NerdWallet, Inc. reported third‑quarter 2025 results that surpassed expectations across the board. Total revenue climbed 12% year‑over‑year to $215.1 million, comfortably exceeding the company’s guidance range of $189 million to $197 million. Non‑GAAP operating income surged 81% to $41.3 million, while net income rose from a modest $0.1 million a year earlier to $26.3 million, reflecting a strong earnings‑per‑share of $0.34 versus the consensus estimate of $0.20–$0.21—a beat of $0.13–$0.14 or roughly 65%.
The revenue lift was driven by a 96% year‑over‑year increase in banking products and a 91% jump in personal loans, offsetting declines in credit‑card and SMB segments, which fell 25% and 15% respectively. The company attributes the robust performance in high‑margin verticals to continued demand for its financial‑product comparison tools and the expansion of its “Next Door Lending” mortgage platform. Headwinds from organic search traffic have weighed on credit‑card and SMB revenue, a challenge the company acknowledges and is addressing through investment in AI‑powered traffic channels.
Operating income growth outpaced revenue growth, a result of tighter cost controls and improved marketing efficiency. The non‑GAAP operating margin expanded to 19% from 12% in the prior year, driven by higher mix in high‑margin banking and loan products and a one‑time reduction in brand‑marketing spend. The company’s cash and cash equivalents rose to $120.6 million, a 68% increase from the same period a year earlier, providing a solid liquidity cushion for continued investment in its vertical‑integration strategy.
Looking ahead, NerdWallet raised its full‑year 2025 non‑GAAP operating‑income guidance to $91 million–$95 million, an increase of $18 million at the midpoint from the previous forecast. For Q4 2025, the company projected revenue of $207 million to $215 million, above analyst consensus of $194.9 million. Management emphasized that the guidance reflects confidence in sustained demand for its high‑margin products and the expected benefits of its AI and LLM initiatives.
CEO Tim Chen highlighted the company’s “no‑brainer” positioning for consumers, noting that the expanded product mix and data‑driven engagement tactics are converting traffic into lasting relationships. CFO Jun Lee underscored that the quarter’s results exceeded guidance on all metrics and that the company’s focus on cost discipline and strategic investments is positioning it for long‑term growth.
Analysts responded positively to the earnings beat, citing the strong performance in banking and personal‑loan segments and the upward revision of full‑year guidance as evidence of management’s confidence in the company’s trajectory. The market reaction was largely driven by the significant EPS and revenue beats, the robust growth in high‑margin verticals, and the optimistic outlook for the remainder of the year.
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