Education
About Us
Working with TipRanks
Follow Us
Nerdy (NRDY)
NYSE:NRDY
Top Page
Nerdy
(NYSE:NRDY)
Rating:48Neutral
Price Target:―
Positive Factors
AI Tools
The company is in the process of rolling out a suite of context-aware AI tools through the new Nerdy desktop app that will provide real-time guidance to tutors and students, which should result in further boost retention.
AI-Driven Engagement
Nerdy's AI tools are enhancing frequency and engagement amongst new learners, leading to higher usage and a 99% positive feedback rate from parents and students.
Revenue Growth
Learning Membership revenue returned to growth for first time amid a renewed focus on higher-frequency tutoring, complemented by ongoing improvements to the user experience and benefits from Expert incentives.
Negative Factors
Guidance Disappointment
There is disappointment in the guidance update.
Institutional Revenue Decline
The company's Institutional revenue fell 34% due to a combination of lower Institutional bookings over recent quarters and a cautious government funding environment.
Macroeconomic Uncertainty
Macro/regulatory uncertainty has the potential to pressure both consumer and institutional budgets in 2025.
Nerdy (NRDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$235.96M
Dividend YieldN/A
Average Volume (3M)422.30K
Price to Earnings (P/E)―
Beta (1Y)1.71
Revenue Growth-10.85%
EPS Growth-15.09%
CountryUS
Employees600
SectorTechnology
Sector Strength94
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.04
Shares Outstanding121,403,404
10 Day Avg. Volume568,910
30 Day Avg. Volume422,295
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue0.99
Enterprise Value/Gross Profit1.55
Enterprise Value/Ebitda-2.65
Forecast
1Y Price Target
$2.50Price Target Upside96.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Nerdy Business Overview & Revenue Model
Company DescriptionNerdy, 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 MoneyNerdy 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 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: -15.33%|
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call revealed significant progress in AI integration and product enhancements, leading to growth in Learning Membership revenue and school bookings. However, the company faced a decline in total revenue due to specific non-recurring factors. Despite these challenges, the company remains on track to achieve profitability by Q4 2025, with sequential improvements anticipated throughout the year.Q2-2025 Updates
Positive Updates
AI-Powered Product Enhancements
Nerdy advanced its Live+AI vision, integrating AI at all stages of learning to increase engagement and retention, resulting in improved customer satisfaction and operational efficiency.
Learning Membership Revenue Growth
Learning Membership revenue returned to year-over-year growth for the first time since Q2 2024, with a 4% increase to $37.8 million, representing 84% of total revenue.
Varsity Tutors for Schools Bookings Growth
Bookings grew 21% year-over-year, driven by demand for high-dosage tutoring and positive response to the Live+AI platform.
Gross Margin Expansion
Gross margin expanded 350 basis points sequentially from the first quarter.
AI Tools for Schools
Over 30 new AI tools were launched for educators, helping to streamline tasks and personalize learning, aiming to improve student outcomes.
Impressive Retention and Engagement Metrics
Nerdy reported improvements in retention, customer onboarding, and activation, with higher frequency Learning Memberships driving engagement.
Negative Updates
Revenue Decline
Total revenue decreased 11% year-over-year to $45.3 million, primarily due to lower institutional revenue and a non-recurring state-funded program.
Non-GAAP Adjusted EBITDA Loss
The company reported a non-GAAP adjusted EBITDA loss of $2.7 million, though this was better than the top end of their expectations.
Institutional Revenue Challenges
Institutional revenue faced challenges with a cautious federal and state funding environment, although it is expected to return to growth in Q4 2025.
