NERDWALLET, INC. (NRDS): Results of Operations and Financial Condition
NERDWALLET, INC. (NRDS) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 NERDWALLET REPORTS SECOND QUARTER RESULTS 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 op
How this was made
The 30-second read
Why it matters
The filing updates quarterly performance metrics (revenue, GAAP and non-GAAP profitability, adjusted EBITDA) and balance sheet liquidity (cash down), while management frames an “inflection point” and a planned step-up in incremental investment for 2026.
Market read
Traders can reassess near-term earnings quality and liquidity risk versus management’s stated multi-year payback investment thesis.
What to watch
Organic search traffic pressure is cited as a driver for both consumer credit card declines and SMB revenue weakness, so traders should watch whether marketplace expansion offsets SEO headwinds in subsequent quarters.
NerdWallet reports second-quarter revenue of $197.3 million, up 6% year-over-year, while GAAP net income declined to $4.3 million.
Revenue grew 6% year-over-year and Consumer revenue rose 8%, but SMB revenue declined 11%, sales and marketing expense increased 14%, and GAAP income from operations, net income, non-GAAP operating income, and adjusted EBITDA all declined year-over-year and sequentially.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $197.3 million | (11%) | 6% |
| Consumer revenueGAAP | $175.2 million | (11%) | 8% |
| SMB revenueGAAP | $22.1 million | (10%) | (11%) |
| Cost of revenueGAAP | $13.4 million | – | (19%) |
| Research and developmentGAAP | $17.5 million | – | (2%) |
| Sales and marketingGAAP | $145.4 million | – | 14% |
| General and administrativeGAAP | $14.0 million | – | 1% |
| Total costs and expensesGAAP | $190.3 million | – | 8% |
| Income from operationsGAAP | $7.0 million | (75%) | (35%) |
| Interest incomeGAAP | $0.4 million | – | (45%) |
| Interest expenseGAAP | $(0.1) million | – | (3%) |
| Other gains, netGAAP | — | – | (71%) |
| Total other income, netGAAP | $0.3 million | – | (59%) |
| Income before income taxesGAAP | $7.3 million | – | (37%) |
| Income tax provisionGAAP | $3.0 million | – | (10%) |
| Net incomeGAAP | $4.3 million | (79%) | (48%) |
| Net income per share attributable to common stockholders, basicGAAP | $0.07 | (77%) | (36%) |
| Net income per share attributable to common stockholders, dilutedGAAP | $0.07 | (76%) | (36%) |
| Weighted-average shares used in computing net income per share attributable to common stockholders, basicGAAP | 65.1 million | – | – |
| Weighted-average shares used in computing net income per share attributable to common stockholders, dilutedGAAP | 65.8 million | – | – |
| Non-GAAP operating incomenon-GAAP | $12.2 million | (64%) | (41%) |
| Adjusted EBITDAnon-GAAP | $23.1 million | (49%) | (31%) |
| Revenue, six months ended June 30GAAP | $419.5 million | – | 6% |
| Cost of revenue, six months ended June 30GAAP | $27.0 million | – | (22%) |
| Research and development, six months ended June 30GAAP | $34.3 million | – | (1%) |
| Sales and marketing, six months ended June 30GAAP | $294.5 million | – | 2% |
| General and administrative, six months ended June 30GAAP | $29.5 million | – | 7% |
| Total costs and expenses, six months ended June 30GAAP | $385.3 million | – | 0% |
| Income from operations, six months ended June 30GAAP | $34.2 million | – | 200% |
| Net income, six months ended June 30GAAP | $24.7 million | – | 195% |
| Net income per share attributable to common stockholders, basic, six months ended June 30GAAP | $0.37 | – | 236% |
| Net income per share attributable to common stockholders, diluted, six months ended June 30GAAP | $0.37 | – | 236% |
| Cash and cash equivalentsGAAP | $62.0 million | 10% | (41%) |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ConsumerPrimarily driven by increases of $12.3 million from personal loans as the company expanded 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. | $175.2 million | (11%) | 8% |
| SMBPrimarily due to continued pressures in organic search traffic, partially offset by an increase in business loan originations. | $22.1 million | (10%) | (11%) |
Capital returns
- Repurchases of Class A common stock were $(88.8) million for the six months ended June 30, 2026, compared with $(0.3) million for the six months ended June 30, 2025.
