NerdWallet fell 31.0% after earnings, as revenue missed its guidance range, primarily because auto insurance revenue declined $17 million year over year. Management expects those auto insurance pressures to continue through year-end and also flagged a challenging Q1 2027 comparison and higher investment spending that will weigh on near-term operating income.
- Q3 revenue was $240 million, up 11% year over year but below the $244 million–$260 million guidance range. Non-GAAP operating income was $30 million, at the low end of guidance.
- Consumer revenue rose 12% to $215 million, led by student loans, personal loans and deposit accounts; the gains were partly offset by the $17 million year-over-year decline in auto insurance revenue.
- SMB revenue increased 6% to $25 million. Loan originations and renewals supported growth, while organic search traffic continued to pressure other SMB products.
- Q4 guidance calls for revenue of $191 million–$203 million and non-GAAP operating income of $9 million–$15 million. Management said auto insurance dynamics are expected to persist for the rest of the year.
- Trailing-12-month adjusted free cash flow rose 51% to $129 million, and NerdWallet repurchased about $151 million of shares over that period. Management plans to increase spending on longer-payback vertical integration and AI projects next year; Q1 2027 revenue growth will face a tough year-over-year comparison.
Community Discussion