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Nerdy
(NYSE:NRDY)
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Rating:43Neutral
Price Target:
$0.81
▼(-3.21% Downside)
Action:Reiterated
Date:08/07/26
NRDY scores low primarily due to weak financial performance: persistent operating losses, negative free cash flow, stalled revenue, and increased leverage from a reduced equity base. Technicals also lean bearish with the stock below key moving averages and a negative MACD. The earnings call shows real cost and margin progress, but guidance cuts and near-term profitability/cash headwinds cap the score.
Positive Factors
High gross margins
Sustained high gross margins (around 61% TTM, 64.7% YoY in Q2) indicate strong unit economics for live tutoring sessions. Durable per-session profitability provides a foundation to cover fixed costs as scale returns, improving the company's long-term path to operating leverage.
Negative Factors
Negative cash flow
Persistent negative operating and free cash flow (roughly -$13.7M and -$20.6M TTM) means the business still requires external funding to operate and invest. This structural cash burn constrains optionality for strategic spending and raises refinancing risk if improvements stall.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained high gross margins (around 61% TTM, 64.7% YoY in Q2) indicate strong unit economics for live tutoring sessions. Durable per-session profitability provides a foundation to cover fixed costs as scale returns, improving the company's long-term path to operating leverage.
Read all positive factors
Nerdy (NRDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$139.45M
Dividend YieldN/A
Average Volume (3M)836.01K
Price to Earnings (P/E)―
Beta (1Y)1.68
Revenue Growth-0.16%
EPS Growth35.71%
CountryUS
Employees500
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.25
Shares Outstanding127,879,470
10 Day Avg. Volume414,678
30 Day Avg. Volume836,013
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$2.00Price Target Upside138.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.19
Revenue Forecast (FY)$182.52M
Nerdy Business Overview & Revenue Model
Company Description
Nerdy, Inc. provides a leading online platform dedicated to live learning experiences. At its core, the company utilizes a proprietary, custom-built platform, enhanced by technology including artificial intelligence, to efficiently connect student...
How the Company Makes Money
Nerdy makes money primarily by selling online learning services delivered through its platform. Its key revenue streams include: (1) Consumer/Direct-to-consumer tutoring and learning subscriptions or packages, where customers pay for access to tut...
Nerdy Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call conveyed meaningful operational progress: margin expansion (+320 bps), a 68% reduction in adjusted EBITDA loss, ARPM growth (+5%), major product and content investments (15,000+ lessons, Study Plan rollout), and AI-enabled productivity with a 34% headcount reduction producing higher product velocity. However, these positives are tempered by declines in revenue (-4%) and active members (-5%), lowered full-year revenue guidance, near-term negative adjusted EBITDA guidance for Q3, the costs and cash impact of exiting two businesses (VT4S and First Tutors), elevated AI spend, and continued negative free cash flow and net loss. Overall, the company is showing clear operational improvements and a sharpened strategic focus, but material near-term financial headwinds and guidance reductions balance those gains.Positive Updates
Revenue and Consumer Mix
Total revenue of $43.3 million in Q2 2026, with consumer revenue of $36.5 million representing 84% of total revenue.
Negative Updates
Year-over-Year Revenue Decline
Total revenue decreased 4% year-over-year, driven by declines in both consumer and institutional revenue.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Consumer Mix
Total revenue of $43.3 million in Q2 2026, with consumer revenue of $36.5 million representing 84% of total revenue.
