NerdWallet, Inc. (NRDS) reported fourth‑quarter 2025 results that exceeded consensus estimates, with revenue of $225.4 million—up 23% from $183.8 million in Q4 2024—and earnings per share of $0.19, beating the $0.17 consensus by $0.02. Non‑GAAP operating income for the quarter rose 47% to $24.7 million, driven by higher loan and insurance revenue and tighter cost control in marketing and technology spend.
The company’s insurance segment generated $81.2 million in Q4 revenue, a 13% increase from $71.6 million in the same period last year, while the loans segment surged 141% to $42.3 million, reflecting strong demand for personal‑loan and mortgage products. Credit‑card revenue fell 24% to $26.5 million, and SMB product revenue declined 12% to $22.5 million, underscoring the ongoing impact of AI‑driven search disruption on legacy channels.
Full‑year 2025 revenue reached $836.6 million, up 22% from $687.6 million in 2024. Non‑GAAP operating income for the year climbed to $96 million—an increase of more than 100% from $47.6 million in 2024—illustrating a significant margin expansion. GAAP diluted earnings per share were $0.64, compared with $0.34 reported in the original article, and well above the $0.32 consensus estimate. The company’s operating margin improved from 7% in 2024 to 11% in 2025, driven by a higher mix of high‑margin loan and insurance revenue and disciplined cost management.
Tim Chen, co‑founder and CEO, said, "We delivered Q4 revenue of $225 million, up 23% year‑over‑year, and full‑year revenue of $837 million, up 22% year‑over‑year. Strength in performance marketing, direct, and non‑search referral channels more than offset organic search headwinds as consumers turned to AI overviews and LLMs. We saw particularly strong growth in personal loans and banking, which helped offset declines in credit cards and SMB. While we expect organic search to remain challenged, our focus remains on building durable consumer relationships and making NerdWallet a no‑brainer destination for shopping financial products."
The company reiterated its 2026 guidance, maintaining a revenue outlook of $900–$950 million and a non‑GAAP operating income range of $90–$95 million. This guidance reflects confidence in the company’s pivot toward higher‑margin, relationship‑based business lines such as insurance and lending, while acknowledging the persistent headwinds from AI‑driven search. Management emphasized that the company’s investment in performance marketing and direct channels is expected to sustain growth and margin expansion in the coming year.
Investors have expressed concern about the decline in credit‑card revenue and the sequential drop in profitability metrics, noting that the company’s ability to maintain margin expansion will depend on continued success in the loans and insurance segments. The mixed market reaction highlights the tension between the strong top‑line growth and the challenges posed by organic search disruption and the need to sustain high‑margin growth in a competitive financial‑services landscape.
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