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Nerdy (NRDY)
NYSE:NRDY
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Nerdy
(NYSE:NRDY)
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Rating:46Neutral
Price Target:
$1.00
▼(-5.66% Downside)
The score is held down primarily by weak financial performance (ongoing losses, worsening cash burn, and a steep TTM revenue decline) and bearish technical positioning (below major moving averages). The latest earnings call adds some support due to improving EBITDA trajectory and guidance toward breakeven, but valuation remains constrained by losses and the absence of a dividend.
Positive Factors
AI-Driven Product Innovations
AI-driven innovations enhance learning experiences and operational efficiency, potentially increasing user engagement and retention, which supports long-term growth.
Strong Cash Position
A strong cash position with no debt provides financial stability, enabling strategic investments in AI and product development without immediate financial strain.
New COO Appointment
The new COO's expertise in operational efficiency and technology can drive strategic improvements, enhancing Nerdy's competitive position and operational effectiveness.
Negative Factors
Revenue Decline
A significant revenue decline indicates challenges in maintaining growth momentum, potentially impacting long-term financial performance and market confidence.
Negative Cash Flow
Negative cash flow from operations suggests difficulties in generating sufficient cash internally, which may hinder future investments and liquidity.
Gross Margin Reduction
A reduction in gross margin reflects increased costs or pricing pressures, which can erode profitability and affect long-term financial health.
Nerdy (NRDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$187.33M
Dividend YieldN/A
Average Volume (3M)1.46M
Price to Earnings (P/E)―
Beta (1Y)1.76
Revenue Growth-9.86%
EPS Growth0.87%
CountryUS
Employees600
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.10
Shares Outstanding122,938,630
10 Day Avg. Volume774,524
30 Day Avg. Volume1,458,623
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)4.58
Price to Sales (P/S)0.95
P/FCF Ratio-8.05
Enterprise Value/Market Cap0.71
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit1.20
Enterprise Value/Ebitda-2.33
Forecast
1Y Price Target
$1.79Price Target Upside68.87% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
Nerdy's earnings call highlighted significant strides in AI integration and platform efficiency, leading to improved financial metrics and operational savings. However, these positive developments were overshadowed by product launch delays, a decline in Active Members, and reduced Institutional revenue, which impacted overall revenue growth.Q3-2025 Updates
Positive Updates
AI Integration and Platform Overhaul
Nerdy successfully launched the 2.0 version of its flagship Live Learning Platform, achieving a 50% reduction in audio/video error rates and 40% cost savings per session. The platform overhaul aims to have nearly 100% of traffic on new AI-written code bases by the end of November.
Improved Financial Efficiency
Nerdy delivered a 960 basis point improvement in non-GAAP adjusted EBITDA margin year-over-year, driven by improved operating efficiency and cost reductions across every P&L line item.
Increased ARPM
ARPM increased by 24% year-over-year to $374 as of September 30, 2025, driven by a mix shift to higher frequency Learning Memberships and price increases.
Institutional Segment Innovation
New end-to-end Varsity Tutors for Schools experience aligns with established intervention frameworks like MTSS and RTI, promising better alignment with school operations and improved sellability for district-wide sales.
Negative Updates
Product Launch Delays
Delays in key product launches led to missing out on the back-to-school peak period, impacting anticipated growth and profitability timelines.
Decline in Active Members
Active Members count decreased, affecting revenue. Operational challenges were cited as the reason, prompting the hiring of a new COO to improve execution.
Institutional Revenue Decline
Institutional revenue decreased by 20% year-over-year due to federal and state funding delays impacting high-dosage tutoring contracting and program start dates.
Overall Revenue Decrease
Third quarter revenue decreased by 1% year-over-year to $37 million, impacted by lower Institutional revenue, though partially offset by higher Consumer revenue.
Company Guidance
During Nerdy, Inc.'s Q3 2025 earnings call, the company provided guidance that highlighted several key metrics and strategic plans. The company reported third-quarter revenue of $37 million, within their guidance range of $37 million to $40 million, and a slight decrease from $37.5 million in the same period in 2024. The adjusted EBITDA loss improved by 960 basis points year-over-year, driven by operational efficiencies and cost reductions, with a loss of $10.2 million, beating the guidance of negative $11 million to negative $13 million. The company highlighted a shift in their consumer business towards higher frequency Learning Memberships, which resulted in an ARPM of $374, a 24% increase year-over-year, though active member count was lower than expected at 34.3 thousand. Institutional revenue was $3.7 million, impacted by federal and state funding delays, with Varsity Tutors for Schools securing 44 contracts. Nerdy is targeting nearly 100% of their traffic on new AI-written code bases by the end of November, with improvements in their flagship Live Learning Platform already reducing audio/video error rates by 50% and session costs by 40%. The company anticipates ending the year with $45 million to $48 million in cash, inclusive of a $20 million loan under a new $50 million term loan agreement. For Q4, revenue is expected to range between $45 million and $47 million, with a non-GAAP adjusted EBITDA loss ranging from $2 million to breakeven.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.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.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.| 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
Negative
1.06
Price Trends
1.10
Negative
1.18
Negative
1.38
Negative
Market Momentum
-0.04
Positive
44.44
Neutral
12.84
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 1.06 is below the 20-day moving average (MA) of 1.16, below the 50-day MA of 1.10, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 12.84 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 57 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $751.61M | 68.00 | 11.58% | ― | 22.27% | 117.93% | |
64 Neutral | $437.85M | -20.31 | -11.81% | ― | -11.54% | -54.32% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $135.82M | 11.36 | 18.24% | ― | 0.59% | ― | |
59 Neutral | $338.00M | -10.77 | -20.20% | ― | -6.23% | 28.57% | |
48 Neutral | $618.16M | -9.09 | -28.65% | ― | 16.40% | 22.80% | |
46 Neutral | $187.33M | -3.09 | -120.79% | ― | -9.86% | 0.87% |
* Technology Sector Average
NRDY
Nerdy
1.06
-0.53
-33.33%
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Nerdy Corporate Events
Private Placements and Financing
Nerdy Secures $50 Million Loan Agreement
Neutral
Nov 6, 2025
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.
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.