Revenue of $197.3 million, up 6% Year-Over-Year
FINANCIAL HIGHLIGHTS
-- Revenue of $197.3 million -- GAAP income from operations of $7.0 million -- GAAP net income of $4.3 million, or $0.07 income per diluted share -- Non-GAAP operating income of $12.2 million -- Adjusted EBITDA of $23.1 million SAN FRANCISCO--(BUSINESS WIRE)--August 06, 2026--
NerdWallet, Inc. (Nasdaq: NRDS), which provides trustworthy financial guidance to consumers and small and mid-sized businesses (SMBs), today reported financial results for its second quarter ended June 30, 2026.
"We're reaching an inflection point in our business," said Tim Chen, Co-Founder and CEO of NerdWallet. "The success of our vertical integration strategy now gives us the conviction to make incremental investments underwritten on a multi-year payback, with compelling returns. We expect to grow this incremental investment fivefold in 2026 versus 2025 as we deepen our owned audiences and build durable, direct relationships with our customers."
SECOND QUARTER 2026 HIGHLIGHTS
As previously announced, effective with the first quarter of 2026, we present revenue disaggregated by our user groups: Consumer and SMB. This presentation is consistent with recent changes in how management evaluates our financial and business performance, including the information currently reviewed by our chief operating decision maker. Consumer revenue includes revenue from financial products and services intended for individual consumers, including insurance, credit cards, loans, bank accounts and other products and services. Consumer revenue includes our previously reported Insurance, Credit cards, Loans and Emerging verticals product categories. SMB revenue includes revenue from financial products and services intended for SMBs, including loans, credit cards and other products and services. Prior period disaggregation of revenue has been recast to conform to this new presentation.
-- Consumer revenue of $175.2 million increased 8% year-over-year,
primarily driven by increases of $12.3 million from personal loans as we
expanded our marketplace offerings to serve a broader range of borrowers,
and $9.6 million from deposit accounts as partners expanded budgets,
partially offset by an $8.6 million decrease from consumer credit cards
primarily due to continued pressures in organic search traffic that have
persisted for multiple quarters.
-- SMB revenue of $22.1 million was down 11% year-over-year, primarily due
to continued pressures in organic search traffic, partially offset by an
increase in business loan originations.
SUMMARY FINANCIAL RESULTS
Quarter
Quarter Ended Ended
-------------- ---------
Jun Jun % %
30, 30, Change Mar 31, Change
--------------
(in millions,
except per
share
amounts) 2026 2025 YoY 2026 QoQ
-------------- ------ ------ -------- --------- --------
Revenue $197.3 $186.9 6% $ 222.2 (11%)
Consumer(1) 175.2 161.9 8% 197.6 (11%)
SMB(2) 22.1 25.0 (11%) 24.6 (10%)
Income from
operations $ 7.0 $ 10.7 (35%) $ 27.2 (75%)
Net income $ 4.3 $ 8.2 (48%) $ 20.4 (79%)
Net income per
share
Basic $ 0.07 $ 0.11 (36%) $ 0.30 (77%)
Diluted $ 0.07 $ 0.11 (36%) $ 0.29 (76%)
Non-GAAP
financial
measures(3)
Non-GAAP
operating
income $ 12.2 $ 20.7 (41%) $ 33.7 (64%)
Adjusted EBITDA $ 23.1 $ 33.6 (31%) $ 45.2 (49%)
Cash and cash
equivalents $ 62.0 $105.3 (41%) $ 56.3 10%
________________
(1) Consumer revenue consists of revenue from financial products and
services intended for individual consumers, including insurance, credit
cards, loans, bank accounts and other products and services.
(2) SMB revenue includes revenue from loans, credit cards and other
financial products and services intended for small and mid-sized
businesses.
(3) Non-GAAP operating income and adjusted EBITDA are non-GAAP financial
measures. See "Non-GAAP Financial Measures" for more information,
including reconciliations to the most directly comparable financial
measures calculated in accordance with GAAP.
