NRDSNerdWallet, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (2.6×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 18% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NRDS?
NerdWallet, Inc. earns 26% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 17 points above what the capital costs: growth creates value
- Operating margin
- 10%
Operating margin · Internet Content & Information median 4.9% · 12 months to Q2 2026
- Cash conversion
- 2.60×
Cash conversion · 3.94× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −14%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 0.77% |
| FY2021 | −10% |
| FY2022 | −3.5% |
| FY2023 | 0.60% |
| FY2024 | 1.4% |
| FY2025 | 7.8% |
Details›
- Gross margin12 months to Q2 2026
- 94%
- Operating margin12 months to Q2 2026
- 10%
- Net margin12 months to Q2 2026
- 7.6%
- Free cash flow margin
- 19%
- R&D as % of revenue
- 7.7%
- Revenue, trailing twelve months
- $860M
- Free cash flow, trailing twelve months
- $163M
- Net income, trailing twelve months
- $65M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 26%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Content & Information
Ranks #3 of 31 by RyuScore