Nerdy (NRDY) AI Stock Analysis

• Market Cap: $183.59M
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• Revenue Growth: -9.86%
• EPS Growth: 0.87%
• Country: US
• Employees: 600
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.10
• Shares Outstanding: 122,938,630
• 10 Day Avg. Volume: 875,618
• 30 Day Avg. Volume: 1,057,991
• PEG Ratio: 0.58
• Price to Book (P/B): 4.58
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -8.05
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 0.79
• Enterprise Value/Ebitda: -1.53
• 1Y Price Target: $1.79
• Price Target Upside: 82.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $0.97 ▼(-1.02% Downside)

The score is primarily held back by weak financial performance—multi-year losses, negative operating/free cash flow, and a notable TTM revenue decline. Earnings-call updates provide some support via improving adjusted EBITDA and near-breakeven Q4 guidance driven by efficiency gains, but technical signals remain mixed and valuation is constrained by negative earnings and no dividend.

Positive Factors

High Gross Margin & Low Leverage

A ~62% gross margin implies strong unit economics for live instruction and pricing power on the platform, while near-zero debt gives financial flexibility. Together these durable traits support reinvestment in product and margin expansion over the next several quarters.

AI-enabled Platform Efficiency

A platform rewrite with AI-driven code that cut session costs 40% and halved AV errors materially reduces variable costs per lesson. These structural efficiency gains scale with usage, improving long-term margins and making the marketplace more competitive for both consumers and institutions.

Higher Revenue Per Member

A 24% ARPM lift from shifting toward higher-frequency Learning Memberships and pricing demonstrates an ability to extract more value per learner. If membership retention holds, this recurring, higher-ARPM mix provides a steadier revenue base and aids scalable profitability.

Negative Factors

Persistent Negative Cash Flow

Sustained negative operating and free cash flow consumes liquidity and forces reliance on external financing or asset sales. Over a multi-month horizon this pressure can limit strategic flexibility, constrain marketing/product investments, and raise refinancing or covenant risk.

Material Revenue Decline

A ~29% TTM revenue decline erodes operating leverage and makes fixed-cost absorption harder. Even with improved unit economics, a shrinking top line reduces absolute contribution to covering overhead and weakens the company’s path to sustained profitability.

Shrinking Equity Base and Asset Cushion

A declining equity base and falling assets shrink the balance-sheet buffer available to absorb continued losses or investment missteps. This structural weakening increases sensitivity to cash burn and may tighten borrowing terms or lender covenants if losses persist.

Nerdy Business Overview & Revenue Model

Company Description

Nerdy, Inc. operates platform for live online learning. The company's purpose-built proprietary platform leverages technology, including AI, to connect learners of various ages to experts, delivering value on both sides of the network. Its learning destination provides learning experiences across various subjects and multiple formats, including one-on-one instruction, small group classes, large format group classes, and adaptive self-study. The company's flagship business, Varsity Tutors, operates platforms for live online tutoring and classes. Its solutions are available directly to learners, as well as through schools and other institutions. The company was founded in 2007 and is headquartered in Saint Louis, Missouri.

How the Company Makes Money

Nerdy makes money through a multi-faceted revenue model centered around its online learning platform, Varsity Tutors. The company generates revenue primarily from direct-to-consumer sales, where students or their parents pay for tutoring sessions, classes, and courses. These services are offered on a subscription basis or as one-time purchases. Additionally, Nerdy partners with educational institutions and businesses to provide tailored learning solutions and professional development programs, creating additional revenue streams. Other significant factors contributing to Nerdy's earnings include the scalability of its platform, which allows it to reach a broad audience, and strategic partnerships that expand its market presence and enhance its offerings.

Nerdy Financial Statement Overview

Summary

Strong gross margin (~62%) and low leverage (no total debt reported TTM) are positives, but they are outweighed by persistent net losses (~-23% net margin), deteriorating TTM revenue (~-29% vs prior period), and continued cash burn (TTM operating cash flow about -$27.2M; TTM free cash flow about -$32.4M) alongside a shrinking equity base.

