Nerdy Q2 revenue falls on fewer active members
Nerdy Q2 revenue falls on fewer active members
Overview
US online tutoring platform's Q2 revenue fell 4% yr/yr, in line with guidance
Q2 non-GAAP adjusted EBITDA loss narrowed compared to last year, in line with guidance
Company to exit UK First Tutors and shut down Varsity Tutors for Schools, expects Q3 exit costs
Outlook
Nerdy sees Q3 revenue at $32 mln to $35 mln
Company expects 2026 revenue of $168 mln to $175 mln, down from prior $180 mln to $190 mln outlook
Nerdy expects 2026 non-GAAP adjusted EBITDA of negative $4 mln to breakeven, excluding exit costs
Result Drivers
LOWER ACTIVE MEMBERS - Co said revenue decline was mainly due to fewer active members, partially offset by higher average revenue per member
GROSS MARGIN IMPROVEMENT - Gross margin rose due to lower amortization of internal-use software and reduced expert costs
COST CONTROLS - Narrower adjusted EBITDA loss was driven by lower marketing spend, reduced variable staffing costs, and strong G&A cost control, partially offset by higher AI costs
Company press release: ID:nBw3wY3yxa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted Net Loss |
| $2.10 mln |
|
Q2 Adjusted EBITDA | Beat | -$900,000 | -$1.007 mln (2 Analysts) |
Q2 Gross Margin |
| 64.7% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "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 $1.63, about 95.8% above its August 5 closing price of $0.83
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(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.)