Shares of NerdWallet (NRDS) tumbled 8.86% 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 posted better-than-expected earnings per share but fell short on revenue expectations, raising concerns about its growth trajectory.

NerdWallet reported Q2 2025 GAAP diluted EPS of $0.11, surpassing analyst expectations by $0.01. However, the company's revenue of $186.9 million missed estimates by 4.3%, despite showing a 24% 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. This adjustment, coupled with the company's cautious outlook for Q3 2025 - projecting only about 1% year-over-year growth at the midpoint - likely contributed to the sharp pre-market decline. Despite raising full-year profit guidance, NerdWallet's top-line expectations remain conservative as it navigates difficulties in search-driven verticals and faces expected normalization in its high-performing Insurance segment growth.