Nerdy (NYSE:NRDY) Announces Earnings Results

by · The Cerbat Gem

Nerdy (NYSE:NRDY – Get Free Report) released its earnings results on Thursday. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.05) by $0.01, FiscalAI reports. The company had revenue of $43.23 million for the quarter, compared to analysts’ expectations of $43.00 million. Nerdy had a negative return on equity of 95.62% and a negative net margin of 16.99%.

Here are the key takeaways from Nerdy’s conference call:

  • Q2 operating performance improved: Revenue was $43.3 million, gross margin expanded 320 basis points to 64.7%, and the adjusted EBITDA loss narrowed 68% year over year to $0.9 million.
  • Nerdy lowered its 2026 revenue outlook to $168 million-$175 million from $180 million-$190 million, primarily due to the planned wind-down of Varsity Tutors for Schools and exit from First Tutors.
  • Learning Memberships declined 5% year over year to 29,100, although the rate of decline has moderated for four consecutive quarters; management expects a return to positive member growth by year-end 2026.
  • The company is concentrating resources on its consumer business, expanding its Study Plan and learning-content platform, and expects the initiatives to improve engagement, retention, and customer acquisition.
  • Year-end cash guidance was reduced to approximately $30 million-$32 million from $40 million-$45 million, reflecting lower collections and wind-down costs, including an estimated $2 million-$4 million of exit-related expenses.

Nerdy Stock Down 10.8%

Shares of NYSE NRDY traded down $0.09 during mid-day trading on Friday, reaching $0.75. The company had a trading volume of 1,305,554 shares, compared to its average volume of 301,826. The company has a debt-to-equity ratio of 0.67, a quick ratio of 2.41 and a current ratio of 2.41. Nerdy has a twelve month low of $0.73 and a twelve month high of $1.49. The stock’s 50 day moving average is $0.88 and its 200-day moving average is $0.90. The stock has a market capitalization of $142.77 million, a PE ratio of -3.00 and a beta of 1.73.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a “sell (e+)” rating on shares of Nerdy in a report on Friday, July 17th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Nerdy currently has an average rating of “Reduce” and a consensus target price of $1.00.

Check Out Our Latest Stock Analysis on NRDY

Insider Buying and Selling

In other news, CEO Charles K. Cohn bought 258,204 shares of the stock in a transaction on Thursday, June 11th. The shares were purchased at an average price of $0.97 per share, for a total transaction of $250,457.88. Following the completion of the purchase, the chief executive officer directly owned 477,223 shares of the company’s stock, valued at $462,906.31. This trade represents a 117.89% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders bought a total of 978,311 shares of company stock valued at $950,853 in the last quarter. Insiders own 50.99% of the company’s stock.

Institutional Investors Weigh In On Nerdy

Institutional investors have recently made changes to their positions in the company. Bank of America Corp DE increased its holdings in Nerdy by 41.9% in the fourth quarter. Bank of America Corp DE now owns 60,565 shares of the company’s stock worth $98,000 after buying an additional 17,889 shares during the last quarter. AQR Capital Management LLC lifted its stake in Nerdy by 67.9% in the first quarter. AQR Capital Management LLC now owns 37,660 shares of the company’s stock valued at $53,000 after acquiring an additional 15,234 shares during the last quarter. Strs Ohio acquired a new stake in Nerdy in the first quarter valued at approximately $56,000. Marshall Wace LLP bought a new stake in Nerdy in the second quarter worth approximately $221,000. Finally, Jane Street Group LLC grew its position in Nerdy by 27.0% in the second quarter. Jane Street Group LLC now owns 83,470 shares of the company’s stock worth $136,000 after acquiring an additional 17,768 shares in the last quarter. 39.10% of the stock is currently owned by institutional investors and hedge funds.

About Nerdy

(Get Free Report)

Nerdy, Inc (NYSE:NRDY) is an American education technology company that operates a live online learning marketplace. Through its flagship Varsity Tutors platform, the company connects students, professionals and lifelong learners with a network of thousands of educators for personalized one-on-one tutoring, group classes and test preparation. The platform leverages proprietary matching algorithms to pair learners with instructors based on subject expertise, learning style and scheduling preferences.

Founded in 2007 by entrepreneur Chuck Cohn, Nerdy began as Varsity Tutors in Washington, DC, before establishing its headquarters in St.

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