Nerdy Inc. Reports Strong First Quarter 2026 Financial Results

On May 7, 2026, Nerdy Inc. (NYSE: NRDY) announced its financial results for the first quarter ending March 31, 2026, showcasing a performance that not only exceeded revenue guidance but also delivered positive non-GAAP adjusted EBITDA. Chuck Cohn, Founder, Chairman, and CEO of Nerdy, expressed pride in the company's ability to surpass expectations, stating, "In the first quarter, we exceeded the top end of our revenue guidance range and delivered positive non-GAAP adjusted EBITDA, both ahead of our guidance."

Cohn highlighted improvements in operational efficiency and disciplined management, which contributed to a remarkable increase in the non-GAAP adjusted EBITDA margin of over 1,500 basis points year-over-year.

Nerdy reported a revenue of $48.7 million for Q1 2026, surpassing its guidance range of $46 to $48 million. This figure represents a 2% increase from $47.6 million during the same period in 2025. The revenue growth was primarily driven by higher consumer revenue, which was partially offset by a decline in institutional revenue. Notably, the increase in consumer revenue was attributed to a rise in Average Revenue Per Member (ARPM), which saw a price increase in February 2025.

The first quarter Learning Membership revenue reached $38.9 million, accounting for 80% of total company revenue, marking a 3% year-over-year increase. The ARPM stood at $374 as of March 31, 2026, a 12% increase compared to the previous year. However, the number of Active Members decreased to 36.9 thousand, reflecting a 9% decline year-over-year. Encouragingly, this decline has been narrowing for three consecutive quarters, with expectations of returning to positive growth by the end of 2026.

Nerdy’s gross margin for the first quarter was 66.2%, a significant rise from 58.0% in Q1 2025. This improvement was largely due to the price increases implemented in the previous year. Despite a net loss of $6.1 million in the first quarter, this marked a substantial improvement from the $16.2 million net loss reported in the same period last year. After accounting for non-cash stock compensation and restructuring costs, the non-GAAP adjusted net loss was just $0.2 million, a notable improvement from $7.9 million in Q1 2025. The company also posted a positive non-GAAP adjusted EBITDA of $1.0 million, exceeding the guidance of approximately breakeven and demonstrating operational efficiency.

As of March 31, 2026, Nerdy maintained a robust liquidity position with cash and cash equivalents totaling $44.7 million. The company is confident in its ability to fund operations and growth initiatives, aiming to achieve free cash flow positivity.

Looking ahead, Nerdy provided guidance for the second quarter and reaffirmed its full-year outlook for 2026:

Nerdy anticipates ending the year with cash reserves in the range of $40-45 million, including $20 million funded under a new term loan.

Management will discuss these results in detail during a conference call scheduled for Thursday, May 7, 2026, at 5:00 p.m. Eastern Time. Interested parties can participate by dialing the provided numbers or accessing the live webcast available on Nerdy’s investor relations website.

Nerdy Inc. has demonstrated resilience and growth in its first quarter of 2026, powered by improved operational efficiencies and strong consumer revenue performance. With a clear strategy for enhancing learner and expert experiences, the company is poised to build on this momentum throughout the year, aiming for sustainable profitability and growth in its active member base.