NRDY earnings analysis
What we found in NRDY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- Revenue for Q1 2026 was $48.7 million, up 2% versus $47.6 million in Q1 2025.
- Improved Gross Margin
- Gross margin increased to 66% in Q1 2026, up from 58% in the prior year period.
- Reduced Operating Loss
- Operating loss decreased to $5.8 million in Q1 2026, compared to $16.6 million in Q1 2025.
- 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.
- 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.
- Active Revenue per Member Growth
- Average Revenue per Member per Month increased to $374 in Q1 2026, up 12% from $335 in Q1 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Decline in Active Members
- Active members decreased by 9% year-over-year from 40.5k in Q1 2025 to 36.9k in Q1 2026.
- Still Operating Losses
- The company reported an operating loss of $5.8 million in Q1 2026, although improved, it reflects ongoing financial pressure.
- Rising Debt Levels
- Outstanding term loan debt was $20 million with a variable interest rate of 10.75%, increasing financial risk.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.03
- Gross margin
- 66%
- Segment
- Consumer: $39.3M (3% growth)
- Segment
- Institutional: $9.3M (1% decline)
What they said about what is next.
For Q2 2026, revenue guidance is set at $42-$44 million, and the full year is reaffirmed at $180-$190 million.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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