William Blair downgrades Nerdwallet to Market Perform from Outperform

NerdWallet (NRDS) shares dropped 27.7% after Q3 results showed a 12% YoY revenue increase to $214.5M, but a $17.4M decline in auto insurance products and an EPS miss of $0.23 vs. $0.34 expected. The stock is down 38.6% YTD and 50.2% from its 52-week high.

NerdWallet (NRDS) stock fell 30.2% after missing Q3 earnings estimates ($0.23 EPS vs. $0.34 expected) and lowering Q4 guidance, with revenue expected to drop 13% to $197M. Despite 11% revenue growth, operating profit fell 44% due to rising costs.

NerdWallet (NRDS) shares dropped 27.7% after Q3 results showed a 12% YoY revenue increase to $214.5M, but a $17.4M decline in auto insurance products and a $0.23 EPS miss hurt sentiment. The stock is down 38.6% YTD and 50.2% from its 52-week high.

NerdWallet (NRDS) reported Q3 2026 revenue of $215M, up 12% YoY, driven by growth in student and personal loans, offset by a $17M decline in auto insurance. CEO Tim Chen noted stabilized organic search declines but ongoing headwinds from Google's AI summaries. CFO John Lee guided Q4 revenue to $191M-$203M and NGOI to $9M-$15M. The company plans increased investments in vertical integration and AI, expecting revenue growth in 2027 despite near-term NGOI pressure.

NerdWallet reported Q3 GAAP operating income of $19M and non-GAAP income of $30M, at the low end of guidance. The company adjusted its non-GAAP definition, adding $3.9M. Insurance partnerships and AI strategy were discussed, with challenges in predicting AI-driven traffic. NerdWallet forecasted Q4 revenue of $191M-$203M and non-GAAP income of $9M-$15M, with investments impacting near-term profits.

Nerdwallet (NRDS) reported Q3 EPS of $0.23, missing estimates by $0.11, with revenue at $239.6M, below the $251.89M consensus. Q4 2026 revenue guidance is $191M-$203M, below the $241.50M estimate. The stock is up 15.34% over 3 months but down 4.59% over 12 months.