Nerdy (NYSE:NRDY) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Nerdy (NYSE:NRDY) released its earnings results on Thursday. The company reported ($0.04) EPS for the quarter, beating the consensus estimate of ($0.05) by $0.01, FiscalAI reports. The company had revenue of $43.23 million during 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%

NYSE NRDY traded down $0.09 on Friday, hitting $0.75. 1,305,554 shares of the stock traded hands, compared to its average volume of 301,826. The company has a current ratio of 2.41, a quick ratio of 2.41 and a debt-to-equity ratio of 0.67. Nerdy has a twelve month low of $0.73 and a twelve month high of $1.49. The stock has a 50-day moving average of $0.88 and a 200 day moving average of $0.90. The company has a market capitalization of $142.77 million, a P/E ratio of -3.00 and a beta of 1.73.

Analyst Ratings Changes

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

Insider Activity

In other Nerdy news, CEO Charles K. Cohn purchased 258,204 shares of Nerdy stock in a transaction dated Thursday, June 11th. The shares were bought at an average cost of $0.97 per share, for a total transaction of $250,457.88. Following the transaction, the chief executive officer owned 477,223 shares in the company, valued at $462,906.31. This represents a 117.89% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In the last 90 days, insiders have bought 978,311 shares of company stock valued at $950,853. Company insiders own 50.99% of the company’s stock.

Hedge Funds Weigh In On Nerdy

Large investors have recently bought and sold shares of the business. Wells Fargo & Company MN grew its holdings in shares of Nerdy by 80.5% during the fourth quarter. Wells Fargo & Company MN now owns 65,041 shares of the company’s stock valued at $68,000 after purchasing an additional 29,007 shares during the last quarter. Geode Capital Management LLC boosted its position in Nerdy by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 1,557,017 shares of the company’s stock valued at $1,620,000 after purchasing an additional 17,325 shares during the period. Moneta Group Investment Advisors LLC boosted its position in Nerdy by 170.7% during the 3rd quarter. Moneta Group Investment Advisors LLC now owns 237,883 shares of the company’s stock valued at $300,000 after purchasing an additional 150,000 shares during the period. Bank of America Corp DE boosted its position in Nerdy by 236.2% during the 2nd quarter. Bank of America Corp DE now owns 123,534 shares of the company’s stock valued at $201,000 after purchasing an additional 86,791 shares during the period. Finally, Jane Street Group LLC grew its stake in 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. Institutional investors own 39.10% of the company’s stock.

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.