Revenue is overwhelmingly fee-driven at $196.9M (99.8% of total) in 2026Q2, but the efficiency ratio worsened to 89.7% from 76.9% a year earlier, compressing operating income to $7.0M.
NerdWallet, Inc. (NRDS) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Net Interest Income | 1.6M | 2.6M | 4.1M | 2.8M | -1M | -1.3M | -900K | 0 |
| NII Growth % | -83.33% | -36.59% | 46.43% | 380% | 23.08% | -44.44% | - | - |
| Net Interest Margin % | 0.36% | 0.56% | 0.94% | 0.67% | -0.23% | -0.36% | -0.35% | 0% |
| Interest Income | 2.5M | 3.2M | 4.8M | 3.6M | 1.5M | 0 | 200K | 1.1M |
| Interest Expense | 200K | 600K | 700K | 800K | 2.5M | 1.3M | 1.1M | 1.1M |
| Loan Loss Provision | 54.2M | 63.1M | 62.8M | 53.2M | 37.3M | 27.2M | 20.2M | 15M |
| Non-Interest Income | 882M | 833.4M | 682.8M | 595.8M | 537.4M | 379.6M | 245.1M | 227.2M |
| Non-Interest Income % | 99.82% | 99.69% | 99.4% | 99.53% | 100.19% | 100.34% | 100.37% | 100% |
| Total Net Revenue | 883.6M | 836M | 686.9M | 598.6M | 536.4M | 378.3M | 244.2M | 227.2M |
| Revenue Growth % | 11.24% | 21.71% | 14.75% | 11.6% | 41.79% | 54.91% | 7.48% | - |
| Non-Interest Expense | 755.8M | 703.3M | 614.7M | 541.8M | 518.1M | 390.1M | 222.1M | 183.8M |
| Efficiency Ratio | 85.54% | 84.13% | 89.49% | 90.51% | 96.59% | 103.12% | 90.95% | 80.9% |
| Operating Income | 74.3M | 69.6M | 9.4M | 3.6M | -19M | -39M | 1.9M | 28.4M |
| Operating Margin % | 8.41% | 8.33% | 1.37% | 0.6% | -3.54% | -10.31% | 0.78% | 12.5% |
| Operating Income Growth % | - | 640.43% | 161.11% | 118.95% | 51.28% | -2152.63% | -93.31% | - |
| Pretax Income | 74.9M | 68.2M | 5M | 6.3M | -20M | -37.7M | 900K | 27.9M |
| Pretax Margin % | 8.48% | 8.16% | 0.73% | 1.05% | -3.73% | -9.97% | 0.37% | 12.28% |
| Income Tax | 21.3M | 19.5M | -25.4M | 18.1M | -9.8M | 4.8M | -4.4M | 3.7M |
| Effective Tax Rate % | 28.44% | 28.59% | -508% | 287.3% | 49% | -12.73% | -488.89% | 13.26% |
| Net Income | 53.6M | 48.7M | 30.4M | -11.8M | -10.2M | -42.5M | 5.3M | 24.2M |
| Net Margin % | 6.07% | 5.83% | 4.43% | -1.97% | -1.9% | -11.23% | 2.17% | 10.65% |
| Net Income Growth % | -26.88% | 60.2% | 357.63% | -15.69% | 76% | -901.89% | -78.1% | - |
| Net Income (Continuing) | 53.6M | 48.7M | 30.4M | -11.8M | -10.2M | -42.5M | 5.3M | 24.2M |
| EPS (Diluted) | 0.83 | 0.64 | 0.39 | -0.15 | -0.14 | -0.63 | 0.08 | 0.37 |
| EPS Growth % | -18.97% | 64.1% | 360% | -7.14% | 77.78% | -882.61% | -78.24% | - |
| EPS (Basic) | - | 0.66 | 0.40 | -0.15 | -0.14 | -0.63 | 0.08 | 0.37 |
| Diluted Shares Outstanding | 64.7M | 75.9M | 78.9M | 76.7M | 70.6M | 67.07M | 65.83M | 65.83M |
Quick answers to the most common questions about buying NRDS stock.
