Nerdy Inc (NYSE:NRDY)

Q2 2025 Nerdy Inc Earnings Call Transcript

Aug 7, 2025 / 09:00 PM GMT

Release Date Price: $22.5 (+7.14%)

Transcript 10-Q8-K

Key Points

Positve

Nerdy Inc (NRDY) reported a return to growth in learning membership revenue, up 4% year over year, marking a positive shift after four quarters of decline.
The company's Varsity Tutors for Schools bookings grew by 21% year over year, indicating strong demand for high dosage tutoring offerings.
Gross margin expanded by 350 basis points sequentially from the first quarter, with expectations for continued improvements throughout 2025.
Nerdy Inc (NRDY) is on track to achieve profitability in the fourth quarter of 2025, supported by a positive inflection in annualized run rate learning membership revenue.
The integration of AI tools into the platform is enhancing customer engagement and retention, with new AI-powered features improving onboarding and activation metrics.

Negative

Total revenue for the second quarter was $45.3 million, down 11% year over year, primarily due to a non-recurring state-funded program and lower institutional revenue.
The company reported a non-GAAP adjusted EBITDA loss of $2.7 million, although this was better than expected.
Institutional revenue was impacted by lower 2024 bookings and a cautious federal and state-level funding environment.
Sales and marketing expenses decreased, reflecting consumer marketing efficiency gains but also a moderation of investments in the institutional business due to funding uncertainties.
Despite improvements, the company still faces challenges in scaling its institutional offerings and achieving broader adoption of its AI tools across school districts.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

NRDY.N - Nerdy Inc
Q2 2025 Nerdy Inc Earnings Call
Aug 07, 2025 / 09:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good afternoon.

Thank you for attending Nerdy Inc.s 2nd quarter 2025 earnings call. My name is Megan, and I'll be your moderator for today.

All lines will be muted in the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass a conference over to your host, TJ Lin, Associate general consul of Nerdy. You may proceed.

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Unidentified_2 [2]
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Good afternoon and thank you for joining us for.

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Unidentified_3 [3]

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