NerdWallet Reports 24% Revenue Growth, Beats Guidance with $187M in Q2 Revenue

NerdWallet reported Q2 revenue of $187 million, a 24% YoY increase, and non-GAAP operating income of $21 million, surpassing guidance. Insurance revenue grew 86% YoY to $55 million but declined 26% QoQ due to a platform transition. The company faces challenges from organic search headwinds and expects Q3 revenue growth of only 1% YoY.

NerdWallet Inc. reported a 24% year-over-year (YoY) increase in Q2 revenue, reaching $187 million, according to a Reuters report [1]. Despite the growth, the company missed analyst expectations by approximately $8 million. The non-GAAP operating income for the quarter stood at $21 million, surpassing the company's guidance.

The significant driver of revenue growth was insurance, which surged 86% YoY to $55 million. However, this was accompanied by a 26% quarter-over-quarter (QoQ) decline due to a platform transition. The company's loan revenue rose 27% YoY, primarily driven by personal and mortgage loans, as well as the integration of the Next Door Lending acquisition. Conversely, credit card revenue fell 25% YoY, impacted by persistent headwinds in organic search traffic.

Looking ahead, NerdWallet expects Q3 revenue growth of only 1% YoY, with a forecast of $189 million to $197 million. The company also raised its full-year GAAP operating income forecast to $38 million to $48 million. The adjusted EBITDA for Q2 beat analyst estimates at $33.6 million.

Investor sentiment remains positive, with analysts maintaining a "buy" rating and a median 12-month price target of $15.50, according to Finimize [2]. The stock's valuation has increased to 22 times the next 12-month earnings, up from a P/E of 17 three months ago.

References:
[1] Reuters. (2025). NerdWallet Q2 revenue rises 24% yr/yr but misses analyst expectations, per LSEG data. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_PLXBF1D08:0-nerdwallet-q2-revenue-up-24-but-misses-estimates/
[2] Finimize. (2025). NerdWallet grew revenue and insurance but missed analyst targets. Retrieved from https://finimize.com/content/nerdwallet-grew-revenue-and-insurance-but-missed-analyst-targets