SEC Form 10-Q filed by NerdWallet Inc.

5/6/25 4:47:09 PM ET

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nrds-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-40994

NerdWallet, Inc.

(Exact name of registrant as specified in its charter)


Delaware			45-4180440
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

55 Hawthorne Street, 10th Floor, San Francisco, California 94105

(Address of principal executive offices) (Zip code)

(415) 549-8913

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A common stock, $0.0001 par value	NRDS	The Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The registrant had outstanding 42,826,957 shares of Class A common stock and 31,685,652 shares of Class B common stock as of April 29, 2025.


			Page
PART I		Financial Information
	Item 1.	Financial Statements	3
		Condensed Consolidated Balance Sheets	3
		Condensed Consolidated Statements of Operations	4
		Condensed Consolidated Statements of Comprehensive Income	5
		Condensed Consolidated Statements of Stockholders’ Equity	6
		Condensed Consolidated Statements of Cash Flows	7
		Notes to Condensed Consolidated Financial Statements	8
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
	Item 4.	Controls and Procedures	23

PART II		Other Information
	Item 1.	Legal Proceedings	24
	Item 1A.	Risk Factors	24
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
	Item 3.	Defaults Upon Senior Securities	24
	Item 4.	Mine Safety Disclosures	24
	Item 5.	Other Information	24
	Item 6.	Exhibits	25

Signatures			26


	March 31, 2025		December 31, 2024
(in millions, except share amounts which are in thousands and per share amounts)
Assets
Current assets:
Cash and cash equivalents	$	92.2	$	66.3
Accounts receivable—net	120.3		102.2
Prepaid expenses and other current assets	29.4		28.2
Total current assets	241.9		196.7
Property, equipment and software—net	39.1		43.0
Goodwill	112.5		112.4
Intangible assets—net	29.9		33.3
Deferred tax asset—noncurrent	45.8		45.6
Right-of-use assets	4.7		5.3
Other assets	1.1		1.3
Total Assets	$	475.0	$	437.6
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	24.3	$	8.9
Accrued expenses and other current liabilities	66.1		51.2
Total current liabilities	90.4		60.1
Other liabilities—noncurrent	13.0		13.3
Total liabilities	103.4		73.4
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock—$0.0001 par value per share—5,000 shares authorized; zero shares issued and outstanding	—		—
Common stock—$0.0001 par value per share—296,686 shares authorized; 74,492 and 74,108 shares issued and outstanding as of March 31, 2025 and December 31, 2024	—		—
Additional paid-in capital	537.9		530.9
Accumulated other comprehensive loss	—		(0.2)
Accumulated deficit	(166.3)		(166.5)
Total stockholders’ equity	371.6		364.2
Total Liabilities and Stockholders’ Equity	$	475.0	$	437.6


	Three Months Ended March 31,
(in millions, except per share amounts)		2025		2024
Revenue		$	209.2	$	161.9
Costs and Expenses:
Cost of revenue		18.2		14.2
Research and development		16.8		20.7
Sales and marketing		159.7		107.9
General and administrative		13.8		15.4
Total costs and expenses		208.5		158.2
Income From Operations		0.7		3.7
Other income, net:
Interest income		0.7		1.4
Interest expense		(0.1)		(0.2)
Other losses, net		—		(0.1)
Total other income, net		0.6		1.1
Income before income taxes		1.3		4.8
Income tax provision		1.1		3.7
Net Income		$	0.2	$	1.1

Net Income Per Share Attributable to Common Stockholders
Basic		$	0.00	$	0.01
Diluted		$	0.00	$	0.01

Weighted-average Shares Used in Computing Net Income Per Share Attributable to Common Stockholders
Basic		74.2		77.2
Diluted		76.1		80.5


	Three Months Ended March 31,
(in millions)	2025		2024
Net Income	$	0.2	$	1.1
Other Comprehensive Income (Loss):
Change in foreign currency translation	0.2		(0.1)
Comprehensive Income	$	0.4	$	1.0


