Nerdy Q2 Earnings Call Highlights

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Sat, August 8, 2026 astatine 4:03 PM CDT 6 min read

Key Points

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Q2 show improved: Revenue fell 4% twelvemonth implicit twelvemonth to $43.3 million, but gross borderline expanded to 64.7%, nett nonaccomplishment narrowed to $6.9 million, and adjusted EBITDA nonaccomplishment improved to $900,000.
Nerdy is refocusing connected user learning: The institution volition upwind down Varsity Tutors for Schools and exit First Tutors, expecting to chopped yearly fixed costs by astir $11 million. The exits reduced 2026 gross guidance to $168 million–$175 million, portion absorption maintained that the user concern outlook is unchanged.
Product and ratio investments continue: Nerdy is expanding AI-enabled learning tools, including a Study Plan and a self-service checkout funnel, portion reducing headcount. Management expects year-end currency of astir $30 million–$32 cardinal and believes existing liquidity tin money operations done free-cash-flow breakeven.

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Nerdy (NYSE:NRDY) reported second-quarter results that showed improved margins and a narrower loss, portion the online learning institution announced plans to upwind down its Varsity Tutors for Schools concern and exit First Tutors, a smaller U.K. tutoring operation.

Founder, Chairman and Chief Executive Officer Chuck Cohn said the decisions are intended to ore the company's capital, merchandise improvement and absorption attraction connected its user learning business. Consumer gross totaled $36.5 cardinal successful the quarter, representing 84% of Nerdy's full gross of $43.3 million.

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"Q2 demonstrated continued betterment successful Nerdy's operating performance," Cohn said, describing the institution arsenic a much focused user learning concern centered connected connected tools for learning, tutoring and advancement tracking.

Second-Quarter Financial Results

Total gross was down 4% twelvemonth implicit twelvemonth to $43.3 million, wrong the company's guidance scope of $42 cardinal to $44 million. Consumer mean gross per month, oregon ARPM, roseate 5% from a twelvemonth earlier to $366.

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Learning Memberships stood astatine 29,100 arsenic of June 30, down 5% twelvemonth implicit year. However, the institution said the complaint of rank diminution moderated for the 4th consecutive quarter. Chief Financial Officer Atul Bagga said Nerdy expects progressive subordinate maturation to crook affirmative by the extremity of 2026, supported by retention initiatives and a much businesslike customer-acquisition approach.

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