QUARTERLY CONFERENCE CALL
A conference call to discuss NerdWallet's second quarter 2026 financial results will be webcast live today, August 6, 2026 at 1:30 PM Pacific Time (PT). The live webcast is open to the public and will be available on NerdWallet's investor relations website at https://investors.nerdwallet.com. Following completion of the call, a recorded replay of the webcast will be available on NerdWallet's investor relations website.
SHAREHOLDER LETTER
A shareholder letter providing additional information and analysis can be found at NerdWallet's investor relations website at https://investors.nerdwallet.com.
ABOUT NERDWALLET
NerdWallet (Nasdaq: NRDS) is on a mission to provide clarity for all of life's financial decisions. As a personal finance website and app, NerdWallet provides consumers with trustworthy and knowledgeable financial information so they can make smart money moves. From finding the best credit card to buying a house, NerdWallet is there to help consumers make financial decisions with confidence. Consumers have free access to our expert content and comparison shopping marketplaces, plus a data-driven app, which helps them stay on top of their finances and save time and money, giving them the freedom to do more. NerdWallet is available in the U.S. and Canada.
"NerdWallet" is a trademark of NerdWallet, Inc. All rights reserved. Other names and trademarks used herein may be trademarks of their respective owners.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months Ended Six Months Ended
June 30, June 30,
----------------- ------------------- ---- ---------------- ----
(in millions,
except per share
amounts) 2026 2025 % Change 2026 2025 % Change
----------------- ---------- ------- ---------- ------- ------- ----------
Revenue $197.3 $186.9 6% $419.5 $396.1 6%
Costs and
Expenses:
Cost of revenue 13.4 16.6 (19%) 27.0 34.8 (22%)
Research and
development 17.5 17.9 (2%) 34.3 34.7 (1%)
Sales and
marketing 145.4 128.0 14% 294.5 287.7 2%
General and
administrative 14.0 13.7 1% 29.5 27.5 7%
----- ----- ---- --- ----- ----- ---- ---
Total costs
and
expenses 190.3 176.2 8% 385.3 384.7 0%
----- ----- ---- --- ----- ----- ---- ---
Income from
Operations 7.0 10.7 (35%) 34.2 11.4 200%
----- ----- ---- ----- ----- ---- ---
Other income,
net:
Interest income 0.4 0.8 (45%) 1.3 1.5 (11%)
Interest
expense (0.1) (0.2) (3%) (0.3) (0.3) 2%
Other gains,
net -- 0.2 (71%) 0.1 0.2 (44%)
----- ----- ---- ----- ----- ----
Total other
income,
net 0.3 0.8 (59%) 1.1 1.4 (20%)
----- ----- ---- ----- ----- ----
Income before
income taxes 7.3 11.5 (37%) 35.3 12.8 176%
Income tax
provision 3.0 3.3 (10%) 10.6 4.4 140%
----- ----- ---- ----- ----- ---- ---
Net Income $ 4.3 $ 8.2 (48%) $ 24.7 $ 8.4 195%
----- ----- ---- ----- ----- ---- ---
Net Income per
Share
Attributable to
Common
Stockholders
Basic $ 0.07 $ 0.11 (36%) $ 0.37 $ 0.11 236%
Diluted $ 0.07 $ 0.11 (36%) $ 0.37 $ 0.11 236%
Weighted-average
Shares Used in
Computing Net
Income per Share
Attributable to
Common
Stockholders
Basic 65.1 74.8 66.6 74.5
Diluted 65.8 76.6 67.6 76.3
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
June 30, December 31,
(in millions) 2026 2025
--------------------------------------- ----------- -----------------
Assets
Current assets:
Cash and cash equivalents $ 62.0 $ 98.3
Accounts receivable--net 113.6 111.0
Prepaid expenses and other current
assets 25.7 35.4
------- --- ----------
Total current assets 201.3 244.7
Property, equipment and software--net 29.1 31.8
Goodwill 136.3 123.5
Intangible assets--net 19.1 21.5
Deferred tax asset--noncurrent 20.9 29.4
Right-of-use assets 6.3 7.1
Other assets 5.0 3.1
------- --- ----------
Total Assets $ 418.0 $ 461.1
------- --- ----------
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 12.7 $ 5.4
