Shares of NerdWallet (NRDS) plummeted 22.29% in pre-market trading on Friday, following the company's mixed second-quarter 2025 earnings report and a subsequent price target cut by Barclays. The digital financial guidance platform's stock took a significant hit as investors reacted to disappointing revenue figures and a cautious growth outlook.

NerdWallet reported Q2 2025 adjusted earnings per share of $0.11, slightly beating analyst expectations of $0.10. However, the company's revenue of $186.9 million fell short of the estimated $195.31 million, despite showing a 24.1% year-over-year increase. The mixed results highlighted ongoing challenges in key segments, particularly in Credit Cards and Small and Medium Business (SMB) products, which experienced year-over-year declines of 25% and 4% respectively. These declines were attributed to continued pressure on organic search visibility and changes in online search dynamics.

Adding to investor concerns, Barclays lowered its price target for NerdWallet from $17 to $14, while maintaining an Overweight rating on the stock. The company's cautious outlook for Q3 2025, projecting only about 1% year-over-year growth at the midpoint, further contributed to the sharp pre-market decline. Despite raising full-year profit guidance, NerdWallet's conservative top-line expectations as it navigates difficulties in search-driven verticals and faces expected normalization in its high-performing Insurance segment growth have clearly spooked investors, resulting in the significant stock price drop.