Nerdy, Inc.
- Open
- 10.22
- Day high
- 10.22
- Day low
- 10.00
- Prev close
- 10.32
- Volume
- 19K
- Mkt cap
- $85M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 4.9
- P/S
- 0.5
- Yield
- —
- Per share
- —
- ▲Insiders net buying $847K over the last 3 months (4 open-market buys, 5 sales)
- 🏛Institutions reducing (13F)
Nerdy, Inc. (NRDY) is a Technology company listed on NYSE. The stock is up 668% over the past year. Over the trailing 3 months, insiders filed 4 open-market buys and 5 sales (SEC Form 4).
Nerdy, Inc. (NRDY) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
NRDY earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $-0.05 | $-0.04 | +20.0% | $43M | +0.7% |
| May 7, 2026 | $-0.05 | $-0.03 | +40.0% | $49M | +3.0% |
| Nov 6, 2025 | $-0.16 | $-0.10 | +37.5% | $37M | -19.1% |
| Aug 7, 2025 | $-0.10 | $-0.07 | +30.0% | $45M | +7.7% |
| May 8, 2025 | $-0.14 | $-0.09 | +35.7% | $48M | +2.3% |
| Feb 27, 2025 | $-0.14 | $-0.09 | +35.7% | $48M | +6.7% |
| Nov 7, 2024 | $-0.23 | $-0.14 | +39.1% | $38M | -16.6% |
| Aug 8, 2024 | $-0.12 | $-0.08 | +33.3% | $51M | -0.4% |
| Feb 27, 2024 | $-0.11 | $-0.05 | +54.5% | $55M | +5.5% |
| Feb 28, 2023 | $-0.16 | $-0.04 | +75.0% | $42M | -10.3% |
| Nov 14, 2022 | $-0.20 | $-0.18 | +10.0% | $32M | -1.2% |
| Aug 15, 2022 | $-0.15 | $-0.21 | -40.0% | $42M | +8.9% |
NRDY insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 20, 2026 | Callaway Kyleofficer: Chief Accounting Officer | Sell | 13,377 | $0.83 |
| Jul 20, 2026 | Paszterko John Andrewofficer: Chief Operating Officer | Sell | 31,034 | $0.83 |
| Jul 20, 2026 | Bagga Atul Madan Mohanofficer: Chief Financial Officer | Sell | 36,426 | $0.83 |
| Jul 20, 2026 | Swenson Christopher C.officer: Chief Legal Officer | Sell | 22,707 | $0.83 |
| Jul 17, 2026 | Paszterko John Andrewofficer: Chief Operating Officer | Grant | 600,000 | — |
| Jul 17, 2026 | Swenson Christopher C.officer: Chief Legal Officer | Grant | 600,000 | — |
| Jul 17, 2026 | Callaway Kyleofficer: Chief Accounting Officer | Grant | 100,000 | — |
| Jun 18, 2026 | Swenson Christopher C.officer: Chief Legal Officer | Sell | 20,153 | $0.88 |
| Jun 16, 2026 | Cohn Charles K.director, 10 percent owner, officer: Chief Executive Officer | Buy | 250,007 | $1.00 |
| Jun 15, 2026 | Cohn Charles K.director, 10 percent owner, officer: Chief Executive Officer | Buy | 251,081 | $1.00 |
| Jun 12, 2026 | Cohn Charles K.director, 10 percent owner, officer: Chief Executive Officer | Buy | 258,204 | $0.97 |
| Jun 11, 2026 | Cohn Charles K.director, 10 percent owner, officer: Chief Executive Officer | Buy | 219,019 | $0.91 |
| May 20, 2026 | Swenson Christopher C.officer: Chief Legal Officer | Sell | 22,796 | $0.80 |
| May 4, 2026 | Marshall Christopher Pdirector | Grant | 241,935 | $0.89 |
| May 4, 2026 | Hutter Robert J.director | Grant | 241,935 | $0.89 |
Source: NRDY SEC Form 4 filings, latest Jul 20, 2026. For informational purposes only — not investment advice.
See the full NRDY insider & 13F page →Nerdy, Inc. company profile
Overview
Nerdy, Inc. (NYSE:NRDY) is a Saint Louis-based educational technology company founded in 2007 that operates online learning platforms connecting students with tutors and educational resources. The company went public in November 2020 and has evolved from a traditional tutoring service into a comprehensive AI-powered learning platform. Its flagship brand, Varsity Tutors, serves both individual consumers and educational institutions through subscription-based learning memberships and institutional contracts.
Business
Nerdy operates in the online education technology sector, providing live tutoring and learning services through its proprietary digital platform. The company's core offering centers around connecting learners of various ages with expert tutors and educational content across multiple subjects and formats. The business operates through two primary segments that generate distinct revenue streams: **Consumer Learning Memberships** (approximately 80% of revenue): This segment offers subscription-based learning memberships under the Varsity Tutors brand, providing students and families with access to one-on-one tutoring, small group classes, large format group classes, and adaptive self-study materials. The platform covers various academic subjects and test preparation, with recent expansion into coding education through the acquisition of Codeverse. Members pay recurring monthly fees for comprehensive access to tutoring services and educational resources. **Institutional Business** (approximately 20% of revenue): Operating as "Varsity Tutors for Schools," this segment provides educational platforms and tutoring services directly to school districts, educational institutions, and other organizations. The company offers both free platform access to build relationships and paid services including on-demand tutoring and teacher-assigned tutoring programs. This business model capitalizes on federal education funding programs and institutional contracts. The platform leverages artificial intelligence and proprietary algorithms to enhance the learning experience through features like AI-powered tutor matching, session summaries, lesson plan generation, and predictive analytics. The company's technology infrastructure supports live online interactions while providing personalized learning experiences across multiple educational formats.