Income Statement

NRDY shows consistently strong gross profitability (TTM (Trailing-Twelve-Months) gross margin ~62%), but the core issue remains persistent operating and net losses (TTM net margin about -23% and negative EBIT/EBITDA margins). Revenue trajectory has deteriorated meaningfully, with TTM revenue down ~29% versus the prior period after a relatively flat 2024, which increases the difficulty of scaling into profitability. While losses are somewhat less severe than the 2021–2022 period, the company has not yet demonstrated a sustained path to positive earnings.

Balance Sheet

Leverage is low (TTM total debt at 0; 2024 debt-to-equity ~0.08), which reduces financial risk and provides flexibility. However, the equity base has been shrinking (equity down from ~$52.5M in 2023 to ~$24.3M TTM), and returns on equity are deeply negative due to ongoing losses. Total assets have also declined versus prior years, signaling a smaller balance-sheet cushion if losses persist.

Cash Flow

Cash generation remains weak with negative operating cash flow and negative free cash flow across all periods shown (TTM operating cash flow about -$27.2M; TTM free cash flow about -$32.4M). Free cash flow has also worsened versus the prior year (TTM free cash flow growth is sharply negative), implying higher cash burn. While free cash flow is less negative than net income in several periods (reflecting non-cash expenses), the business is still consuming cash rather than funding itself internally.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	177.87M	190.23M	193.40M	162.66M	140.66M	103.97M
Gross Profit	110.69M	128.39M	136.45M	112.93M	93.96M	69.13M
EBITDA	-57.29M	-62.54M	-50.80M	-84.29M	-87.06M	-11.89M
Net Income	-40.83M	-42.59M	-40.17M	-35.40M	-27.32M	-24.66M
Balance Sheet
Total Assets	70.41M	92.51M	124.74M	132.69M	177.15M	57.27M
Cash, Cash Equivalents and Short-Term Investments	32.71M	52.54M	74.82M	90.72M	143.96M	29.27M
Total Debt	0.00	928.00K	1.32M	1.53M	841.00K	47.58M
Total Liabilities	33.35M	31.39M	39.14M	51.64M	81.34M	455.74M
Stockholders Equity	24.27M	39.48M	52.48M	46.93M	50.66M	-398.46M
Cash Flow
Free Cash Flow	-32.44M	-22.47M	-14.45M	-53.32M	-44.05M	-9.53M
Operating Cash Flow	-27.23M	-15.60M	-7.56M	-48.00M	-38.89M	-6.65M
Investing Cash Flow	-5.21M	-6.86M	-6.89M	-5.32M	-5.16M	-2.87M
Financing Cash Flow	0.00	0.00	-1.94M	-1.00M	159.25M	12.29M

Nerdy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRDY, the sentiment is Negative. The current price of 0.98 is below the 20-day moving average (MA) of 1.03, below the 50-day MA of 1.13, and below the 200-day MA of 1.35, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.89 is Neutral, neither overbought nor oversold. The STOCH value of 25.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NRDY.

Nerdy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDVT	73 Outperform	$640.73M	59.05	11.58%	―	22.27%	117.93%
EB	64 Neutral	$433.92M	-38.14	-5.81%	―	-11.54%	-54.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MAPS	60 Neutral	$121.51M	10.29	18.24%	―	0.59%	―
ONTF	59 Neutral	$338.43M	-10.78	-20.20%	―	-6.23%	28.57%
FRGE	52 Neutral	$618.85M	-9.07	-28.65%	―	16.40%	22.80%
NRDY	48 Neutral	$183.59M	-2.86	-120.79%	―	-9.86%	0.87%

Nerdy Corporate Events

Nerdy Secures $50 Million Loan Agreement

On November 3, 2025, Nerdy Inc. entered into a Loan and Security Agreement with Hercules Capital, Inc., securing up to $50 million in term loans. The agreement allows for two tranches, with the first $30 million tranche available immediately and the second $20 million tranche contingent on lender approval. The loan matures on November 1, 2029, and includes interest-only payments for the first 36 months, which can be extended by 12 months upon meeting certain milestones. The loan is secured by the company’s assets, and it includes various covenants and conditions, such as maintaining a minimum cash reserve and limiting additional indebtedness.

The most recent analyst rating on (NRDY) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Nerdy stock, see the NRDY Stock Forecast page.