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 from $34.4 million in the prior year period.
• GAAP net income was $14.9 million, or $0.23 per diluted share, down 43% from $26.3 million ($0.34 per diluted share) in Q3 2025.
• Non-GAAP operating income was $30.4 million, down 27% year-over-year from $41.3 million.
• Adjusted EBITDA was $39.8 million, a 26% decrease from $53.6 million in the prior year period.
• Cash and cash equivalents stood at $73.5 million as of September 30, 2026, down 39% from $120.6 million in the prior year period.
• For the nine months ended September 30, 2026, net income was $39.6 million, a 14% increase from $34.7 million in the prior year period.
• 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.
• Adjusted free cash flow for the trailing twelve months ended September 30, 2026, was $129.1 million.

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 is projected between $2 million and $8 million.
• Q4 2026 Non-GAAP operating income is projected between $9 million and $15 million.
• Q4 2026 Adjusted EBITDA is projected 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 related to fluctuations in the market price of its capital stock.

Business Segments and Product Lines

• Revenue is disaggregated into Consumer and SMB segments.
• Consumer revenue was $214.5 million, up 12% year-over-year.
• Consumer revenue growth was driven by a $25.0 million increase in student loans due to federal borrowing limit changes and the summer lending season, plus the inclusion of the College Finance acquisition.
• Consumer revenue included a $13.3 million increase from personal loans from expanded marketplace offerings.
• Consumer revenue included an $8.6 million increase from deposit accounts as partners expanded budgets.
• Consumer revenue 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 an increase in business loan originations, partially offset by continued pressures in organic search traffic.

Market and Competitive Landscape

• The company operates in a highly competitive and rapidly evolving industry.
• SMB segment performance was impacted by continued pressures in organic search traffic.
• Student loan revenue was influenced by recent changes in federal borrowing limits.

Risks and Challenges

• Macroeconomic developments, including inflation, interest rates, credit market conditions, and general economic uncertainty, may impact business results and stock price.
• Future performance depends on the ability to grow traffic, engagement, and monetization.
• Risks include the ability to increase user registrations, improve repeat usage rates, and convert users into matches with financial services partners.
• The company faces risks related to complying with evolving laws, regulations, and supervisory expectations.
• Potential impacts from future acquisitions, mergers, dispositions, joint ventures, or investments are not reflected in forward-looking statements.

Management Commentary and Tone

• Tim Chen, Co-Founder and CEO, stated the company is building on its foundation of trust by providing more reasons for consumers and small businesses to return.
• Management expressed encouragement regarding the progress made in serving customers.
• The tone reflects a focus on providing clarity for financial decisions and expanding product offerings.

Other Key Points

• The company acquired College Finance, the revenue from which is now incorporated into the Consumer segment.
• For the nine months ended September 30, 2026, the company used $99.3 million in cash for repurchases of Class A common stock.
• Business combinations, net of cash acquired, resulted in a cash outflow of $21.2 million for the nine months ended September 30, 2026.
• Capitalized internally developed software costs for the quarter were $3.0 million, deducted to calculate Non-GAAP operating income.
• Stock-based compensation for accelerated vesting was $3.9 million in the quarter.
• The company maintains a warehouse line of credit used to fund mortgage loans originated for sale.