Nerdy (NRDY) investor relations material

Executive summary

• Q2 2025 revenue was $45.3M, down 11% year-over-year, mainly due to a nonrecurring state-funded program and lower Institutional revenue, but Learning Membership revenue grew year-over-year, driven by AI-powered enhancements and higher engagement.

• Varsity Tutors for Schools bookings increased 21% year-over-year, reflecting strong demand for high-dosage tutoring and positive response to the Live + AI platform.

• Net loss attributable to Class A stockholders was $7.9M for Q2 2025, an improvement from $9.1M in Q2 2024; non-GAAP adjusted EBITDA loss was $2.7M, outperforming guidance.

• Active Members declined 14% year-over-year to 30.6K as of June 30, 2025, while ARPM increased 24% to $348, reflecting a shift to higher frequency memberships and price increases.

• Operational improvements and AI-driven initiatives are positioning the company for sustained growth and margin expansion.

Financial highlights

• Consumer Learning Membership revenue grew 4% year-over-year to $37.8M, representing 83–84% of total revenue.

• Gross margin was 61.5–62% for Q2 2025, down from 65.7–66% year-over-year, but improved sequentially from Q1.

• Non-GAAP adjusted EBITDA loss was $2.7M, outperforming guidance.

• Cash and cash equivalents stood at $36.7M with zero debt as of June 30, 2025.

• Net loss for Q2 2025 was $7.9M; basic and diluted loss per share was $(0.07).

Outlook and guidance

• Expect consolidated and Consumer revenue growth to accelerate sequentially each quarter throughout 2025.

• Institutional revenue anticipated to return to year-over-year growth in Q4 2025.

• Full-year 2025 revenue guidance: $191M to $197M; Q3 revenue guidance: $37M to $40M.

• Non-GAAP adjusted EBITDA loss guidance for Q3: $11M to $13M; full year: $13M to $17M.

• Expect to achieve non-GAAP adjusted EBITDA profitability in Q4 2025 and end 2025 with $30M to $35M in cash.