10-K · February 26, 2026
Nerdy (NRDY) completed a platform reinvention in 2025, migrating “nearly 100% of our traffic on new codebases written with AI” and launching Live Learning Platform 2.0 and a 250+ subject Practice Hub. Q4 revenue beat…
Earnings analysis · 10-Q
NRDY earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Nerdy Inc. reported Q1 2026 results with a revenue of $48.7 million, representing a 2% year-over-year increase, and a narrowed diluted EPS loss of -$0.03 compared to -$0.09 in Q1 2025. Gross margin improved…
Read full summary
Nerdy Inc. reported Q1 2026 results with a revenue of $48.7 million, representing a 2% year-over-year increase, and a narrowed diluted EPS loss of -$0.03 compared to -$0.09 in Q1 2025. Gross margin improved significantly to 66% from 58% due to lower cost of revenue and price increases. Active members decreased by 9% year-over-year, reflecting ongoing challenges in membership retention despite successful revenue growth.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.03
- Gross margin
- 66%
What stood out
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Revenue Growth
Revenue for Q1 2026 was $48.7 million, up 2% versus $47.6 million in Q1 2025.
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Improved Gross Margin
Gross margin increased to 66% in Q1 2026, up from 58% in the prior year period.
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Reduced Operating Loss
Operating loss decreased to $5.8 million in Q1 2026, compared to $16.6 million in Q1 2025.
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Cash Position Maintained
Cash and cash equivalents were $44.7 million as of March 31, 2026, down from $47.9 million at the end of 2025.
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Lower Operating Activities Cash Used
Cash used in operating activities improved to $(1.8) million in Q1 2026, a $4.6 million decrease from $(6.4) million in Q1 2025.
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Active Revenue per Member Growth
Average Revenue per Member per Month increased to $374 in Q1 2026, up 12% from $335 in Q1 2025.
What to watch
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Decline in Active Members
Active members decreased by 9% year-over-year from 40.5k in Q1 2025 to 36.9k in Q1 2026.
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Still Operating Losses
The company reported an operating loss of $5.8 million in Q1 2026, although improved, it reflects ongoing financial pressure.
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Rising Debt Levels
Outstanding term loan debt was $20 million with a variable interest rate of 10.75%, increasing financial risk.
Management's outlook
For Q2 2026, revenue guidance is set at $42-$44 million, and the full year is reaffirmed at $180-$190 million.
Earlier filings 4
10-Q · May 8, 2025
Nerdy Inc. reported Q1 2025 results with revenue of $47.6 million, a decrease from $53.7 million in Q1 2024. Gross margin declined to 58% from 68%, contributing to an operating loss of $16.6 million, and a loss per…
10-K · February 27, 2025
Nerdy positions itself as a technology-first, two-sided live learning platform anchored by its flagship Varsity Tutors business, emphasizing subscription Learning Memberships and Institution-facing, access-based…
10-K · February 27, 2024
Nerdy positions itself as a technology-first, two-sided live learning platform anchored by its flagship Varsity Tutors business and a shift toward subscription Learning Memberships and Institution-facing, access-based…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.