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

Nerdy (NYSE:NRDY) posted 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. The firm had revenue of $49.11 million for the quarter, compared to analysts’ expectations of $45.75 million. Nerdy had a negative net margin of 22.95% and a negative return on equity of 81.74%.

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 midday trading on Thursday, hitting $0.94. The company’s stock had a trading volume of 773,931 shares, compared to its average volume of 741,508. Nerdy has a 12-month low of $0.77 and a 12-month high of $1.90. The business’s 50 day moving average is $1.04 and its two-hundred day moving average is $1.15. The firm has a market cap of $176.26 million, a P/E ratio of -2.69 and a beta of 1.80.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. Wall Street Zen raised shares of Nerdy from a “sell” rating to a “hold” rating in a research report on Sunday, November 16th. Cantor Fitzgerald cut their target price on shares of Nerdy from $1.50 to $1.00 and set a “neutral” rating for the company in a research report on Friday, November 7th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Nerdy in a 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 company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $1.25.

Insider Buying and Selling

In related news, CEO Charles K. Cohn purchased 198,100 shares of the business’s stock in a transaction dated Tuesday, December 2nd. The shares were acquired at an average cost of $1.26 per share, for a total transaction of $249,606.00. Following the acquisition, the chief executive officer owned 1,278,512 shares of the company’s stock, valued at $1,610,925.12. The trade was a 18.34% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last quarter, insiders have bought 2,281,703 shares of company stock worth $3,067,576 and have sold 262,122 shares worth $310,875. Company insiders own 50.94% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Moneta Group Investment Advisors LLC raised 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 worth $300,000 after buying an additional 150,000 shares during the last quarter. Bridgeway Capital Management LLC lifted its position in Nerdy by 62.9% during the fourth quarter. Bridgeway Capital Management LLC now owns 265,100 shares of the company’s stock valued at $276,000 after purchasing an additional 102,400 shares during the period. Marshall Wace LLP purchased a new stake in Nerdy in the second quarter valued at $221,000. Bank of America Corp DE grew 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 worth $201,000 after purchasing an additional 86,791 shares during the period. Finally, Jane Street Group LLC raised its stake 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 valued at $136,000 after buying an additional 17,768 shares during the last quarter. 39.10% of the stock is owned by institutional investors and hedge funds.

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.