What drove it
- Consumer revenue increased 8% year-over-year.
- Personal loans contributed an increase of $12.3 million as marketplace offerings expanded to serve a broader range of borrowers.
- Deposit accounts contributed an increase of $9.6 million as partners expanded budgets.
- Business loan originations increased and partially offset SMB organic-search pressure.
- The company states that its vertical integration strategy gives it conviction to make incremental investments underwritten on a multi-year payback.
Concerns
- Consumer credit cards decreased by $8.6 million, primarily due to continued pressures in organic search traffic that have persisted for multiple quarters.
- SMB revenue declined 11% year-over-year, primarily due to continued pressures in organic search traffic.
- Sales and marketing expense increased 14% year-over-year to $145.4 million, exceeding the 6% increase in revenue.
- GAAP income from operations declined 35% year-over-year and 75% sequentially.
- GAAP net income declined 48% year-over-year and 79% sequentially.
- Non-GAAP operating income declined 41% year-over-year and adjusted EBITDA declined 31% year-over-year.
- Cash and cash equivalents declined to $62.0 million from $98.3 million as of December 31, 2025, while Class A common-stock repurchases were $(88.8) million for the six months ended June 30, 2026.
What to watch
- Whether organic-search traffic pressures in consumer credit cards and SMB persist.
- The pace and returns of incremental investment, which the company expects to grow fivefold in 2026 versus 2025.
- Personal-loan marketplace expansion and deposit-account partner budgets as drivers of Consumer revenue.
- Whether business-loan originations can continue to offset SMB organic-search pressure.
- The trajectory of sales and marketing expense relative to revenue and operating profitability.
- Cash balances and capital allocation following $(88.8) million of Class A common-stock repurchases during the first six months of 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $62.0 million as of June 30, 2026, compared with $98.3 million as of December 31, 2025.
- Accounts receivable, net, were $113.6 million as of June 30, 2026, compared with $111.0 million as of December 31, 2025.
- Total current assets were $201.3 million as of June 30, 2026, compared with $244.7 million as of December 31, 2025.
- Property, equipment and software, net, was $29.1 million as of June 30, 2026, compared with $31.8 million as of December 31, 2025.
- Goodwill was $136.3 million as of June 30, 2026, compared with $123.5 million as of December 31, 2025.
- Intangible assets, net, were $19.1 million as of June 30, 2026, compared with $21.5 million as of December 31, 2025.
- Total assets were $418.0 million as of June 30, 2026, compared with $461.1 million as of December 31, 2025.
- Total current liabilities were $76.9 million as of June 30, 2026, compared with $70.9 million as of December 31, 2025.
- Total liabilities were $92.2 million as of June 30, 2026, compared with $86.6 million as of December 31, 2025.
- Stockholders’ equity was $325.8 million as of June 30, 2026, compared with $374.5 million as of December 31, 2025.
- Net cash provided by operating activities was $76.9 million for the six months ended June 30, 2026, compared with $44.2 million for the six months ended June 30, 2025.
- Capitalized software development costs were $(7.4) million for the six months ended June 30, 2026, compared with $(8.1) million for the six months ended June 30, 2025.
- Purchases of property and equipment were $(0.5) million for the six months ended June 30, 2026, compared with $(0.9) million for the six months ended June 30, 2025.
- Business combinations, net of cash acquired, were $(16.1) million for the six months ended June 30, 2026, compared with $(5.0) million for the six months ended June 30, 2025.
- Net cash used in investing activities was $(23.7) million for the six months ended June 30, 2026, compared with $(14.0) million for the six months ended June 30, 2025.
- Net borrowing (repayment) on warehouse line of credit was $(1.7) million for the six months ended June 30, 2026, compared with $8.7 million for the six months ended June 30, 2025.
