Nerdy Inc. reported a decline in financial performance for the second quarter of 2025, with total revenue of $45.3 million, down 11% from $51.0 million in the same period of 2024. For the first half of 2025, revenue also decreased to $92.9 million from $104.7 million year-over-year. The company's gross profit for the quarter was $27.8 million, representing a gross margin of 62%, compared to 66% in the prior year. The net loss attributable to Class A common stockholders was $7.9 million, or $(0.07) per share, an improvement from a net loss of $9.1 million, or $(0.08) per share, in the same quarter of 2024.
The decrease in revenue was primarily attributed to a reduction in institutional revenue and the absence of a state-funded consumer revenue program that contributed $3.0 million in the second quarter of 2024. Despite the overall revenue decline, the average revenue per member per month increased by 24% to $348, driven by a shift towards higher frequency Learning Memberships and price increases implemented in early 2025. The number of active members also saw a decline, dropping to 30,600 from 35,500 year-over-year, reflecting challenges in customer retention.
Operationally, Nerdy Inc. has made strategic adjustments, including a focus on enhancing its product offerings and improving user experience. The company has implemented new expert incentives aimed at increasing engagement and retention among tutors, which has resulted in a decrease in the number of active experts to 9,700 from 11,600 in the previous year. The company continues to invest in its technology platform, including the development of its Live+AI™ platform, which is expected to drive future growth in the institutional segment.
As of June 30, 2025, Nerdy Inc. reported total assets of $73.7 million, down from $92.5 million at the end of 2024, with cash and cash equivalents decreasing to $36.7 million. The company has no debt obligations and anticipates that its current cash reserves will be sufficient to meet its operational needs over the next twelve months. Looking ahead, Nerdy Inc. aims to improve its financial performance through enhanced marketing efficiency and product development, while navigating the challenges of a competitive online learning market.
About Nerdy Inc.
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