Accrued expenses and other current
liabilities 64.2 65.5
------- --- ----------
Total current liabilities 76.9 70.9
Other liabilities--noncurrent 15.3 15.7
------- --- ----------
Total liabilities 92.2 86.6
Commitments and contingencies
Stockholders' equity 325.8 374.5
------- --- ----------
Total Liabilities and Stockholders'
Equity $ 418.0 $ 461.1
------- --- ----------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
Six Months Ended
June 30,
-----------------------
(in millions) 2026 2025
-------------------------------------------- ----------- ----------
Operating Activities:
Net income $ 24.7 $ 8.4
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 19.0 25.3
Stock-based compensation 13.9 14.9
Deferred taxes 8.4 (3.4)
Non-cash lease costs 0.8 1.3
Other losses, net 0.1 1.1
Changes in operating assets and liabilities,
net of business combinations:
Accounts receivable (2.0) 3.8
Prepaid expenses and other assets 6.5 1.8
Mortgage loans held for sale 1.8 (9.0)
Accounts payable 4.2 2.9
Accrued expenses and other current
liabilities (0.2) (1.6)
Operating lease liabilities (0.9) (1.7)
Other liabilities 0.6 0.4
------ ------
Net cash provided by operating activities 76.9 44.2
------ ------
Investing Activities:
Purchase of investment (2.0) --
Liquidation of certificate of deposit 2.3 --
Capitalized software development costs (7.4) (8.1)
Purchases of property and equipment (0.5) (0.9)
Business combinations, net of cash acquired (16.1) (5.0)
------ ------
Net cash used in investing activities (23.7) (14.0)
------ ------
Financing Activities:
Net borrowing (repayment) on warehouse line
of credit (1.7) 8.7
Proceeds from exercises of stock options 0.7 0.3
Tax payments related to net-share settlements
on restricted stock units (0.8) (0.8)
Issuances of Class A common stock under
Employee Stock Purchase Plan 1.2 1.0
Repurchases of Class A common stock (88.8) (0.3)
------ ------
Net cash provided by (used in) financing
activities (89.4) 8.9
------ ------
Effect of exchange rate changes on cash and
cash equivalents (0.1) (0.1)
------ ------
Net increase (decrease) in cash and cash
equivalents (36.3) 39.0
Cash and Cash Equivalents:
Beginning of period 98.3 66.3
------ ------
End of period $ 62.0 $ 105.3
------ ------
NON-GAAP FINANCIAL MEASURES
We use non-GAAP operating income (loss), adjusted EBITDA and adjusted free cash flow in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our Board of Directors concerning our financial performance.
Non-GAAP operating income (loss): We define non-GAAP operating income (loss) as income (loss) from operations adjusted to exclude depreciation and amortization, and further exclude (1) losses (gains) on disposals of assets, (2) acquisition-related costs, and (3) restructuring charges. We also reduce income from operations, or increase loss from operations, for capitalized internally developed software costs.
Adjusted EBITDA: We define adjusted EBITDA as net income (loss) from continuing operations adjusted to exclude depreciation and amortization, interest income (expense), net, other gains (losses), net, and provision (benefit) for income taxes, and further exclude (1) losses (gains) on disposals of assets, (2) stock-based compensation, (3) acquisition-related costs, and (4) restructuring charges.
The above items are excluded from our non-GAAP operating income (loss) and adjusted EBITDA measures because these items are non-cash in nature, or because the amounts are not driven by core operating results and renders comparisons with prior periods less meaningful. We deduct capitalized internally developed software costs in our non-GAAP operating income (loss) measure to reflect the cash impact of personnel costs incurred within the time period.
