Stock Spotlight: NerdWallet (NRDS)

NerdWallet, Inc. (NRDS) significantly surpassed earnings expectations in Q3, reporting GAAP earnings of $0.34 per share, compared to a $0.20 estimate, and revenue of $215.1 million, exceeding the $193 million consensus. The company experienced a 70% earnings surprise, with adjusted EBITDA rising to $54 million from $37.3 million year-over-year, while banking revenue surged 96% year-over-year. Looking ahead, NerdWallet projects Q4 revenue between $207 million and $215 million, above the $195 million consensus, and has raised its full-year adjusted EBITDA guidance to $141–145 million.

Founded in 2009 and headquartered in San Francisco, NerdWallet helps consumers make informed financial decisions through its comparison platform. The company operates in the U.S., U.K., Australia, and Canada, focusing on sectors like credit cards, loans, and banking. The company has a workforce of about 650 employees, generating substantial revenue through affiliate and lead generation fees. Analysts are optimistic about NerdWallet’s growth trajectory, raising estimates across future quarters, including a projected earnings increase from $0.47 to $0.62 for the current year.

Currently valued at $1 billion, NerdWallet is positioned for potential growth, with stock trading between $12.50 and $17. Analysts have also raised price targets, with Barclays increasing theirs from $14 to $17 and Morgan Stanley from $12 to $14. The company’s ongoing expansion in revenue and its established brand in the financial comparison space make it a notable investment opportunity as it approaches 2026.