NerdWallet falls 31.0% after third-quarter results miss expectations

What happened

NerdWallet (NRDS) fell 31.0% on November 6, 2026, because third-quarter results missed guidance and analyst estimates. The stock closed at $7.89 after it opened 30.8% below the previous close, and trading volume was 3.9 times its 20-day average. Seeking Alpha and Zacks Investment Research reported the company posted third-quarter revenue of $240 million, an 11% increase year-over-year, and earnings per share of $0.23 versus $0.34 expected, 33.1% below estimates. The company said auto insurance revenue fell by $17 million, which offset growth in several lending and deposit products.

How big was the move

The session was large for the stock: the change was 5.5 times a typical daily move for this stock and 30.6 percentage points worse than the Communication Services sector median, which fell 0.3% on the day. The S&P 500 rose 0.3% on the day, making this a company-specific move because of the earnings release. Over the last five sessions the stock fell 29.4%, while the S&P 500 over five sessions fell 2.7%. The stock’s market sensitivity is a beta of 1.11, reflecting that the stock tends to move more than the market.

The technical picture

The stock traded 24.8% below its 20-day moving average, 18.7% below its 50-day moving average and 19.3% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) was 33, inside a neutral range between 30 and 70. The shares were 51.4% below the 52-week high, and the stock fell 19.4% over one month and 19.5% over three months. Volatility was 89% annualized over 60 days, higher than 90% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue totaled $884.5 million, which grew 11.3% from a year earlier. Diluted earnings per share for that period were $0.78, with earnings per share growth from a year earlier having fell 19.0%. Gross margin was 93.8%, up from 91.6% a year earlier, and operating margin was 8.4%, compared with 6.9% a year earlier. Free-cash-flow margin was 16.0% and return on invested capital was 18.8%. The balance sheet showed net cash of $73.5 million, and share count over one year decreased by 15.9%.

On valuation metrics the stock traded at 10.1 times trailing earnings and 8.9 times expected earnings. Its price to trailing earnings was lower than 90% of its own readings over the past five years, with a five-year median of 16.9 times earnings. Free-cash-flow yield was 19.8%. Those figures point to an unusually low multiple relative to the company’s recent history, even as the stock suffers short-term pressure from the earnings miss.

Earnings and analyst expectations

NerdWallet’s report on November 5, 2026, showed earnings per share of $0.23 against $0.34 expected, 33.1% below estimates, and represented consecutive quarters beating estimates of 0. The average surprise over the last four reports was 7.6% below estimates. The company said consumer revenue rose 12%, but costs increased about 22%, and a $17 million decline in auto insurance revenue materially weighed on results, according to Seeking Alpha and Zacks Investment Research. Typical two-day reactions after recent reports have rose 0.5%.

Analysts’ consensus price target was $13.33, 68.9% above the closing price. Six analysts had a rating on the stock, with 67% of the ratings Buy or Strong Buy and a consensus rating of Buy. Within sector-ranked PromtFinance scores, NerdWallet ranked highly for Value and Quality, with scores of 96 and 99 respectively, while Momentum and Stability scored weaker, at 27 and 41.

The combination of a clear earnings shortfall, a drop in a specific revenue line and a low valuation helps explain the sharp market reaction. Investors reacted to the company-specific news even as the broader market gained, and the stock’s elevated short-term volatility suggests traders priced in an increased risk premium.

What to watch

• Next report: February 24, 2027
• Last report: November 5, 2026: earnings per share of $0.23 against $0.34 expected, 33.1% below estimates
• Market value: $714.7 million
• Consensus price target: $13.33 (68.9% above the closing price)
• Trading volume on November 6, 2026: 3.9 times its 20-day average