Nerdy (NYSE:NRDY) Announces Quarterly Earnings Results

Nerdy (NYSE:NRDY) issued its quarterly earnings data on Thursday. The company reported ($0.08) EPS for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.02), FiscalAI reports. Nerdy had a negative return on equity of 81.74% and a negative net margin of 22.95%.The firm had revenue of $49.11 million for the quarter, compared to analyst estimates of $45.75 million.

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

• Q4 beat expectations — revenue was $49.1M (up 2% YoY), non‑GAAP adjusted EBITDA was positive $1.3M, ARPM reached $364 and active members were 33.2k, marking a return to consolidated growth.
• AI‑native replatform completed — the new Live+AI learner and expert experiences are live, drove an 82% satisfaction score in early surveys, and introduced features (personalized lesson plans, “moments of learning”) that improved utilization and retention.
• Structural cost and efficiency gains — headcount down ~22%, gross margin (ex‑one‑time charge) at 66.8%, and non‑GAAP EBITDA margin expanded ~1,400 bps YoY, positioning the company for operating leverage as growth resumes.
• One‑time abandonment charge — management wrote off components of prior capitalized software during the replatforming, a nonrecurring charge that weighed on GAAP results and required disclosure.
• Institutional demand softness — schools bookings declined (56 contracts, $4.1M bookings, down 11% YoY) and institutional revenue continues to be pressured by federal/state funding delays, which could constrain near‑term institutional growth.

Nerdy Stock Up 1.2%

Shares of Nerdy stock traded up $0.01 during trading hours on Thursday, reaching $0.94. 773,931 shares of the company’s stock were exchanged, compared to its average volume of 741,508. The business has a fifty day moving average of $1.04 and a two-hundred day moving average of $1.15. The company has a market capitalization of $176.26 million, a P/E ratio of -2.69 and a beta of 1.80. Nerdy has a 1 year low of $0.77 and a 1 year high of $1.90.

Insider Buying and Selling at Nerdy

In related news, CFO Jason H. Pello sold 49,814 shares of Nerdy stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $0.97, for a total transaction of $48,319.58. Following the transaction, the chief financial officer owned 2,646,235 shares in the company, valued at approximately $2,566,847.95. This trade represents a 1.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Christopher C. Swenson sold 32,641 shares of the business’s stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $0.97, for a total value of $31,661.77. Following the transaction, the insider directly owned 2,022,742 shares in the company, valued at $1,962,059.74. This trade represents a 1.59% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders acquired 2,281,703 shares of company stock worth $3,067,576 and sold 262,122 shares worth $310,875. 50.94% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of NRDY. Bank of America Corp DE boosted its position in shares of Nerdy by 41.9% during the 4th quarter. Bank of America Corp DE now owns 60,565 shares of the company’s stock valued at $98,000 after acquiring an additional 17,889 shares during the last quarter. AQR Capital Management LLC raised its stake in Nerdy by 67.9% during the first quarter. AQR Capital Management LLC now owns 37,660 shares of the company’s stock worth $53,000 after purchasing an additional 15,234 shares during the period. Strs Ohio acquired a new position in Nerdy in the 1st quarter valued at about $56,000. Marshall Wace LLP purchased a new stake in shares of Nerdy in the 2nd quarter valued at approximately $221,000. Finally, Jane Street Group LLC increased its holdings in shares of Nerdy by 27.0% during the 2nd quarter. Jane Street Group LLC now owns 83,470 shares of the company’s stock worth $136,000 after buying an additional 17,768 shares during the last quarter. Hedge funds and other institutional investors own 39.10% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have weighed in on NRDY shares. Wall Street Zen raised shares of Nerdy from a “sell” rating to a “hold” rating in a report on Sunday, November 16th. Cantor Fitzgerald cut their price target on Nerdy from $1.50 to $1.00 and set a “neutral” rating for the company in a research note on Friday, November 7th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Nerdy in a research report on Thursday, January 22nd. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Nerdy has an average rating of “Reduce” and an average target price of $1.25.

Nerdy Company Profile

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.