- Net cash used in financing activities was $(89.4) million for the six months ended June 30, 2026, compared with $8.9 million provided by financing activities for the six months ended June 30, 2025.
- Net decrease in cash and cash equivalents was $(36.3) million for the six months ended June 30, 2026, compared with a net increase of $39.0 million for the six months ended June 30, 2025.
Analysis
Second-quarter revenue was $197.3 million, up 6% year-over-year but down 11% from $222.2 million in the prior quarter. Consumer revenue of $175.2 million increased 8% year-over-year, while SMB revenue of $22.1 million declined 11%. The revenue mix remains concentrated in Consumer, where personal loans added $12.3 million and deposit accounts added $9.6 million. Those gains were partly offset by an $8.6 million consumer-credit-card decline associated with organic-search traffic pressure.
Profitability weakened despite revenue growth. Total costs and expenses increased 8% to $190.3 million, led by a 14% increase in sales and marketing expense to $145.4 million. GAAP income from operations fell 35% year-over-year to $7.0 million and 75% sequentially from $27.2 million. GAAP net income fell 48% year-over-year to $4.3 million, or $0.07 per diluted share. Non-GAAP operating income declined 41% to $12.2 million and adjusted EBITDA declined 31% to $23.1 million.
For the first six months, revenue increased 6% to $419.5 million and GAAP net income increased 195% to $24.7 million. Operating cash flow was $76.9 million for the six-month period, compared with $44.2 million a year earlier. Cash and cash equivalents ended the quarter at $62.0 million, down from $98.3 million at December 31, 2025, as the company repurchased $(88.8) million of Class A common stock, completed $(16.1) million of business combinations net of cash acquired, and generated $(23.7) million of net cash used in investing activities.
Management characterized the business as reaching an inflection point and plans to grow incremental investment fivefold in 2026 versus 2025. The stated spending focus is deepening owned audiences and developing durable direct customer relationships. The filing provided no forward revenue, margin, expense, tax-rate, or other financial guidance, so the scale and timing of investment relative to revenue and profitability are not quantified in this release.
Management, verbatim
We're reaching an inflection point in our business.
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.
Tim Chen, Co-Founder and CEO of NerdWallet
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.
Tim Chen, Co-Founder and CEO of NerdWallet
Not in the filing
stated, not guessed- Forward guidance
- Prior-period outlook for comparison
- Gross profit
- Gross margin
- Operating expense guidance
- Tax-rate guidance
- Reported effective tax rate
- Quarterly operating cash flow
- Quarterly free cash flow
- Adjusted free cash flow value
- Debt balance
- Dividend declaration or payment
- Non-GAAP EPS
- Non-GAAP gross margin
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K Item 2.02 with NerdWallet’s Q2 2026 results and related financial tables, plus a shareholder letter and webcast details.
Ticker impact
NerdWallet reported Q2 revenue of $197.3M (+6% YoY) but GAAP net income fell to $4.3M (-48% YoY) and cash dropped to $62.0M.
Near-term volatility likely as investors weigh revenue growth versus margin and cash deterioration, with focus on the planned 2026 investment increase.
The filing provides concrete quarterly P&L and balance sheet changes (income from operations, net income, adjusted EBITDA, cash) and a specific management plan to grow incremental investment fivefold in 2026, which can shift forward expectations.
Market effects
Online personal finance and lead-gen marketplaces may face continued organic search pressure, but vertical integration investment could be a differentiator.
Primarily US-listed consumer fintech sentiment; limited direct regional spillover beyond investor perception of digital finance advertising efficiency.
Low, as the disclosure is company-specific and not tied to global macro or regulation.
Counterpoint
The profitability decline may be investment-driven rather than demand-driven, and the fivefold 2026 investment plan could improve unit economics later.
Key entities
- public_companyNerdWallet, Inc.
Nasdaq-listed personal finance marketplace reporting Q2 2026 results and a 2026 investment ramp.
- executiveTim Chen
Co-Founder and CEO commenting on vertical integration and planned incremental investment growth.
