.6M (18% margin), reflecting operational efficiencies and disciplined spend. CEO: “Our ability to execute against our strategy led us to earn $187 million in revenue and deliver $21 million in non‑GAAP operating income” .
  • Insurance strength: Insurance revenue grew 86% YoY to $54.7M, driven by auto insurance partner budget expansion, reinforcing the new category split and vertical integration thesis .
  • Liquidity improved: Cash and cash equivalents increased to $105.3M, up from $92.2M in Q1 2025 and $66.3M in Q4 2024, supporting capital allocation flexibility .

What Went Wrong

  • Revenue miss vs consensus and below Q2 guide: $186.9M came in below S&P Global consensus ($195.3M est.) and below the prior Q2 revenue guidance range ($192–$200M), impacted by an Insurance funnel disruption and organic search headwinds .
  • Credit cards and SMB softness: Credit cards revenue fell 25% YoY to $34.8M and SMB revenue declined 4% YoY to $25.0M, primarily due to persistent pressures in organic search traffic .
  • Elevated sales and marketing intensity: Sales and marketing expense rose 21% YoY to $128.0M (Q2) as performance marketing spend remained high to offset organic traffic headwinds, pressuring near‑term operating leverage despite improved margins .

Financial Results

Headline Financials vs Prior Periods

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$183.8 $209.2 $186.9
GAAP Diluted EPS ($USD)$0.51 $0.00 $0.11
GAAP Operating Income ($USD Millions)$8.7 $0.7 $10.7
Non‑GAAP Operating Income ($USD Millions)$16.8 $9.3 $20.7
Adjusted EBITDA ($USD Millions)$30.8 $21.1 $33.6
Operating Income Margin (%)5% 0% 6%
Non‑GAAP Operating Margin (%)9% 4% 11%
Adjusted EBITDA Margin (%)17% 10% 18%
Net Income Margin (%)21% 0% 4%

Segment Revenue Breakdown

Segment ($USD Millions)Q4 2024Q1 2025Q2 2025
Insurance$72.0 $74.0 $54.7
Credit cards$35.0 $38.0 $34.8
SMB products$25.5 $28.9 $25.0
Loans$17.6 $24.0 $27.5
Emerging verticals$33.7 $44.3 $44.9
Total Revenue$183.8 $209.2 $186.9

KPIs and Balance Sheet

KPIQ4 2024Q1 2025Q2 2025
Average Monthly Unique Users (MUUs, Millions)19 ——
Cash and Cash Equivalents ($USD Millions)$66.3 $92.2 $105.3
Accounts Receivable, Net ($USD Millions)$102.2 $120.3 $97.8
Total Assets ($USD Millions)$437.6 $475.0 $476.0
Total Liabilities ($USD Millions)$73.4 $103.4 $86.0
Stockholders’ Equity ($USD Millions)$364.2 $371.6 $390.0

Performance vs Wall Street Estimates (S&P Global)

MetricQ2 2025 EstimateQ2 2025 Actual
Revenue ($USD Millions)$195.316*$186.9
Primary EPS ($USD)$0.103*$0.133*

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q2 2025$192–$200 Actual $186.9 Missed vs guide
GAAP Operating Income ($USD Millions)Q2 2025$6–$10 Actual $10.7 Above high end
Non‑GAAP Operating Income ($USD Millions)Q2 2025$14–$18 Actual $20.7 Above high end
Adjusted EBITDA ($USD Millions)Q2 2025$29–$33 Actual $33.6 Above high end
Revenue ($USD Millions)Q3 2025N/A$189–$197 New
GAAP Operating Income ($USD Millions)Q3 2025N/A$17–$21 New
Non‑GAAP Operating Income ($USD Millions)Q3 2025N/A$23–$27 New
Adjusted EBITDA ($USD Millions)Q3 2025N/A$36–$40 New
GAAP Operating Income ($USD Millions)FY 2025$25–$38 $38–$48 Raised
Non‑GAAP Operating Income ($USD Millions)FY 2025$55–$66 $71–$79 Raised
Adjusted EBITDA ($USD Millions)FY 2025$108–$119 $120–$128 Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Organic search headwindsQ4: MUUs down 20% YoY; headwinds in non‑monetizing learn topics . Q1: Credit cards and SMB pressured by organic search .Headwinds persisted; management offset with performance marketing and vertical integration; noted Insurance funnel disruption .Improving efficiency despite traffic pressure; top‑line mixed
Insurance momentumQ4: Insurance +821% YoY (newly split from Emerging) . Q1: Insurance +246% YoY .Insurance +86% YoY to $54.7M, with auto carriers expanding budgets; temporary funnel disruption noted .Strong secular demand; execution variability
Loans/mortgage integrationQ4: Mortgage increased amid Next Door Lending (NDL) integration . Q1: Loan growth +12% YoY, mortgage and personal loans up .Loans +27% YoY to $27.5M; continued NDL integration .Positive trajectory
Vertical integration & user engagementEmphasis on re‑engagement and registered user experiences in FY24 exit . Q1: Focus on vertical integration and user engagement improvements .CEO highlighted efficiency, registered user experiences, and marketplace overhauls; improved conversion and NGOI .Strengthening
AI/technology initiatives—Discussion of monetizing LLM/AI traffic and strategic importance of AI to future growth (Q&A) .Emerging focus
Capital allocation—CFO emphasized strong cash flow/liquidity and capital allocation opportunities .Positive optionality

