The NRDS (NASDAQ: NRDS) “Fintech Rebound”: Loans Surge or Broad Revival?

NerdWallet is staging a comeback, with Q3 2025 results smashing expectations. Revenue climbed 12% to $215.1M, while GAAP net income flipped to a healthy $26.3M from a near-breakeven $0.1M last year. EPS of $0.34 beat forecasts by 62%, signaling the end of post-IPO profitability woes.

Operationally, it’s a tale of two fintechs: explosive growth in loans (+66% YoY) and emerging verticals (+83%, led by banking at +96%) offset sharp declines in credit cards (-25%) and SMB products (-15%), hit by organic search traffic headwinds. Conversions in high-margin areas like personal loans (up 91%) and AI-driven efficiencies are fueling the turnaround, with gross margins expanding as cost of revenue dipped to 7% of sales.

The balance sheet is rock-solid: cash swelled 68% to $120.6M, backed by $48.5M in quarterly operating cash flow and no draws on its $125M credit facility. Guidance got a bump, with full-year non-GAAP operating income now eyed at $91-$95M. Dilution risks are off the table—shares outstanding held steady.

The bull case is compelling: scaling below-prime offerings and AI personalization could drive 20%+ revenue growth into 2026. 

The bear case lingers: if search volatility persists, core segments could drag the rebound. NRDS IPO’d at $18 in 2021. Now, at $13.51, it’s undervalued—and gaining altitude.

The Filing:

 • Nov 6 10-Q: $215.1M revenue (+12% YoY). 

• GAAP net income: $26.3M (vs. $0.1M). 

• Operating income: $34.4M (GAAP). The Context • Loans: +66% YoY; Banking +96%. 

• Cash: $120.6M; Op cash flow $48.5M. 

• Stock +20% post-earnings — 1.8x sales.

The Sharper Take:

• Bull: Loans + AI efficiencies = 20%+ growth 2026. 

• Bear: Search traffic drag = uneven recovery.

Investor Action:

1. (Buy Signal): Capitalize on momentum; the profitability pivot justifies a premium to peers.

2. Monitor Q4 revenue at midpoint ($211M); beats here could push shares to $18.

3. Accumulate on pullbacks to $12; avoid chasing if macro clouds (rates, recession) intensify search woes.