Q3 FY2026
Filed Nov 5, 2026NerdWallet Q3 2026 revenue rose 11% to $239.6 million, but GAAP income from operations fell 44% to $19.4 million and Q4 revenue guidance implies a 13% year-over-year decline at the midpoint
Revenue grew 11% year-over-year and nine-month revenue grew 8%, with Consumer revenue up 12%. Against that, GAAP income from operations fell 44%, net income fell 43%, non-GAAP operating income fell 27%, adjusted EBITDA fell 26%, and the company guided Q4 2026 revenue to $191-$203 million, described as down 13% year-over-year at the midpoint.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q3 2026 (three months ended September 30)GAAP | $239.6M | 21% | 11% |
| Consumer revenue, Q3 2026GAAP | $214.5M | 23% | 12% |
| SMB revenue, Q3 2026GAAP | $25.1M | 13% | 6% |
| Cost of revenue, Q3 2026GAAP | $13.8M | – | (10%) |
| Research and development, Q3 2026GAAP | $17.8M | – | 13% |
| Sales and marketing, Q3 2026GAAP | $173.2M | – | 28% |
| General and administrative, Q3 2026GAAP | $15.4M | – | 7% |
| Total costs and expenses, Q3 2026GAAP | $220.2M | – | 22% |
| Income from operations, Q3 2026GAAP | $19.4M | 180% | (44%) |
| Operating income margin, Q3 2026GAAP | 8% | – | – |
| Net income, Q3 2026GAAP | $14.9M | 246% | (43%) |
| Net income margin, Q3 2026GAAP | 6% | – | – |
| Diluted net income per share, Q3 2026GAAP | $0.23 | 229% | (32%) |
| Basic net income per share, Q3 2026GAAP | $0.23 | 229% | (34%) |
| Non-GAAP operating income, Q3 2026non-GAAP | $30.4M | 148% | (27%) |
| Non-GAAP operating income margin, Q3 2026non-GAAP | 13% | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $39.8M | 72% | (26%) |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 17% | – | – |
| Cash and cash equivalents, end of Q3 2026GAAP | $73.5M | 19% | (39%) |
| Revenue, nine months ended September 30, 2026GAAP | $659.1M | – | 8% |
| Cost of revenue, nine months ended September 30, 2026GAAP | $40.8M | – | (19%) |
| Research and development, nine months ended September 30, 2026GAAP | $52.1M | – | 3% |
| Sales and marketing, nine months ended September 30, 2026GAAP | $467.7M | – | 11% |
| General and administrative, nine months ended September 30, 2026GAAP | $44.9M | – | 7% |
| Total costs and expenses, nine months ended September 30, 2026GAAP | $605.5M | – | 7% |
| Income from operations, nine months ended September 30, 2026GAAP | $53.6M | – | 17% |
| Net income, nine months ended September 30, 2026GAAP | $39.6M | – | 14% |
| Diluted net income per share, nine months ended September 30, 2026GAAP | $0.59 | – | 31% |
| Basic net income per share, nine months ended September 30, 2026GAAP | $0.60 | – | 30% |
| Non-GAAP operating income, nine months ended September 30, 2026non-GAAP | $76.3M | – | 7% |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $108.1M | – | 0% |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $108.1M | – | – |
| Adjusted free cash flow, twelve months ended September 30, 2026non-GAAP | $129.1M | – | – |
| Repurchases of Class A common stock, nine months ended September 30, 2026 (cash flow line)GAAP | −$99.3M | – | – |
| Total assets, September 30, 2026GAAP | $439.7M | – | – |
| Stockholders' equity, September 30, 2026GAAP | 341.4M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Consumer (user group)The company states the growth was primarily driven by increases of $25.0 million in student loans reflecting recent changes in federal borrowing limits, the peak summer lending season, and the incorporation of its recent acquisition of College Finance; $13.3 million from personal loans as it expanded marketplace offerings to a broader range of borrowers; and $8.6 million from deposit accounts as partners expanded budgets. The company states these were partially offset by a $17.4 million decrease from auto insurance products reflecting lower lead volume. | $214.5M | 23% | 12% |
| SMB (user group)The company states an increase in business loan originations was partially offset by continued pressures in organic search traffic. | $25.1M | 13% | 6% |
Q4 2026 (quarter) and FY 2026 (full year), as provided in the Financial Outlook outlook
- Revenue$191-$203 million for Q4 2026, described as down 13% year-over-year at the midpoint
- NoteQ4 2026 GAAP operating income: $2-$8 million
- NoteQ4 2026 non-GAAP operating income: $9-$15 million
- NoteQ4 2026 adjusted EBITDA: $19-$25 million
- NoteFY 2026 GAAP operating income: $56-$62 million (company states it is adjusting its 2026 annual expectation to this range)
- NoteFY 2026 non-GAAP operating income: $85-$91 million (company states it is adjusting its 2026 annual expectation to this range)
- NoteFY 2026 adjusted EBITDA: $127-$133 million (company states it is adjusting its 2026 annual expectation to this range)
- NoteQ4 2026 forecast depreciation and amortization: 9-10 (million); FY 2026 forecast: 37-39 (million)
- NoteQ4 2026 forecast capitalized internally developed software costs: (2)-(4) (million); FY 2026 forecast: (13)-(17) (million)
Capital returns
- Repurchases of Class A common stock were $99.3 million in the nine months ended September 30, 2026, compared with $19.5 million in the nine months ended September 30, 2025 (cash flow statement, shown as (99.3) and (19.5)).
