Nerdy (NRDY) Q2 2025 earnings summary

Executive summary

• Achieved a return to year-over-year growth in learning membership revenue and Varsity Tutors for Schools bookings, driven by higher customer engagement, AI-powered product enhancements, and improved expert matching.

• Q2 2025 revenue was $45.3 million, down 11% year-over-year, mainly due to lower Institutional revenue and the absence of a non-recurring state-funded program; higher ARPM and improved retention in newer cohorts partially offset declines.

• Outperformed non-GAAP adjusted EBITDA loss guidance, maintaining a path to profitability by Q4 2025.

• Net loss attributable to Class A stockholders was $7.9 million for Q2 2025, an improvement from $9.1 million in Q2 2024.

• Significant progress in embedding real-time AI intelligence across the learning journey, enhancing engagement and retention.

Financial highlights

• Consumer learning membership revenue grew 4% year-over-year to $37.8 million, representing 84% of total revenue.

• Gross margin was 61.5%–62% for Q2 2025, down from 65.7%–66% year-over-year, but improved sequentially due to price increases and operational changes.

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

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

• Net loss was $12.0 million, improved from $14.4 million year-over-year.

Outlook and guidance

• Sequential improvements in revenue and gross margin are expected each quarter throughout 2025.

• Q3 2025 revenue guidance: $37 million–$40 million; full-year 2025 revenue guidance: $191 million–$197 million.

• Non-GAAP adjusted EBITDA loss expected between $11 million and $13 million for Q3 and $13 million–$17 million for the full year.

• Projected to achieve profitability on a non-GAAP adjusted EBITDA basis in Q4 2025.

• Year-end cash expected in the range of $30 million–$35 million, with no debt.