Nerdy (NYSE:NRDY) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Nerdy (NYSE:NRDY) issued its earnings results on Thursday. The company reported ($0.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.01, FiscalAI reports. Nerdy had a negative return on equity of 95.62% and a negative net margin of 16.99%.The company had revenue of $43.23 million during the quarter, compared to analysts’ expectations 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 Nerdy stock traded down $0.09 during trading hours on Friday, hitting $0.75. The company’s stock had a trading volume of 1,305,554 shares, compared to its average volume of 301,826. The firm has a fifty day moving average of $0.88 and a 200-day moving average of $0.90. The stock has a market cap of $142.77 million, a price-to-earnings ratio of -3.00 and a beta of 1.73. Nerdy has a twelve month low of $0.73 and a twelve month 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 reissued a “sell (e+)” rating on shares of Nerdy in a research report on Friday, July 17th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus target price of $1.00.

Insider Buying and Selling at Nerdy

In related news, CEO Charles K. Cohn bought 258,204 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The stock was purchased at an average price of $0.97 per share, for a total transaction of $250,457.88. Following the acquisition, the chief executive officer owned 477,223 shares of the company’s stock, valued at approximately $462,906.31. This trade represents a 117.89% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Over the last three months, insiders have purchased 978,311 shares of company stock worth $950,853. Company insiders own 50.99% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Wells Fargo & Company MN lifted its holdings in Nerdy by 80.5% during the 4th quarter. Wells Fargo & Company MN now owns 65,041 shares of the company’s stock worth $68,000 after buying an additional 29,007 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Nerdy by 1.1% in the fourth 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. Moneta Group Investment Advisors LLC increased its position in shares of 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 acquiring an additional 150,000 shares during the period. Bank of America Corp DE increased its position in shares of Nerdy by 236.2% during the second quarter. Bank of America Corp DE now owns 123,534 shares of the company’s stock worth $201,000 after acquiring an additional 86,791 shares during the period. Finally, Jane Street Group LLC raised its stake in shares of Nerdy by 27.0% in the second quarter. Jane Street Group LLC now owns 83,470 shares of the company’s stock valued at $136,000 after acquiring an additional 17,768 shares in the last quarter. 39.10% of the stock is currently owned by hedge funds and other institutional investors.

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.