For fiscal year 2025, NerdWallet, Inc. (NRDS) reported total revenue of $836.0M. This represents a 268.0% increase compared to $227.2M in 2019.
NerdWallet, Inc. (NRDS) is profitable, generating $48.7M in net income for the fiscal year ending 2025 with a net profit margin of 5.8%.
NerdWallet, Inc. (NRDS) reported an operating income of $69.6M, resulting in an operating profit margin of 8.3%. This margin reflects the operational efficiency of the business before interest and taxes.
NerdWallet, Inc. (NRDS) generated $772.9M in gross profit for the year, representing a gross profit margin of 92.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
EPS miss and investment pivot
Metrics are mathematically derived from official filings.
NII Minimal, Fee Dominance Clear
Net interest income remains negligible, averaging under $1M quarterly, while non-interest income drives over 99% of revenue, per recent financial statements.
NII is immaterial to the earnings model, with the latest quarter showing $300K, a 50% decline from the prior year. This confirms NRDS operates as a fee-based marketplace, not a traditional lender. The negligible NII means interest rate cycles affect revenue indirectly through consumer demand for loan products, not through spread income.
NIM Irrelevant, Gross Margin High
Net interest margin is effectively zero, but gross margin remains high at 92.4%, reflecting the digital platform's low cost of goods, as reported in the latest quarter.
NIM is not a meaningful metric for NRDS, given its non-bank structure. The 92.4% gross margin underscores the scalability of content delivery, yet operating margin of 3.5% in 2026Q2 reveals significant expense pressure. The gap between gross and operating margins highlights the heavy investment in sales and marketing, which is the primary cost driver.
Efficiency Ratio Deteriorates
Efficiency ratio worsened to 89.7% in 2026Q2 from 76.9% a year earlier, indicating rising costs relative to revenue, based on reported figures.
The efficiency ratio has trended upward over the past year, signaling that operating expenses are growing faster than revenue. This is consistent with management's commentary about incremental investments with multi-year payback. Investors should monitor whether this spending translates into sustained revenue growth or simply compresses margins without proportional returns.
Provisions Stable, Credit Risk Low
Provision expense has remained steady around $13-18M per quarter, with no significant deterioration, as per the latest income statement data.
Provisions are relatively stable, suggesting that credit losses are not a major concern for NRDS, which does not hold loans on its balance sheet. The provision line likely relates to partner guarantees or revenue share adjustments. The stability indicates that credit cycles have limited direct impact on earnings, though they may affect partner demand.
Fee Income Dominates, Quality Questioned
Non-interest income constitutes over 99% of total revenue, with $196.9M in 2026Q2, highlighting near-total reliance on transactional fees, as reported.
The overwhelming reliance on fee income, primarily from credit card and loan referrals, exposes NRDS to cyclicality in financial product demand. The quality of these fees is transactional rather than recurring, making revenue volatile. The company's push toward logged-in users and subscription services may improve fee durability, but current data shows no such shift.
2026Q2 Marks Investment Pivot
The latest quarter shows a sharp EPS miss at $0.07 versus $0.34 estimate, alongside raised guidance, signaling a strategic shift toward growth spending, per company disclosures.
The divergence between the EPS miss and raised revenue guidance suggests management is prioritizing long-term growth over near-term profitability. The 21.7% revenue growth indicates demand remains strong, but the 89.7% efficiency ratio implies costs are escalating. This inflection point warrants close monitoring to see if investments yield margin recovery or lead to sustained earnings pressure.
Earnings Quality Under Scrutiny
The $0.07 EPS versus $0.34 consensus miss raises questions about cost control, while high stock-based compensation may inflate non-GAAP metrics, based on reported data.
The large EPS miss could indicate one-time charges or a step-change in operating expenses not fully communicated. Additionally, the reliance on stock-based compensation may mask true cash earnings, as is common in tech platforms. Investors should assess whether the raised guidance is achievable without further margin dilution, especially given the competitive pressures from AI-driven search changes.