Earnings Releases·Nov 9, 2026, 4:07 PM ET

Nerdy — Q3 2026 Earnings Summary

Q3 2026 revenue declined 10% year-over-year to $33.2 million, while GAAP net loss narrowed to $12.8 million from $18.7 million and Non-GAAP adjusted EBITDA loss improved $4.5 million year-over-year to $5.7 million, beating guidance.
Q4 2026 revenue guidance was raised to $37.0–$39.0 million with Non-GAAP adjusted EBITDA expected to reach breakeven, driven by product enhancements intended to narrow the new client acquisition gap.
The company completed the wind-down of the Varsity Tutors for Schools (VT4S) business line, reducing total headcount 44% year-over-year and incurring a $1.6 million charge for abandoned software.
Liquidity was strengthened by drawing the remaining $10.0 million tranche of the term loan, bringing total borrowings to $30.0 million, with management projecting year-end cash between $35.0 million and $37.0 million.
Strategic transition to a self-service, AI-enabled model is underway, though product enhancements arrived three months behind plan, contributing to lower Q3 acquisition and a 7% decline in Active Members.