Operating cash flow of $41.2M in 2026Q2 far exceeded net income of $4.3M (OCF/NI of 9.58), but cash balances fell 49% to $62.0M, funding aggressive repurchases and growth spending.
NerdWallet, Inc. (NRDS) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | 147M | 131.6M | 71.8M | 72.1M | 25M | 7.2M | 15.4M | 31.4M |
| Operating CF Growth % | 426.4% | 83.29% | -0.42% | 188.4% | 247.22% | -53.25% | -50.96% | - |
| Net Income | 53.6M | 48.7M | 30.4M | -11.8M | -10.2M | -42.5M | 5.3M | 24.2M |
| Depreciation & Amortization | 38.5M | 46.4M | 48.4M | 48.2M | 37M | 27.1M | 15.1M | 9.4M |
| Deferred Taxes | 16.2M | 16M | -46.1M | -500K | -12.6M | 4.4M | -4.6M | 1.4M |
| Other Non-Cash Items | 4.2M | 4M | 10.8M | 2.6M | -900K | 23.9M | 5.9M | 7.7M |
| Working Capital Changes | 3.3M | -12.1M | -9.4M | -5.2M | -22.7M | -23.6M | -12.7M | -16.3M |
| Cash from Investing | -44.8M | -33.3M | -29.7M | -29.5M | -100.3M | -23M | -55.4M | -14.8M |
| Purchase of Investments | -2M | -2M | -8.1M | 0 | 0 | 0 | 0 | 0 |
| Sale/Maturity of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Investment Activity | -2M | -2M | -8.1M | 0 | 0 | 0 | 0 | 0 |
| Acquisitions | -29.3M | 0 | -300K | 0 | -68.1M | 0 | -36.7M | 0 |
| Other Investing | -12.5M | -30M | -20.7M | -28.8M | -27.6M | -20.7M | 0 | 0 |
| Cash from Financing | -149.3M | -66.1M | -76.5M | -26.2M | -8.4M | 100.2M | 55.7M | -1.4M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -49.5M | -70.2M | -80.1M | -20M | 0 | -12.9M | -1.2M | -2.3M |
| Stock Issued | 1.5M | 3.2M | 0 | 0 | 12.2M | 140M | 54.3M | 0 |
| Net Stock Activity | -48M | -67M | -80.1M | -20M | 12.2M | 127.1M | 53.1M | -2.3M |
| Debt Issuance (Net) | 1000K | 1000K | -1000K | -1000K | 0 | -1000K | -1000K | 0 |
| Other Financing | -12.6M | -3.5M | 5.6M | -4.8M | -20.6M | 3.7M | 7.6M | 900K |
| Net Change in Cash | -47.1M | 32M | -34.1M | 16.5M | -83.9M | 84.4M | 15.8M | 15.2M |
| Exchange Rate Effect | 0 | -200K | 300K | 100K | -200K | 0 | 100K | 0 |
| Cash at Beginning | 62M | 66.3M | 100.4M | 83.9M | 167.8M | 83.4M | 67.6M | 52.4M |
| Cash at End | 73.5M | 98.3M | 66.3M | 100.4M | 83.9M | 167.8M | 83.4M | 67.6M |
| Interest Paid | 0 | 0 | 300K | 300K | 1.9M | 2.5M | 1.4M | 1.5M |
| Income Taxes Paid | 600K | 0 | 16M | 13.5M | 4M | 300K | 1.2M | 1.5M |
| Free Cash Flow | 141.5M | 130.3M | 71.2M | 42.6M | -7.2M | -15.8M | -3.3M | 16.6M |
| FCF Growth % | 53.3% | 83.01% | 67.14% | 691.67% | 54.43% | -378.79% | -119.88% | - |
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.
Key Metrics
Top Statement Risk
EPS miss and investment pivot
Metrics are mathematically derived from official filings.
Cash Conversion Diverges from Earnings
Operating cash flow consistently exceeds net income, with OCF/NI ratios ranging from 1.75 to 9.58 in recent quarters, indicating strong cash generation relative to reported earnings, per financial statements.
The wide gap between OCF and net income suggests that non-cash charges, such as stock-based compensation and depreciation, are significant, inflating cash flow relative to GAAP earnings. This divergence may indicate that reported profitability understates the company's ability to generate cash, but it also raises questions about earnings quality if the gap persists. Investors should monitor whether this trend continues as the company scales its investment initiatives.
Minimal Securities Portfolio Activity
Investment securities purchases and sales are negligible, with only $2.0M purchases and $2.3M sales in 2026Q1, suggesting a passive approach to securities holdings, as reported in cash flow statements.
The near-zero investment activity indicates that NRDS does not rely on a securities portfolio for liquidity or income, consistent with its asset-light business model. This lack of activity implies that the company's cash is primarily held in operating accounts or used for buybacks, rather than invested in marketable securities. The absence of significant investment flows reduces the complexity of the balance sheet but also means no incremental yield from such holdings.
No Loan Book, No Credit Risk
Loan loss provisions of $13-18M quarterly appear unrelated to a loan portfolio, as NRDS does not originate loans, suggesting these are likely marketing or partner-related costs, based on reported figures.
The consistent 'loan loss' line item, despite no lending operations, likely represents chargebacks or revenue share adjustments with partners, not credit losses. This interpretation aligns with the company's lead-generation model, where such costs are variable and tied to performance. The stability of these amounts suggests a predictable cost structure, but the classification is unusual and warrants further investigation into its true nature.
Aggressive Buybacks Despite Earnings Miss
Share repurchases totaled $22.8M in 2026Q2 and $66.0M in 2026Q1, far exceeding net income, indicating a capital return strategy that prioritizes buybacks over cash retention, per cash flow data.
The company has been repurchasing shares aggressively, with cumulative buybacks of $88.8M over the last two quarters, while net income was only $24.7M. This suggests management is confident in future cash flows or is returning capital to offset dilution from stock-based compensation. However, the sustainability of this pace is questionable if earnings remain strained, and investors should monitor whether buybacks are funded by debt or cash reserves.
No Deposit Base, No Rate Sensitivity
NRDS does not report deposit inflows or outflows, consistent with its non-bank status, meaning interest rate changes affect its business indirectly through partner demand, as per financial statements.
The absence of deposit flows simplifies the cash flow analysis, as there is no funding cost or deposit beta to consider. Instead, the company's cash flow is driven by operating activities and capital returns. This structure reduces balance sheet risk but exposes the company to cyclicality in financial product demand, which is influenced by interest rates. The lack of a deposit base also means no stable, low-cost funding source, making the company reliant on operating cash flow for growth investments.
Cash Flow Hides Earnings Quality Risks
The OCF/NI ratio of 9.58 in 2026Q2 suggests significant non-cash adjustments, potentially masking underlying profitability issues, as reported in cash flow statements.
The exceptionally high OCF/NI ratio in 2026Q2 indicates that net income is depressed by non-cash charges, possibly including stock-based compensation and amortization of intangibles. While this boosts cash flow, it also implies that reported earnings may not fully reflect the economic cost of employee compensation. Additionally, the lack of investment in securities or loans suggests that cash is being used for buybacks, which may not be the most value-accretive use if the stock is overvalued. Investors should scrutinize the sustainability of cash generation relative to earnings, especially as the company embarks on a multi-year investment phase.