Nerdy, Inc. provides a leading online platform dedicated to live learning experiences. At its core, the company utilizes a proprietary, custom-built platform, ...
Nerdy, Inc. (NYSE: NRDY) is an education technology company that provides a comprehensive live online learning platform. At its core, Nerdy utilizes a proprietary, custom-built platform enhanced by artificial intelligence to efficiently match students across various age groups with expert educators, creating value for both parties. The company's flagship offering, ...Nerdy, Inc. (NYSE: NRDY) is an education technology company that provides a comprehensive live online learning platform. At its core, Nerdy utilizes a proprietary, custom-built platform enhanced by artificial intelligence to efficiently match students across various age groups with expert educators, creating value for both parties. The company's flagship offering, Varsity Tutors, manages platforms for live online tutoring and virtual classrooms, delivering educational content across numerous subjects in diverse formats: personalized one-on-one instruction, collaborative small group sessions, large-scale virtual classes, and self-directed study modules. Nerdy's services are available directly to consumers and through partnerships with schools and institutions. Founded in 2007 by Chuck Cohn, who currently serves as CEO, the company is headquartered in Saint Louis, Missouri, and went public on the New York Stock Exchange in November 2020. As of recently, Nerdy employs around 500 people. The company has a market cap of approximately $90 million, with a focus on innovation, recently launching its Live + AI™ platform to accelerate learning. Despite facing financial challenges, with negative net margins and operating cash flow, Nerdy holds a strong current ratio of 2.699 and a significant cash position, indicating liquidity. Its revenue per share is $1.409, and the company's gross profit margin is 60.8%. Nerdy's business model emphasizes a curated gig economy approach for tutors, aiming to transform how people learn through technology. With a beta of 1.74, the stock is volatile, but the company's unique position in the edtech space and its AI-driven platform could drive future growth. Key people include founder and CEO Chuck Cohn, and board member Woody Marshall from TCV. The company's mission is to make learning more personalized, accessible, and effective for all.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$179.0M
-5.9%
-11.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-39.9M
+6.3%
-14.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+57.3%
-15.1%
-1.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-19.3%
+47.6%
-507.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-22.3%
+0.4%
-28.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-24.2M
-7.8%
-111.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-13.5%
-14.6%
-138.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
101.7%
+4225.4%
+12.4%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.27x
-0.6%
+12.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon. Thank you for attending Nerdy Inc.'s Quarter 2 2026 Earnings Call. My name is Matthew, and I will be your moderator for today's call. [Operator Instructions] I would now like to pass the conference over to your host, T.J. Lynn, Associate General Counsel of Nerdy. You may proceed.
T. Lynn: Good afternoon, and thank you for joining us for Nerdy's Second Quarter 2026 Earnings Call. With me are Chuck Cohn, Founder, Chairman and Chief Executive Officer of Nerdy; and Atul Bagga, Chief Financial Officer. Before I turn the call over to Chuck, I'll remind everyone that this discussion will contain forward-looking statements, including, but not limited to, expectations with respect to Nerdy's future financial and operating results, strategy, opportunities, plans and outlook. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Any forward-looking statements are made as of today's date, and Nerdy does not undertake or accept any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in expectations or any change in events, conditions or circumstances on which any such statement is based. Please refer to the disclaimers in today's shareholder letter announcing Nerdy's second quarter results and the company's filings with the SEC for a discussion of the risks. Not all of the financial measures that we will discuss today are prepared in accordance with GAAP. Please refer to today's shareholder letter for a reconciliation of these non-GAAP measures. With that, let me turn the call over to Chuck.
Charles Cohn: Thanks, TJ, and thank you to everyone for joining today's call. Q2 demonstrated continued improvement in Nerdy's operating performance. It also made clear what the company is becoming, a focused consumer learning company built around one connected system for learning, tutoring and progress. Total revenue was $43.3 million with consumer generating $36.5 million or 84% of total revenue. Gross margin expanded 320 basis points to 64.7%. Net loss improved to $6.9 million from $12 million a year ago. Our non-GAAP adjusted EBITDA loss narrowed 68% to $900,000 from $2.7 million a year ago, ahead of the midpoint of our guidance range. Alongside that progress, we have made 2 decisions that have narrowed the company's focus to its highest return opportunity. We decided to wind down Varsity Tutors for Schools and exit First Tutors, a small legacy tutoring property in the United Kingdom. This decision concentrates our people, capital and product development on the part of Nerdy where we have the strongest brand, the deepest operating experience and the greatest opportunity to build a differentiated learning experience for consumers. We believe the market opportunity is significantly larger and the potential returns on our investments are substantially higher, but we've been encouraged by …
