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

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

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 Trading Down 10.8%

Shares of NRDY stock traded down $0.09 on Friday, hitting $0.75. 1,305,554 shares of the company’s stock traded hands, compared to its average volume of 301,826. The stock has a market capitalization of $142.77 million, a price-to-earnings ratio of -3.00 and a beta of 1.73. The company’s fifty day simple moving average is $0.88 and its 200 day simple moving average is $0.90. Nerdy has a one year low of $0.73 and a one year high of $1.49. The company has a debt-to-equity ratio of 0.67, a quick ratio of 2.41 and a current ratio of 2.41.

Analysts Set New Price Targets

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

Insider Buying and Selling at Nerdy

In other news, CEO Charles K. Cohn acquired 250,007 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were purchased at an average price of $1.00 per share, for a total transaction of $250,007.00. Following the completion of the transaction, the chief executive officer owned 978,311 shares of the company’s stock, valued at $978,311. The trade was a 34.33% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Over the last three months, insiders bought 978,311 shares of company stock valued at $950,853. Insiders own 50.99% of the company’s stock.

Institutional Investors Weigh In On Nerdy

Several hedge funds have recently made changes to their positions in the company. Virtu Financial LLC bought a new stake in Nerdy in the fourth quarter worth $25,000. Symmetry Peak Management LLC bought a new position in shares of Nerdy during the fourth quarter valued at $26,000. Engineers Gate Manager LP purchased a new position in shares of Nerdy in the 4th quarter worth about $28,000. AQR Capital Management LLC raised its position in shares of Nerdy by 67.9% in the 1st 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 last quarter. Finally, Strs Ohio bought a new position in Nerdy in the 1st quarter worth about $56,000. 39.10% of the stock is currently owned by institutional investors.

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.