Nerdy Inc. reported a revenue of $178.99 million for the fiscal year ending December 31, 2025, a decrease of 6% from $190.23 million in 2024. The company experienced a net loss of $60.95 million, compared to a net loss of $67.14 million in the previous year. The decline in revenue was primarily attributed to lower institutional revenue and the absence of a specific state-funded program that contributed $7.44 million to the previous year's consumer revenue. Despite this, the company noted a 2% increase in Learning Membership revenue, driven by a shift towards higher frequency memberships and price increases for new customers.
Operationally, Nerdy reported a decrease in its Active Members, which fell to 33,200 from 37,500 year-over-year, reflecting a decline of 11%. This drop was linked to operational challenges that the company is addressing, including the appointment of a new Chief Operating Officer in 2025. The number of Active Experts also decreased by 22% to 15,800, influenced by a strategic focus on utilizing higher-quality Experts and a reduction in tutoring session bookings within the institutional segment.
In terms of strategic developments, Nerdy has made significant investments in its technology infrastructure, including the abandonment of certain legacy software components in favor of new AI-native codebases. This transition resulted in a write-off of $7.76 million in capitalized internal-use software. The company anticipates that these changes will enhance user experiences and facilitate more efficient product innovation moving forward. Additionally, Nerdy secured a $20 million term loan in November 2025 to support its operational needs and growth initiatives.
Looking ahead, Nerdy aims to improve its gross margin, which was impacted by the aforementioned software abandonment charge. The company expects continued growth in its consumer revenue as it shifts towards higher frequency Learning Memberships and optimizes its tutoring incentives. However, it remains cautious about the broader economic conditions that could affect demand for its services. The company is committed to managing its growth effectively while navigating the challenges posed by competition and market dynamics.
About Nerdy Inc.
Nerdy Inc. operates a platform for live online learning, connecting students of all ages with qualified tutors, instructors, and experts across diverse subjects and formats. Its core offerings include one-on-one instruction, group classes, adaptive assessments, and self-study tools, serving consumers and educational institutions. The company's value lies in leveraging proprietary technology, AI, and a scalable network to deliver personalized, accessible, and cost-effective education globally.
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