We believe that non-GAAP operating income (loss) and adjusted EBITDA provide useful information to investors and others in understanding and evaluating our operating results and in comparing operating results across periods. Moreover, non-GAAP operating income (loss) and adjusted EBITDA are key measurements used by our management internally to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting. However, the use of these non-GAAP measures have certain limitations because they do not reflect all items of income and expense that affect our operations. Non-GAAP operating income (loss) and adjusted EBITDA have limitations as financial measures, should be considered as supplemental in nature, and are not meant as substitutes for the related financial information prepared in accordance with GAAP. These limitations include the following:
-- Non-GAAP operating income (loss) and adjusted EBITDA exclude certain
recurring, non-cash charges, such as amortization of software,
depreciation of property and equipment, amortization of intangible assets,
and (losses) gains on disposals of assets. Although these are non-cash
charges, the assets being depreciated and amortized may have to be
replaced in the future, and non-GAAP operating income (loss) and adjusted
EBITDA do not reflect all cash requirements for such replacements or for
new capital expenditure requirements;
-- Non-GAAP operating income (loss) and adjusted EBITDA exclude certain
acquisition-related costs, including acquisition-related retention
compensation under compensatory retention agreements with certain key
employees, and acquisition-related transaction expenses;
-- Non-GAAP operating income (loss) and adjusted EBITDA exclude
restructuring charges primarily consisting of severance payments,
stock-based compensation, employee benefits, and related expenses for
impacted employees, as well as contract termination costs, associated
with our restructuring plan implemented in 2024;
-- Adjusted EBITDA excludes stock-based compensation, including for
acquisition-related inducement awards, which has been, and will continue
to be for the foreseeable future, a significant recurring expense in our
business and an important part of our compensation strategy; and
-- Adjusted EBITDA does not reflect interest income (expense) and other
gains (losses), net, which include unrealized and realized gains and
losses on foreign currency exchange, as well as certain nonrecurring
gains (losses).
Adjusted free cash flow: We define free cash flow as net cash provided by operating activities less capitalized software development costs and purchases of property and equipment, adjusted for any net borrowing or repayment on our warehouse line of credit. Our warehouse line of credit is used to fund mortgage loans originated for sale, as any increase or decrease in our mortgage loans held for sale is substantially offset by a corresponding borrowing or repayment on our warehouse line of credit. Adjusted free cash flow is a key measurement used by our management internally to evaluate our business performance and overall liquidity. We believe that adjusted free cash flow provides useful information for investors and others for determining the amount of cash available for investment in our business, strategic opportunities, repurchasing stock, strengthening our financial position and other purposes, as well as evaluating our historical and prospective liquidity. A limitation of the utility of adjusted free cash flow as a measure of financial performance and liquidity is that adjusted free cash flow does not represent the total increase or decrease in our cash balance for the period.
In addition, non-GAAP operating income (loss), adjusted EBITDA and adjusted free cash flow as we define them may not be comparable to similarly titled measures used by other companies. Because of these limitations, you should consider non-GAAP operating income (loss), adjusted EBITDA and adjusted free cash flow alongside other financial performance measures, including income (loss) from operations, net income (loss), cash flows from operating activities and our other GAAP results.
We compensate for these limitations by reconciling non-GAAP operating income to income from operations, adjusted EBITDA to net income and adjusted free cash flow to net cash provided by operating activities, the most directly comparable GAAP financial measures, as follows:
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ----- ---------------------- -----
