Nerdy Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a decline in both revenue and net loss compared to the same periods in 2024. For the three months ended September 30, 2025, the company generated revenue of $37.0 million, a decrease of 1.4% from $37.5 million in the prior year. The nine-month revenue also fell to $129.9 million from $142.2 million, marking a decline of 8.6%. The net loss for the third quarter was $18.8 million, down from a loss of $25.0 million in the same quarter of 2024, while the nine-month net loss improved to $46.9 million from $51.4 million.
The decrease in revenue was primarily attributed to a significant drop in Institutional revenue, which fell to $3.7 million from $5.4 million year-over-year for the third quarter. However, Consumer revenue saw a slight increase, with Learning Membership revenue rising by 5% in the third quarter. The company noted that a specific state-funded program that contributed $907,000 in the prior year did not recur in 2025, impacting overall revenue figures. Despite these challenges, the average revenue per member per month increased by 24% year-over-year, reflecting a shift towards higher frequency Learning Memberships and price increases implemented earlier in the year.
Operationally, Nerdy Inc. faced challenges with its Active Member count, which decreased to 34,300 from 39,700 year-over-year. This decline was attributed to operational issues that the company is addressing through the appointment of a new Chief Operating Officer and the rollout of enhanced user experiences for both students and Experts. The number of Active Experts also fell by 15% in the third quarter, indicating a need for improved engagement strategies. The company is focusing on optimizing its tutoring incentives to enhance Expert satisfaction and retention.
In terms of financial health, Nerdy Inc. reported a cash balance of $32.7 million as of September 30, 2025, down from $52.5 million at the end of 2024. The company has incurred significant operating losses and is exploring financing options to support its operations. On November 3, 2025, Nerdy entered into a Loan and Security Agreement with Hercules Capital, securing up to $50 million in term loans to bolster its working capital. The first tranche of $20 million was drawn immediately, with the remaining funds available under specific conditions.
Looking ahead, Nerdy Inc. aims to improve its operational execution and customer engagement through strategic initiatives and product enhancements. The company anticipates that these efforts will help stabilize its Active Member count and drive revenue growth in the coming quarters. However, it remains cautious about market conditions and the potential need for further financing to sustain its operations.
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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