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

Nerdy (NYSE:NRDY) released its quarterly earnings data on Thursday. The company reported ($0.08) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.02), FiscalAI reports. The company had revenue of $49.11 million during the quarter, compared to the consensus estimate of $45.75 million. Nerdy had a negative net margin of 22.30% and a negative return on equity of 86.36%.

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 3.8%

Shares of NRDY traded up $0.04 on Friday, reaching $0.96. The company’s stock had a trading volume of 2,637,232 shares, compared to its average volume of 578,529. Nerdy has a twelve month low of $0.77 and a twelve month high of $1.90. The stock has a market capitalization of $180.59 million, a PE ratio of -2.84 and a beta of 1.80. The firm has a fifty day moving average of $1.03 and a 200-day moving average of $1.14.

Wall Street Analysts Forecast Growth

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

Insiders Place Their Bets

In related news, CEO Charles K. Cohn bought 197,242 shares of the business’s stock in a transaction that occurred on Tuesday, December 16th. The shares were bought at an average price of $1.22 per share, with a total value of $240,635.24. Following the completion of the transaction, the chief executive officer directly owned 32,867,174 shares in the company, valued at approximately $40,097,952.28. This represents a 0.60% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Christopher C. Swenson sold 32,641 shares of the company’s stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $0.97, for a total value of $31,661.77. Following the sale, the insider owned 2,022,742 shares of the company’s stock, valued at $1,962,059.74. This trade represents a 1.59% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders purchased 2,200,995 shares of company stock valued at $2,961,041 and sold 262,122 shares valued at $310,875. Corporate insiders own 50.94% of the company’s stock.

Hedge Funds Weigh In On Nerdy

Hedge funds have recently bought and sold shares of the company. Geode Capital Management LLC grew its stake in shares of Nerdy by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 1,557,017 shares of the company’s stock worth $1,620,000 after acquiring an additional 17,325 shares in the last quarter. Bridgeway Capital Management LLC lifted its position in shares of 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 in the last quarter. Moneta Group Investment Advisors LLC boosted its holdings in Nerdy by 170.7% during the third quarter. Moneta Group Investment Advisors LLC now owns 237,883 shares of the company’s stock worth $300,000 after purchasing an additional 150,000 shares during the last quarter. Marshall Wace LLP bought a new stake in Nerdy in the 2nd quarter worth about $221,000. Finally, Bank of America Corp DE grew its position in Nerdy by 236.2% in 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 in the last quarter. 39.10% of the stock is owned by hedge funds and other 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.