Revenue model
Nerdy generates revenue primarily through subscription fees and institutional contracts. The consumer business operates on a recurring subscription model where families pay monthly membership fees (averaging around $335 per member monthly as of Q1 2025) for access to tutoring services and educational content. This creates predictable, recurring revenue streams with the potential for long-term customer relationships. The institutional segment generates revenue through contracts with school districts and educational organizations, offering both free platform access as a customer acquisition strategy and paid services for comprehensive tutoring programs. Revenue recognition occurs as services are delivered, with some contracts spanning multiple academic years. Several factors significantly impact the company's margins and profitability. **Positive margin drivers** include the scalable nature of the technology platform, AI-powered operational efficiencies that reduce manual processes, higher-priced membership tiers, and improved customer retention reducing acquisition costs. The company has demonstrated ability to serve more students without proportional increases in headcount through AI automation. **Margin pressures** come from customer acquisition costs in competitive online education markets, tutor compensation and retention challenges, seasonal fluctuations in educational demand (particularly summer months), and the need for continuous technology investment to maintain platform competitiveness. The institutional business faces headwinds from uncertain education funding environments, particularly as federal pandemic relief funds expire. Additionally, the company's freemium strategy for institutional customers requires upfront investment with delayed monetization, creating short-term margin pressure while building long-term customer relationships.
Competitive moat
Nerdy's competitive moat appears moderate but faces significant challenges in the fragmented online education market. The company's primary defensive characteristics include its proprietary AI-powered platform that matches students with tutors and personalizes learning experiences, accumulated data from millions of tutoring sessions that improves algorithmic recommendations, and established relationships with school districts through its institutional business. The platform benefits from network effects where a larger pool of tutors attracts more students and vice versa, though this advantage is not insurmountable. The company's investment in AI capabilities, including session transcription, automated lesson planning, and predictive analytics, creates some technological differentiation in an increasingly commoditized tutoring market. However, the moat faces substantial threats from multiple directions. **Competition comes from** well-funded educational technology companies, established tutoring services transitioning online, and new AI-powered learning platforms. Large technology companies with superior resources could potentially replicate Nerdy's core functionality while leveraging broader ecosystems. The tutoring market has relatively low barriers to entry, with individual tutors and smaller platforms able to compete on price and personal relationships. **Disruption risks include** advances in AI that could reduce demand for human tutoring, changes in educational funding priorities that impact institutional sales, and shifts in consumer preferences toward self-directed or alternative learning methods. The company's dependence on human tutors creates scalability constraints and ongoing cost pressures that pure technology solutions might avoid. Overall, while Nerdy has built meaningful capabilities and customer relationships, the competitive landscape remains challenging with limited sustainable advantages against well-resourced competitors or technological disruption.
Risks & safety
The margin of safety appears concerning with significant financial risks despite adequate liquidity. **Cash and Solvency:** - Strong liquidity position with $44.9 million in cash and short-term investments as of Q1 2025 - Current ratio of 2.05 indicates good short-term liquidity coverage - No meaningful debt burden (debt-to-equity ratio near zero) - However, negative free cash flow of -$7.6 million in Q1 2025 and -$22.5 million for full year 2024 - Cash burn rate requires monitoring, though company projects positive cash flow by Q4 2025 **Valuation Metrics:** - Trading at negative P/E ratios due to consistent losses - Price-to-book ratio of 4.89 suggests premium valuation relative to book value - EV/EBITDA meaningless due to negative EBITDA - Revenue multiple appears reasonable given growth trajectory and market position **Other Considerations:** - Consistent EBITDA losses with -$16.6 million in Q1 2025, though company targets profitability by Q4 2025 - Revenue declining year-over-year in recent quarters, creating execution risk - High dependence on successful AI product launches and customer retention improvements - Small market capitalization increases volatility and liquidity risks
Recent development
Over the past few years, Nerdy has undergone significant strategic transformation focused on AI integration, platform unification, and business model optimization. The company successfully transitioned from a transaction-based tutoring service to a subscription-based learning membership model, which now represents nearly 100% of consumer revenue and provides more predictable recurring income streams. **AI and Technology Innovation** has become the cornerstone of recent development efforts. The company launched "Live + AI" as a comprehensive learning solution, introducing AI-generated session summaries with transcription capabilities, AI-powered lesson plan generators, and predictive analytics suites. These AI tools have achieved over 95% positive customer feedback and are improving customer retention rates. The company has also implemented AI-powered tutor matching algorithms and customer service automation to improve operational efficiency. **Platform Convergence** represents another major strategic initiative, with management successfully unifying consumer and institutional platforms to create economies of scale and reduce development costs. This "build once, leverage multiple times" approach allows the company to serve both market segments through a single technology infrastructure while maintaining segment-specific features and pricing. **Institutional Market Expansion** has involved implementing a freemium strategy where the company provides free platform access to school districts to build relationships and demonstrate value before converting to paid services. The institutional business has grown from serving 475 school districts with 2.2 million students to over 600 districts with 4.4 million students, with ambitious targets to reach 10 million students representing 20% of the K-12 population. **Operational Efficiency Improvements** include significant headcount reductions (16% since December 2024) while maintaining service levels through AI automation, implementation of new tutor incentive structures to improve matching and retention, and price increases for new consumer customers to improve unit economics.
NRDY company profile · for informational purposes only — not investment advice.
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