Management Commentary

  • Tim Chen, CEO: “In Q2, we focused on improving operational efficiencies to drive long‑term growth, which contributed to our bottom‑line outperformance… Our long‑term orientation and efficiency gains enable us to be flexible and invest opportunistically to support our vision and drive benefit to consumers and shareholders” .
  • Segment priorities: Insurance strength (auto), banking growth in Emerging, and continued NDL integration in mortgages supporting Loans; organic search headwinds persisted in Credit Cards and SMB .
  • CFO commentary (call): Reinforced adjusted free cash flow disclosure and highlighted capital allocation flexibility given cash generation and balance sheet strength .

Q&A Highlights

  • Organic search trend and engagement: Analysts probed whether search headwinds are improving and the effectiveness of nudges/repeat usage; management said headwinds persisted but efficiency and engagement improvements helped profitability .
  • Insurance funnel and partner transitions: Discussion around the temporary insurance funnel disruption and carrier budget dynamics; management expects continued strength but acknowledged near‑term disruption’s impact on Q2 revenue .
  • AI/LLM monetization: Analysts asked about AI’s role in traffic and monetization; management framed AI as strategically important for future growth and user experience .
  • Capital allocation: CFO highlighted attractive opportunities given free cash flow and liquidity; focus on investing in vertical integration and user engagement .

Estimates Context

  • Q2 2025: Revenue $186.9M vs $195.316M estimate (miss); Primary EPS $0.133 vs $0.103 estimate (beat). The revenue shortfall and EPS beat imply improved cost control/mix offsetting top‑line variance; consensus likely needs to reflect continued Insurance strength and efficiency gains but remain cautious on Credit Cards/SMB given organic traffic [*].
  • Q3 2025 set‑up: Guidance revenue range $189–$197M bracketing S&P consensus $192.983M; trajectory suggests near‑term stabilization with higher profitability. Monitor whether Insurance funnel fully normalizes and whether performance marketing efficiency sustains NGOI targets [*].

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Profitability inflection despite traffic pressure: NGOI and EBITDA exceeded guidance, confirming execution on efficiency and vertical integration; near‑term trading likely hinges on Insurance normalization and sustaining margin gains .
  • Mixed top‑line: Q2 revenue missed consensus and prior guide due to an Insurance funnel issue and persistent organic search headwinds; watch Credit Cards/SMB recovery signals and product marketplace improvements .
  • Raised FY25 guidance: Upward revisions to GAAP OI, NGOI, and EBITDA de‑risk the year; delivery against Q3 guide will be a catalyst to rebuild confidence post‑print .
  • Segment mix matters: Insurance and banking (Emerging) are growth engines; Loans benefited from mortgage integration (NDL). Continued investment here supports medium‑term thesis .
  • Capital allocation optionality: Strengthening cash position provides flexibility to invest in product, user engagement, and selective M&A; positive for long‑term value creation .
  • AI optionality: Early narrative on monetizing LLM/AI traffic could enhance engagement and conversion; track execution and measurable KPI disclosures from future calls .
  • Trading implication: Near‑term sentiment was negative on the revenue miss and below‑guide Q2 revenue; upside depends on Q3 delivery and visible Insurance recovery; risk management suggests positioning around confirmation of margin continuity and top‑line stabilization .

Citations: Press release and 8‑K ; Call/transcript context .

Values retrieved from S&P Global.*