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Nerdy (NRDY) Degree of Operating Leverage : -3.58 (As of Mar. 2025)


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What is Nerdy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Nerdy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -3.58. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Nerdy's Degree of Operating Leverage or its related term are showing as below:

NRDY's Degree of Operating Leverage is ranked better than
80.71% of 2660 companies
in the Software industry
Industry Median: 0.78 vs NRDY: -3.58

Nerdy Degree of Operating Leverage Historical Data

The historical data trend for Nerdy's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Nerdy Degree of Operating Leverage Chart

Nerdy Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -0.79 10.10 -0.18 -1.94 -13.29

Nerdy Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.38 -0.53 -0.59 -13.29 -3.58

Competitive Comparison of Nerdy's Degree of Operating Leverage

For the Software - Application subindustry, Nerdy's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Nerdy's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Nerdy's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Nerdy's Degree of Operating Leverage falls into.


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Nerdy Degree of Operating Leverage Calculation

Nerdy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -73.84 (Mar. 2025) / -59.054 (Mar. 2024) - 1 )/( 184.099 (Mar. 2025) / 197.946 (Mar. 2024) - 1 )
=0.2504/-0.07
=-3.58***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Nerdy  (NYSE:NRDY) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Nerdy Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Nerdy's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Nerdy Business Description

Industry
Traded in Other Exchanges
N/A
Address
8001 Forsyth Boulevard, Suite 1050, St. Louis, MO, USA, 63105
Nerdy Inc is a curated direct-to-consumer platform for live online learning. Its proprietary platform leverages technology, including artificial intelligence ("AI"), to connect students, users, parents, guardians, and purchasers of all ages to tutors, instructors, subject matter experts, educators, and other professionals. The company provides learning experiences across numerous subjects and multiple formats, including one-on-one instruction, small group tutoring, large format classes, tutor chat, essay review, adaptive assessments, and self-study tools. The company generates revenue by selling services to learners and institutions for one-on-one instruction and small group tutoring.
Executives
Jason H. Pello officer: Chief Financial Officer NERDY INC., 101 S. HANLEY RD., SUITE 300, ST. LOUIS MO 63105
Christopher C. Swenson officer: Chief Legal Officer NERDY INC., 101 S. HANLEY RD., SUITE 300, ST. LOUIS MO 63105
Charles K. Cohn director, officer: Chief Executive Officer NERDY INC., 101 S. HANLEY RD., SUITE 300, ST. LOUIS MO 63105
Heidi Robinson officer: Chief Product Officer NERDY INC., 101 S. HANLEY RD., SUITE 300, ST. LOUIS MO 63105
Tpg Gp A, Llc director, 10 percent owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Light Street Mercury Master Fund, L.p. 10 percent owner 525 UNIVERSITY AVENUE, SUITE 300, PALO ALTO CA 94301
Stuart Udell director 2300 CORPORATE PARK DRIVE, HERNDON VA 20171
Christopher P Marshall director 250 MIDDLEFIELD RD, MENLO PARK CA 94025
Jon Winkelried director, 10 percent owner C/O GOLDMAN, SACHS & CO., 85 BROAD STREET, NEW YORK NY 10004
Gregory Mrva officer: President C/O CITADEL BROADCASTING CORPORATION, 7201 W. LAKE MEAD BLVD. 400, LAS VEGAS NV 89128
Technology Crossover Management Viii, Ltd. 10 percent owner, other: Member of a 13(d) group C/O TECHNOLOGY CROSSOVER VENTURES, 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Technology Crossover Manangement Viii, L.p. 10 percent owner, other: Member of a 13(d) group 528 RAMONA STREET, PALO ALTO CA 94301
Tcv Viii (a), L.p. other: Member of a 13(d) group 528 RAMONA STREET, PALO ALTO CA 94301
Tcv Viii, L.p. 10 percent owner, other: Member of a 13(d) group 528 RAMONA STREET, PALO ALTO CA 94301
Catherine Beaudoin director NERDY INC., 101 S. HANLEY RD., SUITE 300, ST. LOUIS MO 63105