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Nerdwallet, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. Guidance figures: 1 lowered, 1 narrowed, 10 new, 1 kept. The quarter’s numbers.

Key takeaways

  • Revenue grew six percent year over year: Revenue was $197.3 million, up 6% from $186.9 million a year earlier, and down 11% from $222.2 million in the first quarter. Source
  • Operating income fell 35 percent: GAAP income from operations was $7.0 million, down from $10.7 million a year earlier. Net income was $4.3 million, or $0.07 per diluted share, down from $0.11. Source
  • Consumer revenue rose eight percent: Consumer revenue was $175.2 million, up 8% year over year, driven mainly by personal loans as the company expanded its loan marketplace to a broader range of borrowers. Source
  • Consumer credit card revenue declined: Consumer credit card revenue fell $8.6 million, which management attributed to organic search traffic pressures that have lasted several quarters. Source
  • Sales and marketing spending rose: Sales and marketing expense was $145.4 million, up 14% from $128.0 million, the largest increase among cost lines. Source
  • Third-quarter revenue range given: Third-quarter revenue is expected at $244-$260 million, with a midpoint up 17% year over year, against $197.3 million in the second quarter. Source
  • Full-year adjusted EBITDA range lowered: Full-year adjusted EBITDA is now $131-$147 million, from $132-$157 million previously. Source

“We're reaching an inflection point in our business,”

Tim Chen, Co-Founder and CEO of NerdWallet

Guidance

AreaPeriodFigureAgainst last quarter
Revenue SourceThird quarter of 2026$244-$260 millionNew
GAAP operating income SourceThird quarter of 2026$22-$30 millionNew
Non-GAAP operating income SourceThird quarter of 2026$29-$37 millionNew
Adjusted EBITDA SourceThird quarter of 2026$39-$47 millionNew
GAAP operating income SourceFull year 2026$65-$80 millionNarrowed, top end cut from $65-$90 million
Non-GAAP operating income SourceFull year 2026$90-$105 millionKept
Adjusted EBITDA SourceFull year 2026$131-$147 millionLowered from $132-$157 million
Depreciation and amortization (reconciling item) SourceThird quarter of 2026$9-$10 millionNew
Depreciation and amortization (reconciling item) SourceFull year 2026$37-$39 millionNew
Acquisition-related expenses (reconciling item) SourceThird quarter of 2026$0-$1 millionNew
Acquisition-related expenses (reconciling item) SourceFull year 2026$1-$3 millionNew
Capitalized internally developed software costs (reconciling item) SourceThird quarter of 2026(2) - (4)New
Capitalized internally developed software costs (reconciling item) SourceFull year 2026(13) - (17)New

What changed from last quarter

  • New guidance: Third-quarter 2026 guidance was given for revenue, GAAP and non-GAAP operating income, and adjusted EBITDA. Source
  • Guidance lowered: Full-year adjusted EBITDA range moved from $132-$157 million to $131-$147 million. Source
  • Guidance lowered: Full-year GAAP operating income range moved from $65-$90 million to $65-$80 million; the bottom end is unchanged. Source
  • Guidance kept: Full-year non-GAAP operating income range narrowed from $85-$110 million to $90-$105 million; the midpoint is unchanged at $97.5 million. Source
  • New: Management said incremental investment is expected to grow fivefold in 2026 compared with 2025. Source

Quarter results and drivers

  • Revenue grew six percent year over year: Revenue was $197.3 million, up 6% from $186.9 million a year earlier, and down 11% from $222.2 million in the first quarter. Source
  • Operating income fell 35 percent: GAAP income from operations was $7.0 million, down from $10.7 million a year earlier. Net income was $4.3 million, or $0.07 per diluted share, down from $0.11. Source
  • Non-GAAP profit measures declined: Non-GAAP operating income was $12.2 million, down 41%, and adjusted EBITDA was $23.1 million, down 31%, both against the prior-year quarter. Source
  • Six-month operating income rose: For the six months, income from operations was $34.2 million against $11.4 million, and net income was $24.7 million against $8.4 million. Source

