Nerdy Inc (NYSE:NRDY)

Q2 2026 Nerdy Inc Earnings Call Transcript

Aug 6, 2026 / 09:00 PM GMT

Release Date Price: $12.64 (+1.49%)

Transcript 10-Q8-K

Key Points

Positve

Nerdy Inc (NRDY) reported a 68% year-over-year improvement in non-GAAP adjusted EBITDA loss, narrowing to $0.9 million in Q2 2026.
Gross margin expanded by 320 basis points to 64.7% in Q2 2026, driven by lower amortization and export costs.
The company is strategically exiting lower-return businesses (Varsity Tutors for Schools and First Tutors), which is expected to reduce annual fixed costs by approximately $11 million.
Product development has accelerated significantly, with over 15,000 lessons launched across 220 subjects and a new integrated 'study plan' feature, despite a 34% reduction in headcount.
The rate of decline in learning memberships has moderated for four consecutive quarters, with management expecting a return to positive member growth by the end of 2026.
Free cash flow improved by 24% year-over-year to negative $6.3 million in Q2 2026.

Negative

Nerdy Inc (NRDY) reduced its full-year 2026 revenue guidance to $168 million-$175 million from the prior $180 million-$190 million range.
The company's full-year 2026 non-GAAP adjusted EBITDA guidance was lowered to a loss of $4 million to breakeven, down from the prior expectation of approximately breakeven.
Learning memberships declined 5% year-over-year to 29,100 as of June 30, 2026.
The company expects a seasonally weak Q3 2026, with non-GAAP adjusted EBITDA guidance of negative $9 million to negative $6 million.
Year-end cash balance expectations were reduced to $30 million-$32 million from $40 million-$45 million, partly due to the timing of collections from the exited Varsity Tutors for Schools business.
AI-related expenses increased sharply to $2 million in Q2 2026, up from $0.4 million in the same quarter last year.

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

NRDY.N - Nerdy Inc.
Q2 2026 Nerdy Inc Earnings Call
Aug 06, 2026 / 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 Quarter 2 2026 earnings call. My name is Matthew and I will be your moderator for today's call.

All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.

I would now like to pass the conference over to your host, TJ Lin, Associate General Counsel 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 Nerdy's second-quarter 2026 earnings call.

With me are Chuck Tone, Founder,

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