newsfilter.io
Aug 6, 2026, 4:08 PM ETCommunication Services

NerdWallet — Second Quarter 2026 Earnings Summary

NRDSNERDWALLET INC
Source

Financial Performance

  • Total revenue was $197.3 million, an 8% increase year-over-year from $186.9 million in Q2 2025, though a 11% decrease quarter-over-quarter from $222.2 million in Q1 2026.
  • GAAP income from operations was $7.0 million, down 35% year-over-year from $10.7 million and down 75% quarter-over-quarter from $27.2 million.
  • GAAP net income was $4.3 million ($0.07 per diluted share), a 48% decline year-over-year from $8.2 million ($0.11 per share) and a 79% decline quarter-over-quarter from $20.4 million ($0.30 per share).
  • Non-GAAP operating income was $12.2 million, down 41% year-over-year from $20.7 million.
  • Adjusted EBITDA was $23.1 million, down 31% year-over-year from $33.6 million.
  • Cash and cash equivalents were $62.0 million as of June 30, 2026, down 41% year-over-year from $105.3 million.
  • Sales and marketing expenses were $145.4 million, up 14% year-over-year from $128.0 million.
  • Cost of revenue was $13.4 million, down 19% year-over-year from $16.6 million.

Guidance and Future Outlook

  • Q3 2026 revenue is expected to be between $244 million and $260 million, representing a 17% year-over-year increase at the midpoint.
  • Q3 2026 GAAP operating income is expected to be between $22 million and $30 million.
  • Q3 2026 Non-GAAP operating income is expected to be between $29 million and $37 million.
  • Q3 2026 Adjusted EBITDA is expected to be between $39 million and $47 million.
  • Full-year 2026 GAAP operating income guidance was adjusted to a range of $65 million to $80 million.
  • Full-year 2026 Non-GAAP operating income guidance was adjusted to a range of $90 million to $105 million.
  • Full-year 2026 Adjusted EBITDA guidance was adjusted to a range of $131 million to $147 million.
  • Management expects to grow incremental investments fivefold in 2026 versus 2025 to deepen owned audiences and build direct customer relationships.

Business Segments and Product Lines

  • Consumer revenue was $175.2 million, up 8% year-over-year, driven by a $12.3 million increase from personal loans due to expanded marketplace offerings and a $9.6 million increase from deposit accounts.
  • Consumer revenue was partially offset by an $8.6 million decrease from consumer credit cards due to continued pressures in organic search traffic.
  • SMB revenue was $22.1 million, down 11% year-over-year, primarily due to continued pressures in organic search traffic, partially offset by an increase in business loan originations.
  • Revenue disaggregation by Consumer and SMB segments was implemented effective Q1 2026.

Market and Competitive Landscape

  • The company faces continued pressures in organic search traffic affecting both consumer credit cards and SMB revenue segments.
  • NerdWallet operates in a highly competitive and rapidly evolving industry with new risks and uncertainties arising frequently.

Risks and Challenges

  • Forward-looking statements are subject to risks including macroeconomic developments, inflation, interest rates, credit market conditions, and general economic uncertainty.
  • Risks include the ability to grow traffic, engagement, and monetization, as well as maintaining and expanding relationships with financial services partners.
  • The company faces risks related to complying with evolving laws, regulations, and supervisory expectations.
  • The company cannot provide a quantitative reconciliation of forecasted GAAP net income to forecasted adjusted EBITDA due to the unpredictability of income taxes and other factors.

Management Commentary and Tone

  • Tim Chen, Co-Founder and CEO, stated the company is reaching an "inflection point" and has the conviction to make incremental investments underwritten on a multi-year payback with compelling returns.
  • Management expressed confidence in their vertical integration strategy as the basis for future growth investments.

Other Key Points

  • The company repurchased $88.8 million of Class A common stock during the six months ended June 30, 2026.
  • Business combinations, net of cash acquired, totaled $16.1 million in cash used for investing activities during the six months ended June 30, 2026.
  • Goodwill increased to $136.3 million as of June 30, 2026, from $123.5 million as of December 31, 2025.
  • Accounts receivable increased to $113.6 million as of June 30, 2026, from $111.0 million as of December 31, 2025.
  • A conference call to discuss results was held on August 6, 2026, at 1:30 PM Pacific Time.