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

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

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 Performance

Shares of NRDY traded down $0.09 during trading hours on Friday, reaching $0.75. 1,305,554 shares of the company’s stock traded hands, compared to its average volume of 301,826. The firm has a market capitalization of $142.77 million, a price-to-earnings ratio of -3.00 and a beta of 1.73. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.41 and a quick ratio of 2.41. Nerdy has a twelve month low of $0.73 and a twelve month high of $1.49. The business’s fifty day simple moving average is $0.88 and its two-hundred day simple moving average is $0.90.

Insiders Place Their Bets

In related news, CEO Charles K. Cohn acquired 250,007 shares of Nerdy stock in a transaction that occurred on Monday, June 15th. The stock was acquired at an average price of $1.00 per share, with a total value of $250,007.00. Following the completion of the acquisition, the chief executive officer directly owned 978,311 shares of the company’s stock, valued at $978,311. This trade represents a 34.33% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders have bought a total of 978,311 shares of company stock valued at $950,853 over the last three months. Corporate insiders own 50.99% of the company’s stock.

Institutional Trading of Nerdy

A number of hedge funds and other institutional investors have recently made changes to their positions in NRDY. Virtu Financial LLC acquired a new stake in shares of Nerdy in the 4th quarter worth approximately $25,000. Symmetry Peak Management LLC bought a new position in shares of Nerdy in the fourth quarter valued at approximately $26,000. Engineers Gate Manager LP acquired a new position in shares of Nerdy during the fourth quarter valued at approximately $28,000. AQR Capital Management LLC increased its stake in shares of Nerdy by 67.9% during 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 period. Finally, Strs Ohio bought a new stake in Nerdy during the first quarter worth approximately $56,000. 39.10% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

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

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.