NerdWallet Beats on Q2 Revenue but Misses on Profit; Q3 Revenue Outlook Tops Consensus
NRDS sits 20% above its 52-week low of $7.33.
Summary
NerdWallet posted Q2 revenue of $197.3M (a beat) but adjusted EBITDA of $23.1M (a miss). Its Q3 revenue guide of $244–$260M implies 17% year-over-year growth, well above consensus, as the company bets on vertical integration investments.
Key Events · Earnings and Guidance · NRDS
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Q2 Revenue Beat, Profit Miss
Revenue of $197.3M (+6% YoY) exceeded the $195.3M consensus, but adjusted EBITDA of $23.1M missed the $23.48M estimate. GAAP net income fell 48% YoY to $4.3M.
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Q3 Guidance Implies 17% Revenue Growth
Q3 revenue guidance of $244–$260M at the midpoint represents 17% YoY growth, well above consensus, driven by investments in owned audiences and direct customer relationships.
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Margin Compression Continues
Adjusted EBITDA margin contracted to 12% from 18% a year ago, as sales and marketing spend rose 14% YoY. Full-year adjusted EBITDA guidance of $131–$147M implies a 16–18% margin.
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Cash Burn Accelerates on Buybacks
Cash and equivalents fell to $62.0M from $98.3M at year-end, with $88.8M spent on share repurchases in H1 2026. Operating cash flow remained strong at $76.9M.
Analysis · NRDS · Technology
NerdWallet's second quarter painted a mixed picture: revenue of $197.3M edged past the $195.3M consensus, yet adjusted EBITDA of $23.1M fell short of the $23.48M estimate. The real headline, however, is the Q3 guide—revenue of $244–$260M implies 17% year-over-year growth at the midpoint, comfortably above expectations and hinting at an inflection point as the company doubles down on owned audiences. Profitability metrics are feeling the squeeze: GAAP operating income dropped 35% year over year, and the adjusted EBITDA margin compressed to 12% from 18% a year ago. Cash also came under pressure, with the balance falling to $62.0M after $36.3M in net consumption during the half, largely driven by $88.8M in share repurchases. Against a backdrop of heavy insider selling by a former CBO and a 10% owner, the bullish revenue outlook may be tempered by concerns over margin trajectory and cash burn.
At the time of this filing, NRDS was trading at $8.81 on NASDAQ in the Technology sector, with a market capitalization of approximately $581.7M. The 52-week trading range was $7.33 to $16.24. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.