Company Guidance
In the second quarter of 2025, Nerdy, Inc. reported significant metrics and guidance that signal a positive trajectory for the company's financial and operational performance. The company achieved a total revenue of $45.3 million, despite an 11% decrease year-over-year, attributed primarily to the absence of a non-recurring state-funded program. However, the Consumer Learning Membership revenue grew by 4% year-over-year to $37.8 million, accounting for 84% of total revenue, with Active Members standing at 30,600 and an Average Revenue Per Member (ARPM) increasing by 24% year-over-year to $348. The gross margin expanded sequentially by 350 basis points from Q1, and Nerdy anticipates continued sequential improvements throughout 2025. The company's non-GAAP adjusted EBITDA loss of $2.7 million was better than expected, reflecting operational efficiencies and product enhancements. Looking forward, Nerdy expects consumer revenue growth to accelerate each quarter, driven by higher customer engagement and retention, as well as AI-powered product innovations. The company also projects to achieve profitability by the fourth quarter of 2025, with a full-year revenue forecast between $191 million and $197 million and ending the year with cash reserves of $30 million to $35 million and no debt.Nerdy Financial Statement Overview
Summary
Nerdy demonstrates strong revenue growth and a solid cash position, but continuous losses and negative cash flows highlight the need for improved operational efficiency and profitability. While the balance sheet shows financial stability with improved equity, the company must address its cash flow issues to sustain long-term growth.Income Statement
Nerdy's income statement shows a consistent increase in revenue over the years, indicating growth potential, with a revenue growth rate of 16.3% from 2020 to 2021 and 18.1% from 2019 to 2020. However, the company is struggling with profitability, as shown by negative EBIT and net profit margins. The gross profit margin in 2024 was approximately 67.5%, but the net profit margin remains negative due to significant losses.45
Neutral
Balance Sheet
The balance sheet indicates Nerdy has consistently maintained a strong cash position with no debt as of 2024, which is a positive sign of financial stability. Despite this, the company has faced challenges in sustaining positive equity. The debt-to-equity ratio is not applicable in 2024 due to zero debt, but the equity ratio has improved to about 42.7%, reflecting a strengthened balance sheet.50
Neutral
Cash Flow
Nerdy's cash flow statements reveal negative operating and free cash flows, indicating difficulties in generating cash from its core operations. The free cash flow to net income ratio is negative, showing reliance on external funding. This presents a challenge for future liquidity and investment capabilities.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 178.38M | 190.23M | 193.40M | 162.66M | 140.66M | 103.97M |
| Gross Profit | 113.84M | 128.39M | 136.45M | 112.93M | 93.96M | 69.13M |
| EBITDA | -66.44M | -62.54M | -50.80M | -57.37M | -87.06M | -11.89M |
| Net Income | -44.44M | -42.59M | -40.17M | -35.40M | -27.32M | -24.66M |
Balance Sheet | ||||||
| Total Assets | 73.69M | 92.51M | 124.74M | 132.69M | 177.15M | 57.27M |
| Cash, Cash Equivalents and Short-Term Investments | 36.72M | 52.54M | 74.82M | 90.72M | 143.96M | 29.27M |
| Total Debt | 0.00 | 928.00K | 4.67M | 1.53M | 841.00K | 47.58M |
| Total Liabilities | 24.95M | 31.39M | 39.14M | 51.64M | 81.34M | 455.74M |
| Stockholders Equity | 31.83M | 39.48M | 52.48M | 46.93M | 50.66M | -398.46M |
Cash Flow | ||||||
| Free Cash Flow | -33.30M | -22.47M | -14.45M | -53.32M | -44.05M | -9.53M |
| Operating Cash Flow | -27.86M | -15.60M | -7.56M | -48.00M | -38.89M | -6.65M |
| Investing Cash Flow | -5.44M | -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
Negative
1.27
Price Trends
1.59
Negative
1.58
Negative
1.55
Negative
Market Momentum
-0.08
Positive
37.15
Neutral
26.14
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 1.27 is below the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.59, and below the 200-day MA of 1.55, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 37.15 is Neutral, neither overbought nor oversold. The STOCH value of 26.14 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 56 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.07B | 20.13 | 17.50% | ― | 6.75% | 97.06% | |
63 Neutral | $1.47B | ― | -5.41% | ― | 5.96% | 50.29% | |
62 Neutral | £501.04M | 27.14 | 0.85% | 2.82% | 3.88% | -21.07% | |
60 Neutral | $2.26B | ― | -11.47% | ― | 29.63% | 29.87% | |
57 Neutral | $1.49B | ― | -33.99% | ― | 9.93% | -11.15% | |
56 Neutral | $1.10B | 182.58 | -0.50% | ― | 22.16% | -107.92% | |
48 Neutral | $235.96M | ― | -105.81% | ― | -10.85% | -15.09% |
* Technology Sector Average
Performance Comparison
NRDY
Nerdy
1.27
0.39
44.32%
SEMR
SEMrush Holdings
7.42
-6.42
-46.39%
ALKT
Alkami Technology
22.65
-8.68
-27.71%
CXM
Sprinklr
8.04
-0.91
-10.17%
MLNK
MeridianLink
19.80
-1.74
-8.08%
AMPL
Amplitude
11.36
2.87
33.80%
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.