(in millions) 2026 2025 % Change 2026 2025 % Change
-------------------- ---------- --------- ---------- ---------- ---------- ----------
Income from
Operations $ 7.0 $10.7 (35%) $ 34.2 $ 11.4 200%
Depreciation and
amortization 9.3 12.7 (26%) 19.0 25.3 (25%)
Acquisition-related
retention -- 0.8 (100%) -- 1.6 (100%)
Acquisition-related
expenses (0.1) 0.8 NM 1.1 0.8 36%
Loss on disposal of
assets -- 0.3 (100%) -- 0.3 (84%)
Restructuring -- 0.1 (100%) 0.1 0.4 (87%)
Capitalized
internally developed
software costs (4.0) (4.7) (15%) (8.5) (9.8) (13%)
---- ---- ----- ----- ----- -----
Non-GAAP Operating
Income $12.2 $20.7 (41%) $ 45.9 $ 30.0 53%
---- --- ---- ----- ----- ----- -----
Operating income
margin 4% 6% 8% 3%
Non-GAAP operating
income margin(1) 6% 11% 11% 8%
Net Income $ 4.3 $ 8.2 (48%) $ 24.7 $ 8.4 195%
Depreciation and
amortization 9.3 12.7 (26%) 19.0 25.3 (25%)
Stock-based
compensation 6.9 8.2 (16%) 13.9 14.9 (7%)
Acquisition-related
retention -- 0.8 (100%) -- 1.6 (100%)
Acquisition-related
expenses (0.1) 0.8 NM 1.1 0.8 36%
Loss on disposal of
assets -- 0.3 (100%) -- 0.3 (84%)
Restructuring -- 0.1 (100%) 0.1 0.4 (87%)
Interest income, net (0.3) (0.6) (55%) (1.0) (1.2) (15%)
Other gains, net -- (0.2) (71%) (0.1) (0.2) (44%)
Income tax provision 3.0 3.3 (10%) 10.6 4.4 140%
---- --- ---- ----- ----- ----- -----
Adjusted EBITDA $23.1 $33.6 (31%) $ 68.3 $ 54.7 25%
Stock-based
compensation (6.9) (8.2) (16%) (13.9) (14.9) (7%)
Capitalized
internally developed
software costs (4.0) (4.7) (15%) (8.5) (9.8) (13%)
---- ---- ----- ----- ----- -----
Non-GAAP Operating
Income $12.2 $20.7 (41%) $ 45.9 $ 30.0 53%
---- --- ---- ----- ----- ----- -----
Net income margin 2% 4% 6% 2%
Adjusted EBITDA
margin(2) 12% 18% 16% 14%
________________
(1) Represents non-GAAP operating income as a percentage of revenue.
(2) Represents adjusted EBITDA as a percentage of revenue.
Twelve Months Ended
---------------------------------------------
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
(in millions) 2026 2026 2025 2025 2025
-------------- ------- ------- ------- ------- ---------
Net cash
provided by
operating
activities $164.3 $140.6 $131.6 $102.6 $ 83.1
Capitalized
software
development
costs (16.2) (16.3) (16.9) (17.2) (18.0)
Purchases of
property and
equipment (0.9) (1.5) (1.3) (1.2) (1.2)
Net borrowing
(repayment) on
warehouse line
of credit (6.0) 8.1 4.4 1.3 6.7
----- ----- ----- ----- -----
Adjusted free
cash flow $141.2 $130.9 $117.8 $ 85.5 $ 70.6
----- ----- ----- ----- -----
FINANCIAL OUTLOOK
We are providing guidance for the third quarter of 2026:
-- Revenue is expected in the range of $244-$260 million, up 17%
year-over-year at the midpoint
-- GAAP operating income is expected in the range of $22-$30 million
-- Non-GAAP operating income is expected in the range of $29-$37 million
-- Adjusted EBITDA is expected in the range of $39-$47 million
We are adjusting our 2026 annual GAAP operating income expectation to the range of $65-$80 million and non-GAAP operating income to the range of $90-$105 million. We are also adjusting our 2026 annual adjusted EBITDA expectation to the range of $131-$147 million.
NerdWallet has not provided a quantitative reconciliation of forecasted GAAP net income (loss) to forecasted adjusted EBITDA within this communication because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to, income taxes which are directly impacted by unpredictable fluctuations in the market price of the Company's capital stock. These items, which could materially affect the computation of forward-looking GAAP net income (loss), are inherently uncertain and depend on various factors, many of which are outside of NerdWallet's control.
A reconciliation of forecasted GAAP operating income to forecasted non-GAAP operating income for forecasted third quarter 2026 and forecasted full year 2026 is as follows:
Forecasted Forecasted
Third Quarter Full Year
(in millions) 2026 2026
-------------------------------------------- -------------- -----------
GAAP operating income $22 - $30 $65 - $80
Estimated adjustments for:
Depreciation and amortization 9 - 10 37 - 39
Acquisition-related expenses 0 - 1 1 - 3
Capitalized internally developed software
costs (2) - (4) (13) - (17)
-------------- -----------
Non-GAAP operating income $29 - $37 $90 - $105
-------------- -----------
For more information regarding the non-GAAP financial measures discussed in this communication, please see "Non-GAAP Financial Measures" above.
FORWARD-LOOKING STATEMENTS
Comments