Read all positive updates
Company Guidance
Nerdy revised 2026 guidance to $168–$175M in revenue (down from $180–$190M) and Q3 revenue of $32–$35M, citing exits of VT4S and First Tutors; Q3 non‑GAAP adjusted EBITDA is pegged at negative $9M to negative $6M (exiting costs), full‑year non‑GAAP adjusted EBITDA is guided to negative $4M to approximately breakeven (prior ~breakeven), and the company expects to incur $2–$4M of exit‑related costs (mostly in Q3) while reducing annual fixed costs by about $11M. Management now projects year‑end cash of roughly $30–$32M (inclusive of $20M drawn on the term loan) versus a prior $40–$45M expectation, and says existing liquidity should fund the company to free‑cash‑flow breakeven; for context Q2 metrics included $38.4M cash, $43.3M revenue (within $42–$44M guidance), a $0.9M non‑GAAP EBITDA loss (68% Y/Y improvement), Q2 free cash flow of negative $6.3M (24% improvement Y/Y), ARPM $366 (+5% Y/Y) and headcount down 34% Y/Y.Nerdy Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
41
Neutral
Cash Flow
29
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 178.10M | 178.99M | 190.23M | 193.40M | 162.66M | 140.66M |
| Gross Profit | 108.28M | 102.58M | 128.39M | 136.45M | 112.93M | 93.96M |
| EBITDA | -39.93M | -53.16M | -59.46M | -60.79M | -57.37M | -87.06M |
| Net Income | -30.25M | -39.92M | -42.59M | -40.17M | -35.40M | -27.32M |
Balance Sheet | ||||||
| Total Assets | 64.58M | 76.17M | 92.51M | 124.74M | 132.69M | 177.15M |
| Cash, Cash Equivalents and Short-Term Investments | 38.42M | 47.90M | 52.54M | 74.82M | 90.72M | 143.96M |
| Total Debt | 19.58M | 19.33M | 928.00K | 1.32M | 1.53M | 841.00K |
| Total Liabilities | 38.64M | 47.23M | 31.39M | 39.14M | 51.64M | 81.34M |
| Stockholders Equity | 17.28M | 19.01M | 39.48M | 52.48M | 46.93M | 50.66M |
Cash Flow | ||||||
| Free Cash Flow | -17.63M | -24.22M | -22.47M | -14.45M | -53.32M | -44.05M |
| Operating Cash Flow | -11.88M | -18.85M | -15.60M | -7.56M | -48.00M | -38.89M |
| Investing Cash Flow | -5.75M | -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
Negative
0.84
Price Trends
0.87
Negative
0.86
Negative
0.95
Negative
Market Momentum
-0.03
Positive
32.85
Neutral
9.65
Positive
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 0.84 is above the 20-day moving average (MA) of 0.83, below the 50-day MA of 0.87, and below the 200-day MA of 0.95, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 32.85 is Neutral, neither overbought nor oversold. The STOCH value of 9.65 is Positive, 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
UnderperformOutperform
Sector (61)
NRDY
Nerdy
0.74
-0.56
-42.92%
RDVT
Red Violet
71.22
28.53
66.83%
MAPS
WM Technology
0.42
-0.71
-63.27%
Nerdy Corporate Events
Business Operations and StrategyFinancial Disclosures
Nerdy Exits Varsity Tutors for Schools to Refocus
Negative
Aug 6, 2026
On July 31, 2026, Nerdy Inc. approved a plan to wind down its Varsity Tutors for Schools business line, a move that shifts the company’s strategic focus toward its core consumer tutoring operations. The decision marks a retreat from the K...
Executive/Board ChangesRegulatory Filings and Compliance
Nerdy Promotes Kyle Callaway to Chief Accounting Officer
Positive
Jul 15, 2026
Effective July 10, 2026, Nerdy Inc. appointed long-time Controller and Vice President Kyle Callaway as Chief Accounting Officer, reflecting a promotion from within its finance ranks. Callaway has led Nerdy’s accounting and reporting efforts ...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Nerdy Formalizes Former CFO Jason Pello’s Consulting Role
Neutral
May 22, 2026
Nerdy Inc. disclosed that former Chief Financial Officer Jason Pello, who ceased serving as CFO effective April 3, 2026, entered into a Consulting Agreement, Departure Agreement and General Release with the company on May 21, 2026. Under the arran...
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.