Free cash flow remains highly volatile, ranging from 2.7% to 20.5% of revenue, while the 133.5x OCF/NI ratio in 2025Q1 highlights a disconnect between reported net income and actual cash generation.
| Cash from Operations | 140.6M | 131.6M | 71.8M | 72.1M | 25M | 7.2M | 15.4M | 31.4M |
| Operating CF Margin % | - | 15.73% | 10.44% | 12.03% | 4.64% | 1.9% | 6.28% | 13.75% |
| Operating CF Growth % | 465.45% | 83.29% | -0.42% | 188.4% | 247.22% | -53.25% | -50.96% | - |
| Net Income | 68.9M | 48.7M | 30.4M | -11.8M | -10.2M | -42.5M | 5.3M | 24.2M |
| Depreciation & Amortization | 43.5M | 46.4M | 48.4M | 48.2M | 37M | 27.1M | 15.1M | 9.4M |
| Stock-Based Compensation | 21.9M | 28.6M | 37.7M | 38.8M | 34.4M | 17.9M | 6.4M | 5M |
| Deferred Taxes | 21.7M | 16M | -46.1M | -500K | -12.6M | 4.4M | -4.6M | 1.4M |
| Other Non-Cash Items | 10.3M | 4M | 10.8M | 2.6M | -900K | 23.9M | 5.9M | 7.7M |
| Working Capital Changes | -25.7M | -12.1M | -9.4M | -5.2M | -22.7M | -23.6M | -12.7M | -16.3M |
| Change in Receivables | 12.2M | -9.4M | -27M | 10.7M | -18.7M | -20.2M | 1M | -12.9M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -21M | -3.6M | 6.6M | -1.8M | -5.6M | -2.2M | 3.6M | -300K |
| Cash from Investing | -48.4M | -33.3M | -29.7M | -29.5M | -100.3M | -23M | -55.4M | -14.8M |
| Capital Expenditures | -5.3M | -1.3M | -600K | -700K | -4.6M | -2.3M | -18.7M | -14.8M |
| CapEx % of Revenue | 0.62% | 0.16% | 0.09% | 0.12% | 0.85% | 0.61% | 7.62% | 6.48% |
| Acquisitions | 0 | - | - | - | - | - | - | - |
| Investments | 0 | 0 | 2.2M | 2.1M | 2M | 2M | 2M | 0 |
| Other Investing | -12.5M | -30M | -20.7M | -28.8M | -27.6M | -20.7M | 0 | 0 |
| Cash from Financing | -127.8M | -66.1M | -76.5M | -26.2M | -8.4M | 100.2M | 55.7M | -1.4M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - |
| Equity Issued (Net) | -133.1M | -67M | -80.1M | -20M | 0 | 125M | 53.1M | -2.3M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -134.9M | -70.2M | -80.1M | -20M | 0 | -12.9M | -1.2M | -2.3M |
| Other Financing | -2.8M | -3.5M | 5.6M | -4.8M | -8.4M | 3.7M | 7.6M | 900K |
| Net Change in Cash | -35.9M | 32M | -34.1M | 16.5M | -83.9M | 84.4M | 15.8M | 15.2M |
| Free Cash Flow | 130.9M | 130.3M | 71.2M | 42.6M | -7.2M | -15.8M | -3.3M | 16.6M |
| FCF Margin % | 15.41% | 15.57% | 10.35% | 7.11% | -1.34% | -4.16% | -1.35% | 7.27% |
| FCF Growth % | 136.71% | 83.01% | 67.14% | 691.67% | 54.43% | -378.79% | -119.88% | - |
| FCF per Share | 1.88 | 1.72 | 0.90 | 0.56 | -0.10 | -0.24 | -0.05 | 0.25 |
| FCF Conversion (FCF/Net Income) | 1.90x | 2.70x | 2.36x | -6.11x | -2.45x | -0.17x | 2.91x | 1.30x |
| Interest Paid | 100K | 0 | 300K | 300K | 1.9M | 2.5M | 1.4M | 1.5M |
| Taxes Paid | 12.2M | 0 | 16M | 13.5M | 4M | 300K | 1.2M | 1.5M |
Search engine algorithm dependency
As reported in financial statements, the wide variance between net income and operating cash flow, exemplified by the 133.5x OCF/NI ratio in 2025Q1, suggests that reported earnings are a poor proxy for the company's actual ability to generate cash from its core digital operations.
The persistent gap between net income and operating cash flow indicates that non-cash charges and working capital fluctuations significantly distort the bottom line. Investors should monitor whether this divergence is a structural feature of the business model or a temporary result of aggressive accounting for marketing-related accruals.
Based on NerdWallet's reported figures, free cash flow margins have fluctuated significantly, ranging from a low of 2.7% in 2024Q4 to a peak of 20.5% in 2025Q3, highlighting the company's struggle to maintain consistent cash generation amidst variable performance marketing expenditures.
The erratic FCF trajectory suggests that management prioritizes top-line growth through marketing spend, which directly cannibalizes cash flow during periods of competitive intensity. This pattern implies that the company's cash generation is highly sensitive to external search traffic costs rather than internal operational efficiencies.
According to recent SEC filings, NerdWallet maintains a low capital intensity, with CapEx/Revenue ratios frequently falling below 1% in recent quarters, confirming that the business model requires minimal physical infrastructure to support its digital platform and content-driven revenue streams.
The minimal capital expenditure requirements suggest that the company is structurally positioned to be cash-generative if marketing spend is curtailed. However, the low investment in tangible assets may also indicate a lack of proprietary technology development that could otherwise reduce long-term reliance on third-party search platforms.
As indicated by the provided data, NerdWallet has utilized significant cash for share repurchases, including $66 million in 2026Q1, despite periods of negative or negligible net income, which warrants further investigation into the board's capital allocation priorities relative to organic growth needs.
The decision to prioritize share buybacks over cash preservation during periods of earnings volatility suggests a management focus on supporting the stock price. This deployment strategy may limit the company's flexibility to pursue strategic acquisitions or weather potential downturns in the credit services market.
Quick answers to the most common questions about buying NRDS stock.
NerdWallet, Inc. (NRDS) generated $131.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NerdWallet, Inc. (NRDS) generated $130.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
NerdWallet, Inc. (NRDS) spent $1.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, NerdWallet, Inc. (NRDS) spent $70.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.