Consumer and SMB revenue

  • Consumer revenue rose eight percent: Consumer revenue was $175.2 million, up 8% year over year, driven mainly by personal loans as the company expanded its loan marketplace to a broader range of borrowers. Source
  • Deposit account revenue added growth: Deposit account revenue rose $9.6 million as partners expanded budgets. Source
  • Consumer credit card revenue declined: Consumer credit card revenue fell $8.6 million, which management attributed to organic search traffic pressures that have lasted several quarters. Source
  • SMB revenue fell eleven percent: SMB revenue was $22.1 million, down 11% year over year, partly offset by an increase in business loan originations. Source
  • Both segments below first quarter: Compared with the first quarter, consumer revenue fell 11% from $197.6 million and SMB revenue fell 10% from $24.6 million. Source
  • Revenue reported by user group: Revenue is disaggregated into Consumer and SMB user groups, and prior periods have been recast to match the new presentation. Source

“The success of our vertical integration strategy now gives us the conviction to make incremental investments underwritten on a multi-year payback, with compelling returns.”

Tim Chen, Co-Founder and CEO of NerdWallet

Costs and margins

  • Sales and marketing spending rose: Sales and marketing expense was $145.4 million, up 14% from $128.0 million, the largest increase among cost lines. Source
  • Cost of revenue fell: Cost of revenue was $13.4 million, down 19% from $16.6 million; research and development was $17.5 million, down 2%. Source
  • Operating and EBITDA margins lower: GAAP operating margin was 4% and non-GAAP operating margin 6%, against 6% and 11% a year earlier; adjusted EBITDA margin was 12%, against 18%. Source

Cash flow and balance sheet

  • Six-month operating cash flow rose: Net cash from operating activities was $76.9 million for the six months, against $44.2 million a year earlier. Source
  • Trailing adjusted free cash flow increased: Adjusted free cash flow for the twelve months ended June 30, 2026 was $141.2 million, up from $130.9 million for the twelve months ended March 31, 2026. Source
  • Cash balance lower year over year: Cash and cash equivalents were $62.0 million at June 30, 2026, up 10% from $56.3 million at March 31 and down 41% from a year earlier. Source

“We expect to grow this incremental investment fivefold in 2026 versus 2025 as we deepen our owned audiences and build durable, direct relationships with our customers.”

Tim Chen, Co-Founder and CEO of NerdWallet

Share repurchases and acquisitions

  • Share repurchases reached $88.8 million: Repurchases of Class A common stock totaled $88.8 million in the six months, against $0.3 million a year earlier; $66.0 million was in the first quarter. Source
  • Diluted share count declined: Weighted-average diluted shares were 65.8 million in the quarter, against 76.6 million a year earlier. Source
  • Business combinations used cash: Cash paid for business combinations, net of cash acquired, was $16.1 million for the six months, against $5.0 million a year earlier. Source

Strategy and investment

  • Management cites an inflection point: Management said the business is reaching an inflection point, which it linked to the success of its vertical integration strategy. Source
  • Incremental investment to grow fivefold: Management expects incremental investment in 2026 to be five times its 2025 level, used to deepen owned audiences and build direct customer relationships. Source

Third-quarter and full-year guidance

  • Third-quarter revenue range given: Third-quarter revenue is expected at $244-$260 million, with a midpoint up 17% year over year, against $197.3 million in the second quarter. Source
  • Third-quarter profit ranges given: Third-quarter GAAP operating income is $22-$30 million, non-GAAP operating income $29-$37 million, and adjusted EBITDA $39-$47 million. Source
  • Full-year GAAP operating income narrowed: Full-year GAAP operating income is now $65-$80 million, from $65-$90 million; non-GAAP operating income is $90-$105 million, from $85-$110 million. Source
  • Full-year adjusted EBITDA range lowered: Full-year adjusted EBITDA is now $131-$147 million, from $132-$157 million previously. Source

Coming up, as management said on 6 August 2026

  • Third-quarter 2026 ranges issued: Management gave third-quarter 2026 ranges for revenue, operating income, and adjusted EBITDA. Source
  • Incremental investment to ramp in 2026: Management expects the incremental investment in 2026 to be fivefold the 2025 level. Source

Risks management discussed

  • Demand: Organic search traffic has pressured consumer credit card and SMB revenue for multiple quarters, according to management. Source
  • Financial: Management said it cannot reconcile forecast GAAP net income without unreasonable effort, because income taxes depend on unpredictable stock price movements. Source

Earlier plans management reported on

  • Met: Revenue has been presented by Consumer and SMB user groups from the first quarter of 2026, as previously announced. Source
  • Not stated: Full-year 2026 GAAP operating income expectation was adjusted from the prior quarter's range. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.