Overview

• US online tutoring platform's Q1 revenue rose 2% yr/yr, topping company guidance

• Net loss narrowed this Q1to $6.1 million from $16.2 million last year

• Gross margin improved to 66.2% from 58% on price increases and cost control

Outlook

• Nerdy expects Q2 2026 revenue of $42-$44 mln

• Company sees full-year 2026 revenue at $180-$190 mln

• Nerdy expects full-year 2026 non-GAAP adjusted EBITDA to be approximately breakeven

Result Drivers

• PRICE INCREASES - Co said revenue and gross margin growth were primarily driven by price increases enacted in February 2025

• EFFICIENCY GAINS - Co attributed margin improvement and positive adjusted EBITDA to efficiency improvements and strong cost control across every P&L line item

• MEMBERSHIP DECLINE - Active member base fell 9% yr/yr, though the rate of decline narrowed for three consecutive quarters

Company press release: ID:nBw7VwLMGa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Adjusted Net Income	Beat	-$200,000	-$7.40 mln (2 Analysts)
Q1 Net Loss		$6.1 mln
Q1 Gross Margin		66.20%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy."

• Wall Street's median 12-month price target for Nerdy Inc is $2.00, about 129.1% above its May 6 closing price of $0.87

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.