Nerdy (NRDY)
NYSE:NRDY
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Nerdy
(NYSE:NRDY)
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Rating:45Neutral
Price Target:
$0.84
▼(-10.64% Downside)
Action:Reiterated
Date:05/09/26
The score is primarily held back by weak financial quality (ongoing losses, continued cash burn, and a weaker balance sheet with higher leverage). Technical indicators also reflect a bearish trend. Partially offsetting these, the latest earnings call points to improving profitability (positive adjusted EBITDA) and margin gains, but near-term guidance and declining members/institutional bookings temper confidence; valuation is difficult to support due to losses and no dividend.
Positive Factors
Revenue re-acceleration and strong gross margin
A durable top-line re-acceleration (+63.7% TTM) combined with consistently high gross margins (~59.5% TTM) indicates the platform has favorable unit economics and pricing power. This supports sustainable margin capture as scale recovers and underpins long-term profitability potential if growth persists.
Negative Factors
Negative operating and free cash flow
Persistent negative operating cash flow and free cash flow indicate ongoing cash burn despite margin gains. This constrains strategic flexibility, increases reliance on financing or the term loan, and makes the company vulnerable to slower revenue recovery or adverse funding conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue re-acceleration and strong gross margin
A durable top-line re-acceleration (+63.7% TTM) combined with consistently high gross margins (~59.5% TTM) indicates the platform has favorable unit economics and pricing power. This supports sustainable margin capture as scale recovers and underpins long-term profitability potential if growth persists.
Read all positive factors
Nerdy (NRDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$156.12M
Dividend YieldN/A
Average Volume (3M)502.72K
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth-2.16%
EPS Growth31.21%
CountryUS
Employees600
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.28
Shares Outstanding124,219,826
10 Day Avg. Volume432,733
30 Day Avg. Volume502,716
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)6.61
Price to Sales (P/S)0.70
P/FCF Ratio-5.19
Enterprise Value/Market Cap0.49
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit0.71
Enterprise Value/Ebitda-2.02
Forecast
1Y Price Target
$2.50Price Target Upside165.96% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.2
Revenue Forecast (FY)$182.35M
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 learnin...
How the Company Makes Money
Nerdy generates revenue primarily by selling access to live online instruction and related learning services through two main models: (1) Direct-to-consumer offerings (including its Varsity Tutors-branded business) where families and individual le...
Nerdy Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call emphasizes a strong operational and financial inflection: the company beat revenue guidance, returned to positive adjusted EBITDA, delivered substantial gross and adjusted margin expansion, and demonstrated clear product velocity from its AI‑native V3 launch. Those positives are tempered by a still‑shrinking active member base (down 9% YoY), meaningful weakness in institutional bookings (Q1 bookings $1.1M vs $4M prior year), and seasonally weaker Q2 guidance that reflects near‑term revenue pressure. Management highlights structural cost improvements, improved cash and FCF trends, and early cohort signals that retention will improve as V3 rolls out more broadly, supporting confidence in a return to active member growth later in 2026.Positive Updates
Revenue Beat and Modest Top-Line Growth
Revenue of $48.7M beat the top end of guidance ($46M–$48M) and was up 2% year‑over‑year.
Negative Updates
Active Members Still Declining
Active members were 36,900, down 9% year‑over‑year; management noted the rate of decline narrowed for the third consecutive quarter but recovery to positive active member growth is only expected by end of 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Beat and Modest Top-Line Growth
Revenue of $48.7M beat the top end of guidance ($46M–$48M) and was up 2% year‑over‑year.
Read all positive updates
Company Guidance
Nerdy guided Q2 2026 revenue of $42–44M and non‑GAAP adjusted EBITDA of negative $2M to breakeven, and reiterated full‑year 2026 revenue of $180–190M with full‑year adjusted EBITDA expected to be approximately breakeven; they expect to end 2026 with $40–45M in cash (inclusive of $20M drawn on the term loan) and to return to positive active‑member growth by the end of 2026. Management cautioned Q2 will be pressured by weaker Varsity Tutors for Schools bookings (Q1 bookings $1.1M vs $4M a year ago) and by lapping the Feb‑2025 price increases (which will moderate ARPM growth), while expecting H2 stability in institutional funding and improving consumer retention as V3, Maya and new content roll out. For context, Q1 results framing the guide were: revenue $48.7M, Learning Membership $38.9M (80% of revenue), ARPM $374 (+12% YoY), active members 36,900 (-9% YoY), gross margin 66.2% (+820 bps YoY), non‑GAAP adjusted EBITDA +$1.0M (≈$7.3M improvement YoY; adjusted EBITDA margin +~1,500 bps YoY), cash $44.7M and free cash flow -$3.0M (improved from -$7.6M).Nerdy Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
44
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 180.13M | 178.99M | 190.23M | 193.40M | 162.66M | 140.66M |
| Gross Profit | 108.14M | 102.58M | 128.39M | 136.45M | 112.93M | 93.96M |
| EBITDA | -38.04M | -53.16M | -62.54M | -50.80M | -84.29M | -87.06M |
| Net Income | -33.50M | -39.92M | -42.59M | -40.17M | -35.40M | -27.32M |
Balance Sheet | ||||||
| Total Assets | 72.97M | 76.17M | 92.51M | 124.74M | 132.69M | 177.15M |
| Cash, Cash Equivalents and Short-Term Investments | 44.70M | 47.90M | 52.54M | 74.82M | 90.72M | 143.96M |
| Total Debt | 19.45M | 19.33M | 928.00K | 1.32M | 1.53M | 841.00K |
| Total Liabilities | 44.04M | 47.23M | 31.39M | 39.14M | 51.64M | 81.34M |
| Stockholders Equity | 19.30M | 19.01M | 39.48M | 52.48M | 46.93M | 50.66M |
Cash Flow | ||||||
| Free Cash Flow | -19.56M | -24.22M | -22.47M | -14.45M | -53.32M | -44.05M |
| Operating Cash Flow | -14.18M | -18.85M | -15.60M | -7.56M | -48.00M | -38.89M |
| Investing Cash Flow | -5.38M | -5.37M | -6.86M | -6.89M | -5.32M | -5.16M |
| Financing Cash Flow | 19.25M | 19.50M | 0.00 | -1.94M | -1.00M | 159.25M |
Nerdy Technical Analysis
Positive
0.94
Price Trends
0.91
Positive
1.02
Negative
1.16
Negative
Market Momentum
0.01
Negative
58.45
Neutral
70.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRDY, the sentiment is Positive. The current price of 0.94 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.91, and below the 200-day MA of 1.16, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 58.45 is Neutral, neither overbought nor oversold. The STOCH value of 70.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NRDY.
Nerdy Risk Analysis
Nerdy disclosed 55 risk factors in its most recent earnings report. Nerdy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nerdy Peers Comparison
UnderperformOutperform
Sector (61)
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-51.71%
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Nerdy Corporate Events
Executive/Board ChangesShareholder Meetings
Nerdy Shareholders Back Directors, Auditor and Executive Pay
Positive
May 4, 2026
At its virtual-only annual meeting held on April 30, 2026, Nerdy reported that shareholders representing 85% of its outstanding common stock were present or represented by proxy, demonstrating robust investor engagement in the company’s gove...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Nerdy Appoints New Chief Financial Officer for Growth
Positive
Apr 6, 2026
Nerdy Inc., a leading platform for live online learning and AI-powered tutoring, offers personalized education services through its Varsity Tutors brand to learners of all ages, both directly and via institutional partnerships. The company focuses...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.