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Stockholders’ Equity
(in millions, except share amounts which are in thousands)	Shares	Amount
Balance as of December 31, 2024	74,108	$	—	$	530.9	$	(0.2)	$	(166.5)	$	364.2
Issuance of Class A common stock upon exercise of stock options	5	—		—						—
Issuance of Class A common stock pursuant to settlement of restricted stock units	431	—								—
Class A common stock withheld related to net share settlement of restricted stock units	(52)	—		(0.5)						(0.5)
Stock-based compensation				7.5						7.5
Other comprehensive income						0.2				0.2
Net income								0.2		0.2
Balance as of March 31, 2025	74,492	$	—	$	537.9	$	—	$	(166.3)	$	371.6


(in millions)	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Carrying Value
As of March 31, 2025
Assets:
Cash and cash equivalents—money market funds	$	61.3	$	—	$	—	$	61.3
Certificate of deposit	—		2.2		—		2.2
Mortgage loans held for sale	—		7.0		—		7.0
	$	61.3	$	9.2	$	—	$	70.5


	Outstanding Stock Options (in thousands)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in millions)
Balance as of December 31, 20241	3,283	$	12.40	6.2	$	7.1
Granted2	1,672	$	10.07
Exercised	(5)	$	6.55
Cancelled/forfeited2	(149)	$	14.52
Balance as of March 31, 20251	4,801	$	11.53	6.7	$	1.9
Vested and exercisable as of March 31, 2025	2,697	$	12.36	4.5	$	1.6


	Number of Units (in thousands)	Weighted-Average Grant-Date Fair Value
Nonvested as of December 31, 20241	4,621	$	12.57
Granted1	680	$	9.48
Vested	(431)	$	14.06
Forfeited	(320)	$	14.33
Nonvested as of March 31, 20251	4,550	$	11.84


	Three Months Ended March 31,	Change
(in millions)		2025		2024		$		%
Insurance		$	74.0	$	21.4	$	52.6	246	%
Credit cards		38.0		50.0		(12.0)		(24	%)
SMB products		28.9		30.4		(1.5)		(5	%)
Loans		24.0		21.4		2.6		12	%
Emerging verticals		44.3		38.7		5.6		15	%
Total revenue		$	209.2	$	161.9	$	47.3	29	%

Date	Price Target	Rating	Analyst
5/3/2023	$15.00 → $14.00	Buy → Neutral	Citigroup
2/28/2022	$17.00 → $13.50	Equal-Weight	Morgan Stanley
2/25/2022	$30.00 → $17.00	Outperform	Oppenheimer
2/25/2022	$35.00 → $30.00	Overweight	Keybanc
11/29/2021	$30.00	Outperform	Oppenheimer
11/29/2021	$24.00	Equal-Weight	Morgan Stanley
11/29/2021	$30.00	Buy	Citigroup
11/29/2021	$30.00	Buy	Truist Securities


	Three Months Ended March 31,
	2025		2024
Expected volatility	57.7	%	58.1	%
Expected term (in years)	6.0		5.9
Risk-free interest rate	4.2	%	4.2	%


	Three Months Ended March 31,
(in millions)		2025			2024
Income from operations		$	0.7		$	3.7
Depreciation and amortization		12.6			11.9
Acquisition-related retention		0.8			1.2

Restructuring		0.3			—
Capitalized internally developed software costs		(5.1)			(6.2)
Non-GAAP operating income		$	9.3		$	10.6

Operating income margin		0		%	2		%
Non-GAAP operating income margin1		4		%	7		%

Net income		$	0.2		$	1.1
Depreciation and amortization		12.6			11.9
Stock-based compensation		6.7			8.7
Acquisition-related retention		0.8			1.2

Restructuring		0.3			—
Interest income, net		(0.6)			(1.2)
Other losses, net		—			0.1
Income tax provision		1.1			3.7
Adjusted EBITDA		$	21.1		$	25.5
Stock-based compensation		(6.7)			(8.7)
Capitalized internally developed software costs		(5.1)			(6.2)
Non-GAAP operating income		$	9.3		$	10.6

Net income margin		0		%	1		%
Adjusted EBITDA margin2		10		%	16		%

SEC Form 10-Q filed by NerdWallet Inc.

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