NRDY · Nerdy, Inc.

Nerdy Inc. delivered Q1 2026 results ahead of expectations, with revenue of $48.7 million surpassing the top of its $46-48 million guidance range and rising 2% year-over-year despite a decline in Institutional revenue offset by Consumer strength from higher ARPM of $374, up 12% due to February 2025 price increases. Learning Memberships, 80% of revenue at $38.9 million, grew 3% YoY amid 36.9 thousand Active Members, down 9% but with narrowing decline for the third straight quarter and expected return to growth by year-end. Gross margin expanded to 66.2% from 58.0%, driven by pricing benefits. Non-GAAP adjusted EBITDA turned positive at $1.0 million, beating breakeven guidance and improving $7.3 million YoY through efficiency gains, AI-enabled cost reductions, and over 1,500 basis points of margin expansion on flat revenue, marking the second consecutive positive quarter. CEO Chuck Cohn highlighted AI-native platform V3 rollout, featuring Maya AI concierge, mobile app, Tutor Gallery, Games, and On-Demand Courses, with 6,000 new and 10,000 migrated customers showing strong early retention signals. Upcoming releases in college/career readiness, daily practice content, and language learning are set for Q2. Cash stood at $44.7 million, supporting operations toward free cash flow positivity. Q2 guidance of $42-44 million revenue and negative $2 million to breakeven adjusted EBITDA reflects lapping prior price hikes and Institutional revenue lag, while full-year outlook remains $180-190 million revenue and breakeven adjusted EBITDA, with $40-45 million year-end cash inclusive of $20 million term loan draw.