NerdWallet (NRDS) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $186.9 million, up 24% year-over-year, driven by strong insurance and emerging verticals, but offset by declines in credit cards and SMB products.

• Net income for Q2 2025 was $8.2 million, reversing a net loss in the prior year, reflecting improved operating leverage and cost management.

• Adjusted EBITDA increased 135% year-over-year to $33.6 million, with margin expanding to 18%.

• Non-GAAP operating income was $21 million, exceeding guidance and up from a loss in Q2 2024, reflecting improved operational efficiency.

• Strategic focus remains on vertical integration, performance marketing, and enhancing user experiences to drive long-term growth.

Financial highlights

• Insurance revenue was $54.7 million, up 86% year-over-year but down sequentially due to a platform transition.

• Credit cards revenue declined 25% year-over-year to $34.8 million due to ongoing organic search headwinds.

• Loans revenue increased 27% year-over-year to $27.5 million, with strong growth in personal and mortgage loans.

• Emerging verticals revenue rose 64% year-over-year to $44.9 million, led by banking products.

• Cash and cash equivalents stood at $105.3 million at quarter end.

Outlook and guidance

• Q3 2025 revenue expected between $189 million and $197 million, with insurance revenue anticipated to decline slightly year-over-year.

• Q3 non-GAAP operating income guidance is $23 million-$27 million.

• Full-year 2025 non-GAAP operating income guidance raised to $71 million-$79 million; GAAP operating income guidance raised to $38–$48 million; adjusted EBITDA to $120–$128 million.

• Management expects continued investment in personnel and development to support growth, funded by operations and cash on hand.

• Liquidity is expected to remain strong, with sufficient resources to meet capital and operating needs for the next twelve months and beyond.