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Nerdy Announces Third Quarter 2026 Financial Results

NRDY
  • Nerdy Inc. reported third quarter 2026 revenue of $33.2 million, which aligned with guidance but declined 10% year-over-year.
  • Non-GAAP adjusted EBITDA loss was $5.7 million, exceeding the negative guidance range and improving by $4.5 million year-over-year.
  • The company improved its non-GAAP adjusted EBITDA margin by more than 1,000 basis points year-over-year.
  • Consumer revenue fell 7% to $30.7 million as Active Members decreased 7% to 31.8 thousand and ARPM dropped 2% to $366.
  • New client acquisition was lower due to product enhancements being three months behind schedule, though some features shipped while others remain for the fourth quarter.
  • GAAP gross margin was 59.7%, while non-GAAP gross margin improved to 64.5% driven by lower software amortization despite higher expert costs.
  • Net loss narrowed to $12.8 million from $18.7 million in the prior year, with non-cash AI costs declining approximately 60% from their June-July peak.
  • Operating cash flow was negative $4.6 million, negatively impacted by the wind-down of the VT4S business line which removed $5.1 million in prepaid bookings.
  • Liquidity remains strong with $42.5 million in cash as of September 30, 2026, after borrowing the remaining $10.0 million from its term loan tranche.
  • Fourth quarter 2026 revenue guidance is set between $37.0 million and $39.0 million, with non-GAAP adjusted EBITDA expected to reach breakeven.
  • Management anticipates ending 2026 with $35.0 million to $37.0 million in cash to fund operations until free cash flow breakeven.
  • The company will host an earnings call on November 9, 2026, at 5:00 p.m. Eastern Time to discuss these results.