Nerdy Inc. reported a revenue of $47.6 million for the first quarter of 2025, a decline of 11.5% compared to $53.7 million in the same period of 2024. The decrease in revenue was primarily attributed to a lower number of Learning Memberships and reduced Institutional revenue. However, the company noted an increase in Average Revenue per Member per Month (ARPM) due to a shift towards higher frequency Learning Memberships and price increases implemented in early 2025. The net loss for the quarter was $16.2 million, compared to a net loss of $12.0 million in the prior year, reflecting a worsening in profitability.
In terms of operational metrics, the number of Active Members decreased year-over-year, which the company attributed to lower retention rates among older customer cohorts. Active Experts also saw a decline, dropping from 12.3 thousand in Q1 2024 to 10.8 thousand in Q1 2025, as the company focused on optimizing the utilization of its highest-quality Experts. Despite these challenges, the company is implementing strategies to enhance user experience and improve retention, which it believes will positively impact future performance.
Nerdy Inc. has made strategic adjustments to its cost structure, with total operating expenses decreasing from $49.4 million in Q1 2024 to $44.2 million in Q1 2025. This reduction was driven by improved marketing efficiency and a moderation of investment in the Institutional business. The company also reported a significant increase in Expert costs due to new incentive programs aimed at enhancing Expert engagement and satisfaction. These changes are expected to yield long-term benefits, including improved retention and session frequency.
The company ended the quarter with cash and cash equivalents of $44.9 million, down from $52.5 million at the end of 2024. Cash used in operating activities was $6.4 million, a shift from cash provided by operations in the same quarter last year, primarily due to lower revenue and a legal settlement payment. Looking ahead, Nerdy Inc. anticipates that its cash reserves will be sufficient to meet its operational needs over the next twelve months, despite ongoing losses.
In its forward-looking statements, Nerdy Inc. expressed optimism about future growth, particularly in the Institutional segment, where it plans to enhance its product offerings. The company aims to leverage its proprietary platform and technology to improve customer engagement and retention, which it views as critical to reversing the current trends in membership and revenue. However, it also acknowledged the risks associated with market conditions and operational execution that could impact its financial performance moving forward.
About Nerdy Inc.
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