greeksoup/ stock research

Nerdwallet, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. Guidance figures: 3 lowered, 8 new, 3 kept. The quarter’s numbers.

Key takeaways

  • Revenue rose 11% year-over-year: Revenue was $239.6 million, up 11% from $215.1 million a year earlier and up 21% from $197.3 million in the second quarter. Source
  • Operating and net income fell: GAAP income from operations was $19.4 million, down 44% from $34.4 million. Net income was $14.9 million, or $0.23 per diluted share, against $0.34 a year earlier. Source
  • Consumer revenue rose 12%: Consumer revenue was $214.5 million, up 12% from $191.5 million a year earlier, and accounted for most of the quarter's revenue. Source
  • Sales and marketing rose 28%: Sales and marketing expense was $173.2 million, up 28% from $135.3 million, the largest dollar increase among cost lines. Source
  • Operating margin fell to 8%: Income from operations margin was 8% against 16% a year earlier. Source
  • Buybacks rose to $99.3 million: Repurchases of Class A common stock were $99.3 million in the nine months, against $19.5 million a year earlier. Source
  • Full-year profit guidance lowered: Full-year 2026 GAAP operating income, non-GAAP operating income and adjusted EBITDA expectations were all adjusted to lower ranges. Source
  • Fourth-quarter revenue guided down 13%: Fourth-quarter 2026 revenue is expected at $191-$203 million, down 13% year-over-year at the midpoint, with GAAP operating income of $2-$8 million. Source

“Providing clarity for all of life’s financial decisions is how we earn the trust of the consumers and small businesses we serve”

Tim Chen, Co-Founder and CEO of NerdWallet

Guidance

AreaPeriodFigureAgainst last quarter
Revenue Sourcefourth quarter 2026$191-$203 millionNew
GAAP operating income Sourcefourth quarter 2026$2-$8 millionNew
Non-GAAP operating income Sourcefourth quarter 2026$9-$15 millionNew
Adjusted EBITDA Sourcefourth quarter 2026$19-$25 millionNew
Depreciation and amortization Sourcefourth quarter 20269 - 10New
Depreciation and amortization Sourcefull year 202637 - 39Kept
Stock-based compensation for accelerated vesting Sourcefull year 20264New
Acquisition-related expenses Sourcefourth quarter 20260 - 1New
Acquisition-related expenses Sourcefull year 20261 - 3Kept
Capitalized internally developed software costs Sourcefourth quarter 2026(2) - (4)New
Capitalized internally developed software costs Sourcefull year 2026(13) - (17)Kept
GAAP operating income Sourcefull year 2026$56-$62 millionLowered from $65-$80 million
Non-GAAP operating income Sourcefull year 2026$85-$91 millionLowered from $90-$105 million
Adjusted EBITDA Sourcefull year 2026$127-$133 millionLowered from $131-$147 million

What changed from last quarter

  • Guidance lowered: Full-year 2026 GAAP operating income range cut to $56-$62 million from $65-$80 million. Source
  • Guidance lowered: Full-year 2026 non-GAAP operating income range cut to $85-$91 million from $90-$105 million. Source
  • Guidance lowered: Full-year 2026 adjusted EBITDA range cut to $127-$133 million from $131-$147 million. Source
  • New guidance: Fourth-quarter 2026 guidance given in this release, after the prior release gave third-quarter guidance. Source
  • New: Non-GAAP operating income now also excludes stock-based compensation from accelerated vesting tied to certain terminations, reductions in force, or changes in control. Source
  • New: Consumer revenue now reflects the incorporation of the recently acquired College Finance business. Source

Results and profit measures

  • Revenue rose 11% year-over-year: Revenue was $239.6 million, up 11% from $215.1 million a year earlier and up 21% from $197.3 million in the second quarter. Source
  • Operating and net income fell: GAAP income from operations was $19.4 million, down 44% from $34.4 million. Net income was $14.9 million, or $0.23 per diluted share, against $0.34 a year earlier. Source
  • Nine-month revenue rose 8%: Nine-month revenue was $659.1 million, up 8%. Nine-month net income was $39.6 million, up 14%, and nine-month diluted EPS was $0.59, up 31%. Source
  • Non-GAAP profit measures declined: Non-GAAP operating income was $30.4 million, down 27% from $41.3 million. Adjusted EBITDA was $39.8 million, down 26% from $53.6 million. Source

Consumer and SMB revenue

  • Consumer revenue rose 12%: Consumer revenue was $214.5 million, up 12% from $191.5 million a year earlier, and accounted for most of the quarter's revenue. Source
  • Personal loans and deposits grew: Personal loans added $13.3 million as the marketplace served more borrowers, and deposit accounts added $8.6 million as partners expanded budgets. Source
  • SMB revenue rose 6%: SMB revenue was $25.1 million, up 6% from $23.6 million a year earlier. Source

“We’re building on that foundation by doing more for them and giving them more reasons to return to NerdWallet, and we're encouraged by the progress we're making.”

