Nerdy, Inc. (NRDY) Market Cap
Nerdy, Inc. has a market capitalization of $116.7M.
Financials based on reported quarter end 2025-12-31
Price: $0.94
▼ -0.01 (-1.08%)
Market Cap: 116.71M
NYSE · time unavailable
CEO: Charles Cohn
Sector: Technology
Industry: Software - Application
IPO Date: 2020-11-27
Website: https://www.nerdy.com
Nerdy, Inc. (NRDY) - Company Information
Market Cap: 116.71M · Sector: Technology
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 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.
Analyst Sentiment
Based on 4 ratings
Analyst 1Y Forecast: $1.00
Average target (based on 1 sources)
Consensus Price Target
Low
$1
Median
$1
High
$1
Average
$1
Potential Upside: 6.3%
Price & Moving Averages
Related Companies in Technology
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"NRDY reported a revenue of $49.11M for the most recent fiscal year but posted a net loss of $9.24M. The company's earnings per share (EPS) is negative at -$0.0751. Operating cash flow stood at -$2.93M, indicating challenges in generating cash through operations. NRDY’s balance sheet is relatively solid with total assets of $76.17M against total liabilities of $47.23M, resulting in total equity of $28.93M. Net debt is negative, suggesting strong liquidity with total liabilities covered by assets. However, recent market performance has been particularly poor, with the stock price down 49.60% over the past year, reflecting negative investor sentiment. Given the absence of dividends and declining stock performance, shareholder returns are currently low. The overall financial health shows significant risks, particularly with ongoing losses and cash flow issues, which could impact future growth potentials. The stock's price fluctuates around $0.8266, with analysts rating a target consensus of $1."
Revenue Growth
Revenue of $49.11M shows potential, but growth trends need improvement.
Profitability
Net income is negative at -$9.24M, indicating profitability challenges.
Cash Flow Quality
Negative operating cash flow of -$2.93M raises concerns about liquidity and cash generation.
Leverage & Balance Sheet
Total assets exceed liabilities, providing some stability, but equity is still low.
Shareholder Returns
Shareholder returns are minimal with a significant stock price decline and no dividends.
Analyst Sentiment & Valuation
Analysts have a target consensus at $1, indicating some recovery expectations, but confidence is low.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
So What?: Nerdy delivered a clear near-term profitability inflection and improving unit economics, but the institutional business remains exposed to government funding timing. In Q4, revenue was $49.1M (+2% YoY) and topped $45M–$47M guidance, while non-GAAP adjusted EBITDA swung to +$1.3M versus guidance of -$2M to breakeven, with >1,400 bps YoY adjusted EBITDA margin expansion and gross margin (ex abandonment charge) up to 66.8%. Management’s Q&A tone was constructive: they claim the replatforming removes tech friction, enables ~“10x faster” iteration, and should deepen engagement and retention (parity-plus at launch, now moving to context-driven post-session automation). However, the biggest operational hurdle is still institutional contracting delays (Varsity Tutors for Schools bookings -11% YoY; revenue $7.2M) which management flags as driven by federal/state funding delays. The 2026 plan targets breakeven non-GAAP adjusted EBITDA, with margin expansion tied to continued tutor incentive optimization and membership mix shifts.
Growth Catalysts
- Live + AI platform: AI-native learner/expert experiences rolled out in Q4 with higher engagement expectations
- Higher-frequency learning memberships and customer price increases driving improved retention and ARPAM
- Operational efficiency from automation (tutor matching, substitution, customer service, scheduling) and headcount reduction
- Tutor incentives optimization improving time-to-first-session, sessions in first 30 days, lower replacement rates, and higher retention
Business Development
- Varsity Tutors for Schools executed 56 contracts in Q4 2025 (quarterly bookings $4.1M)
Financial Highlights
- Q4 revenue: $49.1M (+2% YoY), above guidance $45M–$47M (top end guidance beat)
- Q4 non-GAAP adjusted EBITDA: +$1.3M vs guidance -$2M to breakeven; +$6.8M vs Q4 2024
- Non-GAAP adjusted EBITDA margin: expanded by >1,400 bps YoY in Q4
- Q4 gross margin (ex abandonment charge): 66.8% vs 66.6% in Q4 2024
- Sequential gross margin improvement: ~+380 bps vs earlier 2025 periods (excluding abandonment charge)
- Active members ended Dec 31: 33,200
- Consumer learning memberships revenue: $41.6M (+6% YoY), 85% of total revenue
- ARPAM as of Dec 31: $364 (+21% YoY)
- Institutional revenue: $7.2M (14% of total); impacted by federal/state funding delays
- Institutional bookings: $4.1M, down 11% YoY
Capital Funding
- Cash and cash equivalents: $47.9M as of Dec 31, 2025
- Term loan funding available: $20M included in expected ending cash
- Expected end-2026 cash: $40M–$45M (inclusive of $20M funded under new term loan)
- No buyback/debt balance amounts explicitly stated beyond term loan funding availability
Strategy & Ops
- Completed rollout of new learner and expert experiences in Q4 on entirely new AI-native code base
- Strategic decision in Q4 to abandon certain components of previously capitalized internal-use software (modernization/replatforming)
- Automation-driven headcount reduction: down ~22% YoY as of Dec 31
- Replatforming described as enabling 'running like 10 times faster' for development (management claim)
Market Outlook
- Q1 2026 revenue guidance: $46M–$48M
- Full-year 2026 revenue guidance: $180M–$190M
- Q1 2026 non-GAAP adjusted EBITDA guidance: approximately breakeven
- Full-year 2026 non-GAAP adjusted EBITDA guidance: approximately breakeven (non-GAAP adj EBITDA margin improvement >1,000 bps vs FY2025)
- Gross margin expected to expand each quarter in 2026 (tutor incentive optimization + mix shift to higher-frequency memberships)
Risks & Headwinds
- Institutional revenue/bookings pressure from federal and state funding delays impacting high-dosage tutoring contracting and program start dates
- Need to manage tutor incentive optimization to sustain gross margin expansion (optimization described as ongoing requirement)
- Growth depends on active member growth and top-of-funnel discoverability (search/algorithm environment referenced by analyst question as 'Google… Andromeda')
- Platform rollout still in early adoption per management: 2026 guidance does not yet reflect full benefit of the new platform rollout
Sentiment: MIXED
Note: This summary was synthesized by AI from the NRDY Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.