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what it is
Nerdy runs Varsity Tutors, a live learning platform with 3,000+ subjects and 600 employees.
how it gets paid
Last year Nerdy made $179M in revenue. 1-on-1 tutoring was the main engine at $81M, or 45% of sales.
why growth slowed
Revenue fell 5.9% last year. The 251% revenue jump is the number that mattered.
what just happened
Revenue hit $130M, but the quarter still lost money.
At a glance
B balance sheet — gets the job done, barely
-$0.38 fy2024 eps est
$190M fy2024 rev est
34.6% operating margin
1.45 beta
xvary composite: 47/100 — below average
What they do
Nerdy runs Varsity Tutors, a live learning platform with 3,000+ subjects and 600 employees.
Nerdy says its platform covers 3,000+ subjects. You are not buying a single tutor list. You are buying live help, group classes, and self-study in one system. Leaving means rebuilding your learning routine elsewhere.
How they make money
$179M
annual revenue · their business grew -5.9% last year
1-on-1 tutoring
$81M
small group classes
$29M
large format classes
$23M
institutional programs
$29M
adaptive self-study, chat, review
$17M
The products that matter
live online tutoring
Varsity Tutors Platform
3,000+ subjects
It is the core platform, offering instruction across more than 3,000 subjects. Consumer engagement grew 26% in Q4 2024, which is the clearest sign demand is still there.
core
ai-assisted instruction
Live + AI Platform
66.8% adj. gross margin
Management is pitching AI as the path to scale. The number that matters is 66.8% adjusted gross margin in Q4 2025 — good enough to show software-like economics, not good enough yet to prove lasting operating leverage.
margin story
Key numbers
$179M
annual revenue
This is a tiny revenue base for a public company. A small change in demand moves the whole stock.
34.6%
operating margin
The core business still burns cash at the operating line. Revenue without profit is just expensive activity.
60.6%
gross margin
Gross margin is the gap between sales and direct costs. At 60.6%, the model has room to improve if costs stay down.
1.45
beta
This stock moves harder than the market. Your account gets more drama than the index fund crowd.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for NRDY right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue hit $130M, but the quarter still lost money.
Latest-quarter revenue grew 251% vs. prior year. EPS was -$0.26, and gross margin came in at 60.6%.
$130M
revenue
-$0.26
eps
60.6%
gross margin
revenue growth
The 251% revenue jump is the number that mattered. It says demand is alive even while profits are still missing.
source: company earnings report, 2026
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What could go wrong
the #1 risk is NYSE minimum price compliance. This is not abstract dilution-or-macro handwaving. NRDY received a notice on March 5, 2026 after the stock traded below $1.00.
med
NYSE compliance is on a six-month timer
The company has until September 5, 2026 to cure the price deficiency. A stock under $1 does not just look weak — it limits the shareholder base and can force ugly capital-markets decisions.
A failed cure would hit liquidity, credibility, and likely the multiple at the same time.
med
Consumer is growing, institutional is not
Consumer revenue grew 26% while institutional revenue was flat. If the slower segment stays flat, the $180M–$190M revenue guide becomes a lot harder to trust.
Roughly 30% of revenue is tied to the segment that is currently not helping.
med
AI lowers the product cost — and the moat
Nerdy is trying to use AI to improve tutor productivity and margins. The problem is the same technology also makes cheaper alternatives easier to build. In a low-switching-cost category, product improvement and competitive pressure can arrive together.
If pricing weakens, a 66.8% adjusted gross margin can compress before operating leverage fully arrives.
med
Recent insider sales do not help sentiment
The COO sold 18,457 shares in January 2026, and the chief legal officer sold 32,641 shares in February 2026. These are not thesis-breaking numbers, but they are not the signal investors want during a compliance fight.
At this market cap, small trust hits can matter more than small share counts.
A $1.05 stock with a March 5, 2026 delisting notice and a $180M–$190M revenue promise does not get the luxury of slow execution.
source: institutional data · regulatory filings · risk analysis
Pay attention to
listing
September 5, 2026 is the date that matters most
That is the deadline to cure the NYSE minimum price deficiency. If the stock does not regain compliance, the rest of the operating story gets a lot messier.
calendar
Q1 2026 earnings are expected on May 12, 2026
Management guided to $44M–$46M of Q1 revenue. That range is the first hard checkpoint on whether the stabilization story is real.
metric
Adjusted EBITDA needs to stay positive more than once
Q4 2025 produced $1.3M of adjusted EBITDA. One quarter is a proof point. Two or three starts to look like a business model.
trend
Institutional revenue cannot stay flat forever
Consumer grew 26% while institutional was flat. You want to see that gap narrow for the right reason — institutional reaccelerating, not consumer fading.
Analyst rankings
risk profile
average
risk rank 3 — typical risk profile — neither especially safe nor risky.
chart momentum
below average
momentum rank 4 — analysts see underperformance risk in the near term.
source: institutional data
Institutional activity
institutional ownership data for NRDY is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$1
current price
n/a
target midpoint · n/a from current
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