NerdWallet (NRDS) Q1 2025 earnings summary

Executive summary

• Revenue grew 29% year-over-year to $209.2 million in Q1 2025, driven by strong insurance and banking performance, with notable gains in mortgages and personal loans following the Next Door Lending acquisition.

• Net income declined 86% to $0.2 million, primarily due to a 48% increase in sales and marketing expenses.

• Non-GAAP operating income was $9.3 million; adjusted EBITDA reached $21.1 million, both down year-over-year.

• The company maintained a strong liquidity position with $92.2 million in cash and cash equivalents at quarter end.

• Focus remains on operational efficiency, vertical integration, and building direct consumer relationships.

Financial highlights

• Q1 2025 revenue: $209.2 million, up 29% year-over-year and 14% sequentially.

• Non-GAAP operating income: $9.3 million; GAAP operating income: $0.7 million; net income: $0.2 million.

• Adjusted EBITDA: $21.1 million, down 17% year-over-year; adjusted free cash flow (TTM): $57.6 million.

• Cash and cash equivalents: $92.2 million at quarter end, up 39% sequentially but down 17% year-over-year.

• Total costs and expenses rose 32% to $208.5 million, with sales and marketing up $51.8 million year-over-year.

Outlook and guidance

• Q2 2025 revenue expected between $192 million and $200 million, up 30% year-over-year at midpoint.

• Q2 non-GAAP operating income guidance: $14 million–$18 million; adjusted EBITDA: $29–$33 million.

• Full-year 2025 non-GAAP operating income guidance raised to $55 million–$66 million; adjusted EBITDA to $108–$119 million.

• Brand investment to be lower in Q2–Q4 versus prior year, with a moderate full-year increase.

• Liquidity is expected to remain sufficient for at least the next twelve months and beyond.