- Weighted-average diluted shares were 64.7 million in Q3 2026, compared with 76.9 million in Q3 2025, as printed in the statements of operations.
What drove it
- The company attributes the Consumer revenue increase mainly to student loans (including the College Finance acquisition), personal loans and deposit accounts, as itemized in the segment section.
- The company states that the auto insurance decrease of $17.4 million reflects lower lead volume.
- The company states that SMB revenue growth from business loan originations was partially offset by continued pressures in organic search traffic.
- Stock-based compensation for accelerated vesting of $3.9 million was excluded from non-GAAP operating income in Q3 2026 and in the nine months ended September 30, 2026. The filing does not state the reason for this charge beyond the non-GAAP definition.
- Sales and marketing expense rose 28% to $173.2 million in Q3 2026. The filing reports the figure but does not state a cause.
Concerns
- GAAP income from operations fell 44% to $19.4 million in Q3 2026, and GAAP net income fell 43% to $14.9 million.
- Non-GAAP operating income fell 27% to $30.4 million and adjusted EBITDA fell 26% to $39.8 million in Q3 2026. Adjusted EBITDA for the nine months was flat at $108.1 million, compared with $108.3 million.
- Sales and marketing expense rose 28% to $173.2 million in Q3 2026, while revenue rose 11%.
- Q4 2026 revenue guidance of $191-$203 million is described as down 13% year-over-year at the midpoint.
- Q4 2026 GAAP operating income guidance of $2-$8 million is below the $19.4 million GAAP operating income reported in Q3 2026.
- The company reports continued pressures in organic search traffic affecting SMB revenue.
- Cash and cash equivalents fell 39% year-over-year to $73.5 million, after $99.3 million of repurchases and $21.2 million of business combinations in the nine months.
What to watch
- Delivery against the Q4 2026 revenue range of $191-$203 million and the Q4 non-GAAP operating income range of $9-$15 million.
- Whether the company's FY 2026 GAAP operating income range of $56-$62 million and adjusted EBITDA range of $127-$133 million is met, given nine-month GAAP operating income of $53.6 million.
- Student loan, personal loan and deposit account revenue growth in Consumer, which the company cites as the main drivers of the quarter.
- Auto insurance lead volume, which the company links to a $17.4 million revenue decrease.
- SMB revenue trends, given the company's reference to continued organic search traffic pressure.
- Sales and marketing expense trend after the 28% increase in Q3 2026.
- Cash balance and the pace of repurchases relative to adjusted free cash flow of $129.1 million for the twelve months ended September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $73.5 million at September 30, 2026, compared with $98.3 million at December 31, 2025 (balance sheet) and $120.6 million at September 30, 2025 (summary table).
- Net cash provided by operating activities was $108.1 million in the nine months ended September 30, 2026, compared with $92.7 million a year earlier.
- Business combinations, net of cash acquired, used $21.2 million in the nine months ended September 30, 2026, compared with $5.0 million a year earlier.
- Goodwill rose to $140.0 million at September 30, 2026 from $123.5 million at December 31, 2025. Intangible assets, net, were $16.9 million, compared with $21.5 million at December 31, 2025.
- Accounts payable was $19.6 million at September 30, 2026, compared with $5.4 million at December 31, 2025.