Tim Chen, Co-Founder and CEO of NerdWallet

Demand and product drivers

  • Organic search traffic pressure persisted: Management cited continued pressure on organic search traffic as offsetting part of SMB revenue growth. Source
  • Auto insurance lead volume fell: Auto insurance products revenue fell $17.4 million, which management linked to lower lead volume. Source
  • Student loans grew on borrowing limits: Student loan revenue rose $25.0 million, which management linked to recent changes in federal borrowing limits and the peak summer lending season. Source

Costs and spending

  • Sales and marketing rose 28%: Sales and marketing expense was $173.2 million, up 28% from $135.3 million, the largest dollar increase among cost lines. Source
  • Total costs rose 22%: Total costs and expenses were $220.2 million, up 22% from $180.7 million. Source
  • Other cost lines moved in different directions: Research and development rose 13% to $17.8 million and general and administrative rose 7% to $15.4 million. Cost of revenue fell 10% to $13.8 million. Source

Margins and profit ratios

  • Operating margin fell to 8%: Income from operations margin was 8% against 16% a year earlier. Source
  • Non-GAAP and EBITDA margins declined: Non-GAAP operating income margin was 13% against 19%, and adjusted EBITDA margin was 17% against 25%. Source
  • Net margin fell to 6%: Net income margin was 6% against 12% a year earlier. Source

Cash, capital and buybacks

  • Buybacks rose to $99.3 million: Repurchases of Class A common stock were $99.3 million in the nine months, against $19.5 million a year earlier. Source
  • Operating cash flow rose to $108.1M: Net cash provided by operating activities was $108.1 million in the nine months, against $92.7 million a year earlier. Source
  • Adjusted free cash flow reported over twelve months: Twelve-month adjusted free cash flow was $129.1 million at September 30, 2026, against $141.2 million at June 30, 2026. Source
  • Cash balance fell since year-end: Cash and cash equivalents were $73.5 million at September 30, 2026, against $98.3 million at December 31, 2025. Source
  • Diluted share count fell: Diluted weighted-average shares were 64.7 million in the quarter, against 76.9 million a year earlier. Source

Acquisitions and balance sheet

  • Business combinations used more cash: Business combinations, net of cash acquired, used $21.2 million in the nine months, against $5.0 million a year earlier. Source
  • College Finance now in consumer revenue: Management said student loan revenue includes the incorporation of the recently acquired College Finance business. Source
  • Goodwill rose, intangibles fell: Goodwill was $140.0 million at September 30, 2026, against $123.5 million at December 31, 2025. Intangible assets were $16.9 million, against $21.5 million. Source

Guidance and third-quarter comparison

  • Full-year profit guidance lowered: Full-year 2026 GAAP operating income, non-GAAP operating income and adjusted EBITDA expectations were all adjusted to lower ranges. Source
  • Fourth-quarter revenue guided down 13%: Fourth-quarter 2026 revenue is expected at $191-$203 million, down 13% year-over-year at the midpoint, with GAAP operating income of $2-$8 million. Source
  • Revenue below prior third-quarter range: Third-quarter revenue of $239.6 million was below the $244-$260 million range given in the second-quarter release. Non-GAAP operating income of $30.4 million compared with a $29-$37 million range.

Coming up, as management said on 5 November 2026

  • Fourth-quarter guidance provided: Management gave guidance for fourth-quarter 2026 revenue, GAAP and non-GAAP operating income, and adjusted EBITDA. Source

Risks management discussed

  • Demand: Management cited continued pressure on organic search traffic as offsetting part of SMB revenue growth. Source

Earlier plans management reported on

  • Not stated: Management said the Consumer and SMB revenue presentation was announced earlier and applied from the first quarter of 2026. 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.