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Sep 30, 2025
Nerdy Q3 2025 Earnings Report
Estimated Revenue:$39.2M
+9.0% YoY
Estimated EPS:-$0.12
+48.7% YoY
Key Takeaways
Nerdy delivered third-quarter revenue of $37.0 million, meeting its guidance range, and significantly improved its non-GAAP Adjusted EBITDA margin year-over-year, reinforcing its path to profitability. The company also enhanced its liquidity with a new $50 million term loan.
Revenue for the third quarter was $37.0 million, a 1% decrease year-over-year, primarily due to lower Institutional revenue partially offset by higher Consumer revenue.
Non-GAAP Adjusted EBITDA loss was $10.2 million, beating guidance and showing a 960 basis point improvement year-over-year.
Gross margin was 62.9%, a decrease from 70.5% in the prior year, mainly due to investments in Expert pay and incentives, but improved sequentially from Q2 2025.
The company secured a new term loan with a $50 million borrowing capacity, with $20 million drawn, to enhance liquidity and support growth initiatives.
Revenue by Segment
Forward Guidance
Nerdy provided fourth-quarter and updated full-year 2025 guidance, expecting continued revenue growth and further improvements in non-GAAP Adjusted EBITDA.
Positive Outlook
- Fourth-quarter 2025 revenue is expected to be in the range of $45 million to $47 million.
- Full-year 2025 revenue is projected to be between $175 million and $177 million.
- Fourth-quarter 2025 non-GAAP Adjusted EBITDA loss is anticipated to be in a range of $2 million to breakeven.
- The company expects to end the year with $45-48 million in cash, including the $20 million drawn from the new Term Loan.
- Ample liquidity is expected to fund the business and pursue growth initiatives.
Challenges Ahead
- Full-year 2025 non-GAAP Adjusted EBITDA loss is still expected in the range of $19 million to $21 million.
- The company continues to report a net loss and negative operating cash flows, which may require other sources of liquidity.
- Risks associated with the evolving nature of offerings make it difficult to predict future financial and operating results.
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