Nerdy (NYSE:NRDY) Posts Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Nerdy (NYSE:NRDY) released its quarterly earnings results on Thursday. The company reported ($0.08) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.02), FiscalAI reports. Nerdy had a negative net margin of 22.95% and a negative return on equity of 81.74%. The firm had revenue of $49.11 million for the quarter, compared to the consensus estimate 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 Trading Up 1.2%

Shares of NYSE:NRDY traded up $0.01 during mid-day trading on Thursday, reaching $0.94. The company had a trading volume of 773,931 shares, compared to its average volume of 569,503. Nerdy has a one year low of $0.77 and a one year high of $1.90. The company’s 50-day moving average price is $1.04 and its 200-day moving average price is $1.14. The firm has a market cap of $176.26 million, a price-to-earnings ratio of -2.69 and a beta of 1.80.

Analyst Ratings Changes

NRDY has been the topic of several recent analyst reports. Cantor Fitzgerald dropped their target price on shares of Nerdy from $1.50 to $1.00 and set a “neutral” rating on the stock in a research report on Friday, November 7th. Wall Street Zen raised Nerdy from a “sell” rating to a “hold” rating in a research report on Sunday, November 16th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Nerdy in a report on Thursday, January 22nd. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Nerdy has a consensus rating of “Reduce” and a consensus target price of $1.25.

Insiders Place Their Bets

In other news, CEO Charles K. Cohn bought 198,100 shares of the firm’s stock in a transaction on Tuesday, December 2nd. The stock was acquired at an average cost of $1.26 per share, with a total value of $249,606.00. Following the completion of the transaction, the chief executive officer directly owned 1,278,512 shares of the company’s stock, valued at $1,610,925.12. This represents a 18.34% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Over the last three months, insiders acquired 2,281,703 shares of company stock worth $3,067,576 and sold 262,122 shares worth $310,875. Company insiders own 50.94% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Virtu Financial LLC bought a new stake in Nerdy in the 4th quarter valued at about $25,000. Symmetry Peak Management LLC purchased a new position in shares of Nerdy in the fourth quarter worth about $26,000. Engineers Gate Manager LP bought a new stake in shares of Nerdy in the fourth quarter valued at approximately $28,000. AQR Capital Management LLC raised its position in shares of 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 purchasing an additional 15,234 shares during the period. Finally, Strs Ohio purchased a new stake in shares of Nerdy during the 1st quarter valued at approximately $56,000. Institutional investors own 39.10% of the company’s stock.

About Nerdy

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.