NerdWallet — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue reached $239.6 million, an 11% increase year-over-year compared to $215.1 million in Q3 2025.
• GAAP income from operations was $19.4 million, a 44% decrease year-over-year from $34.4 million.
• GAAP net income was $14.9 million, or $0.23 per diluted share, down 43% year-over-year from $26.3 million ($0.34 per diluted share).
• Non-GAAP operating income was $30.4 million, down 27% year-over-year from $41.3 million.
• Adjusted EBITDA was $39.8 million, down 26% year-over-year from $53.6 million.
• Cash and cash equivalents stood at $73.5 million as of September 30, 2026, a 39% decrease from $120.6 million in the prior year period.
• Total costs and expenses were $220.2 million, up 22% year-over-year, driven primarily by a 28% increase in sales and marketing expenses to $173.2 million.
• Operating cash flow for the nine months ended September 30, 2026, was $108.1 million, up from $92.7 million in the prior year period.
• Net cash used in financing activities for the nine-month period was $100.9 million, primarily due to $99.3 million in stock repurchases.

Guidance and Future Outlook:

• Q4 2026 revenue is expected to range between $191 million and $203 million, representing a 13% year-over-year decline at the midpoint.
• Q4 2026 GAAP operating income guidance is set between $2 million and $8 million.
• Q4 2026 Non-GAAP operating income guidance is set between $9 million and $15 million.
• Q4 2026 Adjusted EBITDA guidance is set between $19 million and $25 million.
• Full-year 2026 GAAP operating income guidance has been adjusted to a range of $56 million to $62 million.
• Full-year 2026 Non-GAAP operating income guidance has been adjusted to a range of $85 million to $91 million.
• Full-year 2026 Adjusted EBITDA guidance has been adjusted to a range of $127 million to $133 million.
• The company noted it cannot provide a quantitative reconciliation of forecasted GAAP net income to adjusted EBITDA due to the unpredictability of income taxes and other factors.

Business Segments and Product Lines:

• Consumer revenue was $214.5 million, up 12% year-over-year.
• Growth in consumer revenue was driven by a $25.0 million increase in student loans (attributed to federal borrowing limit changes and summer lending season), a $13.3 million increase in personal loans (due to marketplace expansion), and an $8.6 million increase in deposit accounts.
• Consumer revenue growth was partially offset by a $17.4 million decrease in auto insurance products due to lower lead volume.
• SMB revenue was $25.1 million, up 6% year-over-year.
• SMB revenue growth was driven by increased business loan originations but was partially offset by continued pressures in organic search traffic.
• The company incorporated the results of its recent acquisition of College Finance into the student loan revenue figures.
• Revenue disaggregation by Consumer and SMB segments is effective for Q1 2026 and forward, with prior periods recast to conform.

Market and Competitive Landscape:

• The company operates in a highly competitive and rapidly evolving industry.
• SMB segment performance faces ongoing challenges related to organic search traffic pressures.
• Auto insurance product performance declined due to lower lead volumes.
• Student loan revenue saw significant growth driven by external factors regarding federal borrowing limits.

Risks and Challenges:

• Forward-looking statements highlight risks related to macroeconomic developments, including inflation, interest rates, credit market conditions, and general economic uncertainty.
• Risks include the ability to grow traffic, engagement, and monetization, as well as the ability to increase user registrations and conversion rates.
• The company faces risks related to complying with evolving laws, regulations, and supervisory expectations.
• Potential impacts from future acquisitions, mergers, dispositions, or investments are not reflected in forward-looking statements.
• Income tax provisions are subject to unpredictable fluctuations in the market price of the company's capital stock.

Management Commentary and Tone:

• Tim Chen, Co-Founder and CEO, stated the company is building on its foundation of trust by providing more value to consumers and SMBs to encourage repeat usage.
• Management expressed encouragement regarding the progress made in serving customers.
• The tone reflects a focus on long-term trust and clarity in financial decisions despite short-term revenue headwinds in specific verticals.

Other Key Points:

• The company acquired College Finance, which contributed $13.3 million to personal loan revenue growth.
• Stock repurchases totaled $99.3 million for the nine months ended September 30, 2026, compared to $19.5 million in the prior year period.
• Business combinations, net of cash acquired, cost $21.2 million for the nine-month period, compared to $5.0 million in the prior year.
• Capitalized software development costs were $10.3 million for the quarter and $40.8 million for the nine-month period.
• A conference call to discuss results was held on November 5, 2026, at 1:30 PM Pacific Time.
• The company operates in the U.S. and Canada.