Nerdy Q1 revenue rises 2% on price increase

Nerdy

07/05/2026 21:40

Overview

US online tutoring platform's Q1 revenue rose 2% yr/yr, topping company guidance

Net loss narrowed this Q1to $6.1 million from $16.2 million last year

Gross margin improved to 66.2% from 58% on price increases and cost control

Outlook

Nerdy expects Q2 2026 revenue of $42-$44 mln

Company sees full-year 2026 revenue at $180-$190 mln

Nerdy expects full-year 2026 non-GAAP adjusted EBITDA to be approximately breakeven

Result Drivers

PRICE INCREASES - Co said revenue and gross margin growth were primarily driven by price increases enacted in February 2025

EFFICIENCY GAINS - Co attributed margin improvement and positive adjusted EBITDA to efficiency improvements and strong cost control across every P&L line item

MEMBERSHIP DECLINE - Active member base fell 9% yr/yr, though the rate of decline narrowed for three consecutive quarters

Company press release: ID:nBw7VwLMGa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted Net Income
Beat
-$200,000
-$7.40 mln (2 Analysts)
Q1 Net Loss
$6.1 mln
Q1 Gross Margin
66.20%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy."

Wall Street's median 12-month price target for Nerdy Inc is $2.00, about 129.1% above its May 6 closing price of $0.87

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)