- Total assets were $439.7 million and stockholders' equity was 341.4 million at September 30, 2026, compared with $461.1 million and 374.5 million at December 31, 2025.
- Net borrowing (repayment) on the warehouse line of credit was (3.2) million in the nine months ended September 30, 2026, compared with 3.3 million a year earlier. The company describes this line as used to fund mortgage loans originated for sale.
Analysis
NerdWallet reported Q3 2026 revenue of $239.6 million, up 11% year-over-year and 21% sequentially. The company attributes the growth mainly to Consumer revenue of $214.5 million, up 12%, with student loans (including the College Finance acquisition), personal loans and deposit accounts cited as the largest contributors. SMB revenue of $25.1 million rose 6%, which the company links to business loan originations, partly offset by organic search traffic pressure. Nine-month revenue of $659.1 million was up 8%.
Profitability moved the other way. Total costs and expenses rose 22% to $220.2 million in Q3, with sales and marketing up 28% to $173.2 million, the line that grew fastest. GAAP income from operations fell 44% to $19.4 million and GAAP net income fell 43% to $14.9 million, or $0.23 per diluted share. Non-GAAP operating income fell 27% to $30.4 million and adjusted EBITDA fell 26% to $39.8 million. Stock-based compensation for accelerated vesting of $3.9 million was excluded from non-GAAP operating income in the quarter. On a nine-month basis, GAAP income from operations rose 17% to $53.6 million, while adjusted EBITDA was flat at $108.1 million.
The Q4 2026 outlook is weaker than the reported quarter. Guidance calls for revenue of $191-$203 million, which the company describes as down 13% year-over-year at the midpoint, with GAAP operating income of $2-$8 million, non-GAAP operating income of $9-$15 million and adjusted EBITDA of $19-$25 million. The company states it is adjusting its full-year 2026 expectations to GAAP operating income of $56-$62 million, non-GAAP operating income of $85-$91 million and adjusted EBITDA of $127-$133 million. The filing does not print the prior ranges, so the direction of the change cannot be confirmed from the document.
Capital allocation was active. Repurchases of Class A common stock totaled $99.3 million in the nine months, against $19.5 million a year earlier, and business combinations used $21.2 million. Cash and cash equivalents ended at $73.5 million, down 39% year-over-year and up 19% from June 30, 2026 at $62.0 million. Adjusted free cash flow for the twelve months ended September 30, 2026 was $129.1 million, compared with $85.5 million for the twelve months ended September 30, 2025 as printed in the trailing table. Goodwill increased to $140.0 million from $123.5 million at year-end 2025.
The figures to weigh most are the gap between revenue growth and the GAAP and non-GAAP profit declines in Q3, the 28% rise in sales and marketing, and the Q4 revenue range that the company describes as down 13% at the midpoint. The reported quarter shows top-line growth and a sharp sequential rebound in profit, but the company's own guidance points to a lower Q4 revenue base and a much smaller GAAP operating income contribution than in Q3.
Management, verbatim
Providing clarity for all of life’s financial decisions is how we earn the trust of the consumers and small businesses we serve.
Tim Chen, Co-Founder and CEO
We’re building on that foundation by doing more for them and giving them more reasons to return to NerdWallet, and we're encouraged by the progress we're making.
Tim Chen, Co-Founder and CEO
Not in the filing
stated, not guessed- Prior guidance ranges for Q4 2026 and FY 2026 are not in the documents, so vs_prior_guidance is empty and the direction of the annual adjustments cannot be confirmed.
- Gross margin is not printed as a figure; only cost of revenue is reported.
- Operating expense and tax rate guidance are not provided.
- Prior-year and prior-quarter comparisons are not printed for nine-month cost of revenue, operating cash flow change, and the twelve-month adjusted free cash flow change.
- Prior-period figures for total assets and stockholders' equity are printed only as of December 31, 2025, not as prior-year or prior-quarter values.
- Prior-year and prior-quarter values for the Q3 2026 cost lines (cost of revenue, R&D, S&M, G&A, total costs) beyond the year-over-year figure are not printed.
- Remaining share repurchase authorization and number of shares repurchased are not printed.
- Dividends are not reported in the document.
- Total debt and outstanding borrowings other than the net warehouse line movement are not printed.
- Share price reaction and analyst consensus estimates are not in the document.
- Explanation for the sales and marketing increase is not stated in the filing.
- Explanation for the stock-based compensation accelerated vesting charge is not stated beyond the non-GAAP definition.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.