Nerdy (NRDY) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $43.3 million, down 4% year-over-year, with improved operating performance and a sharpened focus on consumer learning following exits from First Tutors (UK) and Varsity Tutors for Schools.

• Net loss narrowed to $6.9 million from $12 million year-over-year; non-GAAP adjusted EBITDA loss improved to $0.9 million, a 68% improvement.

• Active Member decline slowed for the fourth consecutive quarter, with expectations to return to growth by year-end 2026.

• Strategic exits from non-core businesses incurred $2–$4 million in exit costs, mostly in Q3.

Financial highlights

• Gross margin expanded to 64.7%–65% due to lower amortization and expert costs.

• Free cash flow improved 24% year-over-year to -$6.3 million.

• Sales and marketing expenses decreased 15% year-over-year; G&A expenses down 14%.

• Cash and cash equivalents at June 30, 2026 were $38.4 million.

• Operating cash outflow for the first half was $6.5 million, improved from $13.5 million in the prior year.

Outlook and guidance

• Full-year 2026 revenue guidance reduced to $168–$175 million from $180–$190 million, reflecting business exits.

• Q3 2026 revenue expected at $32–$35 million; Q3 Adjusted EBITDA guidance of -$9 million to -$6 million, excluding exit costs.

• Full-year Adjusted EBITDA outlook revised to -$4 million to breakeven, excluding exit costs.

• Year-end cash expected at $30–$32 million, including $20 million drawn on term loan.