Nerdy Announces Second Quarter 2026 Financial Results
Nerdy reported Q2 revenue of $43.3 million, in line with guidance but down 4% year-over-year, while non-GAAP adjusted EBITDA loss narrowed to $0.9 million from $2.7 million in the prior year. Gross margin improved to 64.7% driven by lower software amortization and expert costs, and active member declines narrowed for the fourth consecutive quarter despite a 5% year-over-year drop to 29.1 thousand. The company announced a strategic pivot to exit the UK First Tutors business and shut down Varsity Tutors for Schools, incurring $2-$4 million in exit costs to focus on its core Consumer business.
Key figures
- Revenue
- 43300000
- Guidance
- Q3 revenue $32-$35 million; FY26 revenue $168-$175 million (down from $180-$190 million); FY26 Adj EBITDA negative $4 million to breakeven
- Revenue Yoy
- -4%
- Arpm
- $366
- Net loss
- $6.9 million
- Exit costs
- $2 million to $4 million
- Ebitda loss
- $0.9 million
- Cash balance
- $38.4 million
- Gross margin
- 64.7%
- Active members
- 29.1 thousand
AI analysis
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