Nerdy (NRDY)
NYSE:NRDY
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Nerdy
(NYSE:NRDY)
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Rating:46Neutral
Price Target:
$0.79
▼(-1.63% Downside)
Action:ReiteratedDate:03/03/26
The score is held down primarily by weak financial performance (persistent losses, negative cash flow, and higher leverage), with technicals also indicating a weak trend. The most meaningful positive is the earnings-call outlook, highlighting a credible path toward breakeven adjusted EBITDA and improving margins in 2026, partially offset by institutional funding headwinds.
Positive Factors
AI-native platform
Completing an AI-native platform is a durable product and operational upgrade that can sustainably improve matching, session utilization, and retention. High early satisfaction (85%+ positive, feature >95% approval) supports differentiation, reduces churn, and enables automation-driven unit cost declines over time.
Negative Factors
Persistent negative cash flow
Consistent negative operating and free cash flow means the business remains reliant on external capital to fund operations and growth. That dependence constrains strategic flexibility, raises refinancing and dilution risk, and makes sustainable profitability and self-funding a necessary but unproven near-term condition.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-native platform
Completing an AI-native platform is a durable product and operational upgrade that can sustainably improve matching, session utilization, and retention. High early satisfaction (85%+ positive, feature >95% approval) supports differentiation, reduces churn, and enables automation-driven unit cost declines over time.
Read all positive factors
Nerdy (NRDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$151.58M
Dividend YieldN/A
Average Volume (3M)759.77K
Price to Earnings (P/E)―
Beta (1Y)1.77
Revenue Growth-9.86%
EPS Growth0.87%
CountryUS
Employees600
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.08
Shares Outstanding124,219,826
10 Day Avg. Volume559,776
30 Day Avg. Volume759,768
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 Cap0.47
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit0.70
Enterprise Value/Ebitda-2.54
Forecast
1Y Price Target
$2.50Price Target Upside212.50% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.06
Revenue Forecast (FY)$182.54M
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 live online tutoring and instruction delivered via its platform. A core revenue stream is direct-to-consumer spending through the Varsity Tutors marketplace, where learners (or parents) purchase tutorin...
Nerdy Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presented a clear progression from restructuring to recovery: management delivered sequential improvement in growth, positive non-GAAP adjusted EBITDA, substantial ARPAM increases, and completion of an AI-native platform with strong early customer feedback. These operational and margin improvements were balanced against institutional funding headwinds, an abandonment charge tied to the replatform, and the need to grow a relatively small active member base. Management provided constructive 2026 guidance (revenue range and target breakeven adjusted EBITDA) and affirmed adequate near-term liquidity, suggesting momentum headed into the year.Positive Updates
Return to Revenue Growth and Beat Guidance
Q4 revenue of $49.1M, up 2% year-over-year (from $48.0M) and above guidance ($45M–$47M). This marks the first quarter since 2024 with simultaneous consumer and institutional growth and the third consecutive quarter of sequential improvement in year-over-year growth rates.
Negative Updates
Institutional Bookings and Funding Headwinds
Institutional bookings in Q4 were $4.1M from 56 contracts, down 11% year-over-year. Institutional revenue ($7.2M, 14% of total) and bookings continue to be affected by federal and state funding delays and related program start-date impacts, creating near-term uncertainty for the institutional business.
Read all updates
Q4-2025 Updates
Positive
Negative
Return to Revenue Growth and Beat Guidance
Q4 revenue of $49.1M, up 2% year-over-year (from $48.0M) and above guidance ($45M–$47M). This marks the first quarter since 2024 with simultaneous consumer and institutional growth and the third consecutive quarter of sequential improvement in year-over-year growth rates.
Read all positive updates
Company Guidance
Nerdy guided Q1 2026 revenue of $46–48 million and full‑year 2026 revenue of $180–190 million, with both Q1 and full‑year non‑GAAP adjusted EBITDA expected to be approximately breakeven (management says this represents an improvement of more than 1,000 basis points in full‑year adjusted EBITDA margin versus 2025); they expect gross margin to expand each quarter as tutor incentives are optimized and consumer mix shifts to higher‑frequency memberships, plan to end 2026 with $40–45 million of cash (inclusive of the $20 million funded term loan), and noted the guidance does not yet reflect the full benefit of the new AI‑native platform.Nerdy Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
40
Negative
Cash Flow
27
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 178.99M | 190.23M | 193.40M | 162.66M | 140.66M |
| Gross Profit | 102.58M | 128.39M | 136.45M | 112.93M | 93.96M |
| EBITDA | -53.16M | -62.54M | -50.80M | -84.29M | -87.06M |
| Net Income | -39.92M | -42.59M | -40.17M | -35.40M | -27.32M |
Balance Sheet | |||||
| Total Assets | 76.17M | 92.51M | 124.74M | 132.69M | 177.15M |
| Cash, Cash Equivalents and Short-Term Investments | 47.90M | 52.54M | 74.82M | 90.72M | 143.96M |
| Total Debt | 19.33M | 928.00K | 1.32M | 1.53M | 841.00K |
| Total Liabilities | 47.23M | 31.39M | 39.14M | 51.64M | 81.34M |
| Stockholders Equity | 19.01M | 39.48M | 52.48M | 46.93M | 50.66M |
Cash Flow | |||||
| Free Cash Flow | -24.22M | -22.47M | -14.45M | -53.32M | -44.05M |
| Operating Cash Flow | -18.85M | -15.60M | -7.56M | -48.00M | -38.89M |
| Investing Cash Flow | -5.37M | -6.86M | -6.89M | -5.32M | -5.16M |
| Financing Cash Flow | 19.50M | 0.00 | -1.94M | -1.00M | 159.25M |
Nerdy Technical Analysis
Negative
0.80
Price Trends
0.95
Negative
1.03
Negative
1.21
Negative
Market Momentum
-0.04
Positive
33.48
Neutral
23.71
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 0.8 is below the 20-day moving average (MA) of 0.88, below the 50-day MA of 0.95, and below the 200-day MA of 1.21, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 33.48 is Neutral, neither overbought nor oversold. The STOCH value of 23.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $494.55M | 60.77 | 13.47% | ― | 22.27% | 117.93% | |
66 Neutral | $347.22M | -11.71 | -19.64% | ― | -6.23% | 28.57% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $96.74M | 44.82 | 3.65% | ― | 0.59% | ― | |
46 Neutral | $151.58M | -3.15 | -145.86% | ― | -9.86% | 0.87% |
* Technology Sector Average
NRDY
Nerdy
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-43.45%
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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.