Nerdy Inc. reported its financial results for the first quarter of 2026, revealing a revenue increase to $48.7 million, up from $47.6 million in the same period last year. The company's gross profit also saw a significant rise, reaching $32.3 million compared to $27.6 million in Q1 2025, resulting in a gross margin of 66%, up from 58% a year earlier. Despite the revenue growth, Nerdy Inc. recorded a net loss of $6.1 million, an improvement from the $16.1 million loss reported in the prior year. The loss per share for Class A common stock was $(0.03), compared to $(0.09) in Q1 2025.
The financial performance reflects a strategic shift, particularly in the consumer segment, which generated $39.3 million, accounting for 80% of total revenue. This increase was primarily driven by a rise in the Average Revenue per Member per Month (ARPM), which grew by 12% year-over-year to $374, attributed to price increases implemented in February 2025. However, institutional revenue slightly declined to $9.3 million from $9.4 million, indicating a mixed performance across business segments.
Operationally, Nerdy Inc. reported a decrease in its Active Members, which fell to 36.9 thousand from 40.5 thousand a year ago. This decline was attributed to seasonal variations and changes in demand for its services. Additionally, the number of Active Experts decreased to 8.3 thousand from 10.8 thousand, reflecting a strategic focus on optimizing the utilization of high-quality experts. The company continues to leverage artificial intelligence to enhance productivity and improve unit economics, contributing to a reduction in sales and marketing expenses, which decreased to $14.2 million from $15.8 million.
As of March 31, 2026, Nerdy Inc. had total assets of $73.0 million, down from $76.2 million at the end of 2025. The company’s cash and cash equivalents stood at $44.7 million, a decrease from $47.9 million. The reduction in cash was primarily due to operating losses and interest payments related to its term loan, which had an outstanding balance of $20 million. Despite these challenges, Nerdy Inc. remains optimistic about its future, citing ongoing improvements in its platform and user experience, which are expected to drive growth in the latter part of 2026. The company is committed to maintaining compliance with its debt covenants while exploring additional financing options if necessary.
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.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.